Abacus Securityholder Review & Annual Financial Report 2016 - page 3

Securityholder
Review
01
2016
Abacus Property Group is a leading diversified
Australian real estate investment trust that
invests in real estate opportunities across
Australia and New Zealand. Abacus was
established in 1996. We listed on the ASX in 2002
and are included in the S&P/ASX 200 index.
Abacus’s overarching strategy is to invest
our capital in core plus properties. We take
advantage of value adding opportunities to
drive long term total returns and maximise
securityholder value.
We have a successful track record of acquiring
property based assets and actively managing
those assets to enhance income and capital
growth. Our core plus presence and track record
has facilitated joint ventures with a number
of sophisticated global third party capital
providers. We look for assets and projects in
major centres, typically on the Eastern seaboard
of Australia, that are mispriced by the market
and which we believe have the potential for
income and capital growth. Where appropriate,
we realise mature assets and redeploy capital
into the next generation of higher growth
opportunities.
Our experience has shown that strict adherence
to our fundamental investment criteria enables
us to buy assets well and provide opportunities
for outperformance while minimising downside
risk to equity.
Abacus has three integrated property businesses
built on our core expertise in accessing
properties and projects and actively managing
them to realise their full value. Our flat corporate
structure and business model supports strong
synergies across our businesses and contributes
to the overall success of the businesses and the
Group.
Property investment
Abacus Property Group owns a diversified
investment portfolio of office, self-storage,
industrial and retail properties. Rental income
from these properties is the largest contributor
to the earnings of the Group. Abacus’ disciplined
property selection process maintains a firm focus
on fundamental real estate value.
Abacus seeks out mispriced assets with short
term imperfections in fundamentals, such
as temporary flaws in leasing, management
or capital structures. Abacus pursues
transformational events that will drive an asset’s
value.
As at 30 June 2016, Abacus Property Group
had a total of $1.6 billion in property assets
on the balance sheet. This total comprises the
commercial portfolio ($994 million) and the
self-storage portfolio ($574 million). $395 million
of investment portfolio assets are held in third
party joint ventures with global investment firms
and other third party capital providers.
Property ventures
Abacus Property Group provides a range of
property development and finance solutions. We
actively engage in commercial, retail, industrial
and residential development opportunities in
metropolitan eastern seaboard locations.
Abacus participates in projects directly or with
experienced joint venture partners through
the combination of our capital and property
expertise with the regional or sector-specific
expertise of our joint venture partners. We
provide finance solutions for real estate
development, typically with participation in
project upside.
As at 30 June 2016, Abacus Property Group
had a total of $500 million in development and
financing projects on our balance sheet.
Funds management
Abacus has historically offered a wide range
of investment opportunities designed to meet
the needs of different groups of retail investors.
Since 2009 the Group has redirected its focus
towards wholesale third party capital and has
invested in over $1.4 billion of assets with global
investment firms and other third party capital
providers. Following a number of asset sales, this
portfolio is currently valued at over $800 million,
of which Abacus’ ownership is circa $395 million.
about abacus
1,2 4,5,6,7,8,9,10,11,12,13,...159
Powered by FlippingBook