Why Is Carindale Property Trust’s Profit Surging 58% This Half-Year?
Carindale Property Trust reported a strong half-year result with revenue rising 6.5% and net profit surging 58%, supported by robust leasing and a higher property valuation. Distributions increased, reflecting confidence in ongoing income growth.
- Revenue increased 6.5% to $32.2 million
- Net profit surged 58.4% to $30.2 million including $12.2 million valuation gain
- Funds from operations up 11.2% to $16.2 million
- Distribution raised to 14.9415 cents per unit, payable February 2026
- Occupancy remains near full at 99.9%, with strong leasing activity
Robust Financial Performance
Carindale Property Trust has delivered a compelling half-year performance for the six months ended 31 December 2025, with revenue climbing 6.5% to $32.2 million and net profit soaring 58.4% to $30.2 million. This surge in profitability was notably bolstered by an unrealised property valuation uplift of $12.2 million, reflecting the Trust’s 50% stake in Westfield Carindale.
The Trust’s funds from operations (FFO), a key measure of cash earnings, rose 11.2% to $16.2 million, underpinning a distribution increase to 14.9415 cents per unit, payable on 27 February 2026. This distribution growth aligns with management’s guidance and signals confidence in the Trust’s income-generating capacity.
Operational Strength and Asset Valuation
Westfield Carindale, located in Brisbane’s south-east, remains a dominant retail destination with a diverse tenant mix including major retailers such as Myer, David Jones, and Apple. The Trust reported an occupancy rate of 99.9%, supported by 43 leasing deals completed during the period, highlighting sustained demand for retail space despite broader market uncertainties.
The property valuation increased by 1.6% to $1.6 billion (Trust share $800.3 million), driven by growth in net operating income and stable capitalisation rates. This valuation was independently assessed and corroborated by the Trust’s directors, reinforcing the asset’s resilience and market appeal.
Financial Position and Risk Management
Carindale Property Trust maintains a conservative gearing ratio of 26.5%, with $230 million in secured syndicated facilities maturing in early 2027. The Trust has hedged 77% of its interest rate exposure, mitigating refinancing and interest rate risks amid a volatile economic environment.
Cash flow from operations remained solid, with net operating cash flow of $15.4 million collected during the period. The Trust’s balance sheet reflects net tangible assets of $7.00 per unit, up from $6.78 six months prior, indicating steady growth in underlying equity value.
Outlook and Governance
Looking ahead, the Trust expects to deliver a full-year distribution of 29.883 cents per unit for the year ending 30 June 2026, representing a 5% increase. This outlook assumes no material changes in the operating environment and reflects ongoing confidence in the asset’s performance and leasing momentum.
The Trust is externally managed by Scentre Management Limited, with a board comprising experienced directors including Chair Ilana Atlas AO and Managing Director Elliott Rusanow. The half-year financial report was audited by Ernst & Young, who issued an unqualified review opinion, confirming compliance with accounting standards and regulatory requirements.
Bottom Line?
Carindale Property Trust’s strong half-year results and distribution growth set a positive tone, but investors will watch closely for leasing trends and refinancing risks in the year ahead.
Questions in the middle?
- How will the Trust manage refinancing risk with debt maturing in early 2027?
- What impact will upcoming accounting standard changes have on future reporting?
- Can leasing momentum sustain occupancy near 100% amid evolving retail dynamics?
