This article is from the Australian Property Journal archive
SINCE its IPO in December 2021, Newmark Property REIT (ASX: NPR) delivered on its PDS forecasts against a turbulent landscape, thanks in large part to its heavy weighting towards major national tenants.
Statutory net profit was posted at $51.8 million for FY22, with $46.5 million attributed to the period between 8 December 2021 to 30 June 2022, following NPR’s listing.
FFO for the period was at $13.3 million, with $8.9 million from the period starting December and ending June, coming in line with PDS forecasts.
Also in line with PDS forecasts, distributions were at 5.5 cents per unit for the period between 8 December 2021 and 30 June 2022.
“NPR has delivered on its IPO forecast distribution guidance for FY22, against a complex environment,” said Ed Cruickshank, fund manager of NPR.
“NPR’s continued performance is underpinned by a high-quality strategically located portfolio leased to leading national tenants with growing income streams that we believe puts NPR in a strong position to weather current macro challenges and deliver on its objectives for investors”.
The REITs portfolio comprises eight high-quality properties, for a combined value of $487.4 million, including $37.9 million in revaluation gains.
Within the portfolio occupancy is at 100%, up from 99% at 31 December 2021, with portfolio WALE at 7.2 years, WACR at 4.69% and no expiries due for FY23.
NPR’s WARR increased from 2.70% to 2.88%, with average rent increases underpinned by 85% with fixed rent escalation and 11% with CPI based escalation.
More than 90% of the portfolio is made up of leading national tenants, with 81% underpinned by Bunnings, Officeworks and other Wesfarmers Group tenants.
“We are confident that the strong underlying asset values and reliable income streams that our properties receive from the likes of Bunnings, Officeworks and other leading national retailers will increasingly appeal to investors,” said Chris Langford, managing director of NPR.
NPR executed its capital management strategy of refinancing its debt facility for a three-year term ending December 2024.
The REITs balance street remained strong, with gearing at 25.5% and $100 million of its debt facility hedged.
NPR provided a FY23 distribution guidance of 8.9 to 9.1 cents per unit, including 5.0 cents per unit in 1 H FY23.
