Quarterly updates from Listed A-REITs

During the week quarterly updates were announced from Stockland (ASX: SGP), Vicinity Centres (ASX: VCX), Dexus (ASX: DXS) and Mirvac (ASX: MGR).

SGP announced results slightly above expectations, with its residential communities’ business performing strongly and on track to deliver over 5,000 lot settlements in FY20. Further, SGP intends to allocate greater weighting to its workplace and logistics sector with a $2.5B development pipeline progressing and new JV opportunities developing, including Melbourne Business Park and Western Sydney land. SGP also entered into a conditional agreement with Fife Group to purchase two logistic assets in Brisbane (Carole Park and Richlands) and consolidate landholdings in Western Sydney. FY20 outlook was reaffirmed, with FFO and distributions per security forecasted at flat growth.

VCX announced the acquisition of adjacent land to Victoria Gardens Shopping Centre allowing for VCX to progress in their retail expansion and mixed-use development opportunities. With the strategic purchase of adjacent land, the joint owners of the centre (Vicinity Centres and Salta Properties), are able to create a 1.3-hectare development site. Additionally, VCX announced maintenance of specialty store sales growth underpinned by strong growth in luxury.

DXS announced continued growth in its office investments, highlighting low market vacancy rates in Sydney and Melbourne. DXS also reported FY20 outlook, with expectations of 25 basis points of cap rate compression for their quality office properties, and to deliver distributions per security growth of around 5%.

MGR announced consistent performance among its office and industrial division as a result of favourable market conditions in both sectors. Additionally, MGR has reaffirmed FY20 operating EPS guidance of 17.6- 17.8cpss and distribution guidance of 12.2cpss.