ABP +0.85%; the string of solid updates from Australian property companies continued today with Abacus reporting a good set of numbers + they provided FY22 distribution guidance which shows confidence in their business. Whether you own ABP or not (we don’t – we own National Storage (NSR) in our Income Portfolio), we all have property investments and ABP has their finger in a few pies so to speak. Here are the high notes:
- Funds from Operations (FFO) per security came in at 9.8c for the half which was an increase of 8.2% compared to 1H21.
- The value of their assets (NTA) has increased to $3.73ps, an increase of 8.7% versus FY21
- They expect a distribution of at least 18.0c per security in FY22, reflecting a payout ratio in the range of 85-95% of FFO. 1H22 payout of 8.75cps was 89% of FFO.
- Self-Storage: The portfolio value increased by $140.8m or 7.5% in the half. Cap rates compressed 27bp to 5.47%. For more information on Cap rates, we discussed in a recent update on NSR – Click Here
- Commercial: Rent collections remained resilient in the half with 96% of Office and 93% of Retail rents collected. The Commercial portfolio valuation increased by 1.8%, with cap rates compressing 15bp to 5.35%.
MM likes ABP but has a preference for NSR in the self-storage space
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