Centro Retail Group (CER) said rental income growth for its Australian property portfolio had grown at 6.4% in the third quarter, building on the annual growth of 5.5% recorded at the end of June 2009. It was a different story in the US however, with rental income there decreasing 2.3% in the third quarter from the previous corresponding period.
Centro CEO Glenn Rufrano said the result showed the difference between the Australian and the US economy.
”CER’s Australian portfolio has maintained occupancy while improving NOI and rental growth due to the high-quality, non-discretionary nature of the assets,” Mr Rufrano said.
"The US portfolio is performing as we expected, particularly as the full impact of retailer bankruptcies from late 2008 and early 2009 is realised.”
The group said that the underlying net profit, non including one-off items, would be less than the previous year, as the strengthening Aussie dollar and interest rate movements took a chunk out of the earnings from the US properties.
”The current year net operating cash flow now expected to reduce by approximately 15% compared to the prior year net operating cash flow of $40 million,” the company said.
At 1039 AEDT, Centro shares were down 1c to 16.5c.
