Argosy Property, which last year raised $86.9 million to fund acquisitions, more than doubled annual profit as new buildings generated more income and the value of its property portfolio and financial instruments gained.
Net profit climbed to $85.6 million in the 12 months ended March 31 from $39.2 million a year earlier, the Auckland-based company said in a statement. The bottom line was bolstered by a $33.5 million gain in the value of its investment property and a $20.6 million increase in the value of derivatives used for hedging. Net property income rose 18 percent to $82.2 million as Argosy's portfolio expanded to 66 buildings from 63 buildings a year earlier.
Distributable income, the preferred measure by property investment firms as it strips out movements in the value of their portfolios, rose to $50 million, or 6.69 cents per share, from $42.2 million, or 7.22 cents, a year earlier.
"Rates of enquiry are at levels that Argosy has not experienced since prior to the global financial crisis and there are signs of rental growth ahead," the company said. "The management team will continue to focus on the leasing fundamentals as well as positioning the portfolio for the future."
Argosy has been selling underperforming assets over the past year, while refocusing its energy to what it calls its core portfolio, which it sees as long-term investments of more than a decade. That includes two Wellington buildings it acquired last year, which it's spending $86.6 million on upgrading.
