This article is from the Australian Property Journal archive
GARDA Property Group has announced a 21% increase in net tangible assets following the $56 million revaluation uplift on part of its portfolio and its recent sale of three none-core assets, as industrial landlords continue to benefit from the booming demand for warehousing and logistics.
The NTA per security of $1.45 is a 29% premium to its previous closing price of $1.125.
It implies a total portfolio value of $457 million with a weighted average capitalisation rate of 5.78%, down by 65 basis points, and gearing of 31.8%, down from 38.9% at the end of December.
The independent valuation program included eight of Garda’s 14 investment properties, including six industrial and two commercial assets.
Eight of its investment properties were revalued. They included six industrial assets in Queensland and a pair of office buildings, in Cairns and Melbourne’s Box Hill.
The 14,683 sqm Cairns office building at 7-19 Lake Street, including a 1,500 sqm parcel of land, witnessed a $25.2 million uplift in value to $86.5 million and a 150 bps cap rate tightening. The Box Hill property increased in value by $5.8 million to $39.0 million.
Among its industrial portfolio, its Pinnacle asset in Wacol lifted $9.0 million to $22.3 million, and its Pinkenba asset by $5.7 million to $26.2 million.
Industrial properties now represent approximately half of the Garda portfolio by value, with this proportion to increase as the group’s develop to own industrial pipeline is delivered.
The WACR for office buildings is now 5.96% and for industrial buildings 5.56%. It sold off a trio of non-core properties last month for $30.6 million, above the combined book value of just over $27 million.
Its remaining six properties will be independently valued in the half year ending 31 December 2021.
FY21 distributions guidance was reaffirmed at $0.072 per security, with an expected payout ratio of between 95% and 100% of earnings.