This article is from the Australian Property Journal archive
THE Charter Hall Retail REIT has posted a modest 2.1% growth in operating earnings of $58.9 million for the six months to December 31.
The statutory profit of $104.4 million reflects a 23.8% increase. Distributions was 14.0 cents per unit, up 2.2%.
Fund manager Scott Dundas said the positive performance and result reflects the REIT’s disciplined use of capital and a continued focus on portfolio enhancement.
“We continued to actively manage our portfolio focusing on strong tenant relationships, optimising tenancy mix and prudent capital management as we recycled out of non-core properties into larger assets with forecast higher growth characteristics,” he added.
The trust’s $2.5 billion portfolio of 76 supermarket anchored shopping centres delivered stable occupancy of 98.4% and same property NOI growth of 2.4%. The trust achieved specialty rent growth of 1.4% with 90 new leases and 61 renewals completed in the period and a retention rate for specialty tenants of 86%.
Specialty MAT growth increased to 3.5% for the period, reflecting the improved performance of national specialty tenants who represent 59% of the specialty portfolio. Anchor MAT growth has stabilised at 1.2% for stores in turnover, following the recent challenges for the Woolworths supermarket business.
Property valuations increased by $59.5 million or 2.5% over the six month period, with the weighted average capitalisation rate firming by 26 basis points to 6.89%.
Dundas said barring unforeseen events, the FY16 guidance for operating earnings is unchanged at between 30.25 and 30.75 cents per unit.
“With a geographically diverse non-discretionary retail focus and anchor tenant income generated equally from Wesfarmers and Woolworths owned retailers, the REIT is well positioned.” Dundas concluded.
Australian Property Journal
