logo
ENع
#

Latest news with #DavidFraser

Argosy Property Ltd (NZSE:ARG) Full Year 2025 Earnings Call Highlights: Strong Profit Rebound ...
Argosy Property Ltd (NZSE:ARG) Full Year 2025 Earnings Call Highlights: Strong Profit Rebound ...

Yahoo

time21-05-2025

  • Business
  • Yahoo

Argosy Property Ltd (NZSE:ARG) Full Year 2025 Earnings Call Highlights: Strong Profit Rebound ...

Gross Property Income: $132.7 million, up 1.3% from last year. Net Profit After Tax: $125.9 million, compared to a loss of $54.5 million last year. Gross Distributable Income: $64.1 million, up 4.7% from last year. Net Distributable Income: $55.8 million, flat compared to last year. Adjusted Funds From Operations (AFFO): $0.0643 per share, down from $0.0690 per share last year. Investment Property Value: Increased by $135 million, with a revaluation gain of $72.7 million. Net Tangible Assets (NTA) Per Share: Increased to $1.53 from $1.45 last year. Gearing (Debt to Total Assets): 35.7%, down from 36.5% last year. Weighted Average Cost of Debt: 5.1%, down from 5.6% last year. Interest Cover Ratio: 2.5x, up from 2.4x last year. Dividend: Fourth-quarter dividend of $0.016625 per share. Development IRR: 9.4% on current land values. Warning! GuruFocus has detected 5 Warning Signs with NZSE:ARG. Release Date: May 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Argosy Property Ltd (NZSE:ARG) reported an increase in net property income, driven by rental increases, particularly in green buildings. The company received prestigious awards, including the Supreme Award from the Property Council for the Willis Street development. Successful developments at 224 Neilson Street and Mt Richmond have resulted in solid unrealized profits. The company has maintained a strong balance sheet with gearing within the target band and a net tangible asset (NTA) increase to $1.53 per share. Argosy Property Ltd (NZSE:ARG) has seen better-than-expected demand and rental returns, particularly in green building spaces, indicating strong future growth potential. Occupancy remains challenged, with leasing described as difficult, akin to 'drag racing a bulldozer'. The weighted average lease term (WALT) has declined, reflecting market uncertainty. The company is facing challenges with lengthy conversion times for lease inquiries, particularly in the government sector. There is a significant amount of under-rented properties, with the portfolio sitting at around 11% under rented. The dividend payout ratio exceeded the company's policy range, reaching 103% of AFFO, indicating potential sustainability concerns. Q: Could you clarify the discrepancy in the weighted average portfolio cap rates reported for FY24 and FY25? A: The discrepancy was due to the inclusion of Mt Richmond at the half year, which skewed the numbers. We've now adjusted for this, and the half-year numbers were incorrect. - David Fraser, CFO Q: What is the expected maintenance CapEx for the upcoming year and the long-term outlook? A: Historically, the long run has been about 30 basis points or $5 million to $6 million. We expect to increase towards that level this year, likely around $3 million to $3.5 million net. - David Fraser, CFO Q: How do you see your portfolio positioned over the next couple of years, and will acquisitions be part of your strategy? A: We don't foresee acquisitions unless there's a compelling reason. The current pathway is balanced and predictable, and we prefer to focus on existing assets unless an acquisition adds significant value. - Peter Mence, CEO Q: Can you provide an update on the Wellington office and the potential for re-leasing or divestment? A: Re-leasing demand for 147 is strong, with inquiries at budget levels. The market is active for 500-meter floors, particularly from Willis Street to the Beehive. We don't have concrete updates on 143rd, but it has potential as a hotel. - Peter Mence, CEO Q: How do you plan to achieve a 100% payout ratio for FY26, considering the step-up in maintenance CapEx? A: We expect rental growth, positive rent reviews, and reductions in interest and insurance costs to support this. Developments like Neilson Street and Carlton Gore Road will also contribute. - David Fraser, CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store