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.
Business News Australia
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