Appendix 4E
Abacus Group
(comprising Abacus Group Holdings Limited and its controlled entities, Abacus Trust and its controlled entities, Abacus Group Projects Limited
and its controlled entities, Abacus Income Trust and its controlled entities)
In August 2023, Abacus Group’s Self Storage business has been de-stapled from the Commercial business to create two separately listed stapled
groups of Abacus Storage King (ASX:ASK) and Abacus Group, respectively. Abacus Group has also changed its ASX code from ABP to ABG.
ABN: 31 080 604 619
Annual Financial Report
For the year ended 30 June 2025
Results for announcement to the market
(corresponding period: year ended 30 June 2024)
Total revenues and other income
up
35.6%
to
$252.1m
Net profit after income tax expense attributable to
stapled security holders
up
111.2%
to
$26.9m
Funds from operations ("FFO") (1)
up
0.2%
to
$82.7m
FFO from continuing operations
up
1.7%
to
$82.7m
(1)
FFO has been determined with reference to the updated Property Council of Australia’s voluntary disclosure guidelines to help investors and
analysts compare many different AREITs. FFO is calculated by adding back tenant incentive amortisation, depreciation on owner occupied
property, plant & equipment (PP&E), change in fair value of investments derecognised, unrealised fair value gains / losses on investment
properties, adjustments arising from the effect of revaluing assets / liabilities carried at fair value (such as derivatives, financial instruments and
investments), other non-recurring adjustments deemed significant on account of their nature and non-FFO tax benefit/expense.
30 June 2025
30 June 2024
Basic earnings per security (cents)
2.95
(26.97)
Basic funds from operations per security (cents)
9.26
9.24
Basic funds from continuing operations per security (cents)
9.26
9.10
Distribution per security (cents - including proposed distribution)
8.50
8.50
Weighted average securities on issue (million)
893.7
893.7
Distribution
per stapled security
4.25 cents
1 July 2025
June 2025 half year
This distribution was declared on 23 June 2025 and will be paid on 29 August 2025
Record date for determining entitlement to the distribution
Refer to the attached announcement for a detailed discussion of the Abacus Group's results and the above figures for the year ended
30 June 2025.
Total
Half December 2024 distribution
$38.0m
per stapled security
paid 28 February 2025
Details of individual and total distribution payments
4.25
The distribution was paid in full by Abacus Trust and Abacus Group Holdings Limited with $8.1m of franking credits attached.
Net tangible assets per security (2)
30 June 2025
$1.76
$1.72
30 June 2024
(2) Net tangible assets per security excludes external non-controlling interest. The Group lost control of Abacus Storage Operations Limited and
its controlled entities, and Abacus Storage Property Trust and its controlled entities during the prior period.
Distribution Reinvestment Plan (DRP)
The Group’s Distribution Reinvestment Plan (DRP) will not apply to the final distribution. Information on the terms of the DRP is available from
our website www.abacusgroup.com.au.
30 JUNE 2025
2
CONTENTS
DIRECTORS’ REPORT .................................................................................................................................................. 3
AUDITOR’S INDEPENDENCE DECLARATION ................................................................................................. 48
CONSOLIDATED INCOME STATEMENT ............................................................................................................ 49
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME ................................................ 50
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ............................................................................. 51
CONSOLIDATED STATEMENT OF CASH FLOW .............................................................................................. 53
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ............................................................................. 54
NOTES TO THE FINANCIAL STATEMENTS ......................................................................................................... 56
CONSOLIDATED ENTITY DISCLOSURE STATEMENT ................................................................................... 109
DIRECTORS’ DECLARATION ................................................................................................................................. 110
INDEPENDENT AUDITOR’S REPORT ................................................................................................................... 111
