This article is from the Australian Property Journal archive
ABACUS Property Group (ASX: ABP) said it is well position to meet any challenges in the market after posting a strong full year statutory profit of $61.1 million, up from $8.5 million last year.
The underlying profit was $83.8 million, up 9.1%, but underlying earnings per security 18.8 cents, down 2%. Cashflow from operations was $105.7 million, excluding cost of inventory sales of $47.9 million.
The FY2013 distribution of 16.5 cents per security was in line with FY2012. Net tangible assets of $2.32 per security up 1% from 31 December 2012.
Managing director Dr Frank Wolf said the result reflects the strength of the group’s diversified business.
“Abacus has delivered a pleasing result that illustrates the strength of the Abacus business, with a strong underlying profit and cashflow from operations. We have a clear focus on activities that will support and generate cashflow particularly in the weaker short term environment.
“We believe the Abacus portfolio is well placed to cope with the current challenging conditions and we have created a strong diversified asset base with a clear strategy for major assets and projects,” he added.
“We are long term property investors seeking to develop, deliver and acquire new opportunities to drive long term securityholder returns. Over the twelve months to 30 June 2013, Abacus achieved a 19.4% total securityholder return,” he continued.
The balance sheet continues to be strong with gearing remaining low at 28.4%, well within the target gearing limit of 35%. At 30 June 2013, Abacus had $108 million of available liquidity that provided capacity for use for up to $160 million of accretive acquisitions.
Commercial portfolio contributed $63.8 million of EBITDA. Storage portfolio earnings contributed $23.9 million. Funds management generated $16.6 million for the year providing a return of 7.8% on total funds invested across the platform.
Property Review
