Augusta Capital posted a 42 per cent drop in annual profit after a reduction in its directly held property portfolio led to it having a smaller increase in the value of its investment properties.
The listed property investor and fund manager reported profit fell to $7.8 million, or 8.86 cents per share, in the year ended March 31, from $13.5m, or 15.46 cents, a year earlier. It booked a $4.1m gain on the value of its investment property, compared with a $7.1m gain the previous year. Revenue rose 6.3 per cent to $23.3m as a lift in funds management revenue offset a decline in rental income.
Augusta has been rejigging its business, moving away from owning property directly and diversifying into property syndication and funds management. The value of its assets under management increased to $1.6 billion from $1.46b over the past year, with its gross management fee lifting by 36 per cent to $7.3m.
"By moving away from a traditional, directly owned investment model to a less capital intensive growth model, we are delivering a more diverse and recurring earnings profile, which will better protect and help grow future value for our shareholders," managing director Mark Francis said in a statement.
In July last year, Augusta shareholders approved the sale of its Finance Centre for $96m to be staged through to April 2019. The company said today that money from that sale would be used to grow its funds management business in the future.
