pouring beer pub
HPI currently own 47 pubs across four states. Image: Louis Hansel, Unsplash
  • Total revenue is up 6.2% from $27.1m to $28.8m
  • Acquired the Jubilee Tavern and Mango Hill Hotel for $40.6m
  • Currently undergoing a $30m capital refurbishment program

Hotel Property Investments (ASX: HPI), who owns a portfolio of freehold properties, mostly pubs and some associated speciality sites, has released their half-yearly results.

The Group’s total revenue is up to $28.8 million from $27.1million – a 6.2% increase.

HPI currently owns 47 pubs, with the overwhelming majority of these being leased to the Queensland Venue Co (QVC).  Most of these venues are in Queensland with some located in South Australia, Victoria and New South Wales.

The value of their property investments totals $850 million with $308.3 million of loans drawn.

QVC is a joint venture between Coles Limited and Australian Venue Co (AVC) who currently operate over 150 hospitality venues.

HPI has been busy in recent times with venues going under a $30 million capital refurbishment program and the acquisition of the Jubilee Tavern and Mango Hill Hotel. These purchases totalled $40.6 million.

Despite the pandemic imposing restrictions – including closures – on many facilities, there’s only been a relatively minor fiscal impact on the Group’s earnings. However, the company warned there could future headwinds.

“Although the closures have not materially impacted the financial performance of the HPI Group in the period to 31 December 2020, any on-going interruptions to our tenants’ business may affect future financial years,” the company said in a statement.

HPI did defer a portion of rent for their principal tenant, QVC, totalling approximately $7.1 million-plus GST, which will be paid between February 2021 and June 2022. This will be secured by a bank guarantee. On top of this, rent worth $100,000 was abated.

Additionally, the company did not access JobKeeper.

Upon the releases of the results yesterday, shares fell 2.31% to $3.03 at the close of trade, with a small rebound at time of publication to $3.04 – 0.33% increase as of 1 pm AEDT.

HPI announced the distribution will be 9.6 cents per security.

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