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- Aventus Groups’ (AVN) portfolio valuation shoots upwards thanks to strong demand from investors in large format retail centres
- Its portfolio has risen $254 million, a 12 per cent rise this calendar year
- The group’s portfolio is now valued at $2.4 billion, with a portfolio capitalisation rate of 6.01 per cent
- Aventus also approved a distribution for the June 2021 quarter of 4.37 cents per security, bringing the total distributions for FY 21 to 17.47 cents per security
- Shares in Aventus are up 1.62 per cent today, trading for $3.14 each at 12:32 pm AEST
Strong demand from investors in large format retail centres has helped push Aventus Groups’ (AVN) portfolio valuation upwards.
The company has enjoyed a preliminary unaudited independent revaluation of its portfolio which indicates a $254 million increase, a 12 per cent rise this calendar year.
Aventus’ portfolio is now valued at $2.4 billion, with a portfolio capitalisation rate of 6.01 per cent, equivalent to compression of 64 basis points based on recent transactional evidence.
“Strong investment demand for LFR centres, together with continued positive trading in our centres and a focus on driving sustainable income growth across the portfolio, have all contributed to this significant valuation increase,” Aventus Group CEO Darren Holland.
“Pleasingly, this valuation increase will see the Group’s gearing reduce to the bottom of our target gearing range, enhancing our flexibility to achieve Aventus’ strategic objectives in the year ahead.
“Specifically, the weighted average capitalisation rate for the portfolio has compressed by 64 basis points to 6.01%, bringing the total valuation gains for the portfolio over the last four years to approximately $550 million.”
Mr Holland said in addition to capitalisation rate compression, “robust income growth, strategic development initiatives and expense management have contributed to delivering value for our investors”.
The company said the valuation uplift will reduce its gearing to the bottom of the range and will result in a substantial increase in net tangible assets per security.
Aventus also approved a distribution for the June 2021 quarter of 4.37 cents per security, bringing the total distributions for FY 21 to 17.47 cents per security.
Aventus Group advises preliminary unaudited FY 21 funds from operation of 19.4 cents per security, which represents seven per cent growth compared to FY 20, compared to prior guidance of four per cent growth.
The main driver of this upgrade, according to the company, is the continued strong performance of the portfolio and a lower cost of debt and includes the one-off true up amount referred to at the half-year results released in February 2021.
Shares in Aventus are up 1.62 per cent today, trading for $3.14 each at 12:32 pm AEST.
