Abacus Property (ASX:ABP) affirms distribution guidance, shares fall

Follow us on Google News:
 Abacus Property (ASX:ABP) affirms distribution guidance, shares fall
Image source: © 1144154543 | Megapixl.com

Highlights:

  • Abacus Property is expected to distribute dividend of 18.4 cents per share in FY23.
  • The company ended the first quarter of FY23 at gearing of 6%.

Diversified property group Abacus Property Group (ASX:ABP) on Wednesday (23 November 2022) affirmed its payout guidance for the financial year 2023 (FY23) while sharing an annual general meeting 2022 update. In addition to this, the group has provided an operational update for the first quarter of FY23.

At 2:45 PM AEDT, Abacus shares were spotted trading 1.28% lower at AU$2.70 per share with a market capitalisation of AU$2.44 billion.

Abacus affirms its payout guidance

The company has maintained its distribution guidance of a minimum of 18.4 cents per share, representing a payout ratio of 85 to 95% of funds from operations (FFO). According to ASX filing, the guidance is based on the assumption that business conditions will continue to normalise, and Covid-19 will have no further material impacts.

Myra Salkinder, chair, Abacus, said,

1QFY23 operational update

  • The company reported growth and significant activity levels across the Self Storage portfolio during the quarter. In the commercial portfolio, the operating conditions were mixed. 
  • The established occupancy declined from 92.7% across FY22 to 92.2% across 1QFY23. 
  • The company ended the quarter with a gearing of 31.6% and minimal debt expiring in the medium term.

What happened in Abacus in FY22?

  • In FY22, the company deployed more than AU$1.2 billion of capital in commercial and self storage asset classes. The deployment was achieved via joint ventures and acquisitions, which were funded through a combination of proceeds from selling non-core assets, debt and AU$200 million equity
  • The company reported a statutory profit of AU$517.2 million in FY22, a rise of 40% over the prior corresponding period. As reported, the profit was driven by a value uplift in the storage portfolio and employment of capital into accretive acquisitions.
  • The funds from operations grew by 18% over the previous year. 
  • The full year distribution stood at 18 cents per security, representing a payout ratio of 95% of FFO and an increase of 2.9% over the previous year.
  • The net tangible assets per stapled share grew by 12.2%. 
  • The gearing was 28.7% as of 30 June 2022, within the target range of approximately 35%. 

The self-storage portfolio of the group reported a 56% increase in net property income. 

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

Featured Articles

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK