FY21 Results

APN Convenience Retail REIT is pleased to announce its results for the year ended 30 June 2021 along with the acquisitions of United Gordonvale, QLD and 7-Eleven Kingston, QLD and a fully underwritten equity raising comprising a $45 million institutional placement (Placement) and a security purchase plan (SPP) to eligible securityholders¹ to raise $5 million² (together the Offer).

FY21 highlights

• Distributions of 21.9 cents per security (cps), an increase of 0.5% on FY20 (with a high tax deferral component of 80.2%)
• Funds From Operations (FFO) of $25.9 million or 21.9 cps, up 34.6% and 1.4% on FY20 respectively reflecting the issuance of new securities during the year
• Statutory profit of $73.8 million, up $28.0 million on FY2020
• Portfolio revaluation uplift of $53.9 million or 12.1% during the year driven by a combination of cap rate compression (weighted average cap rate of 6.0%) and annual rent increases
• Net Tangible Assets (NTA) up 40 cps to $3.67, a 12.2% increase on June 2020
• $185 million of contracted acquisitions in FY21 with a further $28.6 million contracted post balance date
• 15 new long term major lease deals completed, extending the portfolio’s WALE and enhancing the lease expiry profile with 92% of portfolio income expiring in FY30 and beyond
• Balance sheet gearing of 28.2% as at 30 June 2021
• FY22 FFO and distribution guidance of 22.9 cps, an increase of 4.6% on FY2021³
• Transition to Dexus management preserves strong governance, and increases depth of expertise and growth prospects

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

FY21 Results, Acquisitions and Equity Raising Announcement

FY21 Results, Acquisitions and Equity Raising Presentation

FY21 Annual Report

Acquisitions and Equity Raising

APN Convenience Retail REIT is also pleased to announce the acquisitions of United Gordonvale, QLD and 7-Eleven Kingston, QLD (the Acquisitions) and a fully underwritten equity raising comprising a $45 million (Placement) and a SPP to eligible securityholders to raise $5 million².

The proceeds of the Offer will be used to fund the Acquisitions, associated transaction costs of the Acquisitions and in connection with the Offer and to repay debt to support the Fund’s core business activities.

Security purchase plan

Eligible securityholders in Australia and New Zealand will be invited to subscribe for up to $30,000 of New Securities⁴, free of brokerage and transaction costs, via a fully underwritten SPP. New Securities issued under the SPP will be issued at the lower of $3.60 per New Security or a 2.5% discount to the 5-day volume weighted average price at the end of the SPP offer period.

Further information on the SPP will be lodged with the ASX and sent to Eligible Securityholders on or around 25 August 2021.

New Securities issued under the SPP and held on the record date for AQR’s distribution for the September 2021 quarter will be entitled to that distribution.

Timetable

All dates and times are indicative only and subject to change. Unless otherwise specified, all times and dates refer to Sydney time.

For full details, please refer to the ASX Announcements.

1. Australia and New Zealand and are not in the United States and are not acting for the account or benefit of a person in the United States (Eligible Securityholders).

2. The Fund may (in its absolute discretion) in a situation where total demand exceeds $5 million, decide to increase the amount to be raised under the SPP to reduce or eliminate the need for scale back.

3. Includes the impact of the Acquisitions and Offer. Subject to current market conditions continuing and no unforeseen events.

4. Securityholders are restricted from being issued more than $30,000 worth of securities under an SPP in any consecutive 12-month period. As such, the amount Eligible Securityholders are able to subscribe for under the SPP will be reduced by any amount received under AQR’s previous SPP announced on 8 December 2020 and issued on 21 January 2021.