Benefits To Property Funds Of Diversified Retail Portfolios Reinforced, Says Clur Report

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The benefits to property funds of diversified retail portfolios in the current market, in terms of shopping centre format, profile and geography, have again been reinforced by latest trading results, according to the Clur Report of SA Retail Property for May.

This industry barometer which tracks performance for  property funds owning more than  2.4 million sq m of physical retail space in South Africa and Namibia, reports that its benchmark of annualised trading density for small regional, community and neighbourhood shopping centres at May showed year-on-year growth of 3.1% to R28 889/sq m.

Year-on-year growth of 2.2% to R35 374/sq m was recorded for the Clur super regional and regional centre benchmark of annualised trading density at May.

“The May report confirms a trend first noted in January this year,” says Belinda Clur, managing director of Clur Research International.  “ The fact that larger centres continue to record the highest sales per sq m, whilst smaller centres continue to deliver the highest annual growth in trading densities, provides further support for the case for diversification.

“An added factor is the differing growth trends shown by coastal and inland centres. Differing trends are also being seen in merchandise categories across high profile versus mid-low profile centres.”

Belinda Clur says the dominant Clur all centres benchmark for May recorded annualised trading density of R33 364/sq m. This meant year-on-year growth of 2.6%.

“The 2.6% growth shows that annualised trading densities, which broke through zero and moved into positive growth territory on an unadjusted basis in February, are continuing on an upward trajectory. This favourable upward trend has been reported since September 2017 when trading densities dropped by 1.7%. “

“Turnover at the contributing centres – pure unadjusted sales not relative to space – for the rolling 12 months to May showed growth of 2.7%. Turnover for May 2018 was 1.1% better than the corresponding figure in 2017.”

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