Abacus Storage King (ASX:ASK) Announces HY25 Results
Financial Performance
Abacus Storage King reported a statutory profit of $67.8 million for HY25, an increase of $67.4 million from HY24. The company’s gearing rose to 29.0%, up 30 basis points from FY24. Funds from operations (FFO) reached $43.3 million, a 15.1% rise compared to HY24. RevPAM increased by 5.4% to $339 per sqm, and occupancy rates climbed to 91.0%, up 90 basis points. Total assets grew by 1.1% to $3.3 billion, and net tangible assets per security rose by 1.3% to $1.60.
Growth Drivers
The company’s growth was driven by a 5.4% increase in RevPAM and a development pipeline of 19 new assets, adding 112,000 sqm to net lettable area (NLA). Additionally, Abacus Storage King acquired four operating stores and three development sites for $60 million, contributing 13,200 sqm to the portfolio.
Portfolio Update
As of HY25, the established portfolio includes 103 mature stores trading since July 1, 2023. Acquisitions enhanced the portfolio with 12 new stores, while 21 stores are in the stabilisation phase. Development efforts are underway for 19 sites, expanding the NLA by 112,000 sqm.
Outlook and Guidance
Abacus Storage King reaffirmed its FY25 distribution guidance of 6.2 cents per security, with a distribution payout ratio expected between 90% and 100% of FFO. The company remains confident in its multi-pronged growth strategy, targeting organic growth, acquisitions, and developments to drive recurring income and value creation over the medium to long term.
Sustainability Highlights
The company continues its commitment to sustainability with a net zero target for scope 1 and 2 GHG emissions by 2030. Installed solar capacity reached 2,049 kW across 78 sites. Gender diversity improved, with 52% female representation in the whole business.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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