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- Fund Manager, Alex Abell
Fund Manager, Alex Abell
Source: APN Property Group
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  • APN Industria REIT (ADI) is benefiting from an industrial boom, reporting its best funds from operations (FFO) since going public
  • FFO increased by $4.4 million, or 12 per cent, to $41.2 million, while security prices increased by 3.1 per cent to 19.9 cents
  • The APN Industria REIT portfolio includes 39 assets – comprising 67 per cent industrial warehouses and 33 per cent business park office properties by value
  • APN Industria REIT has also been certified carbon neutral across its portfolio and operations, in accordance with the Climate Active Standard
  • Shares in ADI are up 0.60 per cent to $3.34 at 11:58 am AEST

APN Industria REIT (ADI) is riding on the coattails of an industrial boom as its posts its strongest funds from operations (FFO) since listing.

FFO increased by $4.4 million, or 12 per cent, to $41.2 million, while security prices increased by 3.1 per cent to 19.9 cents.

Net property income increased 10.9 per cent to $49.9 million, representing 2.1 per cent like-for-like growth, and was aided by 8.7 per cent growth at Brisbane Technology Park (BTP) and helped drive the increase in FFO.

With $85.2 million in revaluation gains, greater revenues from leases with set yearly increases, and extra income from acquisitions, statutory net profit for the REIT rose 117.5 per cent to a record of $119.2 million.

The APN Industria REIT portfolio includes 39 assets – comprising (by value) 67 per cent industrial warehouses and 33 per cent business park office properties.

The $1.1 billion portfolio’s weighted average cap rate is currently 5.78 per cent, down 0.60 per cent from a year ago, and the weighted average lease expiration is 5.4 years. During the year, occupancy climbed from 94 per cent to 98 per cent.

Gearing is 31.6 per cent, which is at the low end of APN’s desired range of 30 to 40 per cent.

During the year, $55.4 million in equity was obtained and roughly $300 million in loan facilities were created or refinanced, with an average term of 3.9 years, to support $182 million in accretive acquisitions.

The value of net tangible assets (NTA) increased by 38 cents to $3.20 per security. This was primarily due to $81.7 million in fair value adjustments, which were essentially the consequence of 55 per cent of the portfolio being independently revalued and substantial increases being reported during the period.

APN Industria REIT fund manager Alex Abell said industrial market conditions continued to strengthen.

“We anticipate continued valuation growth in FY22 – with transactions in the 3 – 4% cap rate range becoming more common, a meaningful differential to ADI’s weighted average cap rate of 5.8%,” he said.

APN Industria REIT has also been certified carbon neutral across its portfolio and operations, in accordance with the Climate Active Standard.

FFO at 19.3 cents per security and DPS at 17.3 cents per security have been established as FY22 forecast, assuming current market conditions and no unanticipated events.

The Dexus purchase of APN Property Group (APN), the manager of APN Industria REIT, was completed on August 13, 2021.

The APN management team has been maintained, and Dexus maintains a 15.3 per cent investment in ADI.

Shares in ADI are up 0.60 per cent to $3.34 at 11:58 am AEST.

ADI by the numbers
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