June 4 (Reuters) - Australian real estate investment trust Vicinity Centres Re Ltd announced plans for the sale of up to A$1 billion ($756.3 million) of sub-regional and neighbourhood shopping centres to invest in the development of other properties.
The company’s sale of its shopping centres comes amidst a sluggish retail environment, bogged by subdued spending following stagnant wage growth in the country.
Vicinity’s half-year 2018 underlying profit fell 1 percent because of a tougher environment.
No impact on funds from operations per security (FFOps) guidance for the year ending June 30 is anticipated from the asset sale because of its timing, the company said in a statement on Monday.
The company added that its FFOps would see a 1 Australian cent dilution on an annualised basis from the sale, beyond fiscal 2018.
The company said it would reinvest proceeds from the sale into developments in Melbourne, Perth and Sydney.
$1 = 1.3222 Australian dollars Reporting by Ambar Warrick in Bengaluru; Editing by Sandra Maler and Peter Cooney