Once again it was a busy day of results releases on the Australian share market on Tuesday.
Two results you may have missed are listed below. Here’s what they reported:
Arena REIT (ASX: ARF)
Arena REIT reported a net operating profit of $37.7 million in FY 2019, which was an increase of 9% on the prior year. On the bottom line the property group, which owns, manages and develops social infrastructure properties across Australia, delivered a 5.3% increase in earnings per share to 13.8 cents. This was driven by rental income growth from annual rent reviews, income from new investments in operating properties, and the completion of development projects. On a statutory basis, the company reported an 8% decline in net profit to $59.3 million. This was primarily due to the revaluation of interest rate hedges during the year.
Looking ahead, the company appears confident that FY 2020 will be a positive year. It has provided distribution guidance of 14.3 cents per security, representing year on year growth of 5.9%. Arena’s managing director, Rod de Vos, said “With a well-capitalised balance sheet, low incremental cost of debt and a market conducive to opportunities we remain focused on identifying attractive investments that deliver predictable earnings and earnings growth prospects to build long-term value for investors.”
Centuria Capital Group (ASX: CNI)
This specialist investment manager reported a strong increase in assets under management (AUM) in FY 2019. According to the release, Centuria Capital saw its AUM increase 27% on the prior corresponding period to $6.2 billion.
However, this didn’t translate into growth in operating earnings per security. That came in at 12.7 cents per security, down from 16.3 cents per security in FY 2018. But that didn’t stop the company from increasing its distribution. Centuria Capital paid out a 9.25 cents per security distribution, which was an increase of 12.7% on FY 2018. And next year the company intends to grow its distribution by 4.9% to 9.7 cents per security, which equates to a 4.75% forward distribution yield.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Challenger Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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