This article is from the Australian Property Journal archive
APN Property Group (ASX: APD) posted strong half year results for 2021, with resilient investments enabling the group to increase its full year distribution guidance.
Statutory net profit after tax was up 32% to $22.9 million, from $17.4 million in the previous corresponding period.
Operating earnings were up 5% to $6.7 million from $6.4 million in the pcp, with operating earnings per security up to 2.05 cents from 2.03 cps in the pcp.
“I’m delighted to present our FY2021 first half results which demonstrate APN’s disciplined approach to growth over several years and our team’s considerable achievements through a challenging 2020. APN met these challenges very well and we are exceptionally well placed to continue to grow our funds from this point. We have some excellent investment opportunities we are actively pursuing, strong ongoing investor support and significant balance sheet capacity,” said Tim Slattery, APN’s CEO.
Funds under management was up $242 million to $2.9 billion, up 9% from June 2020. APN is currently operating 11 funds, including over 120 properties across listed and unlisted direct property funds.
“Strong ongoing income-based investment performance across our listed and unlisted funds drove a 5% increase in APN’s operating profit. We have leased over 25,000 sqm across our funds’ portfolios with direct property cash collections of over 99% for the period. These results highlight both the quality and resilience of the group’s investments and our team’s ‘hands on’ approach to working with our tenant partners and our properties to add real value.”
The group’s balance sheet position was strengthened over the period, with net tangible assets of $139.4 million and cash of $21.1 million. NTA per security were at 42.4 cents, up 18% from June 2020.
“We have had a very active six months of portfolio activity with over $200 million of industrial and convenience retail property transactions signed. These were exceptionally well supported with over $100 million in new equity raised and major new debt facilities from new and existing financiers.
“With the demand we are seeing, the continuation of very low interest rates means that high quality commercial real estate which can deliver high and sustainable cash yields is being sought out by a wide range of investors.
The group has announced an interim distribution of 1.70 cps, with a 0.93 cps fully franked dividend and a trust distribution of 0.77 cps.
“On the back of our first half results and our outlook we have increased our original FY21 distribution guidance by 26% to 3.20 to 3.50 cents per security.”
This increased guidance represents a cash yield of 6.2% on a $0.54 security price and is dependent on current market conditions and barring any unforeseen events.
“APN remains exceptionally well positioned to continue to deliver on our strategy of building value for securityholders through improving the scale and profitability of our business with excellent investment performance and outstanding service,” concluded Slattery.
