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

 

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

The Nation: Call For Cross-Party Auckland Housing Plan

Penny Hulse calls for cross-party accord on Auckland housing because “it’s too important to score political points on”. More>>

ALSO:

Flu Season: Overcoming Vaccination Reluctance

While research shows that 40% of New Zealand businesses offer free or subsidised flu vaccinations to employees this time of year, HR professionals say persuading staff to participate is the biggest challenge. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news