Propertylink posts net income of $18.7 million, says on the lookout for assets
ASX-listed Propertylink Group (ASX:PLG) has posted net earnings of $18.71 million for the six months ending December 31, 2016, the first since its disappointing debut on the market last year.
Propertylink, which owns industrial and logistics properties and also invests in them, said total comprehensive income for the half year was $38.13 million.
The company said it was on target to deliver the FY2017 forecasts of distributable earnings per security of 6.67 cents and distribution per security of 6.32 cents (pro-rata from the completion of the IPO).
The company declared an interim distribution of 2.7 cents per security, to be paid on March 3.
Propertylink, which raised $502 million from its IPO, made a disappointing market debut in August 2016 when its shares slumped 9 percent.
Chief executive Stuart Dawes hinted that the company was looking to acquire more assets.
“We currently have a strong pipeline of additional assets in due diligence for continued growth in our investment management business and anticipate adding new investors to the investment management platform,” said Dawes.
“We will also continue to assess opportunities to realise assets where strong performance can be crystalised for our investors.”
Financial Highlights
| 1HY15 ($m) | 1HY16 ($m) |
Net property income | 0.165 | 18.714 |
Co-investment income | 1.699 | 2.957 |
Investment management revenue | 5.729 | 31.278 |
Total comprehensive income | 1.592 | 38.137 |
Distributable Earnings | N/a | 18.045 |
The company said it had kept good momentum in leasing transactions with tenant retention of more than 80 percent. Dawes said Properylink’s portfolio had increased to $697.8 million due to the "team’s active approach to asset management". It completed 35 leasing transactions during the six months, covering 128,418 sqm and accounting for 25.5% of the portfolio. It also increased the weighted average lease expiry (WALE) of the overall portfolio to 4.4 years.