APN Property Group has lifted full-year earnings guidance and flagged continued strength in the commercial property sales market, as it more than doubled net profit for the first half.
Despite seeing the weight of political uncertainty and the end of the mining investment boom on the leasing market -- particularly in Western Australia and Queensland -- APN Property said it was benefiting from the historically low cash rate, which continued to drive capitalisation rates.
The group’s net profit attributable to members jumped 101 per cent to $8.5 million in the six months to December 31, from $4.2m booked in the previous corresponding period.
APN Property now expects operating earnings of 3.30-3.50 cents per share, subject to continuation of current market conditions, and plans to reinstate a final dividend of 0.25c per share.
“The recent move by the Reserve Bank to cut interest rates by a further 0.25 per cent … further enhance[s] the appeal of strong cash back property yields that are supported by long-term leases,” executive director Tim Slattery said.
Revenue for the half grew a marginal 0.4 per cent to $14.9 million, from the previous corresponding period’s $14.84m.
It was boosted by mark-to-market gains of $4.7m in the period on its co-investments.
Meanwhile, APN’s funds under management grew to $2.1 billion at December 31, up 19 per cent from the first half of fiscal 2014.
The group will pay a fully-franked interim dividend of 1.25c per share on April 14, with a record date of March 27.