CORONAVIRUS COVID-19 PANDEMICREAL ESTATE INVESTMENT TRUSTS & FUNDS

Aventus centres performing strongly

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AVENTUS Group said 100% of their portfolio remains open and its centres are experiencing double digit traffic growth.

With the exception of Victoria, traffic within the portfolio is up by 9% from the same period in 2019, with half of all centres experiencing double digit traffic growth.

When taking Victoria into consideration, overall traffic has grown by 1%, when compared to the comparable 2019 period.

Though, within the first two weeks of November, as restrictions eased, traffic in Victorian centres increased by 13%.

The South Australian “circuit breaker” restrictions, may impact one centre.

Demand for household and lifestyle items has driven sale in the portfolio.

“Australians continue to spend more time and money at home – working, learning and entertaining – and this has driven strong sales growth to our large format retailers,” said Darren Holland, CEO of Aventus Group.

Portfolio occupancy has increased to 98.2% with minimal holdovers of 2.6%. As, 42 leasing deals have been negotiated, with over 24,500sqm for the period.

Rent collection is up 3% to 90% of gross billed rent collected. This number has been driven by strong portfolio traffic, retailer sales and retailer relationships.

The group’s development, the Caringbah Super Centre has been completed on time and is 100% leased, anchored by Harvey Norman, Freedom and JB Hi-Fi. The development generated an IRR of 13%, above the initial target of 10%.

A preliminary independent valuation of the centre is $139 million, including costs to spend for the 6 months to 31 October of $12 million, due to the income increase from its completion and the capitalisation rate being compressed to 6.25%. That’s a net incremental valuation uplift of approx. $15 million or a 13% increase over the book value as of 30 June.

The Group underwrote the September 2020 quarter distribution, raising approx. $22.3 million to boost liquidity. While the balance sheet is stable with no debt expiries before May of 2022 and $124 million of cash and undrawn facilities available.

Aventus has restored their distribution pay-out ratio to around 90% for the September quarter and advises FY20 FFO guidance of at least 18.5 cents per security, 2% growth compared to FY20.

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