Abacus Storage King (ASK) H1 2025 earnings summary

Executive summary

• Statutory net profit after tax for HY25 was $67.8 million, up from $0.4 million in the prior period, driven by strong income growth and portfolio expansion.

• Funds from operations (FFO) reached $43.3 million, up 15.1% year-over-year, with FFO per security at 3.3c.

• Distribution per security increased 18.6% year-over-year to 3.1c, with full-year guidance reaffirmed at 6.2c per security (90%-100% FFO payout).

• Total assets rose to $3.3 billion, with over 1.2 million sqm of real estate and more than 200 stores across Australia and New Zealand.

• Multi-pronged growth strategy includes acquisitions, developments, and platform enhancements.

Financial highlights

• Total revenue was $118.9 million, up from $108.8 million year-over-year.

• RevPAM grew 5.4% to $339/sqm; average rent per sqm up 4.4% to $373/sqm.

• Operating margin was 63%, down from 66% in HY24 due to higher land tax and insurance costs.

• Gearing increased to 29.0% (up 30bps on FY24); net tangible assets per security rose to $1.60.

• Weighted average cost of debt was 4.0%; interest coverage ratio at 3.4x.

Outlook and guidance

• Affirmed full-year distribution guidance of 6.2c per security, with payout ratio of 90%-100% of FFO.

• Confident in funding developments and acquisitions for the next two years with current liquidity.

• Expect continued RevPAM and earnings growth, supported by strong occupancy and rental rates.

• Margins forecast to improve in 2H FY25 as revenue growth outpaces cost increases.

• Guidance assumes no material deterioration in current business conditions.