SCA rides retail boom to 23% profit lift

SCA chief Anthony Mellowes — on the lookout for more assets.

Shopping centre owner SCA Property Group has booked a $184.7 million net profit for 2016, and forecast that retail sales are expected to remain strong over the next year.

In a statement to the ASX, the group comprised of shopping centres offloaded by Woolworths says net profit is 22.7% higher compared to the same time last year — a result primarily driven by stronger net operating income.

SCA’s funds from operation, a key indicator of operational performance, is $100.1 million, up 25% on the 2015 result.

Paying a premium: International brands light fire under Sydney CBD retail

The SCA property portfolio is now valued at $2.1 billion after a number of its assets were positively revalued and it bought $145.3 million worth of shopping centres.

The competition to acquire quality neighbour shopping centres has increased and yields continue to firm

Chief executive Anthony Mellowes says the group is keen to acquire more assets over the next year.

“We have continued to add to our portfolio through accretive acquisitions,” he says

“The competition to acquire quality neighbour shopping centres has increased and yields continue to firm. We are confident that we can continue to leverage our relationships in and knowledge of the sector to source further off-market transactions that meet our investment criteria.”

Mellowes says the group’s speciality retailer tenants are performing strongly and SCA expects conditions to be maintained in the year ahead.

This article originally appeared on www.theaustralian.com.au/property.