Abacus Group (ASX:ABG) Reports Half-Year Results, Maintains Guidance
Financial Performance
Abacus Group reported a statutory net loss of $5.7 million for the half-year ended 31 December 2024, driven by office property devaluations. Funds From Operations (FFO) increased by 3.2% to $40.2 million, with a distribution of 4.25 cents per security. Net Tangible Asset (NTA) per security was $1.72, a decrease of 2.3% on FY24. The Weighted Average Cost of Debt (WACR) stood at 6.66%, up 16 basis points from FY24, and gearing was maintained at 34.0%, within the target range.
Operational Highlights
The Office portfolio achieved operating earnings of $44.0 million, a 12.0% increase on HY24, supported by higher average occupancy, strong leasing spreads, and early surrender fees. The Retail portfolio saw like-for-like operating earnings rise by 15.4% to $12.0 million, driven by increased occupancy and 3.3% rent growth. Abacus’s investment in ASK delivered an equity return of $8.6 million, up 16.2% on HY24, with rental rates increasing by 4.4% and occupancy reaching 91.0%.
Earnings Guidance
Abacus Group affirmed its FY25 distribution guidance of 8.5 cents per security, targeting a full-year payout ratio of 85%-95% of FFO, based on current business conditions.
Executive Comments
Chief Financial Officer Evan Goodridge commented, “Our half-year results reflect the strong performance achieved across our Office, Retail, and Self Storage segments. We continue to make good progress on building an efficient and scalable platform, positioning the Group for future growth.”
Managing Director Steven Sewell stated, “Abacus Group continues to focus on our vision to create exceptional value for our customers and stakeholders through the identification, ownership and management of a portfolio of real estate investments exposed to the Office, Retail and Self Storage sectors. The Group is committed to identifying investment management opportunities moving forward, such as joint ventures and capital partnerships, utilising our platform of assets to drive higher returns.”
Sustainability Initiatives
The Group achieved a 36% reduction in emission intensity compared to the FY19 base year and attained an average NABERS Energy Rating of 4.8 stars. Ongoing initiatives include enhancing renewable energy usage and preparing for the Australian Sustainability Reporting Standards effective July 2027.
Motley Fool contributor Kiarra Jackson 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.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.