But amid the internalisation the group reported a 4.1 per cent rise in net profit to $400.1 million, up from $384.6 million. During the year the retail landlord recorded a series of one-off items, such as a net gain on investment properties and associate valuations of $70.8 million (compared to a $63.1 million net loss the prior year).

The distribution was steady at 13.6¢, but the group issued new securities as part of the internalisation process.

CFS Retail, which opened its Emporium Melbourne mall on Thursday with Baz Luhrmann as the organiser, said the coming year was looking positive as retail sales had performed strongly in July and new international fashion labels had boosted apparel.

The development at its Chadstone mall, that it co-owns with John Gandel, and the Direct Factory Outlet at Homebush, Sydney, would also lift revenue, boosted by expanded food courts and the offering of adjoining office space at Chadstone.

"In short, it's been a very strong year and period of change for our business," chief executive Angus McNaughton said.

"The internalisation has delivered immediate benefits both financial and otherwise. We will now start a wide-ranging review of the business, in what continues to be a choppy retail environment."

CFS Retail deputy chief executive Michael Gorman said comparable specialty stores achieved 2.2 per cent growth, which was below the company forecast of 3 per cent, but an increase on the 1.7 per cent reported to December 2013. The decline was attributed to consumer concerns following thefederal budget and the warm start to winter.

He said re-leasing spreads on renewed leases remained in the negative 4.6 to 6 per cent range.