- Distributions of 15.20 cpu, a payout ratio of 99.8% of AFFO
- AFFO of 15.30 cpu, 21.3% up from FY21
- NPAT was $487.1 million
SCA Property Group (ASX: SCP) has released its full-year results, with the company delivering a 5.2% increase in net profit after tax.
SCP’s funds from operation and adjusted funds from operations also moved up, the company delivered $192.7 million in FFO or 17.40 cents per unit, and AFFO of $169.5 million or 15.30 cpu.
“Over the last twelve months, our convenience-based centres have remained resilient. Our tenant sales are now 10% above pre-COVID levels,” said SCA Property CEO, Anthony Mellowes.
“Leasing spreads and cash collection rates were impacted by lockdowns in New South Wales and Victoria during the first half of the year, but improved in the second half.
“We have made solid progress on our sustainability program, including completing our LED rollout, and the installation of solar panels on our WA assets,”
The company’s investment portfolio value moved up $460.9 million to $4.460.9 billion. SCA Property said this increase was due to a valuation increase of $421.0 million and acquisitions of $347.5 million, offset by divestments of $307.6 million.
| NPAT | $487.1 million | Up 5.2% |
| Funds from operations | $192.7 million | Up 21.2% |
| FFO per unit | 17.40 cents | Up 17.9% |
| Adjusted FFO | $169.5 million | Up 24.8% |
| AFFO per unit | 15.30 cents | Up 21.3% |
| Distributions | 15.20 cents per unit | Up 22.6% |
| Gearing | 28.30% | Down from 31.3% |
Source: SCA Property.
Increased assets; high occupancy
The company had net tangible assets of $2.81 per unit, up 11.5% from $2.52 in the prior corresponding period.
SCA Property’s portfolio occupancy was recorded at 98.1% of GLA, up from 97.4% at 30 June 2022, with specialty vacancy of 5% of GLA.
The $487.1 million statutory net profit after tax includes significant movements in non-cash fair value adjustments, including a $354 million increase in like-for-like fair value of investment properties.
SCP said, excluding non-cash and one-off items, funds from operations (“FFO”) was $192.7 million. The main reasons for this increase were acquisitions and comparable net operating income growth.
“Pleasingly, our earnings per unit is now above the pre-COVID level,” said SCA Property CFO, Mark Flemming.
“This has been the result of solid operational performance in a challenging environment and a strong balance sheet enabling investment in acquisitions, developments and funds management. Our gearing is at the lower end of our target range and post-year end 81% of our debt is fixed or hedged,”
“We have also progressed our funds management strategy during the year, commencing a new joint venture fund with GIC (named the SCA Metro Fund), and successfully winding up our final SURF fund.
“The SCA Metro Fund positions us to access relatively lower return metropolitan neighbourhoods, in partnership with a high quality and globally recognised partner, while growing asset-light management fee income. The GIC partnership is a strong endorsement of our expertise in the neighbourhood shopping centre segment.”
