CFX retains forecast
CFS Retail Property Trust (CFX) said it remained cautious and retained its forecast expectation of specialty retail sales growth slowing across its portfolio to approximately 3% despite solid sales performance over the September quarter. The shopping centre focused fund also retained its distribution projection of 12.5c per unit for FY10.
Looking at the September quarter results, the trust reported retail specialty sales growth of 3.8%, while gearing stood at 30% at 30 September 2009.
CFX Fund Manager, Michael Gorman, said the performance of retail specialty store sales remained solid, which he said reflects improved consumer confidence which had been buoyed by the impact of the fiscal stimulus and low interest rates.
The trust said it had undrawn debt facilities of approximately $440 million as at 30 September 2009.
“By maintaining a strong balance sheet the trust is well placed to capitalise on opportunities that may arise going forward,” Mr Gorman said.
Over the period, the trust’s property portfolio of 24 retail assets recorded total sales in excess of $6.2 billion, up about $77.5 million from the previous corresponding period.
Across the retailing categories, CFS said comparable MAT growth was strongest in mini-majors with an increase of 6.2%, while retail specialty store sales growth stood at 3.8%.
The trust said comparable sales growth in the major tenant categories were mixed with supermarket sales up 1.5%, discount department stores sales up 1.4% and department stores sales down 0.6%.
Head of Property, Mr Darren Steinberg, said the redevelopments that are nearing completion and those planned for the next phase of development would assist the trading performance and value of the trust’s shopping centres.
As at 1129 AEDT, CFS Retail Property Trust shares were up 0.5c to $1.935.
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