SCA Property Group falls victim to tough retail conditions

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

Get our daily business news

Sign up to our free email news updates.

 
Unpacking equity: Finding your funding fit
Partner Content
Armed with a growing business and a great opportunity, a business owner’s next challe...
Australian Business Growth Fund
Advertisement

Related Stories

Salter Brothers fund makes a $74m takeover play for non-bank lender Prospa

Salter Brothers fund makes a $74m takeover play for non-bank lender Prospa

Melbourne-based alternative investment firm Salter Brothers is pois...

CSR to change hands for $4.3 billion in deal with French giant Saint-Gobain

CSR to change hands for $4.3 billion in deal with French giant Saint-Gobain

One of the oldest companies listed on the Australian Stock Exchange...

Grays agrees to pay $10m fine for misleading car ads on its website

Grays agrees to pay $10m fine for misleading car ads on its website

Online auction platform Grays has agreed to pay a $10 million fine ...

Superloop board rejects "opportunistic" takeover offer from Aussie Broadband

Superloop board rejects "opportunistic" takeover offer from Aussie Broadband

The board of Superloop (ASX: SLC) has taken little time in assessin...