Australian Unity Office Fund (AOF)

FY20 Results: Locking in the yield

  • FY20 FFO of 17.0cpu (from 17.5cpu in prior year). Rent collection rate of 92% in June 2020 quarter due to COVID-19. Earnings impact is -$1.1M (or -0.7cpu).
  • Portfolio appears well placed with 59% in metropolitan office markets and 41% in CBD locations.
  • Management guidance for FY21 distributions to remain flat at 15.0cpu, with only 4% lease expiries in FY21.
  • Current price factors in COVID-19 risks and lease expiries in FY22/23. Upside potential for greater income certainty as leases are worked through.
  • Recommendation upgrade to Accumulate (previously Hold)
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Published - 1/09/2020

Core Property Rating - Accumulate

Target - 2.58

This publication is not and should not be construed as, personal financial product advice, an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Any opinion contained in the Report is unsolicited general information (general financial product advice) only. Read more here.