ABACUS GROUP HOLDINGS LIMITED
ABN: 31 080 604 619
ABACUS GROUP PROJECTS LIMITED
ABN: 11 104 066 104
ABACUS FUNDS MANAGEMENT LIMITED
ABN: 66 007 415 590
DIRECTORS OF ABACUS GROUP HOLDINGS LIMITED:
Myra Salkinder, Chair
Steven Sewell, Managing Director
Trent Alston
Mark Haberlin
Jingmin Qian
REGISTERED OFFICE:
Level 13, 77 Castlereagh Street, SYDNEY NSW 2000
Tel: (02) 9253 8600
Fax: (02) 9253 8616
Website: www.abacusgroup.com.au
COMPANY SECRETARY:
Lucy Spenceley (effective 1 July 2025)
Lucy Rowe (resigned 1 July 2025)
AUDITOR (FINANCIAL AND COMPLIANCE PLAN):
Ernst & Young
200 George Street, SYDNEY NSW 2000
CUSTODIAN:
Perpetual Trustee Company Limited
Level 14 Angel Place
123 Pitt Street, SYDNEY NSW 2000
SHARE REGISTRY:
Boardroom Pty Ltd
Level 8, 210 George St, SYDNEY NSW 2000
Tel: 1300 737 760
Fax: 1300 653 459
DISCLAIMER: It is recommended that this Annual Financial Report should be read in conjunction with the Annual Financial Report of Abacus Trust, Abacus Group Projects
Limited and Abacus Income Trust as at 30 June 2025. It is also recommended that the report be considered together with any public announcements made by Abacus Group in
accordance with its continuous disclosure obligations arising under the Corporations Act 2001
DIRECTORS’ REPORT
30 JUNE 2025
3
The Directors of Abacus Group Holdings Limited (“AGHL”), Abacus Funds Management Limited (“AFML”) –
the Responsible Entity of Abacus Trust (“AT”) and Abacus Income Trust (“AIT”), and Abacus Group Projects
Limited (“AGPL”) present their report for the year ended 30 June 2025.
PRINCIPAL ACTIVITIES AND STRUCTURE
The principal activities of Abacus Group during the year were investment in Commercial properties (office and
other). Abacus Group is a strong asset backed, annuity style business where capital is directed towards assets that
provide potential for enhanced income growth to generate increased total returns and create value.
The operating and financial review is intended to convey the Directors’ perspective of Abacus Group and its
operational and financial performance. It sets out information to assist securityholders to understand and
interpret the financial statements included in this report prepared in accordance with Australian Accounting
Standards and International Financial Reporting Standards (“IFRS”), as issued by the Australian Accounting
Standards Board (“AASB”) and the International Accounting Standards Board (“IASB”) respectively. It should be
read in conjunction with the financial statements and accompanying notes.
Listed Structure / Entities
The listed Abacus Group is a diversified property group that operates predominantly in Australia. It comprises
AGHL, AT, AIT and AGPL (collectively “Abacus” or “the Group”) and its securities trade on the Australian
Securities Exchange (“ASX”) as ABG. Abacus was listed on the ASX in November 2002 and its market
capitalisation was over $1.0 billion at 30 June 2025. Abacus Group is included in the S&P/ASX 300 A-REIT
index (ASX:XPK), a sub-index of the S&P/ASX 300 index that contains the listed vehicles classified as A-REITs.
In August 2023, Abacus Group’s Self Storage business was de-stapled from the Commercial business to create
two separately listed stapled groups of Abacus Storage King (ASX:ASK) and Abacus Group, respectively. Abacus
Group also changed its ASX code from ABP to ABG.
Shares in AGHL, AGPL and units in AT, AIT have been stapled together so that none can be dealt with without
the others and are traded together on the ASX as Abacus Group securities. An Abacus Group security consists
of one share in AGHL, one unit in AT, one share in AGPL and one unit in AIT. A transfer, issue or reorganisation
of a share or unit in any of the component parts requires, while they continue to be stapled, a corresponding
transfer, issue or reorganisation of a share or unit in each of the other component parts.
AGHL and AGPL are companies that are incorporated and domiciled in Australia. AT and AIT are Australian
registered managed investment schemes. AFML is the Responsible Entity of AT and AIT. AFML is incorporated
and domiciled in Australia and is a wholly owned subsidiary of AGHL.
Abacus Group Consolidation
AGHL (the company) has been identified as the parent entity of the Group. The financial report of the Group for
the year ended 30 June 2025 comprises the consolidated financial reports of AGHL and its controlled entities,
AT and its controlled entities, AIT and its controlled entities, AGPL and its controlled entities, and also includes
Abacus Storage Property Trust (“ASPT”) and its controlled entities and Abacus Storage Operations Limited
(“ASOL”) until 3 August 2023, as ASPT and ASOL were de-stapled from the Group on this date.
