Aventus Retail Property Fund (ASX:AVN) declared its distribution for the quarter ending 30 September 2018 on 21 September 2018. The distribution amount was 4.09 cents per unit and ex- distribution date was 27 September 2018. The VWAP period was 2 November 2018 to 15 November 2018. The payment date was decided to be on or about 23 November 2013 however the company cancelled its on-line distribution form on 24 September as ASX advised the company to manage its September distribution offline. According to the company’s announcement on 24 September 2018, the company has assured that the details of the distribution which were announced on 21 September will remain unchanged and the distribution will be paid as advised. The distribution record date and the ex-date will remain unchanged.
The reason behind ASX advise to manage the distribution offline was due to the record date of internalization occurring on the same day and ASX systems were not able support this distribution. Hence, the distribution is going to be operated manually by the company’s registry. Also, ASX’s systems are not going to advice an ex-date or record date for this distribution.
In the beginning of the fiscal year 2018, the company acquired the Castle Hill Super Centre and Marsden Park Home which contributed additional revenue of $30.2 million due to which the total revenue for FY2018 increased by 26% to $164.6 million. However, the company’s net profit decreased by 14.7% in the FY2018 due to the additional transactional costs of $24.8 million, increase in finance costs associated with the Group expanded debt portfolio of $13.6 million and decrease in net fair value gains on investment properties by $13.2 million.
On 10 August 2018, the company announced a proposal for the internationalization of the Fund’s management function under which the investors will effective acquire the Aventus Property group (APG) management entities. This proposal will eliminate external performance and management fees which will improve competitiveness for acquisition. It also provides potential for additional income streams through third party management funds and asset management. It is expected that with this proposal there will be an accretion of 1.1% in Funds from Operations (FFO) of FY2019 and 4% accretion in Adjusted funds from operations (AFFO) for FY2019. The Net tangible asset per share is expected to be reduced from $2.38 to $2.10. This proposal will provide additional income streams through third party funds management and asset management. This proposal may cause increase in the demand for and liquidity of AVN stapled securities. The investors who are wishing to vote on this resolution will have to attend the meeting on 25 September 2018 (AEST 11:00 AM). If the proposal is approved by AVN unitholders, the last day of ASX trading in existing AVN Units will be 26 September 2018 and the trading of AVN stapled securities will commence on a deferred settlement basis from 27 September 2018. The last date for deferred settlement trading will be 1 October 2018. And the normal trading of AVN stapled securities will commence from 2 October 2018. For future the company is planning to continue its principal activity of investment in large format retail property assets.
After the announcement of cancellation of the company’s online distribution, the share price of the company declined by 0.9% as on 24 September 2018 (AEST 1:47 PM).
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