Half Year Accounts
Brisbane, Feb 8, 2016 AEST (ABN Newswire) - National Storage REIT (
ASX:NSR) report that the total operating expenses increased by 33% to $22,188,000 (2014: $16,772,000) due to the additional seventeen storage centres acquired by NSR in the twelve months to 31 December 2015. A lower overall cost of debt offset some of these increases.
Net profit after tax increased by 36% to $20,620,000 (2014: $15,243,000) was favourably impacted by fair value adjustments associated with the carrying value of investment properties and the share of profit generated from the Southern Cross joint venture. Underlying earnings1 increased 35% to $14.3 million (2014: $10.6 million) through the contribution from acquisitions and the improved operating performance.
Cash Management
Cash and cash equivalents as at 31 December 2015 were $10,198,000 (30 June 2015: $9,494,000). An estimated interim distribution of 4.3 cents per security ($14,381,626) was declared on 21 December 2015 with an estimated payment date of 26 February 2016. During this half-year period the Consolidated Group implemented a Distribution Reinvestment Plan (DRP) which will enable eligible security holders to receive part or all of their distribution by way of securities rather than cash. For the December 2015 interim distribution approximately 14.3% of eligible security holders (by number of securities) elected to receive their distributions totalling $2,095,940 by way of securities. The DRP price has been set at $1.454 which will result in 1,416,740 new securities being issued on the distribution payment date.
Net operating cashflow for the half-year was $21,193,000 (2014: $18,897,000).
The Consolidated Group finance facilities are on a "Club" arrangement with a selection of major Australian banks. The Consolidated Group's borrowing capacity is A$200 million and NZ$31 million. During the reporting period new facilities totalling NZ$31 million were entered into to facilitate the acquisition of six storage centres in New Zealand. Additional interest rate hedges were entered into during the reporting period to take advantage of the current low interest rate environment.
Investments
During the period the portfolio expanded following the acquisitions of eleven centres which include entering the New Zealand market. The storage centres (including leasehold) acquired were:
Centre State DateBelfast, Opawa, Ferrymead, Hornby & Redwood Christchurch (NZ) August 2015Pymble, Camperdown & Seven Hills New South Wales October 2015Frankton Hamilton (NZ) November 2015Earlville Queensland November 2015Croydon South Victoria December 2015Dee Why (Portion of freehold of existing centre) New South Wales December 2015
The Company also invested $6.25 million to take a cornerstone 24.9% holding in the Australian Prime Storage Fund (APSF). APSF is an arrangement with Universal Self Storage to facilitate the development and ownership of multiple premium grade self-storage centres in select cities around Australia. The fund anticipates investing up to $100 million of funds - initially funded to $50 million with a target gearing of 50%, to be deployed on assets to be built and operated over a five year term. NSR is entitled to a number of fees associated with the provision of acquisition, design and development, centre management, debt facilitation and fund support services.
To view the full report, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-NSR-905211.pdf
About National Storage REIT
National Storage (ASX:NSR) is one of the largest self-storage providers in Australia and New Zealand, with 123 centres providing tailored storage solutions to over 40,000 residential and commercial customers. NSR is the first independent, internally managed and fully integrated owner and operator of self-storage centres to be listed on the Australian Securities Exchange (ASX).
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