Abacus Securityholder Review & Annual Financial Report 2016 - page 8

Abacus
Property Group
06
2016
Dear securityholders
It gives us great pleasure to present the 2016
Securityholder Review for Abacus Property Group.
The Group’s financial performance during the
year under review delivered a solid result with
strong growth across our platform. We delivered
growth of 39% in consolidated statutory profit to
$185.9 million. This translated into underlying
profit of $124 million. This compares favourably
to the prior year underlying profit of $128 million
which included the gain of $20.8 million from the
sale of Birkenhead Point Shopping Centre in FY15.
The Group has achieved a compound 14% per
annum growth in underlying earnings since FY13.
We delivered underlying earnings per security of
22.4c for the year. The Group has achieved over
6% per annum compound growth in underlying
earnings per security to securityholders since
FY13. These strong results underwrote our
distribution of 17.0 cents to securityholders,
a payout ratio of 76%.
Distributions are typically paid out of recurring
earnings, which includes revenue from recurring
and passive activities like rental income from our
commercial and self-storage properties, funds
management fees and interest income from our
loans. We continuously seek to grow the revenue
from these activities so that distributions remain
underpinned by recurring earnings. The Group’s
recurring earnings per security during FY16 was
18.0 cents.
Surplus earnings are re-invested into new
opportunities to grow our recurring earnings
to support growth in distributions to
securityholders in the future.
Abacus’ balance sheet continues to maintain
prudent levels of liquidity and gearing. Gearing
remains low at 25%, well within our target gearing
limit of up to 35%. Capital management initiatives
throughout the year allow Abacus to maintain
sufficient liquidity and acquisition capacity to
take advantage of opportunities throughout FY17
as they arise.
RIGHT: John Thame,
Chairman
LEFT: Frank Wolf,
Managing Director
chairman and managing
director’s report
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