Viva Energy REIT tops earnings guidance
Petrol station owner Viva Energy REIT has hit the top end of its guidance for distributable earnings for its 2019 full year, booking in contracted rent rises and taking the benefit of falling finance costs.
The $2.2 billion property trust – its largest shareholder remains fuel supplier Viva Energy – controls a portfolio of 469 service stations across the country, valued at close to $2.7 billion.
Factoring out items including property valuation gains, Viva recorded a 9.8 per cent lift in distributable earnings to $111.7 million. That result produced a 3.7 per cent gain in distributable earnings on a per security basis.
Statutory profit rose 18.2 per cent to $197.6 million. Over the year, the property trust was busy expanding its portfolio, acquiring and funding 15 properties for a total outlay of $88.5 million.
Those additions also helped in taking Viva’s earnings to top of its guidance. The final distribution was 7.19?? per security.
“Financial year 2020 will see Viva Energy REIT continue to evaluate opportunities across its portfolio and pursue acquisitions and development opportunities consistent with its strategy and investment criteria,” said Hadyn Stephens, chief executive of the property trust’s manager.
Viva is targeting $100 million of acquisitions over the coming year. It plans to diversify and extend its debt while using its investment grade credit rating to improve its bank debt.
It has forecast growth in distributable earnings of between 3 per cent to 3.75 per cent for its 2020 financial year.
