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

 

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:

Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Copper Broadband: Regulator Set To Keep Chorus Pricing Largely Unchanged

The Commerce Commission looks likely to settle on a price close to its original decision on what telecommunications network operator Chorus can charge its customers, though it probably won’t backdate any update. More>>

ALSO:

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news