Aveo Group Revises Earnings Guidance for 2018; Confirms Earnings Guidance for 2019
Aveo also confirmed that its 2019 EPS is expected to be 20.4 cps, in line with its initial 2018 guidance. The uptrend to Aveo's retirement earnings is expected to be sustained with 2019 retirement EBITDA forecast to be higher than 2018 retirement EBITDA. Aveo's Non-Retirement business continues to be sold down and contribute a lower proportion of Aveo's overall earnings. As a result of the sale of Gasworks, Newstead in February 2018, Aveo will not have recurring rental income from that asset in 2019, which will result in a decrease of $6.7 million before income tax on 2019 earnings relative to 2018 earnings. The proceeds from the Gasworks sale were used to repay and cancel debt, but as the majority of interest is capitalised to development projects, this will have no impact on 2019 earnings. Therefore, the overall reduction on 2019 earnings from the sale of Gasworks is $4.7 million after income tax.