This article is from the Australian Property Journal archive
OVER FY22 SCA Property Group (ASX:SCP) posted a 5.2% increase in NPAT, reaching $487.1 million, though the group anticipates the current interest rate environment will drain earnings in the coming year.
FFO was at f $192.7 million, up by 21.2% compared to FY21, with FFO per unit at 17.40 cents per unit, up 17.9% on FY21. AFFO was at $169.5 million, up by 24.8% on the pcp, with AFFO per unit at 15.30 cpu, up by 21.3% on FY21. Distributions were at 15.20 cpu, up 22.6% on FY21, reflecting a payout ratio of 99.8% of AFFO. Net tangible assets were at $2.81 per unit , up by 11.5% from $2.52 in the previous corresponding period.
“Pleasingly, our earnings per unit is now above the pre-COVID level. This has been the result of solid operational performance in a challenging environment and a strong balance sheet enabling investment in acquisitions, developments and funds management,” said Mark Fleming, CFO of SCP.
SCA’s investment property portfolio saw an increase of $460.9 million since 30 June 2021, for a combined value of $4,460.9 million.
This was a result of a $421.0 million valuation increase and seven acquisitions worth $347.5 million, which were offset by divestments of $307.6 million.
Portfolio occupancy was at 98.1% of GLA, up from 97.4% in the pcp, with specialty vacancy down to 5.0% from 5.1%.
“Over the last twelve months, our convenience-based centres have remained resilient. Our tenant sales are now 10% above pre-COVID levels. Leasing spreads and cash collection rates were impacted by lockdowns in New South Wales and Victoria during the first half of the year, but improved in the second half,” said Anthony Mellowes, CEO of SCP.
Total portfolio weighted average capitalisation rate was 5.43%, down from 5.90%, with sub-regional centres compressing to 5.87% from 6.35%, neighbourhood centres compressing to 5.28% from 5.77% and freestanding centre compressing to 4.63% from 5.50%.
Leasing spreads were up to 2.0% for FY22, compared to FY21’s 0.4%, including 3.3% in the second half alone.
Gearing was at 28.3% at 30 June 2022, down from 31.3% at 30 June 2021, attributed largely to valuation increases.
Cash and undrawn facilities were at $452.7 million, with the average maturity of debt at 5.3 years, the percentage of debt fixed or hedged was 69.6% and the weighted average fixed/hedged maturity was 4.9 years. While the Average cost of debt was at 2.5% , up from 2.4% in FY21.
MER was at 0.38% at 30 June 2022, down from 0.41% in the pcp, as a result of increased AUM.
SCP provided a guidance for FY23 FFO per unit is 17.0 cpu and for FY23 AFFO per unit is 15.0 cpu.
