Abacus Storage King delivers 4.8% increase in HY profit, affirms guidance
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The news: Abacus Storage King reported a 4% increase in half-year statutory net profit. The real estate investment trust cited strong operating performance driven by revenue per available metre (RevPAM) growth across all Australian regions and expansion of operating stores.
The numbers: Statutory net-profit rose to $71.1 million, while funds from operations (FFO) fell 5.3% to $41 million.
RevPam increased 1.5% from a year earlier to $341 per square metre. Rental rate was $377 per square metre, and occupancy rate stood at 90.5%, down 20 basis points.
Abacus declared an interim dividend of 3.10 cents per share, unchanged from the prior corresponding period.
The context: The group attributed the profit growth to improved RevPAM following the rollout of its proprietary revenue management (RMS), which is now active across all stores in the portfolio.
It said the operating margins continue to be weighed down by cost pressures driven by higher insurance-related expenses.
Abacus reaffirmed its FY26 distribution guidance of 6.20 cents per share, targeting a full year payout of 90%-100% of FFO.
What they said: "HY26 demonstrates the resilience of the business model and the strength of the operating platform, which is becoming stronger as we continue to advance our use and understanding of the revenue management system," Abacus managing director Steven Sewell said.
"As we continue to evaluate a potential internalisation of management, our focus remains on disciplined execution, strategic growth and operational excellence."
The source: ASX
