Business Description:
ALE Property Group Limited (LEP) is Australia's largest listed freehold owner of pubs. ALE owns a property portfolio of around 90 pubs across the five mainland states of Australia. All of the pubs in the portfolio are leased to members of Australian Leisure and Hospitality Group Limited for an average initial term of around 17 years.

Strategy Analysis:
LEP is a passive owner and operator of pub properties. Each property is leased to Australian Leisure and Hospitality, a Woolworths subsidiary, for an initial term of 25 years to 2028 with four 10-year options to renew. Annual rent reviews are linked to CPI. LEP is seeking to acquire additional high quality properties that complement its existing portfolio. 2010 was a period of consolidation with 12 properties sold and debt reduced to more conservative levels. ALE Property Group reported NPAT of $50.87m for the year ended 30 June 2011. Revenues from ordinary activities were $57.54m, down 2.4% from last year. Diluted EPS was 32.49 cents compared to (10.94) cents last year. Net operating cash flow was $32.84m compared to $30.53m last year. The final dividend declared was 9.75 cents, taking the full year dividend to 19.75 cents compared with 24 cents last year.