Why the SCA Property (ASX:SCP) share price is on watch today

Investors will be on the lookout to see how SCA Propertyshares perform today…

| More on:
asx share price on watch represented by young man looking intently through magnifying glass

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The SCA Property Group (ASX: SCP) share price will be one to watch on Thursday morning. This comes after the retail property group provided the results of its property valuations as well as a dividend update.

At yesterday's closing bell, SCA Property shares finished the day at $2.50.

Why is the SCA Property share price on watch?

In its release, SCA Property advised that its investment properties increased in value by $446.2 million to June 2021. This brings the total portfolio value to $3,849.5 million, up from $3,403.3 million in December 2020.

The 13.1% uplift in property valuations was attributed to like-for-like properties which saw a growth of $323.1 million. The company related the increase to capitalisation rates – or yields softening by 48 basis points (bps) to 5.91% over the 6-month period.

Net operating income (NOI) edged $1.5 million higher, representing a 0.7% gain on December 2020 levels.

Acquisitions added $123.1 million with a weighted average capitalisation rate of 6.26%. This included regional assets such as Katoomba Marketplace in New South Wales, Cooloola Cove and Mt Isa in Queensland, and Warnbro Petrol Station in Western Australia.

SCA Property noted that its Net Tangible Assets (NTA) at the end of the month will stand at $2.50 per unit. Although an increase from the $2.25 recorded in December last year, this metric will be slightly diluted primarily due to capital expenditure.

In addition to the valued portfolio, the company has entered a deal to acquire the Marketplace Raymond Terrace shopping complex in Port Stephens. The $87.5 million transaction will be exercised via a call option after 1 July 2021, reflecting a yield of 5.96%.

Once the takeover is complete, SCA's portfolio of regional and neighbourhood shopping centres will almost be at $4 billion.

Dividend update

Complementing the announcement, management declared a dividend distribution of 6.70 cents per stapled unit from 1 January 2021 to 30 June 2021. This implies a 34% improvement of the prior corresponding period.

The payment date for shareholders is on 31 August 2021, approximately 2 weeks after the release of its full-year results (16 August).

The SCA Property share price has been relatively flat over the last 12 months, up 2%.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Shopping Centres Australasia Property Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on REITs

Group of successful real estate agents standing in building and looking at tablet.
Dividend Investing

1 ASX dividend stock down 25% to buy right now

I think this income business is a compelling buy right now.

Read more »

a cute jack russell dog closes its eyes and yawns as if waking up from a long sleep underneath a doona cover next to a pair of feet with an old-fashioned alarm clock nearby.
REITs

Get paid like clockwork with this 6% Australian dividend stock

Investors can harvest good cash flow with this stock.

Read more »

a man with hands in pockets and a serious look on his face stares out of an office window onto a landscape of highrise office buildings in an urban landscape
REITs

Is it time to grab these cheap ASX 300 stocks before it's too late?

Here’s why these ASX shares seem very cheap in my view.

Read more »

Group of successful real estate agents standing in building and looking at tablet.
Opinions

Should ASX REITs be on your buy list right now?

Analysts offer their views.

Read more »

An older couple dance in their living room as they enjoy their retirement funded by ASX dividends
REITs

Why I think this could be the #1 ASX property stock for retirement

I believe this stock is offering everything that retirees could want.

Read more »

Boys making faces and flexing.
REITs

These 3 ASX index-beaters are setting new records today (I'd still buy)

I think these stocks still have plenty of growth potential.

Read more »

A business woman flexes her muscles overlooking a city scape below.
REITs

Why ASX property shares could be set for a comeback

The recovery could be strong, too, according to one global investment giant.

Read more »

An Australian farmer wearing a beaten-up akubra hat and work shirt leans on a fence with livestock in the background and a blue sky above.
REITs

Why I'm more bullish than ever on this ASX 300 dividend stock

This is a leading passive income share, in my opinion.

Read more »