DIRECTORS’ REPORT
30 JUNE 2025
4
OPERATING AND FINANCIAL REVIEW
GROUP OVERVIEW
Abacus Group completed a transformational de-staple in FY24, taking effect on 3 August 2023 to create a
standalone Self Storage REIT, Abacus Storage King (ASX:ASK) (‘ASK’). Post de-staple, Abacus Group is the
manager of ASK and following the transaction also remains invested with a strategic stake of 19.8% of ASK. This
strategic stake is the largest asset on Abacus’ balance sheet and its largest source of income, both through
distributions received and from the fees it earns providing management services to ASK.
As a standalone entity, Abacus has a more focused portfolio of Commercial assets and is well positioned to drive
income growth over the short to medium term. Abacus has limited capital expenditure forecast in the near term,
with major capital projects completed in recent periods, positioning the portfolio for growth. Looking forward, we
expect these investments to contribute positively to FFO as leasing up is achieved.
The Group looks for investments in the Commercial sector that can provide strong and stable cash-backed
distributions, with potential for capital and income growth. We remain confident that the Group is positioned to
leverage our key enablers, being:
•
Our people and culture, repositioning capability and market insight.
•
Strategic investment in assets in major markets with a clear path to sustainable income growth.
•
Driving value through active management of the asset portfolio.
Abacus Group has a track record of acquiring property-based assets and actively managing those assets to
enhance income and thereby drive capital growth. This track record has facilitated strategic partnering and joint
ventures with a number of sophisticated third-party owners and major groups with capital partnering a key focus.
The Board monitors a range of financial information and operating performance indicators to measure
performance over time. Funds from operations (“FFO”) is the key measure that Abacus Group uses to monitor
the financial success of its overall strategy.
Abacus Group is positioned to provide stable FFO growth over the medium to long term by using its active asset
management capabilities, strong relationships with customers and our ability to capitalise on value-accretive
investment opportunities.
The current economic environment has been impacted by low growth levels and high interest rates. This may
provide Abacus Group opportunities to acquire core assets with medium to long term growth prospects. Despite
the challenging economic conditions, we believe our Commercial Office portfolio remains robust, given that the
majority of the Group’s investments:
•
Are well located in CBD or suburban locations with low and often below market average rent levels;
•
Have limited exposure to multi-floor tenants; and
•
Focus on the responsible and sustainable evolution of core business practices.
DIRECTORS’ REPORT
30 JUNE 2025
5
GROUP RESULT SUMMARY
The changing macroeconomic environment increased capitalisation rates throughout the Commercial property
sector. Abacus Group’s diversified Commercial portfolio of high quality assets has enabled us to maintain
occupancy rates over the period with our principal Commercial portfolio recording 92.1% (2024: 94.2%). In a
more challenged economic environment, we remain focused and disciplined on directing capital towards assets
that provide potential for enhanced income growth to generate increased total returns and create medium to
long term value.
2025
2024
Revenue ($ million)*
176.3
168.5
Total income ($ million)*
252.1
194.1
Statutory net profit/(loss) ($ million)
26.9
(241.0)
Funds from continuing operations ($ million)
82.7
81.3
Funds from continuing operations per security (cents)
9.26
9.10
Funds from operations ($ million)
82.7
82.5
Funds from operations per security (cents)
9.26
9.24
Underlying EBIT ($ million)
134.7
122.7
Underlying EBIT per security (cents)
15.07
13.73
Distributions per security (cents)
8.50
8.50
Interest cover ratio
2.5x
2.5x
Weighted average securities on issue (million)
893.7 893.7
*Excludes income from discontinued operations.
The Group earned a statutory net profit/(loss) after tax of $26.9 million for the year ended 30 June 2025
(2024: $241.0 million loss). This profit has been calculated in accordance with Australian Accounting Standards.
The increase in the Group’s statutory net profit compared to the prior period was principally due to:
•
an increase in the share of profit from equity accounted investments from $25.0 million in 2024 to $74.6
million in 2025, primarily driven by underlying property revaluation growth from the ASK investment;
•
a decrease in the fair value loss of the Commercial investment property portfolio from $275.4 million in
2024 to $72.2 million in 2025, with capitalisation rates expanding 27bps to 6.77%; as well as
•
an increase in rental income to $152.6m (2024: $144.4m) following strong leasing activity across the
portfolio.
