Centro chalks up record half-yearly profit
Andrew Scott
The Centro Properties Group has achieved a record result for the half year ending December 31, 2006, declaring distributable operating earnings of $162.8 million representing a jump of 15.2 per cent compared to the corresponding period in 2005.
Centro also increased its funds under management by 35.7 per cent in the back half of last year to $15.6 billion.
Much of the group’s solid result stemmed from its co-investment business model that facilitated the acquisition of the US listed Heritage Property Investment Trust worth US$3.2 billion.
Centro chair Brain Healy explained: “With the 35.7 per cent growth in Centro’s funds under management largely resulting from the Heritage acquisition, Centro launched new unlisted co-investment funds totalling $6.1 billion in response to investors’ increasing appetite for quality retail property investments for their growing superannuation savings.”
Retail property continued to play an integral part in the group’s result accounting for 73 per cent of the total net income.
During the period, average rental growth climbed by 8.6 per cent and the organisation experienced a lease renewal rate of 74.9 per cent.
“The combination of continuing investor demand for direct retail property and Centro’s established and broad equity distribution channels, including financial advisers, authorised representatives and the superannuation fund administration platforms, has resulted in $277 million of inflows into Centro funds in FY07 [financial year 2007] to date,” Centro chief executive Andrew Scott said.
“Centro’s sustainable property and funds management platforms are well positioned to sustain further growth in funds under management. With a strong track record of providing standout distribution growth and total returns to investors over the past 10 years, Centro’s cemented co-investment business model and core investments in quality retail property will help ensure this growth continues,” Scott added.
Recommended for you
In this episode of Relative Return Insider, host Keith Ford and AMP deputy chief economist Diana Mousina break down the spike in inflation numbers and what it means for the possibility of a rate cut as we move into the new year.
In this episode of Relative Return Insider, host Keith Ford and AMP economist My Bui explore Prime Minister Anthony Albanese’s trip to the US and the critical minerals deal stemming from his meeting with President Donald Trump.
In this episode of Relative Return Insider, host Keith Ford and AMP chief economist Shane Oliver unpack the latest unemployment numbers and what they mean for a rate cut, as well as how the latest flare-up in the ongoing US–China trade dispute has highlighted the remaining disparity between gold and bitcoin.
In this episode of Relative Return Insider, host Keith Ford and AMP chief economist Shane Oliver take a look at the unfolding impacts and potential economic ramifications of the US government shutdown and the surge in gold and bitcoin prices.
