Centro Properties Group (“Centro”) announced continued strong performance of leasing and retail sales at its Australian and US shopping centres.
Strong retail sales were achieved for Centro’s Australian managed portfolio with sales growth for the September quarter of 6.0%. This result reflects a healthy improvement on the moving annual turnover (“MAT”) growth at Centro managed centres of 5.0% with sales of A$10.3 billion for the year ended 30

Mr Graham Terry, Centro Chief Operating Officer, said, “The continued strong growth for the September quarter appears to be driven by favourable economic conditions, record employment and resources led growth, particularly in Western Australia. The 4.4% growth in supermarket sales is a strong result as the category contributes 47% of total sales within Centro’s portfolio. It is interesting to note that Centro’s non discretionary shopping centre focus has now resulted in over two-thirds of retail sales in Centro Australian centres being from non-discretionary retail trade such as supermarkets, fresh food and other essential everyday items.”

Michael Carroll, Chief Operating Officer for Centro in the US advised that, “Recently reported sales from US grocery retailers, indicates that sales are performing strongly at a level not dissimilar to those of Australian supermarkets. This is confirmed by the recent US Census Bureau report indicating a 5.5% increase in grocery store sales. Currently, seven of the top 20 retailers in the Centro US portfolio are supermarket chains, including Kroger for which Centro US is the largest landlord. This speaks well for the continuing performance of the non discretionary retailers in Centro’s US portfolio of over 650 centres, of which over 60% are grocer/supermarket anchored.”

Mr Carroll added that “Our leasing efforts for the year to date also confirm that retailers are still active in the US market with over 2 million square feet leased in the portfolio in the September quarter, with strong maintenance leasing growth and occupancy rates still evident.”

Centros September quarter Australian lease renewal rate of 81.5% show the strong desire from retailers to renew their leases.

Centro is Australia’s largest manager of retail property investment syndicates with over 80% market share as well as being a leading manager of direct property funds and wholesale funds which invest in Centro’s quality retail properties in Australasia and the United States.