This article is from the Australian Property Journal archive
RENTAL income growth from contracted increases across its portfolio of pubs helped Hotel Property Investments (ASX: HPI) to a higher profit and adjusted funds from operations in FY24, while the company unveiled property executive veteran John White as its new CEO and managing director.
Rental income across its $1.28 billion portfolio lifted 3.3% to $73.2 million over the year, while adjusted funds from operations increased by 2.7% to $37.0 million, primarily due to the rental income growth, offset by the impact of increased variable interest costs.
Profit after tax for the year was $36.0 million, after last year’s $3.6 million.
The final distribution per security second half of 9.5c meant a total distribution of 19.0c, up from 18.6c.
HPI’s portfolio. largely oriented around pubs with long leases that operate next to Coles supermarkets and outlets, saw a slight softening in capitalisation rate, from 5.42% to 5.53%. its weighted average lease expiry is 9.1 years.
HPI also announced yesterday that White has been appointed CEO and managing director, and will begin in the role on 2nd September. White has over 30 years’ experience in various aspects of the Australian and global property sector, including in investment, development, finance and funds management, and his executive experience includes leadership positions at Heitman LLC, Challenger Limited and HSBC.
“John’s strategic and operational leadership couple with outstanding industry experience will ensure HPI can continue to deliver for our securityholders and partners,” said HPI’s chair, Giselle Collins.
In March, property funds manager Charter Hall took on a 14.8% stake – worth around $97 million – in HPI from 360 Capital.
Last month, HPI entered into two interest rate swaps, at $100 million and $40 million in face value respectively, which it said increased its medium-term cashflow certainty.
