Aventus Group show Strong Valuation Gains

23 June 2021

The Aventus Group have recorded a net valuation gain of $254 million or 12% over the past 6 months following a 64bps compression in cap rates.

The Groups’ portfolio capitalisation rate was 6.01%, following a compression of 64 basis points based on recent transactional evidence. This latest increase in value takes the total portfolio valuation gains over past four years to approximately $550 million or a 30% increase.

Aventus Group CEO Darren Holland said, “Strong investment demand for LFR centres, together with continued positive trading in our centres and a focus on driving sustainable income growth across the portfolio, have all contributed to this significant valuation increase. Pleasingly, this valuation increase will see the Group’s gearing reduce to the bottom of our target gearing range, enhancing our flexibility to achieve Aventus’ strategic objectives in the year ahead. Specifically, the weighted average capitalisation rate for the portfolio has compressed by 64 basis points to 6.01%, bringing the total valuation gains for the portfolio over the last four years to approximately $550 million.”

Approximate unaudited earnings for FY21 Funds from Operations (FFO) of 19.4 cents per security representing 7% growth on FY20 (compared to prior guidance of 4% growth). The main driver of this upgrade is the continued strong performance of the portfolio and a lower cost of debt and includes the one-off true up amount referred to at the half-year results released in February 2021. As a result, Aventus have declared the June 21 quarterly distribution of 4.37 cents per security.

“In addition to capitalisation rate compression, robust income growth, strategic development initiatives and expense management have contributed to delivering value for our investors. The hard work of our team in driving the portfolio and diligently managing our capital has also resulted in an upgraded preliminary unaudited FY21 FFO of 19.4 cents per security, which represents growth of 7% from FY20.” said Mr Holland.