The retail property trust that houses the Rockingham City shopping centre has booked a half-year net profit of $248.1 million, an increase of 45.6 per cent on same period in 2005.
The Colonial First State Gandel Retail Property Trust (GAN) is a retail sector-specific Australian stock exchange listed property trust made up of 24 shopping centre complexes across Australia, with total gross assets of $5.0 billion.
The $31.96 million Rockingham City is 16.7 per cent GAN owned.
The south suburban centre has 135 tenants, including major retailers Target, Kmart, Woolworths and Coles but interestingly generates around 67 per cent of net income from specialty shops.
In reporting the result Colonial First State said that demand for retail space remains solid, despite a moderation in retail sales, and it expects this trend to continue this financial year.
GAN fund manager Michael Gorman said, "the demand for retail space remains solid, with vacancy rates remaining at tight levels across retail centre types, especially in the Trust's portfolio."
"This is expected to continue across 2006."
Rockingham City's lease expiry profile for 2006 is 64.7 per cent and coupled with a softening in retail sales, it is a situation the centre will need to manage closely going forward.
The trust was formed in 2002 when Gandel acquired the Colonial First State Retail Property Trust, and strengthened the trust's portfolio by adding eight new shopping centres and one other asset worth $670.6 million.
The trust delivered a strong total return for the half, of 22.7 per cent, substantially outperforming the UBS Retail 200 Property Accumulation Index return of 7.8 per cent.
The portfolio retained a 99.9 per cent occupancy in the period, and will pay a first half distribution of 5.46 cents per unit, up on the 5.2 cents per unit paid in the corresponding period in 2005.
