Abacus Group (ABG) H1 2026 earnings summary

Executive summary

• Portfolio valued at AUD 2.6 billion as of 31 December 2025, with a weighted average cap rate of 6.81%.

• Statutory net profit after tax was $47.6 million for HY26, up from a loss last year, with FFO at $40.1 million, nearly flat year-over-year.

• Office and retail leasing spreads increased, with office up 7.2% and retail up 5.3%.

• Portfolio simplification continued, with ~$75 million in non-core asset sales exchanged.

• Interim distribution of 4.25 cents per security declared, in line with guidance.

Financial highlights

• Total operating earnings for the period were AUD 80.4 million, down 2% on HY 2025 due to lower surrender fees and asset divestments.

• FFO per security was 4.49cps, and distribution per security was 4.25cps, with a payout ratio of 95%.

• Average cost of debt reduced to 4.5% from 5.1% in HY 2025.

• Gearing at 34.5%, below the 40% ceiling, with over AUD 200 million in acquisition capacity.

• Net cash flows from operating activities increased to $42.9 million from $24.5 million year-over-year.

Outlook and guidance

• Affirmed FY 2026 distribution guidance of AUD 0.085 per security, maintaining payout ratio of 85%-95% of FFO.

• Guidance assumes no material deterioration in business conditions and continued management of the Storage King stake.

• Second half earnings influenced by leasing success, development management fees, and maintenance CapEx.

• No near-term refinancing requirements; hedging at 81% provides protection against interest rate volatility.

• Targeting assets with long-term, sustainable outcomes and improved FFO.