Aussie portfolio drives Charter Hall Retail REIT earnings
Driven by strong growth in its Australia portfolio, the Charter Hall Retail real estate investment trust (REIT) has reported a statutory profit of $9.7 million for the year ending 30 June.
The fund also reported operating earnings of $86.3 million and Australian balance sheet gearing of 32.8 per cent.
Charter Hall Retail REIT fund manager Scott Dundas said the Australian portfolio - which makes up 91 per cent of net tangible assets - continues to report "stable occupancy and income growth" driven by the performance of non-discretionary retailers such as Coles and Woolworths.
In the 12 months to 30 June, the Australian REIT completed 241 leasing transactions across the portfolio, delivering specialty rental rate growth of 4.9 per cent. Occupancy levels also remained steady at 98.6 per cent, Charter Hall stated.
In line with its focus on the Australian non-discretionary sector, the trust also acquired four assets for $160 million, with work commencing on four shopping centre redevelopment projects with a total development value of $80.8 million.
"Given the continued resilience of the non-discretionary retail market and with 84 per cent of the REIT's Australian portfolio consisting of high quality neighbourhood and sub-regional shopping centres, the REIT is well positioned as we move into FY13 and beyond," Dundas said.
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