REIT (Real Estate Investment Trust) is a company which enables investors to place their capital in the real estate assets. There are 2 types of REIT including equity REITs and mortgage REITs. Most of the equity REITs are into owning and management of the properties. While Mortgage REITs functions by deriving money at low short-term interest rates, and purchase mortgages which pays higher long-term interest rates.
Let’s look at the two REIT Australian Stocks under pressure: SCP, VCX
Shopping Centres Australasia Property Group
Shopping Centres Australasia Property Group (ASX: SCP) is an ASX listed company and is also an owner of diversified shopping centres across Australian region. SCP concentrates on convenience retailing via its ownership and management of the collection of sub-regional, as well as the neighbourhood shopping centres. The company also concentrates on freestanding retail assets. Australasia Property Group was listed on ASX in 2012 and is based in NSW, Australia.
Recently, the company announced the change of interests in one of its directors Beth May Laughton from 19 March 2019. The director has acquired 4,000 securities and now owns 4,333 securities at a value of $10,420.
In its half-year report for the period ending on 31 December 2018, the company recorded the rise in the revenue from ordinary activities at $125.1 million from $107.4 in the previous corresponding period (PCP). The company’s net profit from ordinary activities was noted at a loss of $39.3 from $69.6 in the PCP. The Net tangible asset per security was noted at $2.27 an increase from $2.23 in the PCP. During the period, the company acquired a total of twelve properties for $677.9 million.
SCP shares have delivered an almost flat performance on a YTD basis, yielding a return of 1.19 percent. It has delivered a return of -0.78 percent and 2.81 percent in the past three months and one-month respectively. SCP closed the day’s trading at $2.580 on ASX (As at 12 April 2019) up by 0.78 percent. It has a market capitalisation of $2.37 billion.
Vicinity Centres (ASX: VCX) is one of the leading retail property groups in the Australian region. It is an ASX listed company, containing fully integrated asset management platform, and an amount of $26 billion in retails assets within management in throughout sixty-six shopping centres. The company was founded in 1985 and is headquartered in Melbourne.
On 25 July 2017, the company announced that the company intended to buy back Up to 197,932,531 Stapled Securities (being 5% of Stapled Securities on the issue). Till 12 April 2019, a total of 170,251,763 shares were bought back which involved a total consideration of $444,480,359.74. Pending shares for further buyback stands at 110,370,354 stapled securities.
In its financial report period ending on 31 December 2018, the company recorded the total assets standing at $16,995.6 million. Further, the total liabilities of the company, by the end of the period was noted at $5,064.7 million. The net assets, by the end of the period, stood at $11,930.9 million. The cash and cash equivalents at the end of the half-year period, was recorded at $57.9million from $45.4 million in the previous corresponding period.
VCX shares have delivered a flat performance on a YTD basis, yielding a return of -0.40 percent. It has delivered a return of -4.20 percent and -5.28 percent in the past six months and three months respectively. VCX closed the day’s trading at $2.530 on ASX (As at 12 April 2019) up by 0.79 percent. It has a market capitalisation of $9.54 billion.
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