Abacus Securityholder Review & Annual Financial Report 2016 - page 11

Securityholder
Review
09
2016
FY16 financial results
We have delivered a strong result across all of
the Group’s main financial and capital metrics.
Abacus’ total assets increased to almost
$2.3 billion, with net assets growing to $1.5
billion, at year end. The Group’s net tangible
asset backing per security improved by 6.8%
reflected the improvement in the Group’s
self-storage portfolio and the retail portfolio,
in particular Ashfield Mall and Bacchus Marsh
Village Shopping Centre following significant
redevelopment works.
The Abacus balance sheet was in a robust capital
position at balance date with gearing of 25%
as a result of an increase in acquisition activity
during the year into self-storage and residential
development opportunities.
There are no debt expiries in 2017 and our
average debt term to maturity is over 3.5 years.
We anticipate Abacus’ weighted average interest
rate will remain relatively stable as current
capacity is utilised and anticipate it should be no
greater than 5.75% over FY17.
The Group’s business is focused on driving
recurring earnings while producing strong
capital returns to re-invest in assets that will over
time add to the Group’s recurring earnings. This
will underpin the delivery of distribution growth
to securityholders.
Overview of our operating divisions
Investment portfolio
The Group has $1.6 billion of investment
properties spread across our commercial and
self-storage portfolios. This includes $395 million
invested alongside our investment partners
in over $800 million of office and retail assets
under management through our third party
capital platform. Abacus’ third party capital joint
ventures remain an integral strategic investment
platform for the Group. We are focused on
growing our third party platform as we continue
to expand our investment relationships and
product offerings to meet the needs of our
investment partners. We recently entered into
our first management only mandate to manage
the Red Cross Building in Sydney on behalf of a
new client.
We continue to remix the portfolio out of smaller
retail and industrial assets at this point in the
cycle to larger office and retail assets while
continuing to grow our self-storage portfolio.
Our investment portfolio delivered $95.7
million EBITDA for the financial year. This
result, pleasingly maintained the contribution
to earnings from rental and storage income on
FY15 despite the sale of a number of assets in
the portfolio. Profits from the sale of investment
assets was down on the prior year as only $64
million of assets were sold during FY16.
Self-storage
62
Office
16
Retail
7
Industrial
9
No. of assets
Self-storage
$574m
Office
$492m
Retail
$375m
Industrial
$127m
Portfolio value
group performance
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