This article is from the Australian Property Journal archive
MACQUARIE CountryWide Trust has maintained an occupancy rate of 96.9% despite posting a weaker March quarter from its United States portfolio.
The trust’s Australian and New Zealand portfolio continued to deliver strong results during the quarter with occupancy levels remaining above 99% and rental growth of 31% on 20 new lease deals and 14.8% on 15 lease renewal transactions across the portfolio.
The same store net operating income growth in Australia for the period to was 3.2%.
Chief executive Steven Sewell said rental growth achieved this quarter can be attributed to rental increases on new leases and reversions.
“Notably, the trust’s portfolio remains well leased to market dominant, non-discretionary spend anchors, such as grocers, supported by quality small shop retailers.
“These strong underlying fundamentals enhance the trust’s resilience in times of a slowing economic environment particularly in the US,”
The trust’s us portfolio achieved 9.7% weighted average rental growth, driven by 34 new leases and 129 renewal transactions completed by the trust’s joint venture partner, Regency Centers.
But the occupancy rate fell from 96.2% to 95.8% due to the expiration of primarily short term leases with non-national brand retailers and the longer lead time spent securing alternative tenants. Same store NOI growth for the period to 31 March 2008 was 3.2%.
Sewell said the trust’s key priorities are tenant retention and maintenance of occupancy levels to secure income streams in the current environment.
Finally, the trust’s Europe portfolio continued its solid performance and maintained an occupancy level of over 99% during the March 2008 quarter. During the period, 12 new leases with rental growth of 24% and 11 renewals with growth of 7.3% were finalised.
Australian Property Journal
