Retail sales pick up in March quarter

A pickup in retail sales was reported in the March quarter from a number of listed A- REITs. Some key Moving Annual Turnover (MAT) results reported (for comparable stores) for Vicinity Centres (ASX: VCX), Stockland (ASX: SGP), Charter Hall Retail REIT (ASX: CQR) and Westfield (ASX: WFD), include:

  • Department Stores: VCX (-3.8%, from -4.5% at Dec17), SGP (+0.4%, including DDS)

  • Discount Department Stores (DDS): VCX (+2.9%), CQR (+3.8%)

  • Mini majors: VCX (+4.4%)

  • Supermarkets: VCX (+2.0%), SGP (+0.9%), CQR (+3.2%)

  • Specialty: VCX (+0.4%), SGP (+1.6%), WFD (+3.5%, global centres)

VCX upgraded their FY18 earnings guidance to 18.2 cpu to the top of their range (prior 18.0 – 18.2cpu). SGP and CQR maintained

their guidance. WFD also reported strong sales growth in their international portfolio, ahead of the meeting to vote on the merger with Unibail-Rodamco on 24 May.

Dexus Group (ASX: DXS) improved occupancy levels in office and industrial portfolios, maintaining guidance for earnings and distributions.

SCA Property has launched the SCA Unlisted Retail Fund 3 (“SURF3”) and is seeking to raise $35M to acquire four retail properties in NSW, QLD and VIC. Core Property has reviewed the Fund and issued a RECOMMEND rating. Click here to access the full report.

We have also reviewed the Heathley Direct Medical Fund No.2, which has doubled its portfolio to $252M since we last reviewed the Fund in October 2017. The Fund maintains a RECOMMENDED rating. Click here to access the full report.