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.