The Aventus Group (ASX: AVN) share price has been fluctuating in morning trade today, after the company released solid results for FY20.
How did Aventus perform in FY20?
Earlier today Aventus released its results for the full year ended 30 June 2020.
The property group reported a solid performance for FY20, despite the impacts of the COVID-19 pandemic. Aventus highlighted a 4.2% increase in funds from operations (FFO) of $100 million for FY20. However, the company flagged a 48.6% decline in net profit for the full year of $56.7 million. Aventus attributed the fall in net profit to a decline in net fair value adjustments in its investment properties.
Aventus also reported that the valuation of its property portfolio had declined $37.3 million for FY20. The company attributed two-thirds of the fall to impacts of the COVID-19 pandemic. Despite the fall in property valuation, Aventus noted that the company has seen valuation uplift of $181 million over the past 3 years.
In addition, the company recorded a statutory profit of $57 million for FY20. Aventus also cited solid rent collections of 87% during the COVID-19 period and maintained a high occupancy rate of 98%. The company also noted that it had provided $6 million in rent relief to impacted tenants and was able to renegotiate 90 leases.
The company’s management noted that Aventus had looked to preserve investor value during the pandemic by managing costs and delaying non-essential capital expenditure.
What is the outlook for Aventus?
Aventus cited its diverse and robust tenancy mix for its stolid performance for FY20. The company boasts notable names and brands such as The Good Guys and Bunnings as tenants. Excluding Victoria, Aventus noted that traffic has increase around 9% above COVID-19 levels since June.
The company’s management also highlighted that Aventus was well positioned to benefit from changes to household spending patterns. As a result, Aventus reassured investors that the company would be able to weather community and economic challenges given its solid balance sheet and liquidity.
However, due to the uncertain nature of the COVID-19 pandemic, Aventus was unable to provide financial guidance for FY21.
Foolish Takeaway
At the time of writing, the Aventus share price is relatively flat for the day. Shares in Aventus have bounced strongly from their lows in March, but remain more than 22% lower for 2020.
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Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia has recommended AVENTUS RE UNIT. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post Aventus share price wobbles despite solid FY20 results appeared first on Motley Fool Australia.
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