Aventus Executing Strategy to Drive Earnings

15 February 2019

Aventus Group announced this week its results for the half year ended 31 December 2018. Key Achievements • Internalisation completed • Funds from Operations (FFO) of $47 million or 9.2 cents per security • Distributions of 8.2 cents per security • Revaluation gains of $26 million driven by income growth • The Weighted Average Capitalisation Rate (WACR) unchanged at 6.7% Portfolio Highlights • Consistently high occupancy of 98.5% including 16 of 20 centres with 100% occupancy • Like-for-like net property income (NPI) growth of 3.3% • Strong leasing demand with 81 leases negotiated across 74,000 sqm of GLA achieving positive leasing spreads and with low incentives • High exposure to national tenants, comprising 86% of the portfolio by GLA • Diversifying tenancy mix with 37% of the portfolio by income in the Everyday-Needs category Financial Highlights • Profit of $64 million, down from $75m due to lower valuation gains than previous year and higher costs from internalisation process • Gearing of 39.4% and weighted average debt expiry (WADE) of 3.9 years • Hedging increased by $100 million to protect against interest rate volatility • Following internalisation and valuation gains, NTA per security is $2.15 and NAV is $2.42 per security Valuation Increases through Income Growth Property valuation gains of $26 million were achieved in the portfolio, bringing the value of assets under management to $2.1 billion . The WACR of the portfolio has remained stable at 6.7% since December 2017. The valuation increases takes into account annual rent increases, market rent reviews, positive leasing spreads, and completion of a number of asset management and development initiatives. The strategy for the group remains to drive sustainable earnings from the portfolio through: • Active diversification of the tenant base with a focus on increasing Everyday-Needs uses • High occupancy and annual contracted rent increases to underpin future income growth • Continued re-investment into the portfolio to enhance shopper experience and capitalise on attractive development returns The Board confirms the FY19 guidance for FFO per security of 18.4 cent. AVN Trading Chart vs ASX200 AREITs Blue – AVN Purple – ASX200 AREITs #Aventus #Retail