This article is from the Australian Property Journal archive
FOLKESTONE Education Trust has delivered an interim distributable income of $16.9 million, an increase of 29.0% on previous corresponding period.
The statutory profit increased by 13.8% to $59.5 million and the trust announced a distribution of 6.7 cents per unit, an increase of 5.5% on the previous corresponding period.
The trust’s market capitalisation increased from $515 million at 30 June 2015 to $558 million at 31 December 2015.
During the year, a total of 350 early learning properties in the portfolio were revalued, resulting in an increase of $41.5 million. This result has been driven by further yield compression in the marketplace, combined with growth in income from annual and market rental increases.
The largest increases of the independent valuations occurred in New South Wales (22.0%), South Australia (16.7%), Victoria (12.1%) and Queensland (10.0%). The overall passing yield achieved on the freehold independent valuations was 7.1%, a 100 basis points improvement on the passing yield on these same assets as at 30 June 2015.
Overall yield compression based upon the independent and Directors’ valuations achieved for the half year to 31 December 2015 was 40 basis points on 30 June 2015, reducing the overall yield from 8.0% at 30 June 2015 to 7.6% at 31 December 2015. The yield compression is largely driven by the continued market recognition and investor appetite for this asset class. With daily fees per place continuing to increase, this has also led to growth in rental income.
The trust has forecast FY16 distribution of 13.4 cpu.
Australian Property Journal
