This article is from the Australian Property Journal archive
Abacus Property Group’s managing director David Bastian has delivered his final annual profit result for the group.
Yesterday, Abacus posted a net profit under AIFRS of $101 million – an increase of 95% over 2005 results. The group’s adjusted net profit, before AIFRS was $54 million, an increase of 35% over last year.
During the year, the group’s revenue rose 59.3% from $57.9 million to $92.3 million.
During the year Abacus acquired over $530 million of property assets for the group’s investment portfolio and for a series of funds management initiatives, increasing total assets under Abacus management by 47% to $1.4 billion.
Meanwhile, a merger with the Abacus Diversified Income Fund boosted group equity by approximately $100 million and total assets by over $240 million. Total equity increased 66% over the year to $673 million, through the capital raisings, the merger and the revaluation of the property portfolio.
Earnings per security rose 4% to 12.92 cents net of revaluation increments (a 50% increase to 24.22 cents if revaluations are included) while distributions increased 3.5% to 11.80 cents per security.
The distribution was fully funded from the Abacus Trust. At year end, retained earnings stood at $96 million, an increase of 89%, and the net tangible asset backing per security was $1.22, a 12% increase over 2005.
Bastian said the strength of the 2006 results demonstrated the benefits of the Abacus diversified business model and our ability to deliver a consistent performance through changing market cycles.
“Abacus seeks to buy property assets which represent fundamental property value. Such property assets typically have redevelopment or repositioning potential often underpinned by large land parcels.
“Our business model delivers predictable profits that have continued to grow through varying market cycles and changing conditions. We anticipate continued growth over the next year, driven by a solid base of property assets and contract rent, and a range of exciting new funds management initiatives,” he concluded.
Bastian will step down from the board on September 10, 2006. Dr Frank Wolf will assume the role of managing director from October 01, 2006.
By Adam Parsons
