APN Property Group announces HY2018 results

APN Property Group Limited (‘APD’) is pleased to announce its HY2018 results. Key highlights included:

  • Operating Earnings1 Operating $5.1 million up 37% from $3.7 million in the prior corresponding period (pcp)
  • Operating Earnings1 1.67 cents per share (cps) up 37% from 1.22 cps2 in pcp
  • Statutory net profit after tax of $9.6 million up 216% from $3.0 million in pcp
  • Funds under Management (FuM) up $264 million or 11% to $2.8 billionfrom June 2017
  • Successful IPO of Convenience Retail REIT and settlement of its IPO property acquisitions (now $327 million in total funds under management)
  • Strong and flexible balance sheet with net assets of $119.4 million, including cash of $14.8 million
  • Dividend guidance increased to 2.25 cps (from 2.00 cps), interim dividend 1.25 cps (all fully franked)
  • Total shareholder return of 31.1%pa4 (last three years)
  • Capital structure including stapling being reviewed

 

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

HY2018 Results Announcement

HY2018 Results Presentation

Appendix 4D and HY2018 Financial Report

 

Our team has delivered an excellent result for the first six months of 2018. We have delivered a 37% increase in APN’s operating earnings and an 11%3 increase on our assets under management since June. We have done this without significantly increasing fund gearing levels or altering our defensive approach to acquisition opportunities in what has been a particularly strong market.

APN now has four individual income streams Securities, Direct, Industria and Convenience Retail, each of which have attractive growth prospects either through additional acquisition opportunities or the establishment of new funds.

While we are wary of the risk of a correction in some parts of the commercial property markets APN is in a strong balance sheet position with nearly $15 million in cash, 37.5 cents of net tangible assets backing per share and little reliance on more volatile transaction and performance fees. We are delighted to be able to again increase our dividend guidance which is now up 80% over five years which illustrates the effective development and execution of our strategy to build the scale of the business.

Despite some market volatility, our income-oriented commercial property investments remain well supported and continue to be relevant to a very large group of current and potential investors.

We’re in a strong position to capitalise on opportunities which may emerge across the group. While we are actively looking for opportunities, our team is prepared to be patient and take a longer term view on creating value for clients and our shareholders – we remain buyers of value.

This Article has been prepared by APN Property Group Limited (ACN 109 846 068, APD.ASX) (APN). This Article contains summary information about APN and one or more of the funds managed by APN Funds Management Limited (APNFM) (ACN 080 674 479, AFSL No. 237500). APNFM is a wholly owned subsidiary of APN and the responsible entity and issuer of the APN Property Group products. Information contained in this Article is current as at 21 February 2018. The information in this Article is of general background and does not purport to summarise all information that an investor should consider when making an investment decision. It should be read in conjunction with APN’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange (ASX) which are available at www.asx.com.au or APN’s website www.apngroup.com.au. Figures may not sum due to rounding. Currencies are generally presented in Australian dollars and times are references to Melbourne times except where the context requires otherwise.

This Article is for information purposes only and is not financial product or investment advice or a recommendation to acquire entitlements or shares in APD or interests in any fund managed by APNFM. The information in this Article has been prepared without taking into account the investment objectives, financial circumstances, taxation position or particular needs of investors. Except as required by law, no representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions, or as to the reasonableness of any assumption, contained in this Presentation.  

1. Operating Earnings is an unaudited after tax metric used by management as the key performance measurement of underlying performance of the Group. It adjusts statutory profit for certain non-operating items recorded in the income statement including minority interests, discontinued operations (Europe and Healthcare), business development expenses and realised / unrealised fair value movements on the Group’s co-investments and investment properties.
2. Represents Operating Earnings per Share (EPS) adjusted to exclude the accounting impact of the 10 cents per share special dividend paid in October 2016. On a statutory basis, Operating EPS for the six months to 31 December 2016 was 0.55 cps.
3. Increase of 6% on 30 June 2017 Pro-Forma FUM of $2.6 billion, refer to FY2017 result announcement for further information.
4. Per annum as at 31 December 2017. Includes reinvestment of dividends at market price on dividend payment date and divisor adjustment for standardised calculation where required.