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Aventus Group (ASX:AVN) - CEO & Managing Director, Darren Holland
CEO & Managing Director, Darren Holland
Source: Daily Telegraph
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  • Retail real estate manager and developer Aventus Group (AVN) has reported a 48.6 per cent drop in net profit for the year ending June 30, 2020
  • Profits for the 2020 financial year fell by approximately $53.7 million, from $110.4 million in 2019 to $56.7 million this year
  • The decline was largely due to a $76.8 million decrease in net fair value adjustments on investment properties
  • This comes despite a 4.2 per cent increase in funds from operations, from $96.2 million last year to $100.2 million
  • Aventus Group closed 0.45 per cent in the red at $2.21 per share

Retail real estate manager and developer Aventus Group (AVN) has reported a 48.6 per cent drop in net profit for the year ending June 30, 2020.

Profits for the 2020 financial year fell by approximately $53.7 million, from $110.4 million in 2019 to $56.7 million this year.

The decline was attributable to a number of factors, including a $76.8 million decrease in net fair value adjustments on investment properties and a $16.3 million decrease in finance costs.

This came despite a 4.2 per cent increase in fund from operations, which rose from $96.2 million last year to $100.2 million.

Over the course of the period, Aventus negotiated 90 leases covering 80,600 square metres, and achieved an occupancy rate of 98 per cent across its portfolio. These leases were secured with positive leasing spreads and low incentives, and 36 were executed during the COVID-19 pandemic.

The company also acquired an adjacent 32,000-square-metre site in Epping, Victoria, for approximately $11.5 million, which expand its existing holding at the development by 53 per cent.

Adventus’s acquisition of the site comes on top of a total $27 million development spend for the year, with the major project being the transformation of the Caringbah Super Centre in Sydney, which began in late calendar 2019.

Darren Holland, CEO of Aventus Group, said the year has been extremely challenging, with the economic difficulties likely to continue for the foreseeable future.

“The challenge presented this year has re-affirmed our strategy to focus on sustainable earnings growth and on creating long term value.

“We are also well positioned to benefit from the recent changes from the household spending patterns as we spend more time working, learning and entertaining from home,” he added.

Darren also noted that, with the ongoing uncertainty of the COVID-19 pandemic, it is inadvisable to issue the company’s guidance for the 2021 financial year.

Aventus Group closed 0.45 per cent in the red at $2.21 per share.

AVN by the numbers
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