Funds From Operations Rise to $29.7M as Occupancy Hits 99.9% at Carindale
Carindale Property Trust reported a solid 7.8% increase in funds from operations for FY25, supported by near-full occupancy and rising retail sales at Westfield Carindale. Distributions grew 5%, aligning with guidance.
- Funds From Operations rose 7.8% to $29.7 million
- Statutory profit includes $15.7 million unrealised property valuation gain
- Occupancy remains exceptionally high at 99.9%
- Distributions increased 5% to 28.46 cents per unit
- Property valuation up 2.9% to $1.576 billion
Strong Operational Performance Drives Growth
Carindale Property Trust (ASX – CDP) has delivered another year of robust financial results for the 12 months ending 30 June 2025. The trust’s Funds From Operations (FFO) climbed 7.8% to $29.7 million, reflecting steady income growth and operational efficiency at its flagship asset, Westfield Carindale.
Statutory profit for the year was reported at $39.2 million, bolstered by an unrealised property valuation uplift of $15.7 million. This valuation increase, driven largely by higher net operating income, pushed the property’s independent valuation to $1.576 billion, a 2.9% rise over the period.
Leasing and Retail Sales Momentum
Leasing demand remains exceptionally strong, with occupancy holding steady at 99.9% as of 30 June 2025. The trust completed 98 leasing deals during the year, including 33 new merchants, underscoring the appeal of Westfield Carindale as a retail destination. Retail sales by business partners increased by 2.9% to $1.106 billion, supported by 14 million customer visits, highlighting sustained consumer engagement.
Gross rent collected reached $69.3 million, generating a net operating cash flow of $30.5 million. These figures underpin the trust’s ability to maintain and grow distributions to unitholders.
Distribution Growth and Capital Position
Distributions for the year rose 5.0% to 28.46 cents per unit, totaling $23.3 million, in line with prior guidance. The final distribution of 14.23 cents per unit is scheduled for payment on 29 August 2025. Notably, the distribution reinvestment plan (DRP) was suspended for this final payment, a move that may influence investor cash flow preferences.
The trust’s gearing ratio remains conservative at 26.7%, with interest rate hedging covering 86% of debt at an average base rate of 2.7%. Net tangible assets stand at $6.78 per unit, reflecting a solid capital foundation to support future growth.
Looking Ahead
CEO Elliott Rusanow emphasised the trust’s focus on customer experience and sustainable earnings growth, stating that the strong operating performance and capital position provide confidence in delivering ongoing distribution growth. Subject to stable market conditions, the trust forecasts a 5.0% increase in distributions for the 2026 financial year, targeting 29.883 cents per unit.
While the results highlight resilience in retail property amid evolving market dynamics, investors will be watching closely for any shifts in the operating environment that could impact future performance.
Bottom Line?
Carindale Property Trust’s strong fundamentals set the stage for steady income growth, but market conditions will be key to sustaining momentum.
Questions in the middle?
- How will the suspension of the DRP affect investor sentiment and capital management?
- Can the trust maintain near-full occupancy amid changing retail trends?
- What impact could rising interest rates have despite current hedging strategies?
