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Wotso Property (WOT) - - The Market Herald
Source: Wotso Property
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  • WOTSO Property (WOT) has released its first annual report, which shows a three cent final payout and a rise in turnover
  • In June 2021, the WOTSO business full-year turnover grew by more than $4 million, bringing it to $21 million on an annualised basis
  • Along with the $3.4 million granted in FY 20, WOTSO offered a total of $1.4 million in rent assistance to existing tenants this fiscal year
  • Statutory loss improved by $6.7 million from FY 20 to FY 21, while statutory profit fell from $23.9 million to $11.7 million
  • WOTSO Property shares are up 2.96 per cent, trading at $1.39 at 2:20 pm AEST

WOTSO Property (WOT) has posted its maiden annual report, in which it details an increase in turnover and a three cent final distribution.

In February 2021 three businesses, WOTSO Limited Planloc Limited and the BlackWall Property Trust (BWR) were stapled to form WOTSO Property.

WOTSO Property, Australia's first flexible property security, manages more than 37,000 square metres of flexible space and owns over 87,000 square metres of property.

In June 2021, the WOTSO business's full-year turnover grew by over $4 million, bringing it to $21 million on an annualised basis.

Joint managing director Tim Brown said WOTSO’s annualised turnover had significantly grown in the past 12 months as the company saw more businesses adopting hybrid working models.

"WOTSO recovered quickly from the national lockdowns in 2020, with its member base expanding beyond pre-lockdown levels, as our ‘near to home’ offering resonated with an increasing number of small and medium enterprises," Mr Brown said.

In addition to the $3.4 million granted in FY 20, WOTSO offered a total of $1.4 million in rent assistance to existing tenants this fiscal year.

Pre-COVID income was $16.1 million in February 2020 but dropped to $6 million in April 2020 as a result of WOTSO's suspension policy adopted in reaction to the national lockdown.

However, after the limitations were relaxed in August 2020, turnover soon returned to pre-COVID levels, increasing by 31 per cent to $21 million in June 2021.

"Recent lockdowns will again have a short term effect on revenue but we expect to bounce back again and continue our growth trajectory," the company said.

WOTSO's statutory loss improved by $6.7 million from FY 20 to FY 21. This is primarily attributable to $4.4 million in earnings before interest, taxes, depreciation and amortisation growth.

The company said the growth was driven by considerable revenue uplift at both current and new locations, as well as a solid recovery from COVID-19's impact.

One-time costs in FY 20 ($3.4 million) and a smaller impact of the lease accounting standard, AASB 16, ($0.8 million) accounted for the remaining improvement.

WOTSO increased net rental revenue by $945,000, whereas property net rental income remained flat year over year.

The statutory profit fell from $23.9 million in FY 20 to $11.7 million in FY 21, owing mostly to reduced profits on investment properties ($10.8 million) and the inclusion of WOTSO depreciation.

WOTSO paid fees to BWR which is owned by ASX lister Blackwall Limited (BWF), at a rate of 0.75 per cent of WOT’s gross assets plus a fee equal to two per cent for the first $20 million of WOTSO revenue and five per cent for revenue above $20 million, totalling $2.53 million.

The management fees are designed to align BWF and WOT's interest in growing the company's assets and turnover.

WOTSO Property shares were up 0.74 per cent, trading at $1.36 at 1:08 pm AEST.

WOT by the numbers
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