This article is from the Australian Property Journal archive
LARGE format retail centre landlord Aventus has found itself in a stronger financial position than pre-COVID, as the sector benefited from Australians redirecting their spend from travel towards their homes, priming the group for a growth phase.
Funds from operations grew 9.6% to $110 million over FY21, and by FFO distributions bested initial guidance by 5%.
“We have ended FY21 in a stronger financial position than pre-COVID, outperforming our guidance with FFO per security growth of 7.1%, underpinned by strong cash collection, higher occupancy, continued expense management and lower finance costs,” Aventus CEO, Darren Holland said.
As flagged in June, $297 million in net valuation gains was recorded, a 15.4% increase compared to 12 months ago. This resulted in lower gearing of 30.3%, at the bottom of the targeted gearing range, or 29% including this week’s $42.15 million sale of MacGregor Home centre in Brisbane at a 56% premium to book value.
“This leaves us well-positioned to improve and enhance the portfolio and to pursue our growth strategy,” he said, flagging an acceleration of its development pipeline, accretive acquisitions and expansion of our funds management platform,” Holland said.
He noted the portfolio has large store sizes that allow social distancing and click and collect facilities across all of its centres. Currently, 80% of the portfolio remains trading of which 32% are providing click and collect.
“In addition, our retailers have proved resilient and have been the beneficiaries of resurgent demand following the easing of previous restrictions, redirection of travel expenditure and Australians cocooning at home.”
Portfolio occupancy of 98.8% is up 0.8% on 12 months ago, and 3.9% above the national average, it said. Rent collection came in at 98%, with its income underpinned by an 88% weighting to national retailers includes Bunnings, Officeworks, Harvey Norman and JB Hi-Fi.
It struck 119 leasing deals across 75,000 sqm.
Holland said uncertainty surrounding current lockdowns meant the group was unable to provide FY22 FFO per security guidance, although it is committed to providing FY22 distributions in line with the policy payout ratio of 90 to 100% of FFO.
Aventus refinanced $660 million, or 80%, of the debt portfolio.
