Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Argosy 1H profit rises 29% on benefits of inhouse manager

Argosy boosts first-half earnings 29% as benefits of internalisation kick in

By Paul McBeth

Nov. 29 (BusinessDesk) - Argosy Property, whose shareholders agreed to corporatise the company after buying out its ANZ Bank-owned manager last year, lifted first-half earnings 29 percent as it reaped the benefits of a cheaper cost structure from bringing management inhouse.

Distributable income, the favoured profit measure for property investors as it strips out unrealised value changes in property portfolios, rose to $20.2 million, or 3.6 cents per share, in the six months ended Sept. 30, from $15.7 million, or 2.84 cents, a year earlier, the Auckland-based company said in a statement.

The property investor made a net profit of $5.9 million, or 0.81 cents per share, compared to a loss of $19.3 million, or 3.62 cents, in 2011 when it had to buy out its external manager.

Argosy's board declared a dividend of 1.5 cents per share in the second quarter and expects the annual pay-out to be 6 cents. The record date is Dec. 13, payable on Dec. 21.

"The cost savings from internalisation have been considerable and are in line with that originally indicated to shareholders," the company said. "Proactive and hands-on management of tenant relationships has translated directly into improved shareholder returns."

The shares were unchanged at 92.5 cents and have gained 16 percent this year. The stock is rated an average 'hold' based on five analyst recommendations compiled by Reuters with a median target price of 88 cents.

The company has been selling underperforming properties over the past year, with two sold below book value in the six-month period.

Argosy's property income slipped to $35.4 million in the period from $35.6 million a year earlier, even with a smaller portfolio. Its industrial property portfolio attracted rents of $11.6 million, unchanged from 2011, while commercial income increased to $11.2 million from $11 million and retail property income fell to $12.7 million from $13 million.

"The property market remains challenging, however the company's portfolio is well-placed with quality properties in good locations," the company said. "The movement in leased space has been positive in the Auckland industrial and commercial markets, where the majority of Argosy's portfolio is located."

Argosy increased occupancy to 96.3 percent from 94.1 percent as at March 31, improved its weighted average lease term to 5.3 years from 4.77 years in the same period.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news