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Shopping Centres Australasia delivers on first full-year profit

Shopping Centres Australasia (SCA) Property (ASX: SCP) announced its full-year 2013 profits today, marking the company’s first annual report since it went public in a Woolworths (ASX: WOW) spinoff last November. And while sales clocked in below expectations, the company managed to pull through on its net operating profit.

Rental income for 2013 came in at $59.3 million, $3.9 million below forecasts for the year. However, an unexpected $2.7 million beat on rental reimbursements and $1.5 million boost in net interest expense expectations helped put SCA’s net operating profit at $39.3 million. For investors, that translates to $0.066 per share, a smidgeon $0.001 ahead of previously disclosed forecasts.

“SCP has built on its foundation as an owner of convenience-based retail centres focused on the non-discretionary retail sector and highlighted its ability to deliver stable and secure income for investors,” said CEO Anthony Mellowes in a statement today. “During the period we acquired seven quality neighbourhood shopping centres, introduced Wesfarmers Group (ASX: WES) as an anchor tenant in two locations and executed a $90 million institutional placement.”

Looking ahead, Mellowes will focus SCA on continuing to lease out vacancies while edging up incremental value from its existing assets. “Defensive, resilient cash flows” are what the CEO is looking for, and Mellowes expects to continue to deliver on expectations. Fiscal 2014 guidance remains unchanged with profits expected to clock in at $0.122 per share, accompanied by a $0.108 per share distribution.

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Motley Fool contributor Justin Loiseau has no position in any stocks mentioned in this article. You can follow him on Twitter @TMFJLo.

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