PUB investor ALE Property Group has delivered a distributable profit increasing by 16.3% to $33.6 million for the year ended June 30 2009 and at the same time is looking to raise $225 million.
During FY09, ALE’s revenue growth of 7.7% was driven by an average CPI rental increase of 5.0% and new rental income from the Boundary Hotel in Melbourne.
Managing director
“These competitive advantages also underpinned the successful sale of six ALE properties in Melbourne and Sydney in FY09, on a weighted average capitalisation rate of less than 6% and at an average of more than 10% above their December 2008 book value.
ALE has announced distributions per security of 30.00 cents – in line with the previous guidance.
Meanwhile the group’s portfolio value remains substantially unchanged at $804.8 million however net assets per security decreased by 5.1% to $2.80.
ALE is now looking to raise $225 million to reduce gearing to around 50% including a $105 million capital raising and asset sales of $120 million targeted to be divested in FY10.
Wilkinson said that assuming the Offer was fully subscribed, ALE’s gearing would reduce by about 19% to around 50%.
Looking forward, Wilkinson has forecast a distributable profit for FY10 of 24.0 cents per security or 22.1 cents per security on an annualised basis — based on asset sales of circa $30 million per quarter at book value during this financial year.
ALE will maintain its policy, introduced in FY08, of setting future distributions at levels that do not exceed the distributable profit available having regard for the level of distributions that may be maintained in future.
Australian Property Journal