The Australian Unity Office Fund (ASX: AOF), a listed property fund of Australian Unity Investment Real Estate Limited (AUIREL) that makes investments in a diversified portfolio of office properties across Australian metropolitan and CBD markets, announced its asset valuation update on 10 January 2019. As per the update, its four properties 30 Pirie Street, Adelaide, 150 Charlotte Street, Brisbane, 32 Phillip Street, Parramatta, 2 Eden Park Drive, North Ryde were externally valued as at 31 December 2018. It was found that the combined valuation of these properties was up by approximately $0.2 million from the properties book value prior its valuation.
Earlier, these four properties were revalued as at 30 June 2018 where there were no changes in the capitalization rate of each property. The weighted average capitalization rate remains at approximately 6.5%.
The Australian Unity Office Fund’s official listing date is on 20 June 2016 and since then the portfolio has given a positive performance of 25.65%. The last one-year performance of the fund has been impressive offering return of 16.09%. However, in the last three months, the performance of the fund is down by 6.64%.In its last distribution for the period of 1 October 2018 to 31 December 2018, the fund gave returns of 3.95 cents %.
As per the annual report of the Australian Unity Office Fund as at 30 June 2018, there was an increase in the statutory net profit by $36.7 million. The fund generated a statutory net profit of $97.3 million in FY18. It made $27.0 million of funds from operations (FFO) which is up by $3 million as compared to a previous financial year. The per unit Funds from operation stood at 17.2 cents per unit. The total distribution of the fund was $24.5 million which was up by $3.4 million as compared to its previous financial year. The net tangible asset per unit as at 30 June 2018 was $2.67. The return on net tangible asset increased by 30 June 2018 was 26.7%, which was up by 4.6% from its previous financial year.
The profit and loss statement of the Australian Unity Office Fund states that the fund by the end of 30 June 2018 was able to generate a profit of $97.293 million attributable to the unitholders.
The balance sheet of the Australian Unity Office Fund appears healthy with a net tangible asset of $434.909 million and a debt to equity ratio of 0.47. It indicates sound financial health of the fund which can meet its long-term obligation. A lower debt to equity ratio shows that the fund tries to utilize its resources and assets in case of any financial requirement instead of approaching some outside sources. By the end of the financial year 2018, the Australian Unity Office Fund has net cash and cash equivalent of $434.909 million.
At present, the market price of each unit of the Australian Unity Office Fund is A$2.660 (as at AEST 2:29 pm, 10 January 2019) with the market capitalization of A$434.76 million and a PE ratio of 4.27x.
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