Reporting Season: SCA Property full year results as expected

By Trevor Hoey. Published at Aug 7, 2018, in Special Reports

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.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

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S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

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