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