Carindale Property Trust reported a solid 6.4% increase in revenue to $61.6 million and a significant jump in net profit to $39.2 million for the year ended 30 June 2025, underpinned by strong property valuations and operational performance.
- Revenue up 6.4% to $61.6 million
- Net profit surges to $39.2 million from $7.6 million prior year
- Funds from operations increase 7.8% to $29.7 million
- Distributions rise 5.0% to 28.46 cents per unit
- Debt facility reduced to $230 million with 86% interest rate hedging
Strong Financial Performance Amid Retail Sector Challenges
Carindale Property Trust (ASX, CDP) has announced its full-year results for the 12 months ended 30 June 2025, showcasing a resilient performance in a competitive retail property market. Revenue climbed 6.4% to $61.6 million, reflecting steady rental income growth from its 50% stake in Westfield Carindale, a major shopping centre located in Brisbane’s southeast.
Net profit attributable to members soared to $39.2 million, a marked increase from $7.6 million the previous year. This leap was largely driven by a $15.7 million unrealised gain from property revaluation, underscoring the strength of the Trust’s underlying asset base. Funds from operations, a key measure of cash earnings, rose 7.8% to $29.7 million, supporting the Trust’s capacity to sustain distributions.
Distribution Growth and Capital Management
The Trust declared a full-year distribution of 28.46 cents per unit, up 5.0% on the prior year, with the final payment scheduled for 29 August 2025. Notably, the Distribution Reinvestment Plan (DRP), which was active during the first half of the year, was suspended in May 2025, signaling a potential shift in capital management strategy.
On the balance sheet front, Carindale Property Trust reduced its secured syndicated debt facility from $300 million to $230 million, maintaining a conservative gearing ratio of 26.7%. The Trust has prudently hedged 86% of its interest rate exposure at an average fixed rate of 2.7%, mitigating the risk of rising borrowing costs in a volatile interest rate environment.
Asset Valuation and Operational Highlights
Westfield Carindale, the Trust’s flagship asset, was independently valued at $1.5757 billion, with the Trust’s 50% interest valued at $787.8 million. The valuation was conducted by Knight Frank NSW Valuations & Advisory Pty Limited, applying consistent capitalisation and discount rates from the prior year. The centre maintained an impressive 99.9% occupancy rate, with annual retail sales increasing by 2.9% to $1.106 billion and customer visitation reaching 14 million.
During the year, a $20 million upgrade to the food court was completed, transforming it into a casual dining precinct with seven new specialty restaurants, enhancing the centre’s appeal and customer experience.
Governance, Risk Management, and Sustainability
Carindale Property Trust operates under the governance and risk management framework of Scentre Group, which emphasizes strong oversight, sustainability, and community engagement. The Trust’s risk management policies address financial risks, including interest rate fluctuations and tenant credit risk, as well as operational and environmental risks.
Westfield Carindale has implemented an Environmental Action Plan focusing on energy efficiency, water conservation, and waste diversion, achieving a 5-star NABERS energy rating and a 4-star NABERS water rating. The centre transitioned to 100% renewable electricity sources in January 2025, reflecting the Trust’s commitment to sustainability.
Outlook and Forward Guidance
Looking ahead, the Trust expects to deliver a 5.0% increase in distributions for the year ending 30 June 2026, projecting a distribution of 29.883 cents per unit, assuming stable market conditions. The Trust’s strategy remains focused on maximising the value of Westfield Carindale through active asset management, tenant mix optimisation, and capital discipline.
With a strong balance sheet, prudent hedging, and a high-quality asset, Carindale Property Trust appears well-positioned to navigate ongoing retail sector challenges and deliver sustainable returns to unitholders.
Bottom Line?
Carindale Property Trust’s robust FY25 results set a confident tone for FY26, but investors will watch closely how the suspended DRP and market conditions influence future growth.
Questions in the middle?
- How will the suspension of the Distribution Reinvestment Plan affect the Trust’s capital structure and liquidity?
- What impact could rising interest rates have on the Trust’s financing costs beyond current hedging arrangements?
- How might evolving retail trends and tenant mix changes at Westfield Carindale influence future rental income and occupancy?