Region Group posts surge in full-year profit, CEO Anthony Mellowes to retire
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The news: Shopping centre owner Region Group has posted a leap in statutory profit for the 2025 financial year — from $16.3 million to $212.5 million — driven by an increase in the fair value of investment properties.
The company also announced that its inaugural chief executive Anthony Mellowes intends to retire, with his replacement expected to be appointed shortly.
The numbers: Region reported adjusted funds from operations (AFFO) per share of 13.7 cents, compared to 13.6 cents in the previous year.
Market consensus estimates, according to Visible Alpha, for statutory profit were expected to be $258.3 million while adjusted funds from operations per share were expected at 13.7 cents.
Funds from operations (FFO) edged up from 15.4 cents per share to 15.5 cents. Assets under management increased 8.7% year on year to $5.2 billion.
The context: Region said the result was supported by the "continued curation" of its portfolio, with the acquisition of Kallo Town Centre for $64.5 million during the period. The group also divested six neighbourhood centres and one Bunnings for $227.5 million.
The company has guided FFO of 15.9 cents per share in FY26 and AFFO of "at least" 14 cents per share.
Meanwhile, CEO Mellowes has given nine months' notice, having led the company since 2012. He previously took Region Group — then named SCA Property Group — through its demerger with Woolworths, upgrading a portfolio of 69 properties at a value of $1.4 billion to more than 100 properties worth over $5 billion.
What they said: "It has been an honour to serve as [Region's] inaugural CEO, delivering on my vision and strategy the past 12 years," said Mellowes.
"I believe the organisation is well positioned for future growth in a sector that is currently in strong demand."
