This article is from the Australian Property Journal archive
AUSTRALIA’S largest storage owner operator, the National Storage REIT, has recorded a strong 41% grown in underlying earnings of $20.1 million for the six months to December 31.
The result is higher than $14.3 million recorded in the previous corresponding period. The trust’s net profit after tax was $23.7 million, up from $20.6 million in the pcp. The trust announced an interim distribution of 4.6 cents per security.
Managing director Andrew Catsoulis said the results have been underscored by organic operating and portfolio growth as well as the successful execution of its acquisition strategy.
Total revenue for the period increased by 46% to $54.4million (1H FY16: $37.3 million) reflecting organic growth and the integration of acquisitions.
During the year, NSR bought five storage properties plus 26 centres Southern Cross portfolio, boosting its total assets under management by 15% to $1.1 billion.
“1H FY17 has also seen completion of the transformative 26 centre Southern Cross storage portfolio acquisition, cementing our position as Australasia’s largest storage owner-operator,” he added.
“We are pleased to have delivered 1H revenue per available square metre (REVPAM) growth of 2.6% (5.2% annualised) across the operational storage business. A focus on building occupancy across the group has seen 4.7% same centre occupancy growth in the established portfolio (like-for-like) and the acquisition portfolio is trading well at 80.5%. More than 50% of the total portfolio is now trading at or above 80% occupancy.
“We will continue to actively manage REVPAM and balance the operational levers of occupancy and rate per square metre into FY17. We expect rate per square metre to continue to increase as we progressively manage revenue with a higher degree of granularity,” he said.
“We are on track to deliver on our full year guidance of 9.2 – 9.4 cents per stapled security, reflecting 5.8% – 8.0% growth in earnings per stapled security,” Catsoulis concluded.
Australian Property Journal
