Highlights

  • Net loss narrowed to NZ$3.16 million, improving from a NZ$5.70 million loss in FY25.
  • Funds from Operations (FFO) surged to NZ$3.18 million profit, reflecting stronger operational performance.
  • Munroe Lane leasing activity lifted occupancy to 75.6%, supporting portfolio stability and long-term income visibility.

Overview

Asset Plus Limited (NZX:APL) reported an improved financial performance for the year ended 31 March 2026, reducing its total after-tax loss to NZ$3.16 million from NZ$5.70 million a year earlier. While property Revaluation losses continued to weigh on the Bottom Line, operational Earnings strengthened significantly, with Funds from Operations (FFO) rising to NZ$3.18 million profit. Leasing momentum at Munroe Lane played a key role, boosting occupancy and extending portfolio Lease duration. However, adjusted earnings softened due to leasing costs and tenant incentives. The company also declared a quarterly Dividend, highlighting confidence in Cash Flow generation despite valuation-related pressures.

Did Stronger Property Operations Help Offset Asset Plus’ FY26 Loss?

Although Asset Plus remained in a loss position, the company delivered a much stronger operational result in FY26. FFO rose sharply to NZ$3.18 million, supported by improved leasing activity and higher occupancy across the portfolio. The commencement of a new lease at Munroe Lane strengthened rental income visibility and contributed to a longer weighted average lease term (WALE). These operational gains helped offset the impact of ongoing property valuation losses.

Why Did Adjusted Earnings Come Under Pressure Despite Higher FFO?

Adjusted Funds from Operations (AFFO) fell to NZ$0.17 million profit in FY26 as Asset Plus incurred significant leasing costs and tenant incentives linked to occupancy improvements at Munroe Lane. The company also continued investing in partial fit-outs for vacant spaces to attract future tenants. While these upfront costs weighed on adjusted earnings in the short term, management sees them as strategic investments aimed at supporting long-term occupancy, rental growth, and portfolio value.