With earnings season well underway, the second week of earnings provided mixed results across the multiple property sectors. The companies that reported this week were GPT, CLW, CNI, GMG, VCX, ABP and AVN.
The most notable performer was Goodman Group (ASX: GMG) which reported strong earnings across all divisions. Off the back of the e-commerce trend, the development division accounted for 42% of earnings as demand for industrial and logistic use sites continued to grow. GMG increased the earnings guidance for FY19 to 51.1 cps from 50.0 cps announced back at FY18 results. AUM increased a strong 24% to $42.9B, placing GMG on track to deliver its target of $50B by FY22.
With the retail climate being a cause of concern, Vicinity Centres (ASX: VCX) reported mixed results as they continued to undergo transformation. The Flagships assets performed well with strong MAT growth of 3.2% across the destination portfolio resulting in a total net property income growth of 1.1%. However, the planned launch of the wholesale fund and further divestment of assets was delayed till post FY19 with management indicating a weaker market appetite for retail assets.