APN Property lifts funds by 5pc on Asia growth
One of boutique fund manager APN Property Group’s smallest exposures has delivered one of its best returns, a property securities fund investing into Asia’s growing commercial property markets in Singapore, Hong Kong, and Tokyo.
The APN Asian REIT Fund delivered a total return of 23.8 per cent over the 2019 calendar year. It has paid out a distribution yield of 5 per cent as its funds under management rose by 30 per cent to $58 million.
Based in Melbourne, APN Property is an ASX-listed fund manager with close to $3.1 billion in funds under management. That tally rose by 4.7 per cent over its 2020 first half, tapping the appetite from retail investors for secure yield from real estate in a low-rate environment.
“In the first half APN delivered a 33 per cent increase in its operating profit as a result of strong growth in assets under management which now exceed $3 billion. Our growth has been achieved without changing our attitude to risk,” said chief executive Tim Slattery.
Those investments are spread across two listed funds, direct property investments and APN’s real estate securities, the largest area of its portfolio which includes the Asian exposure.
Operating earnings rose 33 per cent to $6.4 million in the 2020 first half, with statutory net profit up 190 per cent to $17.4 million.
The fund manager declared an interim distribution of 1.6?? per security and reaffirmed its distribution guidance of 3.15?? for the full 2020 year. Investors appreciated that forecast, with APN stock closing 2.1 per cent, or 1.5??, higher at 72.5?? on Thursday.
