APN Property Group Announces HY2019 interim results and reaffirms earnings guidance.

HY2019 Achievements

• Operating Earnings¹ $4.8 million with 98% of earnings generated from recurring sources
• Operating Earnings 1.55 cents per share (cps); on track to achieve full year guidance range of 2.40 cps to 2.90 cps
• Statutory net profit after tax $6.0 million versus $9.6 million in the prior corresponding period (pcp) which included significant unrealised mark to market gains
• Funds Under Management (FUM) remained steady at $2.8 billion overall
• Cash holdings increased 96% since June 2018 to $29.3 million² positioning APN for growth
• Strong and flexible balance sheet with net tangible assets of $121.2 million; NTA per share of 38.6 cents (up 3% versus June 2018)
• Strong operational results including leasing and asset improvement projects across $1.2 billion direct property funds – average lease expiry of 8.3 years and occupancy of 98%
• Interim dividend declared of 1.25 cps (fully franked); FY19 dividend guidance reaffirmed at 2.25 cps
• Stapled structure proposal progressing – shareholder approval received

For full details of the results, please click on the following:

HY2019 Results Announcement
HY2019 Results Presentation
HY2019 Financial Report and Appendix 4D

APN has delivered another strong result with our recurring net income increasing to $13.1 million for the half and nearly all of our operating earnings being delivered from recurring sources. APN’s income-oriented commercial property funds have continued to deliver strong returns for our investors over the period. These products with consistent and growing cash distribution yields backed by real assets continue to be attractive to a wide range of investors.

Our listed and unlisted direct property funds in particular are in excellent shape – with relatively low gearing levels, excellent future income profiles and increasingly attractive acquisition opportunities emerging. We have remained disciplined with respect to acquisitions, consistent with our long term view of delivering value for investors and shareholders. To position APN to capitalise on these opportunities we have significantly increased APN’s cash position to $29.3 million² which is reflected in APN’s net tangible asset backing of 38.6 cents per share.

This article has been prepared by APN Funds Management Limited (ACN 080 674 479, AFSL No. 237500) for general information purposes only and without taking your objectives, financial situation or needs into account. You should consider these matters and read the product disclosure statement (PDS) for each of the funds described in this article in its entirety before you make an investment decision. The PDS contains important information about risks, costs and fees associated with an investment in the relevant fund. For a copy of the PDS and more details about a fund and its performance click here. To receive further updates and insights from the APN team, sign up for Review, our monthly email newsletter.
Forward looking statements
This release contains forward-looking statements, estimates and projections, which are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors many of which are beyond APN Property Group’s control and which may cause actual results to differ materially from those expressed in the statements contained in this announcement.

1 Operating Earnings is an unaudited performance metric used by the Group as the key measurement of it’s underlying performance. It adjusts statutory profit for certain non-operating items recorded in the income statement including discontinued operations (Europe and Healthcare), business development expenses and realised / unrealised fair value movements on the Group’s co-investments and investment properties.
2 Includes cash held in trust for underlying funds managed by the Group of $0.3 million and $5.0 million for AFS Licences.