...- The financial credit metrics of GPT Wholesale Shopping Centre Fund (GWSCF) have strengthened after the fund utilized asset divestment proceeds to repay debt in fiscal 2022. However, we expect this conservatism will be temporary as GWSCF executes on its strategy to improve its portfolio composition, which could involve debt-funded acquisitions. - GWSCF aims to improve its portfolio quality and composition through asset recycling. Should the fund successfully sell its interest in Northland Shopping Centre, it will likely apply the sale proceeds to pursue assets that are of similar asset quality. - On Oct. 30, 2024, S&P Global Ratings affirmed its '###+' long-term issuer credit rating on GWSCF. - The stable outlook reflects our view that GWSCF has ample financial headroom at the '###+' rating level, despite soft retail conditions and consumer confidence that is subdued but improving. However, if future asset divestments are not recycled into commensurate high-quality assets, this could impact...
