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Abacus Property (ASX:ABP) - Managing Director, Steven Sewell
Managing Director, Steven Sewell
Source: Abacus Property
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  • Abacus Property (ABP) has posted a statutory profit of $369.4 million in FY21, thanks in part to asset sales
  • Abacus deployed $1 billion of capital into commercial and self-storage sectors during FY21, including certain post-balance-date transactions
  • Abacus’s funds from operations (FFO) of $136.4 million were up 9.5 per cent from $124.6 million in FY20
  • Shares in Abacus closed up 2.46 per cent at $3.33 on August 18

Abacus Property (ABP) has posted a statutory profit of $369.4 million in FY21, up 336 per cent from $84.7 million in FY20, thanks to asset sales and divestments.

Abacus deployed $1 billion of capital into commercial and self-storage sectors during FY21, including certain post-balance-date transactions.

Part of its spending spree included a 33.3 per cent interest in Myer Bourke Street for $160, the remaining portion of The Oasis Centre in Queensland for $103.5 million as well as a $160 million purchase of five self-storage assets in Sydney.

This was accomplished through a series of acquisitions and joint ventures, which were financed by a combination of non-core disposals, loans and a December 2020 stock raise.

Abacus’s funds from operations (FFO) of $136.4 million were up 9.5 per cent from $124.6 million in FY20, while FFO per security of 18.4 cents was down 5.1 per cent.

Its full year distribution per security (DPS) was also down, falling to 17.5 cents, a 5.4 per cent drop.

In FY21 the group completed its planned repatriation of equity from non-core legacy investments, exchanging contracts to sell five small scale industrial and office assets for $107 million, as well as repaying $82 million in residential land and mortgages.

During FY21, non-core loan assets decreased by 50 per cent, with non-core residential now accounting for three per cent of total assets, or $116 million.

Abacus managing director Steven Sewell said it was an active year for the company and it had spent more than $2.3 billion since FY17.

“With 97% of total assets now deployed in commercial and self storage investments, the size, nature and market positioning of these key sector investments will permit the group to deliver recurring income and value creation over the long term,” he said.

Given current market conditions, the Abacus board anticipates that the FY22 full-year distribution will be substantially in line with the target range of 85 to 95 per cent of FFO.

Shares in Abacus closed up 2.46 per cent at $3.33 on August 18.

ABP by the numbers
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