- Release Date: 10/08/12 17:55
- Summary: ADDRESS: AUG: Annual Meeting 2012 - Chairman's Address
- Price Sensitive: No
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AUG 10/08/2012 15:55 ADDRESS REL: 1555 HRS Augusta Capital Limited ADDRESS: AUG: Annual Meeting 2012 - Chairman's Address Chairman's Review The 2012 financial year has been a good one for Augusta Capital Limited. We have achieved significantly against our goals with stability in our distributable earnings, further sales of non core property assets and successfully concluding an internalisation of the Management Contract and the purchase of the Funds Management business of Augusta Funds Management Limited. Externally the financial climate in the US and more particularly in Europe has struggled to address its fundamental economic difficulties and we have seen a modest slowdown in New Zealand's major trading partners' economies. There remains considerable doubt that a solution is close - in fact many commentators are suggesting the resolution may take a decade to remedy. Thus far the European and US Governments seem to be doing what they have to in order to muddle through. In New Zealand we have been experiencing modest growth but some reasonable activity in the commercial property market that supports current values in the Augusta portfolio. There is also strong demand for quality property syndication offerings and Mark Francis will comment on the market and on our recent successes. The strategy of internalisation and the acquisition of the funds management business has been successful and we see the opportunities for further income diversification under our new model as being a feature of our Company in the future. Mark will also talk to you about the portfolio and clearly one of the major achievements over the last year has been the successful completion of the Countdown Supermarket development. The demand for leased space has been assisted by our refurbishment work at Brookfields House and overall interest in Auckland CBD office accommodation at the mid-range price level is steady. The year ahead will be more of the same for Augusta - maintenance of distributable income with expectations of enhanced income over time from our Funds Management business and from higher occupancy within our directly owned portfolio. FY2012 Results The loss attributable to shareholders for the 2012 year was $0.65 million after $2.0 million was paid to internalise the management contract and a revaluation decline in the Company's property portfolio of $1.38 million. The extensive work undertaken on the Countdown Supermarket landlord works is, in our view, yet to be reflected in the valuation of that property. Distributable profit was only marginally down from $3.8 million in 2011 to $3.7 million this year following the sale of $8.52 million of non core assets. Overall your Board considers this to be a very satisfactory result. Once again we have bee well served by our management team who have executed the transition from external managers to employees very well. The change process has meant a high level of involvement from the Board and our employees - an effort that I would like to acknowledge. -ENDS- End CA:00225835 For:AUG Type:ADDRESS Time:2012-08-10 15:55:17
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