This article is from the Australian Property Journal archive
CFS Retail Property Trust's portfolio has continued to record growth thanks to significant gains from major assets which have help offset two falls.
The trust revalued 10 properties between January and June 2008 and as a result saw the value of its portfolio increase by $154.2 million or 4.3% to $3.74 billion.
But the trust’s portfolio recorded a fall in two properties. The value of CFX’s Post Office Square in Brisbane fell 12% or $10.4 million to $76.3 million, whilst the Entertainment Quarter in south-east Sydney which the trust has a 50% stake in, fell 2.2% or $1.2 million to $53 million.
But that was offset by significant gains in major assets such as Chadstone Shopping Centre in Melbourne’s south-east, where the $106.7 million increase was the result of improved income and the completion of the stage 25 development in December 2007. Chatswood Chase Shopping Centre in Sydney and Rockingham City Shopping Centre in Perth also achieved solid increases in value, with a $17.8 million and $10.5 million uplift respectively.
As a result of the gain, the gross assets of the trust has increased to $7.6 billion and the Net
Tangible Asset backing per unit is estimated to increase from $2.26 at January 01 2008 to approximately $2.32 at June 30 2008.
CFX’s fund manager Michael Gorman said these valuations reflect the value arising from continuing redevelopment and the quality of the trust’s assets.
“It is also an example of how the active management, leasing and development services provided by Colonial First State Property Management contribute to the Trust,” he added.
Meanwhile, the trust’s weighted average capitalisation rate softened marginally from 5.74% at December 2007 to an estimated 5.77% at June 2008.
Colonial First State Property’s head of listed property funds Darren Steinberg said although the current cycle of capitalisation rates firming has concluded, CFX’s portfolio continues to achieve solid overall valuation uplift, underpinned by solid rental growth in quality assets such as Chadstone Shopping Centre, QueensPlaza and Chatswood Chase Shopping Centre.
CFX’s share price traded 5 cents higher at $2.05.
Australian Property Journal
