Whilst Australian Unity battle Starwood’s takeover proposal, they continued to manage the existing AOF portfolio with a focus on providing stable income and potential for development. Australian Unity’s half yearly results showed an 8.4% increase in funds from operations due to rental increases in the portfolio and impact of owning 150 Charlotte Street, Brisbane for the full half year. Portfolio occupancy remained relatively similar to the same period last year at 95% despite a large number of leases being written in the period. The trust didn’t pursue any new acquisitions during the period but have progressed the development approval for 2 Valentine Ave, Parramatta following a Council Approval of a new planning proposal. All nine assets were independently revalued as at 30 June 2018 with minimal changes in cap rates or values. The combined book value of the trust is $640m. AOF reaffirmed FY19 FFO guidance of 17.2 – 17.4 cpu and its FY19 distribution guidance of 15.8 cpu. AOF Trading Chart vs ASX200 AREITs Blue – AOF Purple – ASX200 AREITs Source: Investing.com #AustralianUnity
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