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Property investor Argosy's first-half profit is well down on last year, hit by a drop in the value of its portfolio.
Key numbers for the six months ended September compared with a year ago:
- Net profit $10.7m vs $127.0m
- Revenue $55.0m vs $53.1m
- Rental income $60.3m vs $56.4m
- Adjusted Funds From Operations (AFFO) $32.0m vs $25.5m
- Revaluation loss/gain ($23.5m) vs $91.7m
"Argosy has started the FY23 year off well, underpinned by its strong financial position and its diversified portfolio of increasingly green and resilient assets delivering sustainable dividend growth to shareholders," chief executive Peter Mence said.
"We continue to see strong bottom-up fundamentals, including low vacancy and strong rental growth in the Auckland Industrial market.
"The Auckland Industrial sector is forecast to contribute solid returns over the next few years and, with half of our portfolio in this sector, the portfolio remains well positioned to deliver attractive long term returns to shareholders."
Argosy completed 53 rent reviews over the first half with annualised rental growth of 2.6 percent.
Argosy chair Jeff Morrison said the company was continuing to build on the work commence in prior years.
"While rising interest rates, inflation and cost-of-living concerns continue to create headwinds for the economy, Argosy has continued to deliver on strategy underpinned by a robust capital position and resilient portfolio," Morrison said.
"Our big strategic goals coupled with our current year objectives, continue to support the delivery of sustainable dividend growth over the long term."
He said subject to market conditions, including interest rate increases, Argosy's dividend guidance was maintained 6.65 cents per share, representing a 1.5 percent increase on the prior year.