Australian Unity Office Fund lands on guidance as takeover looms
Takeover target Australian Unity Office Fund has delivered earnings and distributions within guidance for the 2019 financial year in what may be its final result as a listed property trust.
With a $668.4 million portfolio of office towers, the Australian Unity-run fund opened the door last month to Charter Hall and Abacus Property Group to conduct due diligence after the consortium sweetened its all-cash takeover bid.
The bid was increased to 3.04 per share from $2.95 earlier this month, valuing the ASX-listed property trust at $494.9 million, up from the $480.3 million tag under the earlier offer.
Funds from operations – the preferred earnings measure in the listed property sector – lifted more than 4 per cent to $28.2 million. Net profit fell almost 54 per cent to $44.8 million, mostly due to slower growth in asset valuations in the 2019 year compared to the previous year.
“Since Australian Unity Office Fund listed on the ASX a little more than three years ago, we have met or exceeded our earnings and distribution guidance each year, and have delivered a total return to investors of 83 per cent – equivalent to approximately 21 per cent per annum,” fund manager Mark Lumby said.
The property trust will continue paying distributions quarterly unless it enters into a scheme of arrangement with the takeover consortium.
