Abacus Property Group : 31 December 2011 results update
02/22/2012| 03:42am US/Eastern
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ASX ANNOUNCEMENT
31 December 2011 results update
In light of the meetings of the Abacus Property Group (ABP)
and of the Abacus Storage Fund on 24
February 2012, the Board of Abacus Property Group provides
the following results update.
These are the first results which account for the effect of
the adoption of AASB10 by the Group. Comparison with prior
period results needs to take into account the consolidation
of the funds into the 31
December 2011 results both for the half year and the
comparative period.
The Group's H112 statutory profit for the six months to 31
December 2011 is down on the previous period due to mark to
market movements on derivatives of $35 million. Of this
charge, $21 million relates to ABP's interest rate swaps, and
the remaining $14 million relates to the swap books of the
funds1 ABP consolidates. These charges are
non-cash and do not impact the Group's distributions. Since
the balance
date the value of the Group's interest rate swaps liability
has reduced by approximately $10 million.
• ABP's consolidated statutory profit for H112 after
fair value charges relating to the swaps is expected to be
approximately $2 million. For comparable purposes, if ABP had
not adopted AASB10 then the Group's statutory profit would
have been $13 million (32% above H111 statutory
profit).
• ABP's underlying profit2 for H112
- which excludes swap fair value movements and profits from
consolidated funds - is robust and is expected to be
approximately $39 million. This result is materially ahead of
the Group's broker consensus forecasts.
• ABP's reported H112 NTA per security is expected to
be $2.43.
• Group gearing3 will approximate
25%, well within the targeted 35% upper limit and Group
covenant gearing4 will approximate 33%, well
within the covenant requirement of 50%.
These results are preliminary in nature and are
unaudited.
Ellis Varejes 22 February 2012
Company Secretary
Neil Summerfield
Head of Investor Relations
+61 2 9253 8600
1 The ASF, AHF, ADIF II and Miller St funds are consolidated
as a result of ABP's adoption of AASB10.
2 Underlying profits are a non-IFRS measure which the Group
uses to assess performance and distribution levels. It is
calculated in accordance with AICD/Finsia principles
3 Calculated as net debt divided by gross assets net of cash
4 Calculated as total liabilities less cash divided by total
tangible assets net of cash
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