The consolidated entity’s property portfolio provides financial stability that is unrivalled in the Australian retail industry. It strengthens the balance sheet, provides opportunities to leverage economies of scale and allows the consolidated entity to capitalise on investment opportunities as they arise.
Property ownership also delivers operational benefits, enhancing the ability of proprietors to respond to market trends with agility, and is supportive of the consolidated entity’s omni channel strategy. It also enhances negotiating power in the property sector. The consolidated entity seeks to attract superior third-party tenants to co-locate with proprietors within its complexes. The ownership of high-quality complexes with Harvey Norman®, Domayne® or Joyce Mayne® proprietors as anchor tenants, delivers a steady and reliable income stream to the consolidated entity in the form of market rents and outgoings.
The consolidated entity’s property portfolio remains fundamentally strong, with high occupancy rates, growing revenue streams and strong potential for capital growth. Operating profits have been robust as the consolidated entity continues to focus on improving revenue streams and curtailing operating costs.
The property portfolio was valued at $2.99 billion as at 30 June 2019, representing over 62% of the consolidated entity’s total asset base.
The result before tax generated by the property segments were $204.68 million for the year ended 30 June 2019.
The Harvey Norman property portfolio consists of:
94 Harvey Norman®, Domayne® and Joyce Mayne® owned complexes in Australia, inclusive of property assets held under joint venture agreements;
18 owned Harvey Norman® company-operated stores in New Zealand, 5 owned Harvey Norman® company-operated stores in Slovenia and 1 owned Harvey Norman® company-operated store in Ireland;
the Administration Building in Singapore and the flagship Space showroom in Bencoolen Street, Singapore;
owner occupied land and buildings in Australia.