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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news