This article is from the Australian Property Journal archive
LISTED publican ALE Property Group has forecast a higher distribution for FY21 after concluding rental determinations for its pub portfolio.
ALE’s distribution policy going forward reflects the positive outlook for earnings and valuations following receipt of the 2018 rental determinations and expected to flow from the 2028 uncapped/uncollared rent reviews.
Statutory valuers found under-renting of the portfolio with uncapped/uncollared rents in aggregate estimated as at 31 October to be 33% higher than passing rents, as a result ALE expects rent increases at the finalisation of the 2028 uncapped/uncollared rent reviews.
ALE forecasts FY21 distribution of 21.50 cents per security, representing a 3% increase relative to FY20 distributions. In addition, it is presently expected that distributions following FY21 will be increased by at least CPI.
