Carindale Property Trust reaffirms 31.38 cent distribution guidance after David Jones administration
Administrators have been appointed to David Jones Pty Limited, and Carindale Property Trust has quantified its exposure to the retailer. The Trust, whose responsible entity is Scentre Management Limited, has also reaffirmed its distribution guidance.
Distribution guidance for the year ending 30 June 2027 is 31.38 cents per unit, representing growth of 5.0%, subject to no material change in conditions. The Trust has put clear numbers on the table rather than leave the exposure open to speculation.
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David Jones exposure at Westfield Carindale: the numbers
The Trust’s disclosed exposure to David Jones is set out below:
- Store size: 7,635 square metres at Westfield Carindale
- Share of the Trust’s share of gross rent: approximately 1.8%
- Share of the Trust’s Funds From Operations: approximately 3.4% on an annualised basis
- Rent paid by David Jones up to 30 September 2026
Based on these figures, the exposure is modest relative to the Trust’s overall income base.
The announcement also compares the store’s rent with the centre average.
| Measure | Gross rent per square metre |
|---|---|
| David Jones store | $285 |
| Centre average | $870 |
The store pays well below the centre average rent per square metre.
Bank guarantee provides rent protection
David Jones has provided a bank guarantee of $1.5 million. The Trust’s share is approximately $0.74 million, equivalent to 8 months gross rent, and the guarantee can be provided against any unpaid rent.
This cushions the Trust against rent shortfalls. Three protections are now in focus:
- Rent paid by David Jones up to 30 September 2026
- Bank guarantee cover of approximately $0.74 million for the Trust’s share
- Reaffirmed distribution guidance of 31.38 cents per unit for the year ending 30 June 2027, subject to no material change in conditions
What is a retail administration and why does it matter for property trusts?
An administration is a process in which appointed administrators take control of a company to assess its future. For a landlord, the key questions are whether rent continues to be paid, what happens to the lease, and how the mix of tenants in the centre is affected.
Two measures help investors judge how much a single tenant matters. Share of gross rent shows how much of a trust’s rental income comes from that tenant, while Funds From Operations is a measure of the trust’s underlying earnings from its property portfolio.
A small share of both measures generally means a single tenant has a limited bearing on overall income.
Trust holds its guidance position
The Trust has disclosed its David Jones exposure, outlined the $1.5 million bank guarantee and reaffirmed guidance of 31.38 cents per unit for the year ending 30 June 2027. That guidance remains subject to no material change in conditions.
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