Abacus Group (ABG) H1 2025 earnings summary

Executive summary

• Statutory net loss of $5.7 million for HY25, a 96% improvement year-over-year, mainly due to office property devaluations and fair value adjustments.

• FFO increased 3.2% year-over-year to $40.2 million, with FFO per security at 4.50 cents and distribution per security flat at 4.25 cents, 50% franked.

• Maintained a diversified portfolio of office, retail, and a 19.8% stake in Abacus Storage King (ASK), with total assets valued at $2.6 billion and a weighted average cap rate of 6.66%.

• Commercial and self-storage investment management fees contributed 12% of HY25 operating earnings.

• Active asset management and leasing strategies underpin income resilience and value creation.

Financial highlights

• Revenue increased to $103.8 million from $97.6 million year-over-year, with rental income at $81.1 million.

• EBIT rose 10.8% to $64.8 million; operating earnings up 10.1% to $82.0 million.

• Like-for-like operating earnings rose 13% YoY, with all four segments (office, retail, self-storage, investment management) showing growth.

• Funds from operations for the half-year were 4.5 cents per security; distribution was 4.25 cents, 50% franked.

• Net tangible assets per security at $1.72, down 2.3% on FY24.

Outlook and guidance

• FY25 distribution guidance reaffirmed at 8.5 cents per security, targeting a payout ratio of 85%-95% of FFO, assuming no material decline in business conditions.

• Focus on recurring income, value creation, and leveraging platform for investment management opportunities.

• Forecasting full-year admin expenses in line with last year (AUD 34 million) despite inflationary pressures.

• Distribution expected at the upper end of payout ratio, subject to re-leasing success and stable business conditions.

• Targeting $300 million in divestments over 12–18 months to fund new initiatives and capital partnerships.