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ALE Property (ASX:LEP) - - The Market Herald
ALE’s Breakfast Creek Hotel in Queensland. Source: ALE Property
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  • The statutory profit of ALE Property Group (ALE), Australia's largest pub landlord, was $179.2 million, up $159.2 million from the previous year
  • The $954 million publican owns 80 pubs throughout the country, the bulk of which are leased to Endeavour, which was just spun off from Woolworths
  • Six properties were sold this year, attaining prices that were 24.2 percent higher than the aggregate book value.
  • ALE also announces FY 21 dividend forecast of 22 cents per security, up 2.3 per cent over FY 20 payouts
  • ALE Property Group shares closed up 0.85 per cent at $4.76

ALE Property Group (ALE), Australia's largest pub landlord, has posted a statutory profit of $179.2 million, up by $159.2 million from last year.

The $954 million publican owns 80 pubs throughout the country, the majority of which are leased to Endeavour, which was just split off of Woolworths.

In FY 21, ALE's distributable income grew by 13 per cent to $34.4 million. This comes after a $400,000 rise in rental income due to consumer price index rent hikes.

ALE's net tangible assets per security were $3.71, up 24.2 per cent from the previous year.

Six properties were sold this year, attaining prices that were 24.2 per cent higher than the aggregate book value.

The profits from these sales were utilised to decrease net debt and reorganise ALE's interest rate swap book to some extent.

The Tudor Inn in Cheltenham, Victoria, and the Royal Exchange Hotel in Toowong, Queensland, are both up for sale by tender and auction.

ALE's whole portfolio was independently appraised as of 31 October 2020, after the November 2018 rental determinations.

For the accounts ending on December 31, 2020, these valuations were used as carrying values.

For the period ending 30 June 2021, 36 properties of the portfolio were independently evaluated, while the remaining 44 properties were subject to directors' appraisals, in accordance with ALE's valuation policy.

Since December 2020, the valuation process has resulted in an increase of $89.71 million in aggregate values. The gain equates to a 7.45 per cent increase in the portfolio's value.

Covenant gearing reduced from 41.3 per cent to 36.4 per cent due to lower net borrowings and increased investment property valuations, according to ALE.

The boost in values was fuelled by a drop in capitalisation rates. This was backed up by sales evidence, which ALE said underlined the portfolio's strong lease covenant and strategic nature.

ALE also announced the FY 21 dividend forecast of 22 cents per security, up 2.3 per cent over FY 20 payouts. Beginning with the quarter ending September 30, 2021, distributions will be paid quarterly.

Shares in ALE Property Group closed up 0.85 per cent at $4.76.

LEP by the numbers
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