Abacus Group’s portfolio remained resilient despite challenging conditions for Office assets, recording FFO
growth from continuing operations of 1.7% and a full year distribution per security, in line with guidance, of
8.50cps (2024: 8.50cps).
FFO is derived from the statutory profit and presents the results of the ongoing business activities in a way that
reflects our underlying performance. FFO is the basis on which distributions are determined.
FFO has been determined with reference to the Property Council of Australia’s voluntary disclosure guidelines to
help investors and analysts compare Australian real estate organisations. FFO is calculated by adding back the
following to statutory net profit after tax:
•
Tenant incentive amortisation
•
Depreciation on owner occupied property, plant & equipment (PP&E)
•
Change in fair value of investment properties derecognised
•
Restructuring costs
DIRECTORS’ REPORT
30 JUNE 2025
6
GROUP RESULT SUMMARY (CONTINUED)
•
Unrealised fair value gains / losses on investment properties
•
Adjustments arising from the effect of revaluing assets / liabilities carried at fair value (such as derivatives,
financial instruments and investments)
•
Other non-recurring adjustments deemed significant on account of their nature and non-FFO tax
benefit/expense.
The reconciliation between the Group’s statutory profit and FFO is as follows:
2025
2024
$'000
$'000
Consolidated statutory net profit / (loss) after tax attributable to continuing operations
26,910 (241,989)
Adjust for:
Net change in fair value of investment properties derecognised
(40)
8,244
Net change in fair value of investment properties held at balance date
72,173
275,407
Net change in fair value of investments and financial instruments held at balance date
330
1,798
Net change in fair value of investment properties included in equity accounted investments
(54,481) (2,266)
Net change in fair value from deconsolidation
- 5,614
Depreciation and amortisation
150 236
Net change in fair value of derivatives
13,895
13,992
Amortisation of rent abatement incentives
16,817 14,495
Amortisation of other tenant incentives
3,980
3,348
Cost associated with de-stapling
- 3,552
Straightline of rental income
1,254 (989)
Finance costs and other
(3,994) (2,747)
Net tax expense on non-FFO Items
5,735
2,648
Abacus funds from operations ("FFO") from continuing operations
82,729
81,343
Abacus funds from operations ("FFO") from discontinued operations
- 1,191
Total Abacus FFO
82,729 82,534
2025
2024
Basic earnings per security (cents)
3.01 (27.08)
FFO per security (cents)
9.26
9.24
FFO from continuing operations per security (cents)
9.26 9.10
Distribution per security (cents - including proposed distribution)
8.50
8.50
Weighted average securities on issue (million)
893.7
893.7
FFO is a non-IFRS measure and this reconciliation has not been reviewed by the Group’s auditor.
Capital Management and Allocation
Abacus maintained a solid capital position during FY25, supported by active treasury management and ongoing
cost discipline. As at 30 June 2025 gearing of 34.5% is within the Group’s target range of up to 40%. ABG’s
interest coverage ratio of 2.5x remains flat compared to FY24 and the debt term to maturity declined slightly to
3.3 years (FY24: 3.4 years).
In June 2025, the Japan Credit Rating Agency (JCR) assigned Abacus Group an A+ long-term issuer credit
rating, with a Stable outlook. This external rating provides additional flexibility in accessing capital markets and
reflects the Group’s stable earnings base.
DIRECTORS’ REPORT
30 JUNE 2025
7
KEY SEGMENT RESULTS SUMMARY
Commercial
The Commercial portfolio consists of 18 assets (FY24: 19 assets) and had a total value of $2.1 billion at year end
(FY24: $2.2 billion). The Commercial portfolio comprises 14 Office assets (FY24: 14 assets), 2 Retail assets (2
FY24: 3 assets) and 2 greenfield assets (FY24: 2 assets).
The Commercial portfolio has a stable income growth profile, supported by high occupancy of 92.1% and a
diversified lease profile of 4.0 years.
FY25
FY24
Portfolio Value ($ million)
$2,128.8
$2,207.6
Number of assets
18
19
Occupancy1 (% by area)
92.1%
94.2%2
WALE1
4.0 years
4.3 years
WACR3
6.74%
6.46%
1. Excludes development affected assets
2. Like-for-like FY24 occupancy is 91.8%. This excludes Market Central, Lutwyche which was
sold in FY25 and includes 201 Elizabeth St, Sydney that was development affected in FY24.
