Abacus Group (ABG) investor relations material

Executive summary

• Transitioned to a pure-play commercial REIT, internalizing Storage King (ASK) management and focusing on A-grade office and retail assets, culminating a multi-year strategy and simplifying operations.

• Achieved solid operating performance with strong leasing spreads in office (+5.5%) and retail (+8.4%), and celebrated 25 years as a listed entity.

• Focused on sector specialization, disciplined capital management, and sustainable earnings growth.

Financial highlights

• FY26 Funds from Operations (FFO) were AUD 81.2 million (or 9.08cps), down 1.9% year-over-year; distribution per security was 8.50cps, with a payout ratio of 93.6%.

• Statutory net loss of AUD 74.5 million, mainly due to non-cash reclassification of ASK investment.

• Net tangible assets per security at AUD 1.59, down from AUD 1.72.

• Gearing increased to 36.2%, within target range, and interest cover ratio was 2.7x.

• Weighted average cap rate at 6.70%, compressed by 7bps.

Outlook and guidance

• FY27 distribution guidance is 6.70cps, targeting a payout ratio of 80–90% of FFO, with 67% expected to be fully franked.

• Plans to distribute AUD 51 million of franking credits over the medium term.

• Guidance assumes no material deterioration in commercial property market or business conditions.

• Strategic focus on operational efficiency, portfolio optimization, and capital discipline.