Garda Capital Suffers with Melbourne Vacancy20 February 2020
GARDA Property Group is a listed internally managed real estate investment, development and funds management group with a focus on industrial and commercial properties on the east coast of Australia. The group have $405m of AUM across 17 assets and an implied market capitalisation of $322m.
The Group released their Half Yearly results this week, indicating FFO per security of 4.35 cents, down 1% on FY18. The REIT continues to be impacted by Botannica 9, a 7,109sqm building in Melbourne, which was completed in June 2019 and remains fully vacant. The group had forecast the building to be tenanted for the 2nd half of FY20, however no news in relation to the leasing of the project was provided in their annual statement. If fully leased, the building would deliver $4m in income per annum to the group.
The established portfolio vacancy is at 3% includes 802m² at Gold Coast and 1,158m² at Cairns.
During the period, Garda acquired 326 Thynne Rd Morningside for $41.0M on an initial yield of 5.85%. The asset is fully leased with a 5 year WALE.
Garda continues to execute its build to own strategy with a series of industrial being retained as long term investment assets once developed. Projects totalling 22,704m² of NLA will start in 2HFY20. These include Berrinba, the first of 3 buildings at Wacol and stage one of Acacia Ridge.
Garda confirmed FY20 distribution guidance at $0.09 per security.