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

 

Rocket Lab: Launch Expected

Rocket Lab has delayed the roll out of the launch vehicle called Electron by one day, due to weather conditions. The planned launch attempt will now take place on Tuesday, May 23, 2017. More>>

ALSO:

Budget: Irrigate (Good Times, Come On!)

Additional grant funding of $26.7 million over the next three years plus a capital boost of $63 million towards irrigation investments in Budget 2017 will deliver economic and environmental benefits through better use of water... More>>

ALSO:

Silver Fern Farms: Proposal To Close Fairton Sheepmeat Plant

Silver Fern Farms has advised its people of the proposal to permanently close the site, and has discussed potential transfer options to its other sites in the region as part of the consultation process...
More>>

ALSO:

MPI: Myrtle Rust Appears In Taranaki

The nursery in Waitara (just north of New Plymouth) reported suspected myrtle rust symptoms on young plants to the Ministry’s 0800 number yesterday (Tuesday). More>>

ALSO: