Abacus Storage King (ASK) H2 2024 earnings summary

Executive summary

• Achieved resilient operating performance in FY24, with 4.6% RevPAM growth to $327 psm and 3.8% rent growth to $360 psm year-over-year.

• Occupancy in established stores reached 91.0%, up 60bps compared to FY23.

• Delivered funds from operations (FFO) of $81.1 million for FY24, equating to 6.36 cents per security and a distribution of 6.0 cents per security.

• Statutory net profit reached $138.2 million for the year ended 30 June 2024.

• Expanded portfolio with 8 operating store acquisitions and 3 development sites, totaling $137m and 35,100 sqm NLA.

Financial highlights

• Total assets at $3.2bn; net tangible assets at $1.58 per security.

• FFO payout ratio was 94%; distribution per security at 6.00c.

• Operating margin at 65%; operating profit increased to $136.2m from $126.8m year-over-year.

• Weighted average cap rate (WACR) at 5.55%, down 2bps from FY23.

• Gearing at 27.5%, up 130bps on FY23 pro forma; average cost of debt at 3.5%.

Outlook and guidance

• FY25 distribution guidance of 6.1c per security, with payout ratio expected at 90%-100% of FFO.

• Growth strategy underpinned by organic growth, acquisitions, developments, and platform enhancements.

• Guidance assumes no material deterioration in current business conditions.