3. WACR: Weighted Average Capitalisation Rate
Office
Abacus Group delivered solid Office income in FY25, underpinned by a high-quality Commercial Portfolio and
disciplined asset management. Portfolio occupancy remained solid at 91.1%, supported by 89 leasing transactions
and over 44,000sqm of space leased.
Leasing activity remained competitive, with average incentives at 33%, skewed slightly higher for new deals of
34% compared to renewals of 31%. Average net face rent increased 8.0% on FY24 to $810psm for Sydney and
Melbourne assets, with CBD assets achieving a premium of $1,006psm, reflecting the strength of Abacus
Group’s positioning in core markets.
Key Commercial Metrics
Portfolio geographic diversification
NSW 44%
QLD 22%
VIC 28%
SA 4%
ACT 2%
Office Lease Expiry
DIRECTORS’ REPORT
30 JUNE 2025
8
KEY SEGMENT RESULTS SUMMARY (CONTINUED)
Retail
The Group’s retail portfolio continued to perform well in FY25, with occupancy holding firm at 95.5% and
average rent reviews delivering growth of 3.9%. The portfolio’s weighted average capitalisation rate (WACR)
tightened by 12 basis points over the period to 6.46%, reflecting the quality of the assets and sustained tenant
demand.
An active sales campaign is currently underway for Oasis, a mixed-use asset located in Broadbeach, Queensland.
The asset has attracted significant interest, and the Group remains focused on maintaining discipline in evaluating
potential transaction outcomes.
Commercial Valuations
The investment property portfolio’s overall weighted average capitalisation rate expanded 27 basis points from
6.50% in FY24 to 6.77% in FY25. The Commercial portfolio (excluding equity accounted properties) was valued
at $1.8 billion at 2025 year-end (FY24: $1.9 billion) across 15 assets (FY24: 16 assets).
As a result of current market conditions and a shift in future expectations in the Office sector, Abacus Group has
targeted assets that offer more stabilised income streams with longer dated value enhancing strategies. This
capital allocation strategy supports the Group’s drive to improve recurring earnings.
Storage
Abacus Group’s 19.8% equity interest in Abacus Storage King (ASK) continues to deliver value, with ASK
reporting FY25 FFO of $85.0 million, up 4.7% on FY24, and a distribution of 6.20 cents per security, in line
with guidance. ASK’s scalable platform and strong national footprint supported average occupancy of 91.2% and
rental growth of 4.1%, reflecting resilient demand and effective operational execution.
ASK’s RevPAM rose 4.5% to $340psm, driven by both rate growth and a 40 basis point increase in occupancy.
With robust operating conditions and a strong development pipeline, ASK remains well-positioned to deliver
further growth through a combination of organic performance and strategic initiatives.
SUSTAINABILITY PERFORMANCE
Over the past 12 months, we have maintained a strong focus on delivering measurable outcomes through the
execution of our sustainability strategy. Our initiatives have continued to advance environmental and social
priorities while supporting the organisation’s long-term business objectives.
Key achievements include:
A 61% reduction in emissions intensity compared to our FY19 baseline, reflecting our ongoing
commitment to net zero 2030 (scope 1 & 2).
90% of office buildings have transitioned to renewable electricity sources from 1 January 2025.
Achieved a Net Promoter Score (NPS) from our customers of +27, highlighting strong customer
engagement and satisfaction.
Achieved an employee engagement score of 83%, reflecting our commitment to fostering a
supportive, inclusive, and high-performing workplace culture.
A major focus for the Group moving forward is enhancing the customer experience which we believe will foster
greater employee engagement and drive improved business performance. We have recalibrated our
environmental sustainability targets to align with our 2030 net zero commitment and are actively preparing to
meet disclosure requirements under the Australian Sustainability Reporting Standards (ASRS) as a Group 3
entity.
DIRECTORS’ REPORT
30 JUNE 2025
9
FUTURE PROSPECTS
Abacus Group’s focus on a capital partnering strategy will continue to target the acquisition of well-located
Commercial properties with future income growth potential, that will be held for the long term, as a high
conviction owner and manager of assets. Increasing exposure to this asset class is expected to enhance Abacus
Groups’ ability to grow recurring revenue over the longer term through both rental income and management
fees, while continuing to divest remaining non-core assets in the portfolio.
