The APN Convenience Retail REIT announced today the draft valuation results as at 30 June 2021, revealing a 7.9% increase in values compared to December 2020.
The valuation results, which remain subject to review by the Fund’s auditors and Board approval show a $41.6m uplift due to a 45bs tightening of the weighted average capilisation rate to 6.02%. Adjusting for the valuation uplift, the pro forma Net Tangible Assets (NTA) increased from $3.35 at 31 December 2020 to $3.68 per security.
A total of 62 properties (out of 100) are the subject of an independent valuation as at 30 June 2021, while on an overall basis, all properties have been the subject of an independent valuation within the last 12 months.
Following settlement of the property portfolio acquisition announced on 11 May 2021 and completion of the Hillcrest development project, all of which are scheduled to occur in September 2021, the portfolio will comprise 107 properties valued at $709.5 million.
AQR Fund Manager, Chris Brockett said: “The outcome of our valuation process reflects the strong appetite for service station and convenience retail assets, particularly over the past 12 months where transaction volumes have significantly increased due to their non-discretionary and defensive nature.
AQR remains in a healthy position with portfolio occupancy of 100%, a WALE of 12 years and secure cash flows underpinned by strong lease covenants with over 90% of portfolio income expiring in FY30 and beyond providing investors with a long-term sustainable income stream.”
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