- Profits up 107% to reach $314.8 million
- Over $1 billion spent on acquisitions in the half year
- Valuations of both storage and office portfolios increase
Abacus Property Group (ASX:ABP) has announced that it earned a statutory net profit of $314.8 million in its half year results for FY 2022, this is up 107% from the previous corresponding period.
Abacus invested over $1 billion of capital into its key sectors of Office and Self Storage during the half year.
Abacus’ Managing Director, Steven Sewell, noted that since FY17 Abacus has invested approximately $3.2 billion into its key sectors.
“Overall HY22 operating performance was solid, demonstrating the benefits of our portfolio diversification.”
Steven Sewell, Abacus’ Managing Director
“Trading conditions continued their positive momentum across our Self Storage portfolio and while COVID-19 related disruptions impacted our Commercial portfolio performance in the first quarter, it was pleasing to see leasing momentum return in the second quarter.”
The investment for HY22 included a self storage splurge which equated to 28 stores and development sites for $483 million. 77 Castlereagh Street in Sydney was acquired for $250 million.
The acquisition of 33.3% of Myer Bourke Street in Melbourne for $135.2 million was another notable investment.
Abacus’s trading results highlights
| Movement | Percentage | HY22 | HY21 | |
| Total Revenue | up | 25% | $ 149,782,000 | $ 119,942,000 |
| Total Revenue and Other Income | up | 85% | $ 416,117,000 | $ 225,069,000 |
| Net profit after income tax expense attributable to members of the Group | up | 107% | $ 314,788,000 | $ 152,017,000 |
| Funds from operations (FFO) | up | 34% | $81.052,000 | $60,606,000 |
| FFO per security | up | 8.2% | 9.8c | 9.06c |
Self Storage portfolio
In Abacus’ self storage portfolio, FFO contribution increased 67.2% on HY21 to $53.0 million.
Abacus’ Chief Financial Officer, Rob Baulderstone, commented on the self storage Portfolio valuation which increased by $140.8 million.
“Following an active half year including strong valuation gains across the Self Storage portfolio, Abacus has a solid Balance Sheet with HY22 gearing of 29.4%,” he said.
“Pleasingly our weighted average cost of debt has remained at 2% for the half year and we anticipate the FY22 cost of debt to be in the range of 2.00% – 2.25%,” Mr Baulderstone said.
Commercial portfolio
Under the commercial portfolio, FFO contribution increased 13.5% compared to HY21 reaching $47.1 million.
The portfolio’s valuation increased by $34.4 million in half year.
“With a diversified portfolio invested in the Self Storage and Commercial sectors the Group is positioned to leverage our key enablers, being our people and culture, market insight and repositioning capability, and deliver recurring income and value creation over the medium to long term,” Mr Sewell said.
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*Note impact from elimination of Storage King (SK) management fees (SK acquired in November 2020).
