This article is from the Australian Property Journal archive
Publican ALE Property Group has shouted shareholders to another record half-year result.
ALE has delivered a distributable profit of $14.44 million for the six months to December 31, 2006 – an increase of 124.7% over $6.42 million in December 2005. As a result, ALE has confirmed a 131% increase in total distribution to 15.7 cents per security for the period.
ALE’s managing director Andrew Wilkinson said ALE’s capital management initiatives, overall performance, strong business model and innovative capital structure have driven a significant increase in distributions.
“Additionally, ALE’s directors confirm their guidance of a full year distribution of at least 31.4 cents comprising income distribution of 19.0 cents and an ongoing capital distribution of 12.4 cents per stapled security, which is expected to be 100% tax deferred,” he added.
Revenue for FY07 was $25.4 million, up 6.1% from $24.0 million in the corresponding period while cash borrowing expenses dropped to $14.6 million, corresponding period $15.9 million.
The results means ALE will hold the title of the best performing LPT over the 12 months and three year period.
“ALE’s top of return tables performance has been outstanding with a 12 month total return to 31 December 2006 of 90.4% and a three year total return of 69.7% per annum,” Wilkinson said.
Yesterday, Wilkinson also announced the group’s intention to undertake an on-market buyback of up to 10% of its securities on issue.
ALE intends to buyback up to 9.1 million of its stapled securities over a 12 month period and will purchase the shares on market pricing.
“This is yet another step by the ALE Board to deliver both higher distributions and more value to stapled security holders,” Wilkinson said. “Over and above the capital management initiatives announced, ALE will continue to hold surplus capital capacity for acquisitions. ALE remains active and is seeking a number of acquisitions in line with the following criteria.”
“The outlook for the remainder of FY07 remains positive and the board will maintain its focus on both value accretive acquisitions and capital management,” he concluded.
ALE shares closed 10 cents or 2.6% higher at $3.95.
Australian Property Journal
