Abacus Group (ABG) H2 2025 earnings summary

Executive summary

• Total assets reached AUD 2.6 billion, with a diversified portfolio focused on office, retail, and self-storage sectors.

• Statutory net profit was AUD 26.9 million, a significant turnaround from a AUD 241.0 million loss in FY24.

• Funds from operations (FFO) were AUD 82.7 million, flat year-over-year, with FFO per security at 9.26cps and distributions maintained at 8.5cps per security.

• Portfolio occupancy remained strong at 92.1%, with over 44,000 sqm leased and net face leasing spreads of 5.8%.

• Self-storage (ASK) continues to deliver stable income and growth, with a 19.8% ownership stake.

Financial highlights

• Like-for-like operating earnings rose 7.7% year-over-year, with all segments contributing to growth.

• Office operating earnings up 9.8% year-over-year, supported by 4.3% rental growth and positive leasing spreads.

• Retail operating earnings grew 8.8% year-over-year, driven by CPI-linked rental growth and improved occupancy.

• ASK delivered AUD 16.8 million in earnings, plus AUD 18.1 million in management fees.

• Net tangible assets per security at AUD 1.72; gearing at 34.5%; weighted average cap rate at 6.77%.

Outlook and guidance

• FY26 distribution guidance set at 8.5cps per security, targeting a payout of 85%-95% of FFO.

• Guidance assumes stable business conditions and continued management/ownership of ASK.

• Earnings forecast at the top of the payout ratio range due to normalized tax expense.

• Ongoing focus on re-leasing, capital partnering, and scaling investment management activities.

• ASK subject to a takeover proposal; due diligence ongoing for a potential AUD 1.65 per security offer.