Pub owner Hotel Property Investments will seek to bring management in house of its $520 million portfolio of Queensland properties after it reported interim results ahead of guidance in its prospectus.
Adjusted funds from operations, which HPI pays out as distributions, totalled$11.6 million for the half year, ahead of its prospectus pro-rata forecast of $10.6 million.
Investors will receive an interim distribution of 7.9 per security with HPI confirming earlier guidance of 16.1 full year distribution – ahead of the 15.9 per security forecast in its prospectus.
“[Internalisation] is what the investor community is looking for, so we will seek shareholder approval at our next annual general meeting,” said HPI fund manager David Charles.
“It’s mainly a perception thing … [but] we also believe its a better way to run the business,” he said.
Mr Charles said HPI was on track to meet its full-year cash earnings and distribution guidance as set out in its prospectus. HPI was spun out of the Redcape Property Group in December 2013 and currently owns 42 pubs, of which all but one is tenanted by Coles.
In October, HPI acquired the Magnums Tavern in Airlie Beach, its first pub operated by the Woolworths-backed ALH Group.
Mr Charles said the trust would look at further acquisition opportunities within the Woolworths-controlled ALH Group, which operates over 320 pubs, of which about 140 are owned by either the listed ALE Property Group or Charter Hall.
“We will also work with Coles on future development opportunities,” he said.