This article is from the Australian Property Journal archive
LARGE format centre owner Aventus has defied the tough retail environment to post full year net operating income growth of 3.5%.
Funds from operations lifted 8.2% to $96.2 million, while revenue increased to $167.3 million. Net profit after tax was $110.4 million, down 18.6%.
Tenancy remixing resulted in 141 leases covering 108,000 sqm being negotiated, and an occupancy rate of 98.4% across its portfolio of 20 homemaker centres.
“In introducing new tenants, the focus has been on everyday needs, products and services such as food, health and wellbeing, services and childcare. These tenants contribute to increased weekday traffic and improve customer linger time,” Aventus (AVN) chief executive officer, Darren Holland said.
Homemaker centres are broadly seen as capable of surviving the current retail sector gloom that has hit department store, discount chains and fashion retailers hardest.
More than 70% of its 33 new tenants introduced to the portfolio during the year were from the “everyday needs” category, and its food offering expanded by 12 new operators.
Aventus spent $30 million in line with its strategy to add value, increase gross lettable area of centres, and improve the shopping experience and investor returns. Development spend for FY20 is forecast to be more than $40 million, headed by Caringbah in Sydney.
“Our core strategy of delivering organic growth through intensive asset management remains clear and drives real results,” Holland said.
The FY20 guidance of FFO per security is expected to grow by 3% to 4%, equal to 19.0 cps to 19.2 cps.
Aventus spent $1.6 million in legal fees on its failed attempt to stop Home Consortium sub-leasing a former Masters store at the Cranbourne Home centre to Amart Furniture.
