This article is from the Australian Property Journal archive
TAKEOVER target Industria REIT proved to be a standout performer for manager APN Property Group in the 2017 financial year.
Growthpoint Properties Australia remains poised for a major play for Industria after acquiring an 18.2% stake in the fund in July, and having acquired the $300 million GPT Metro Office Fund last year.
APN retains a 22% stake in the fund, and chief executive officer Tim Slattery highlighted its performance in APN’s annual results.
“In terms of individual achievements, the Industria REIT management team led by Alex Abell have delivered exceptionally strong asset management and leasing results (over 24,000 sqm of leasing completed) which delivered in excess of $30 million of additional value for IDR’s investors at 30 June for NTA growth over the year of over 23%,” Slattery said.
Industria reported the previous day, posting a net profit attributable to shareholders increase of $70.3 million to $101.6 million, with an $85 million portfolio valuation to $638.0 million. Around 50% of the valuation uplift came on the back of its leasing performance.
APN reported a 78% drop in net profit for the period attributable to members for the 2017 financial year, to $10.691 million, and statutory net profit after tax was $10.7 million, against $49.7 million. Revenues were up 26% to $24.972 million and operating earnings increased 95% to $7.3 million, and 90% in cents per share to 2.35c.
It expects to replicate its total dividend of 2.00 cents per share for the 2018 financial year.
“Despite the competitive environment, we remain optimistic on our ability to source and capitalise upon opportunities and to actively add value for our investors including through the use of our balance sheet as have recently done.
“We are paying close attention to the management of risk across the business given the strength in some parts of the commercial property sector and regulatory changes affecting capital flows. However we believe that well located property investments which are appropriately financed and offer attractive cash income yields will continue to be well supported by a broad range of investors both domestically and internationally,” Slattery said.
Funds under management increased by $409 million, or 18.6%, to $2.6 billion. Net funds management income grew by 16.7% increase to $16.4 million, driven by increased funds under management in the Industria REIT and Direct Property Divisions.
APN listed its Convenience Retail REIT in July, which is anchored by its relationship with Puma Energy. It intends to hold more than $300 million in assets; a WALE of more than 13 years, and a 6.50% starting cash distribution yield at 30% gearing.
Its securities division saw long-term and new wholesale equity raising channels deliver more than $200 million in net fund inflows for the year.
Australian Property Journal
