Australian Unity Office Fund (AOF) H2 2024 earnings summary

Executive summary

• Achieved total FY24 distributions of 14.0 cents per unit, including 8.0 cents ordinary and 6.0 cents special distribution.

• Funds from Operations (FFO) for FY24 reached $16.8 million, or 10.3 cents per unit.

• Sold 96 York Street for $29.7 million (settled June 2024); contracts exchanged for three additional properties totaling $163.2 million.

• Net Tangible Assets (NTA) at $229 million, or $1.39 per unit as of 30 June 2024.

• No drawn debt at year-end; debt facility to be terminated upon settlement of 64 Northbourne Avenue.

Financial highlights

• Rental income declined to $27.2 million from $36.6 million year-over-year, reflecting property sales.

• Net property income fell to $17.3 million from $20.7 million year-over-year.

• Net fair value loss on investment properties of $73.6 million, up from $12.2 million loss in FY2023.

• Loss for the year widened to $61.4 million from $4.4 million in FY2023.

• 468 St Kilda Road was independently valued at $62.0 million.

Outlook and guidance

• Guidance for September 2024 quarter: ordinary distribution of 0.4 cents per unit.

• At least 9.0 cents per unit special distribution expected after 64 Northbourne Avenue settlement (Nov 2024).

• Intention to seek unitholder approval for disposal of main undertaking, subject to market conditions and offers.

• Ongoing discussions for the potential disposal of 468 St Kilda Road, Melbourne.