SCA Property Group falls victim to tough retail conditions

Written on the 8 August 2018 by Yasmin Bonnell

SCA Property Group falls victim to tough retail conditions

In what marks yet another sign that the Australian retail environment continues to struggle, commercial landlord Shopping Centres Australasia Property Group (ASX: SCP) has reported a 45.2 percent profit fall, down to $175.2 million.

The retail trust has blamed its lacklustre result on stunted property value growth compared to its prior year.

The company's funds from operations buffered its result, recording a 5.4 percent increase to $114.3 million.

Improving its tenancy mix and evolving to more resilient retail categories is a priority for SCA in FY19 as they recognize the challenging environment.

Despite signs of a falling property market, competition remains strong for investors.

CEO of SCA Property Group Anthony Mellows says rivalry to secure worthy assets is fierce.

"The competition to acquire quality neighborhood shopping centers remains elevated, and yields remain firm.

"Nevertheless, we are confident that we can continue to leverage our relationships, management capabilities and knowledge of the sector to source further transactions that meet our investment criteria, he says."

Shares in Shopping Centres Australasia Property Group are trading at $2.43 per share at 10:06 am AEST.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

 
Author: Yasmin Bonnell

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter