Financial Results The 2021/22 Financial Year result was significantly improved by the revaluation gain on Investment property, the highest revaluation since the privatisation of the Perth Markets in 2016. Revenue increased 5% on the prior year to $26.7m partially due to the full year effect of leasing of the S1Cold Chain and a further 6% increase in services revenue in the same period. Weekend Markets revenue continues to struggle following the periods of COVID-19 restrictions, despite the relaxing of mandatory isolation periods andmaskwearing requirements. 5 General operating costs were 8% up on the 2021/22 expenses due to a combination of increased professional fees, contracted services and recruitment costs. Commercial site management expenses (site operating expenses recovered from Tenants through variable outgoings) increased 5.5% due to rising utility costs and flow-on effects of higher diesel fuel prices. As a result, the net operating profit (before tax) from trading operations was $10.88m, a slight decrease of 0.12% on the prior year. The revaluation gain on the Investment Property of $58.2m (an increase of $50.8m on the prior year) offset by finance expense for the year of $2.77m contribute to the overall increase in net profit before tax of $66.6m vs the prior full year profit of $15.3m. Income tax expense from normal operations was $2.1m with a further $17.6m recognised as a deferred tax liability relating to the revaluation gain in the Investment property. Net Assets increased to $138.72m or $2.36/share, approximately 78c/share increase on the prior years Net Asset Value. A total of $4.048m was paid during the year in fully franked dividends (6.88c/share) representing a final 2021 dividend of $2.048m (3.48c/share) and an interim 2022 financial year dividend of $2.0m (3.4c/share). As at the 30 June 2022, there were 172 leases and licences in place at the Perth Markets and Market City site, with an occupancy rate of 99.2%. A total of 30 new leases / licences and 5 extensions of existing leases were executed through the year. PMGL undertakes an independent valuation of the property assets “Investment Properties” each financial year. The Independent valuer (CBRE) assessed the value of the Investment Properties as at 30 June 2022 at $250m, an increase of $61m on the prior year. Progress continues with the development of proposed cold chain warehouse S2. A prospective tenant has confirmed a requirement for 2,000m2 of the total 3,500m2 gross lettable building area. Property and Leasing The next steps entail finalisation of the memorandum of understanding with the tenant and commencement of the construction documentation to facilitate the tender process, expected in early 2023. In the interim, Property will continue to seek tenant/s for the remaining vacant area. The total site masterplan remains on track to be presented to the PMGL Board by the end of 2022 for approval. An important part of the masterplan is the future development of the land area outside the fence currently comprising retail, commercial, restaurant, tavern and service station uses. This area provides the opportunity within the short term to develop an anchor retail tenant within existing underutilised carpark. To permit this to occur the existing total maximum retail floor space permitted on site will need to be increased from 7,000m2 to 12,000m2 of Gross Floor Area. A scheme amendment seeking this increase has been lodged with the City of Canning and is currently being assessed with this process potentially taking 12 months. “ The February 2022 food supply crisis ….demonstrated the benefits of locally grown produce in Western Australia”
RkJQdWJsaXNoZXIy MTI3ODI1