Forum Archive Index - December 1999

[Sarah Corkill <Sarah.Corkill@directbroking.co.nz>]

Dear Hugh,

St Lukes recently had a capital notes issue to fund it's planned extensions
of Queensgate in Lower Hutt, some Mall in Albany + paying off maturing debt.
It was widely predicted before the capital note issue was complete that the
shares would decline and be slightly out of favour because the increased
interest expense for the company.  As with all forms of debt funding
shareholders are often concerned that their return via dividends will be
affected - prime example: TEL buying AAP.

St Lukes increased interest expense may lower the dividends which for some
investors makes them less attractive.  Over time I would have thought that
these expansions would be good for the company which would reflect in longer
term capital gains.

Kind regards,

Sarah Corkill
Direct Broking



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