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

 

Argosy lifts FY profit after year-earlier charges

Argosy lifts FY profit after year-earlier charges, property income falls

May 23 (BusinessDesk) – Argosy Property reported a jump in full-year profit after earnings in the previous year were eroded by the costs of internalising its management contract. Net property income fell 1.8 percent.

Profit was $39.2 million in the 12 months ended March 31, from $1.9 million a year earlier, when it spent $20 million internalising its management contract. Distributable earnings, the favoured profit measure for property investors as it strips out unrealised value changes in property portfolios, rose to $40.4 million, or 6.9 cents a share, from $33.4 million.

The board declared a fourth-quarter distribution of 1.5 cents, taking the annual payout to 6 cents per share.

Argosy forecast 2014 full-year dividends of 6 cents a share. It gave no other earnings guidance.

Net property income fell 1.9 percent to $69.9 million in the latest year, which it said reflected the sale of 15 properties a year earlier. Argosy acquired the NZ Post Building in Wellington in March for $60 million, with upgrade spending estimated at $40 million. It also made the conditional acquisition of a Stout Street property in Wellington for $33 million with $47 million earmarked for upgrade work.

To help fund the investments, it raised $100 million via a placement and share purchase plan.

The company’s property portfolio was revalued at$976.9 million from $905.2 million. Its debt to total assets ratio slipped to about 33 percent from 41 percent as the value of assets rose and bank debt, excluding capitalised borrowing costs, fell to $329 million from $385 million.

Net tangible assets per share rose to 88.3 cents from 87.5 cents. The weighted average lease term (WALT) rose to 5.24 years from 4.77 years and occupancy rose to 96.2 percent from 94.1 percent.

Argosy’s shares last traded at $1.06 and have gained 16.5 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>

ALSO:

Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>

ALSO:

Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>

ALSO:

Divesting: NZ Super Fund Shifts Passive Equities To Low-Carbon

The NZ$35 billion NZ Super Fund’s NZ$14 billion global passive equity portfolio, 40% of the overall Fund, is now low-carbon, the Guardians of New Zealand Superannuation announced today. More>>

ALSO:

Split Decision - Appeal Planned: EPA Allows Taranaki Bight Seabed Mine

The Decision-making Committee, appointed by the Board of the Environmental Protection Authority to decide a marine consent application by Trans-Tasman Resources Ltd, has granted consent, subject to conditions, for the company to mine iron sands off the South Taranaki Bight. More>>

ALSO: