You are using an older browser version. Please use a supported version for the best MSN experience.

Augusta earnings, profits rise

NZ NewswireNZ Newswire 19/05/2016 Paul McBeth

Augusta Capital has lifted annual earnings 17 per cent as the listed property investor and fund manager eked out bigger returns from its two segments, with a higher occupancy rate and more syndication deals completed.

Distributable profit after tax, the preferred measure of many property investors which strips out unrealised movements in the value of their portfolios, rose to $5.7 million, or 6.5 cents per share, in the 12 months ended March 31, from $4.9m, or 5.8 cents, a year earlier, the Auckland-based company said on Friday.

Revenue climbed 24 per cent to $17.1m, driven by a 24 per cent gain from its funds management business to $12.3m.

"Augusta has continued to grow its business through diversification of its income from directly owned property to funds management revenue that is not as capital demanding," the company said in a statement.

The firm diversified into funds management last year when it bought KCL Property and Investment Property Titles for a combined $15.4m in cash and scrip, giving it about 165 properties to manage, with some $1.1 billion in funds under management.

Augusta's net profit rose 30 per cent to $13.5m, including a $7.1m gain on the value of its property portfolio, which was valued at $106.8m, including two buildings held for sale.

The occupancy rate was 97 per cent at the year-end, up from 94 per cent in 2015, while the weighted average lease expiry was 6.3 years, compared to 5.9 years in 2015.

The property segment delivered $5m of earnings before interest and tax on net revenue of $6.7m while the funds management business earnings of $4.8m on revenue of $10.3m.

Augusta's board had already declared its final quarterly dividend of 1.25 cents per share taking the annual payout to 5 cents, up from 4.75 cents in 2015.

The shares rose 0.9 per cent to $1.13 and have gained 12 per cent this year.

image beaconimage beaconimage beacon