ASX-listed retail giant Unibail-Rodamco-Westfield (URW) reported a 27.2% fall in recurring income to €667m for the first half of 2020.
Having shut down its shopping centres for 67 days on average as a result of COVID-19, the company said footfall and sales had recovered better than expected.
The company’s like-for-like portfolio value fell 5.1% to €60.4bn during the same period.
“During the crisis, URW successfully focused on preserving liquidity, by raising funds on the debt markets, deferring non-essential CAPEX, reducing the pipeline, cancelling the final dividend and implementing cost savings,” said URW group CEO Christophe Cuvillier.
The group also completed the €2bn disposal of a 54.2% stake in a portfolio of five French malls.
The CEO said the group had €12.7bn of cash and undrawn credit facilities available, and would continue its plans to dispose of the remaining €4bn of its asset disposal programme over the next couple of years. (Read more)
URW shares finished trading 5.26% lower at A$3.78.
| Index | Change | Value at close |
|---|---|---|
| S&P/ASX 200 A-REIT | -0.28% | 1,224.60 |
| S&P/ASX 200 | +0.74% | 6,051.10 |
| FTSE ST REITS | -0.88% | 842.57 |
| STI | -1.70% | 2,529.82 |
| Tokyo Stock Exchange REIT | -1.06% | 1,666.16 |
| Nikkei 225 | -0.26% | 22,339.23 |
| Hang Seng REIT | +1.05% | 5,444.73 |
| Hang Seng | -0.69% | 24,710.59 |
Australia: Dexus transfers industrial portfolio to DALT in A$270m deal
Dexus (DXS) has sold a portfolio of six Australian industrial properties to its Dexus Australia Logistics Trust (DALT) for A$269.4m, reflecting a passing yield of 5.3%.
The portfolio, which has five assets in Truganina, Victoria and a property in Botany, NSW, is 91% occupied and offers a weighted average lease expiry of 7.4 years.
“We are pleased to have been able to retain exposure to these quality industrial assets via our interest in the Dexus Australian Logistics Trust, while contracting trading profits for Dexus investors,” said Dexus CEO Darren Steinberg.
The deal grows DALT’s portfolio to about A$445m. Since 2010, Dexus has developed and leased 47 industrial development projects across 784,000 sq.m. in Sydney, Melbourne and Brisbane. (Read more)
Dexus shares closed 0.35% lower at A$8.62.
Singapore: Far East Hospitality Trust cuts DPU by 43.4% in 1H
Far East Hospitality Trust (Q5T) reported a 23.1% year-on-year decline in net property income to S$38.6m during the first half of 2020 after the COVID-19 pandemic dealt a “severe blow” to the hospitality industry.
Total returns for the six months to end-June fell 61% to S$8.88m, while distribution per share was set at 1.03 cents per security, down 43.4% compared to 1H 2019.
“The impact on our hotels deepened as international travel restrictions tightened, although it was cushioned in recent months by contracts from government agencies for isolation purposes and from companies for their workers,” said Gerald Lee, the CEO of the REIT’s manager.
“The full impact of the adverse operating conditions is mitigated by the master leases for our hotels and serviced residences, signed with companies of the sponsor. The fixed rent component, which formed about 72% of the master lease rental in FY2019, provides a minimum payment and a downside protection for stapled securityholders.” (Read more)
Far East Hospitality Trust shares closed 1.01% lower at S$0.49.
Japan: GLP J-REIT sells Kobe warehouse for JPY 1.9bn
GLP J-REIT (3281) has agreed to sell its GLP Seishin property in Kobe to an undisclosed buyer for JPY 1.9bn.
“Capturing the robust demand for logistics real estate, the sale was implemented at the sales price that is over 18% higher than the appraisal value, and the amount equivalent to the gain on sale is expected to be 492 million yen,” the REIT said.
The warehouse and office property featured 9,534 sq.m. of lettable area in the Hyogo prefecture and is occupied by Shinkai Transport Systems.
“The proceeds from the Sale will be used to return the amount equivalent to the gain on sale to unitholders as dividends, and the remaining amount will mainly be used as funds to acquire properties in the future and be used flexibly in various measures that will enhance value for unitholders in response to market conditions,” the company added. (Read more)
GLP J-REIT shares finished trading 2.32% higher at JPY 176,300.
Hong Kong: Sunlight REIT issues 1H profit guidance
Sunlight REIT (435) has issued profit guidance warning shareholders that it expects to make a loss from operations for the year to end-June 2020 due to the COVID-19 pandemic.
The REIT’s portfolio was revalued at HK$18.9bn in June 2020, down 5.4% compared to the same time last year.
“However, the valuation loss is non-cash in nature and has no impact on the operating cash flow and distributable income of Sunlight REIT,” the REIT said.
“The overall financial position of Sunlight REIT remains healthy.” (Read more)
Sunlight REIT shares closed flat at HK$3.60.