Aventus Group Posted Half Year Results for FY 2019

On 14 February 2019, Aventus Group (ASX: AVN) posted its half years results for FY 2019. In its half-year results, the company has reported revenue from ordinary activities of $84.2 million which is 1.3% higher than the previous corresponding period (pcp). The growth in the revenue is mainly due to increases in rental and other property related income. Further, the company has reported a profit of $63.7 million for the half-year period which is around 15.1% lower than PCP.Â

The Funds from operations (FFO) attributable to security holders in 1H FY 2019 is totaled at $47.4 million, up 6.3% on pcp. The company reported FFO Per Security of 9.2 cents, up 1.9% on PCP. The company has declared a Distribution Per Security of 8.2 cents for 1H FY19 which is 1.4% higher than PCP.

The financial cost of the company increased by $4 million to $17 million in 1H FY19 as compared to $13 million in 1H FY18. The increase in financial costs was due to the increased debt balance post the internalization transaction. The company has also reported Management fees of $3 million which represent pre-internalization fees for the period 1 July 2018 to 30 September 2018.

While providing the information about its Investment property portfolio, the company informed that as at 31 December 2018, the Group owns 20 large format retail investment properties across Australia with a combined value of $1.9 bn. The weighted average capitalization rate of the portfolio is 6.7% for 1H FY 2019. For the six months ended 31 December 2018, the company reported Net fair value gains of $26.3 million on the portfolio.

During the half year period, the company opened level 1 at Tuggerah Super Centre, adding around 10,000 square metres of additional GLA to the centre, and the opening of pad sites at Cranbourne Home and Bankstown Home. The company has also commenced Development works at MacGregor Home, and it is planning for the Caringbah Home redevelopment which is expected to be finalized in early 2019.

The company’s Gearing ratio increased from 35.6% at 30 June 2018 to 39.4% at 31 December 2018, driven by the acquisition of the APG Group on 1 October 2018. The company’s Management is considering various capital management initiatives to reduce gearing in future financial periods.

During the period, the Aventus Group extended the maturity dates of $400.0 million of debt under the syndicated bank debt facility and finalized a $50.0 million expansion of the syndicated loan note facility. Further, a $60.0 million of new 5-year bi-lateral bank debt facilities were entered into during July 2018. The proceeds from the facility were used to repay a portion of debt under the syndicated bank debt facility. In September 2018, the company repaid the Tranche B of the syndicated bank debt facility.

Meanwhile, in the past one year, the share price of the company has increased by 1.87% as on 13 February 2019. AVN’s shares traded flat at $2.180 with a market capitalization of $1.16 billion as on 14 February 2019.


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