Tim Slattery talks half year results
APN Property Group Limited (ASX:APD) is a specialist real estate investment manager. We manage commercial property investments on behalf of retail and institutional investors, across Australia. The company has been in operation since 1996, so this year’s our 20th Anniversary.
So December 2015 half-year results were our best results for a number of years. We reported a record net profit after tax of just over $15.9 million for the half, which on a per share basis is about 5.4 cents per share. At an operating level, our operating earnings after tax per share were 2.4 cents and the company had 33.5 cents of NTA per share, at the balance date. We also generated 11.8 per cent growth in our assets under management, for the year to December. So we finished the year with $2.38 billion of funds under management.
So dividend for the half-year was 1.25 cents, we generally pay a slightly higher dividend in the first half of the year. So our full year dividend should be 1.5 cents per year fully franked, which is in line with last year, but it’s up about 25 per cent over financial year 2014.
Our real estate securities business had another strong half-year. Our flagship APN AREIT Fund was ahead of its benchmark for its 12-month performance. And it’s now over 300 basis points ahead of its index, since its inception in 2009. In the period it also had a continuing strong inflow. So we saw over $70 million worth of net inflows in the period in the Fund, exceed $1 billion for the first time.
Industria REIT (ASX:IDR) and Generation Healthcare REIT (ASX:GHC), each had strong halves. Generation reported outperformance versus the index of over 19 per cent, relative to the A-REIT index in the half. Industria also reported a number of significant leasing and property management outcomes, which was great to see.
Our direct business has also had a strong period. We had successful sales with our newest Fund, the Stella Residential Fund. And we also managed to acquire about $40 million of assets for our latest Fund, which is the APN Convenience Retail Fund, which we should be launching soon.
It would be great in terms of the future if in 12 month’s time, we can continue to see growth sort of 10 to 20 per cent across the business, in terms of its size. We think that’ll mean we’re continuing to grow our earnings for shareholders. But I guess most importantly, we also hope that we would be able to continue to deliver the same investment performance, for our clients.
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