URB Investment Limited (ASX: URB) has announced its half yearly result report for FY2019. For the half year period, the company has reported an increase of 251% in its net operating profit which has reached to $3.86 Mn.
The result included $0.73 Mn in special investment revenue following Settlement of Lot 1 and Lot 1A of the PURT3: Kingsgrove Direct Property asset and $3.93 Mn from a net fair value gain recognised on the investment in PURT5: Prestons. It reported Earnings per Share at 5.27 cents per share (cps), a significant increase from 1.51 cps last year.
The company has declared an interim dividend of 0.75 cps for the H1 FY2019, fully franked at the tax rate of 30%. It also declared fully franked special dividend of 1.00 cps due to the special investment revenue received from the Companyâs direct property investments during the H1 FY2019. It takes the total tally of fully franked dividends paid to shareholders to 3.25cps since its listing in April 2017. The ex-dividend date has been set on Thursday 14 March 2019, record date on Friday 15 March 2019 and the Payment Date on Friday 29 March 2019.Â
URB offers shareholders the opportunity to receive additional shares in the Company instead of receiving cash dividends through Dividend Reinvestment Plan (DRP). The DRP will be offered at a nil discount. The last date for the receipt of an election notice to participate in the DRP is Monday 18 March 2019.
URB reported net assets of $79.2 Mn as on 31 December 2018, with the equity portfolio, direct property portfolio, and cash & cash equivalents valued at $31.7 Mn, $36.8 Mn and $9.1 Mn.
The company reported its construction program of the PURT5: Prestons project to be complete. Its lease with mainfreight has been commenced and the PURT5: Prestons Trust has started receiving income from this investment. The PURT5: Prestons Trust expects to settle the sale of this asset by the end of February 2019. In addition, the company continues to progress settling the balance of lots on the PURT 3: Kingsgrove site. It achieved settlement on Lot 2 and Lot 3 last week, where it received a cash distribution of $2,674,640, being a partial return of capital and distribution of profit. The remaining Lots at PURT 3: Kingsgrove are expected to settle gradually in the second half of FY 2019.
The company has started to realise a value uplift from its direct property investments, with both PURT 3: Kingsgrove and PURT5: Prestons set to continue to generate further income and capital returns for URB during the second half of FY2019. The completion of both PURT3: Kingsgrove and PURT5: Prestons developments will generate significant cash for URB, providing the Company with improved flexibility to take advantage of new opportunities.
The company sees significant opportunity in the urban renewal space, in both Direct Property and Equities, and will continue to invest in assets that have exposure to population growth, population density and major infrastructure investments. It expects Australiaâs population to grow to 40 Mn people as early as 2048, and national major transport infrastructure spend is expected to grow to $23 billion per annum in the next five years. They also find good opportunities through tourism growth, the revitalisation of town centres, rezoning and changes in land use.
On stock information front, URBâs shares last traded at $0.940, up 2.174% as on February 22, 2019 with the market capitalization of ~$67.45 Mn. Its 52 weeks high has been noted at $1.020 and low at $0.88. Its absolute return for the last 3 months and 1 year is -3.66% and -8% respectively.
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