The Shopping Centres Australasia business is a good one, with core anchor tenants such as WES and WOW, and is typically viewed as a high quality defensive within the space.
The result was solid, with property revaluations, acquisitions, decent rent renewal outcomes and tighter occupancy all driving higher adjusted funds from operations, and leading to a modest upgrade to FY22 guidance.
That occupancy remains high, alongside improving leasing spreads (-0.20%, up from -0.40%), is a good sign for SCP, as well as for the rental market more broadly.
Despite the high quality assets on offer, we prefer some of the deeper value names in space across retail and office, where expectations are more modest.
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