Abacus Group (ABG) H1 2026 earnings summary

Executive summary

• Statutory net profit for HY26 was $47.6 million, rebounding from a prior loss and reflecting recovery from property valuation impacts.

• Portfolio valued at AUD 2.6 billion as of 31 December 2025, with NTA per security up 0.6% to AUD 1.73.

• Underlying office and retail operating earnings grew, supported by strong leasing metrics and cost efficiencies, with administrative expenses down 8.1%.

• Distribution of 4.25 cents per security declared, flat year-over-year, to be paid in February 2026.

• Portfolio simplification continued, with ~$75 million in non-core asset sales exchanged.

Financial highlights

• Funds from operations (FFO) for HY26 was $40.1 million, broadly flat year-over-year, with FFO per security at 4.49cps and payout ratio at 95%.

• Total operating earnings were AUD 80.4 million, down 2% on HY 2025 due to lower surrender fees and asset divestments.

• Net tangible assets per security increased 0.6% to AUD 1.73.

• Gearing remained stable at 34.5%, below the 40% ceiling, with over AUD 200 million in acquisition capacity.

• Average cost of debt reduced to 4.5% from 5.1% in HY 2025.

Outlook and guidance

• FY26 distribution guidance reaffirmed at 8.50–8.501 cents per security, targeting a payout ratio of 85–95% of FFO.

• Guidance assumes no material deterioration in business conditions and continued management of the Storage King stake.

• Second half earnings influenced by leasing success, development management fees, and maintenance CapEx.

• No near-term refinancing requirements; 81% of drawn debt is hedged, providing protection against interest rate volatility.

• Early-stage discussions underway regarding potential internalisation of Storage King’s management function.