This article is from the Australian Property Journal archive
ABACUS Group (ASX: ABG) has posted a net loss of $241 million, after a 12.7% fall in the group’s investment property portfolio value.
For FY24, Abacus posted FFO of $81.3 million, or 9.24 cents per security, up 3.0% on FY23. With FY24 distributions at 8.50 cents per security, reflecting an FFO payout ratio of 92%.
Abacus posted NTA of 1.76 per security. Total assets came in at $2.6 billion, which was up 1.4% on FY23.
Across the group’s total portfolio occupancy was at 94.2%, with a WACR of 6.50%, with 16 total commercial worth $1.9 billion. The group’s office portfolio totals $1.5 billion, with 93.4% occupancy, a WALE of 3.7-years and a WACR of 6.43%.
The office portfolio is comprised of 78% of A-Grade buildings with 329 tenant customers and 4.7% like-for-like rent growth. The group completed 94 leasing deals over the period across 40,548sqm, with 32% average gross incentives, 11.4% leasing spreads and 3.6% average rent review.
The retail portfolio is valued at $0.4 billion across three retail assets with an occupancy of 96.1% with a WALE of 5.8-years and a WACR of 6.58%. Retail leasing included 39 deals over the period, like-for-like rental growth of 6.3% and average rent reviews at 5.1%.
While the self-storage investment portfolio has an occupancy of 91%, RevPAM of $327, $360 average rent and a WACR of 5.55%.
“Abacus Group’s diversified portfolio of assets exposed to the Office, Self Storage and Retail sectors, is delivering on its vision to create exceptional value for our customers and stakeholders through the identification, ownership and management of a portfolio of real estate investments,” said Steven Sewell, managing director at ABG.
“As evidenced during FY24, Abacus continues to constantly review the income and capital returns from all assets within the portfolio, as part of our active asset management strategy, with the aim of directing capital towards assets that provide strong and growing income streams over the medium to long term.”
Abacus boasts a limited near-term capex forecast and pro forma gearing of circa 32.3%, well within its revised target range of up to 40%.
“Abacus Group has diversified its income streams post de-stapling and directed capital towards assets with the best risk adjusted returns,” said Evan Goodridge, CFO of ABG.
“We delivered a FY24 distribution of 8.5 cents per security, in line with guidance and 25% franked, with the intention to distribute a further $76 million of excess franking credits over the medium term.”
Abacus Group has provided a FY25 distribution guidance of 8.5 cents per security, targeting a full year payout ratio of 85%-95% of FFO.
