ALE raises a glass to rents boost
ALE Property Group has reaffirmed its 2014 distribution guidance to be at least 16.35¢ per security, boosted by its Woolworths tenants and property development opportunities.
At its 10th annual meeting in Sydney, the group defended its valuation process, saying that all June 2013 independent valuations, using the discounted cash flow method, assumed a rent increase of 10 per cent for the 2018 and 2028 reviews.
ALE's managing director, Andrew Wilkinson, said the group would continue to take active independent valuations of the properties, given the leases are all on long-term contracts.
"All CBRE/Urbis June 2013 valuations assumed that a 10 per cent increase in rent would occur in 2018," he said.
"They included little if any value arising from the 2028 open market rent reviews. If these open reviews are included, then the property valuations may change.
"We quote the statutory value, but wanted to give investors a sense of our valuations," he said.
"It is a competitive market with the pending float of Hotel Property Investments, but we are keeping our model simple and local."
ALE owns a property portfolio of about 90 pubs in Australia.