This article is from the Australian Property Journal archive
Growth in the APN/UKA European Retail Trust has delivered the APN Property Group with half year profits above their expectations, in the six months to December 31, 2005 APN recorded a net profit of $9.13 million – an increase of 549% over last year.
The total revenue for the period was $46.31 million, up 184%.
APN’s managing director Clive Appleton said the results for the half year puts the group on track to exceed its Prospectus forecasts for the 2006 financial year.
Following the strong half year performance, the board has given new guidance to it forecast net profit after tax for the 2006 financial year to approximately $12.0 million (previously $9.6million) and is targeting a FY 06 dividend of 8 cents per share (previously 6.2 cents per share).
He added that profit was ahead of expectations due to a number of factors which included an increase in funds under management of $850 million to $2.7 billion managed over 11 funds.
Appleton said there is further growth in its property securities fund adding that this gave rise to increased management and upfront fees from its funds management division.
In addition, profits were also secured from its development and delivery division which included the completion of a number of developments or legacy projects such as 380 La Trobe St and the Bendigo Bank building in Melbourne.
APN has significant inroads since listing in June 2005, shares in APD have traded substantially above the issue price of $1.00 to close at $1.95 as at the close of business yesterday.
Appleton puts it down to the launch of new funds into the three main property funds management sectors, including the launch of the APN Suite of Property Funds into the Investment Platform market, the launch of the APN Development Fund into the wholesale market and the IPO for the APN/UKA European Retail Trust.
He said the launch of these funds would not only diversify the revenue stream of the business but also provide a stronger basis for growth.
“Importantly all of our funds have performed at or above expectations with our flagship fund, the APN Property for Income Fund, the largest retail property securities fund in Australia, delivering a return of 14.68%, over 2% ahead of its benchmark for the year to December 2005,” he added.
Appleton said the strong returns from its Australian and global property securities funds over a sustained period, put it in a strong position to further strengthen its position in this market.
In December 2005, Michael Butler was appointed to the Board. Butler is a professional director with current directorships including AXA Asia Pacific Holdings. Appleton said Butler brings considerable public company and funds management experience to the Board.
APN has declared a fully franked dividend for the first half year of 4.0 cents per share (previous forecast 3.1 cents per share).
By Nelson Yap
