GENERATION HEALTHCARE REIT $'000 | ||
Revenues from ordinary activities | up 7% to 21,059 | |
Profit from ordinary activities after tax attributable to members | up 195% to 43,708 | |
Net profit for the period attributable to members | up 195% to 43,708 | |
Underlying net operating income | up 3% to 11,1562 | |
Net tangible assets per unit attributable to members1 | 31 December 2016 $1.54 | 30 June 2016 $1.38 |
1 Net tangible assets adjusted to exclude the amount attributable to non-controlling interests.
2 Underlying net operating income for the financial half year has been calculated as follows:
2016 $'000 | 2015 $'000 | |
Net profit attributable to unitholders | 43,708 | 14,802 |
Adjusted for: | ||
- Straight line lease revenue recognition | (885) | (780) |
- Net (gain)/loss on change in fair value of: | ||
Investment properties | (29,942) | (13,042) |
Derivatives | (6,534) | 957 |
Investment properties included in share of net profit of equity accounted investments | - | (962) |
Derivatives included in share of net profit of equity accounted investments | - | 44 |
- Net change in loans carried at amortised cost | 146 | 16 |
- Manager's performance fee | - | 10,787 |
- Lease surrender and new tenant incentives associated with change of significant tenant | 324 | (1,051) |
- Gain arising on additional investment in Divine Logistics Trust | (164) | - |
- Non-controlling interest attributable to the above adjustments | 4,433 | - |
- Other | 70 | 28 |
Underlying net operating income | 11,156 | 10,799 |
Distributions | Amount per unit (cents) | $'000 |
Interim - 31 December 2016 | 4.4865 | 9,840 |
Previous corresponding period | 4.4200 | 9,492 |
Record date for determining entitlements to the distribution | 30 December 2016 | |
Details of any distribution reinvestment plan in operation | Refer ASX announcement on 15 December 2016 | |
Last date for receipt of an election notice for participation in any distribution reinvestment plan | 3 January 2017 | |
Note: Franked amount per unit is not applicable
For further details, please refer to the following documents:Directors' Report and Financial Statements (attached)
Half-year Results Announcement (separate ASX release)
Investor presentation (separate ASX release)
Chantal Churchill Company Secretary
20 February 2017
ARSN 118 712 584
Consolidated Financial Report for the Half Year Ended 31 December 2016
Generation Healthcare REIT
Directors' report
Directors' reportThe Directors of APN Funds Management Limited (ACN 080 674 479) ("the Responsible Entity") submit the consolidated financial report of Generation Healthcare REIT and of its controlled funds (together "the Fund") for the half year ended 31 December 2016. In order to comply with the provisions of the Corporations Act 2001, the Directors report as follows:
The names of the Directors of APN Funds Management Limited during or since the end of the half year are: Geoff Brunsdon (Chairman and Independent Non-Executive Director)
Michael Johnstone (Independent Non-Executive Director)
Jennifer Horrigan (Independent Non-Executive Director) Howard Brenchley (Non-Executive Director)
Michael Groth (APN Group Chief Financial Officer and alternate Director for Howard Brenchley)
Review of operations
The principal activity of the Fund is investment in healthcare real estate. There was no significant change in the nature of the Fund's activities during the half year.
Results
The results of the operations of the Fund are disclosed in the condensed consolidated statement of profit or loss and other comprehensive income of these financial statements. The net profit for the half year ended 31 December 2016 was $43,708,000 (2015: $14,802,000).
A summary of the Fund's result for the half year is:
2016 | 2015 |
43,708 | 14,802 |
11,156 | 10,799 |
5.10 | 5.05 |
4.4865 | 4.4200 |
19.96 | 6.92 |
Net profit attributable to unitholders of the Fund ($'000) Underlying net operating income ($'000)
Underlying net operating income per unit (cents) Distributions per unit (cents)
Basic and diluted earnings per unit (cents)
Underlying net operating income is an unaudited measurement used by management as the key performance indicator of the operating performance of the Fund. Underlying net operating income does not take into account certain items recognised in the income statement including unrealised gains or losses on the revaluation of the Fund's investment properties and derivatives, and any performance fees paid or payable to the Manager.
Underlying net operating income for the half year has been calculated as follows:
2016 $'000 | 2015 $'000 |
43,708 | 14,802 |
(885) | (780) |
(29,942) | (13,042) |
(6,534) | 957 |
- | (962) |
- | 44 |
146 | 16 |
- | 10,787 |
324 | (1,051) |
(164) | - |
4,433 | - |
70 | 28 |
11,156 | 10,799 |
Net profit attributable to unitholders of the parent Adjusted for:
Straight line lease revenue recognition Net (gain)/loss on change in fair value of:
Investment properties Derivatives
Investment properties included in share of net profit of equity accounted investments
Derivatives included in share of net profit of equity accounted investments Net change in loans carried at amortised cost
Manager's performance fee
Lease surrender and new tenant incentives associated with change of significant tenant
Gain arising on additional investment in Divine Logistics Trust Non-controlling interest attributable to the above adjustments Other
Underlying net operating income
Underlying net operating income increased by 3% to $11,156,000 for the December 2016 half year from $10,799,000 for the December 2015 half year. The increase is largely attributable to higher net property income. In addition to portfolio rental growth from a combination of CPI and fixed reviews, there was an increase to full occupancy for the Casey Specialist Centre, six months rental from the Waratah Private Hospital ground floor suites (acquired in January 2016) and a decrease in ground rent expense following the purchase of the Victoria Parade land freehold in
2
Generation Healthcare REIT published this content on 20 February 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 24 February 2017 01:43:02 UTC.
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