Australian Unity Office Fund (AOF) H1 2025 earnings summary

Executive summary

• Over 99% of unitholders approved the disposal of the main undertaking and delisting on 17 December 2024, with the wind-up planned post-delist and expected after 30 June 2025.

• All remaining properties are under sale contracts, with settlements expected in the second half of FY25.

• Net Tangible Assets at 31 December 2024 were $187 million, or $1.14 per unit, including estimated disposal costs.

• Statutory loss for the half-year ended 31 December 2024 was $26.8 million, mainly due to a $23.1 million net fair value decrement of investment properties.

• Special distribution of 9.0 cents per unit paid in December 2024 following the sale of 64 Northbourne Avenue, Canberra.

Financial highlights

• Rental income for HY2025 was $5.7 million (some reports: $5.2 million), down from $11.9 million (some reports: $10.7 million) in HY2024, reflecting asset sales and increased vacancy.

• Net property income fell to $1.2 million from $6.7 million year-over-year.

• Net fair value loss on investment properties was $23.1 million, improved from $30.8 million loss prior year.

• Loss for the period was $26.8 million, slightly higher than $26.4 million loss in HY2024.

• Funds From Operations (FFO) was $0.6 million, down from $4.0 million in the prior year.

Outlook and guidance

• Special distributions are forecast for March ($0.24 per unit), April ($0.40 per unit), and May 2025 (up to $0.47 per unit), with redemption of units up to $0.03 per unit between June and October 2025.

• Expected aggregate proceeds to unitholders are between $1.11 and $1.14 per unit, subject to property settlements and final wind-up costs.