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Shopping Centres Australasia REIT posts half-year results

Real estate investment trust (REIT) Shopping Centres Australasia Property Group RE Ltd (ASX: SCP) this morning released its results for the half-year ending 31 December 2018, falling largely in line with market expectations. SCA’s share price is 0.8% higher this morning to at $2.49, a gain closely mirrored by the broader S&P/ASX 200 A-REIT sector.

SCA Property Group owns a portfolio of shopping centres and freestanding retail assets focused on convenience retailing across Australia. As of November 2018, its portfolio was valued at over $3 billion.

A summary of the results is provided below:

  • Funds from operations (FFO) of $65.9 million, up 17.5% on the previous corresponding period. FFO is largely comprised of rental income net of property expenses, corporate costs, tax expense and finance costs.
  • Adjusted funds from operations (AFFO) of $60.6 million, up 17.5% on the previous corresponding period. AFFO is FFO adjusted for maintenance capex, incentives and leasing costs.
  • Distribution of 7.25 cents per unit, up 6.6% on the previous corresponding period
  •  Statutory net profit after tax of $39.3 million, 43.5% lower than the previous corresponding period. This is attributed primarily to the expensing of transaction costs on acquisitions and reduced asset valuation uplift
  • FY19 FFO per unit guidance of 16.20 cents per unit (5.9% higher than actual FY18 results)
  • FY19 distribution per unit guidance of 14.70 cents per unit (5.8% above FY18 actual)

SCP had a strong 2018, with the share price reaching an all-time high of $2.74 in December.

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Motley Fool contributor Cale Kalinowski has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Shopping Centres Australasia Property Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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