Record Realty has recorded a net profit of $47.6 million for the 2006 financial year – up from $4 million in the previous year.
Record Realty’s total income of rose 182% from $42.2 million in 2005 to $119.1 million in 2006. The trust’s NTA growth has increased from $0.95 in the prior year to $1.18 per unit.
During the year, the Record Realty portfolio has continued its strong performance and achieved considerable growth, undertaken a capital restructure and significantly expanded its commercial property portfolio.
The trust divested a number of properties, including the Energex building in Brisbane for $45 million, the Myer Megamart property in Perth for $38.6 million; the DOE Tower in Hurstville and the Australian Post House in Melbourne for $38.0 million and $120.0 million respectively.
Additionally, Record Realty acquired four new properties totalling $130.6 million.
Record Realty’s fund manager Stewart Tillyard this is a terrific result for the trust and is reflective of the model having matured over the past year.
“The 2006 financial year has seen the continued strong performance of the Record Realty portfolio, with the foundations of a re-rating by the market of the trust’s value being established through portfolio performance and growth, as well as capital restructuring,” he added.
Record Realty has announced distribution of 11 cents per unit for the full year to June 30, 2006.
“The activities of the past 12 months have built a quality portfolio with stable cashflows, strong returns form asset sales and refinancings, and strong overall performance. Record Realty’s portfolio approach is a key part of its goal of enhancing the consistency of distributions available to unitholders from property re-financing,”
Tillyard said that Record Realty is now positioned to be a significant listed property trust capable of providing regular distributions.
“The continued high performance of the property portfolio and increased size has resulted in greater market awareness and acceptance of Record Realty. This has laid the foundations for a re-rating of Record Realty by the market.
“The maturing portfolio capacity can facilitate a number of potential liquidity events each year, thus converting into cash the gains in the portfolio’s value and making these available to unitholders as distributions,” he added.
The trust’s preliminary distribution guidance for the 2007 financial year is a minimum of 11 cents.
On July 13, 2006, Record Realty purchased seven property assets across Germany leased to Deutsche Telekom with a total valuation of €333 million (approximately $A572 million).
The portfolio comprises approximately 143,000 sqm of office space with a remaining lease term of approximately 13.5 years.
By Adam Parsons
