Reporting Season: SCA Property full year results as expected

By Trevor Hoey. Published at Aug 7, 2018, in Features

Name: SCA Property Group (ASX:SCP)

Market Capitalisation: $1.8 billion

Previous Closing Price: $2.44

SCA Property Group (ASX:SCP) has delivered a fiscal 2018 result which is broadly in line with consensus forecasts.

The SCA Property Group invests in shopping centres predominantly anchored by non-discretionary retailers, with long term leases to tenants such as Woolworths Limited (ASX:WOW) and companies in the Wesfarmers Limited group (ASX:WES).

The group generated funds from operations of $114.3 million, an increase of 5.4 per cent compared with fiscal 2017.

The 13.9 cents dividend was a 6.1 per cent increase on the prior year and represented a payout ratio of 91 per cent.

As a stock that is targeted predominantly for its yield, much of the focus is on its distribution commentary.

Fiscal 2019 guidance

Management has provided guidance of 14.3 cents per unit, slightly above consensus of 14 cents.

This implies a yield of 5.9 per cent relative to yesterday’s closing price.

SCA has provided 2019 funds from operations (FFO) guidance of 15.6 cents per unit, representing year-on-year growth of 2 per cent.

The FFO guidance includes the acquisition of Sturt Mall in August 2018 and the launch of SURF 4 in late FY19, but does not include any further acquisitions or divestments.

What these results will show is yet to be determined, so investors should take all publicly available information into account and seek professional financial advice before making an investment decision.

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