Abacus Group’s forecast level of gearing and liquidity since de-stapling will enable it to pursue its strategy and to
take advantage of any short-term volatility in the market, which is anticipated in this fluctuating macro-economic
environment. There is limited capital expenditure forecast in the medium term and the Group also expects to
benefit by way of management and equity earnings from its strategic stake in Abacus Storage King. We also note
that Abacus Group’s liquidity can potentially be further leveraged, to invest in a larger number of projects through
joint venture arrangements.
RISK MANAGEMENT
Abacus has a Business Risk Management Policy which provides a framework to identify, assess, monitor, and
manage material risks to its operations, which was most recently reviewed in March 2025. The Business Risk
Management Policy is based on ISO 31000:2018 Risk Management Guidelines, an internationally recognised
set of principles for managing risks in organisations.
Risk Category Description of Risk
Potential Impact
Mitigation Strategies
Strategic
Macroeconomic
Environment
Pressure on asset valuations,
operating costs, customer
demand and consumption
levels
-
Disciplined approach to capital
management
-
Diversification of property locations
across Australia
-
Robust annual budgeting process
Consumer and
Working Behaviour
and Competition
Potential lower demand for
office space, reduce
effective rental levels
through higher tenant
incentives and higher costs
of office fit outs.
-
Continuous engagement with
customers and tenants to understand
their needs
-
Monitoring performance and
requirements for building and tenancy
enhancements
Operational
Health, Safety and
Wellbeing of our
Employees, Suppliers,
Customers and
Tenants
Harm to people, reputational
damage, criminal penalties
and costs and efforts to
remediate
-
Culture of promoting the importance
of health, safety and wellbeing
-
Engagement of professional
consultants
-
Health and safety matters are
monitored by the Audit and Risk
Committee, and WHS and
Sustainability Committee
DIRECTORS’ REPORT
30 JUNE 2025
10
RISK MANAGEMENT (CONTINUED)
Risk Category Description of Risk
Potential Impact
Mitigation Strategies
Asset quality and
maintenance
Poor functioning of assets,
financial penalties for non-
compliance
-
Professional asset, property and
facility managers
-
Ongoing programme of capital
expenditure upgrades
Natural disasters
(floods, bushfires,
earthquakes) and
climate change
Property damage, service
disruption, repair costs,
higher operating costs
-
Geographic diversification
-
Insurance coverage
-
Property upgrades and resilience
planning
Cybersecurity and
data privacy threats
Data breach, operational
disruption, reputational
damage
-
Investment in cybersecurity
infrastructure
-
Staff training
-
Incident response protocols
-
Insurance cover
Reputational
Management of
Abacus Storage King
and non-adherence to
contractual
obligations
Loss of management fees,
reputational damage
-
Defined policies and procedures to
deliver services in accordance with
contracts
-
Board oversight of service delivery
Financial
Rising interest rates
Increased borrowing costs,
lower valuations
-
Interest rate hedging
-
Balance sheet discipline
Restricted access to
capital markets
Inability to fund growth or
refinance debt
-
Maintain strong credit rating
-
Diversify funding sources
-
Conservative gearing
Regulatory
& Legal
Non-compliance with
regulations
Fines, litigation, reputational
harm
-
Regular compliance reviews
-
Legal counsel oversight
-
Staff compliance training
Litigation exposure
Financial liability,
reputational risk
-
Insurance coverage
-
Dispute resolution frameworks
-
Legal risk monitoring
DIRECTORS’ REPORT
30 JUNE 2025
11
DIRECTORS AND SECRETARY
The qualifications, experience and special responsibilities of the Directors and Company Secretary are as follows:
Myra Salkinder MBA, BA
Chair (non-executive)
Myra is a Non Independent, Non-Executive Director and is a senior executive of the Kirsh Group. She has been
integrally involved over many years with the continued expansion of Kirsh Group’s property and other
investments, both in South Africa, Australia and internationally. Myra is a director of various companies
associated with Kirsh Group worldwide.
Myra is a member of the ABG Sustainability and WHS Committee.
Tenure: 14 years 3 months
Steven Sewell BSc
Managing Director
Steven joined Abacus Group in October 2017, bringing over 20 years’ experience in real estate funds
management, asset management, equity and debt capital markets and M&A transactions. Steven’s prior career
experience is in listed and unlisted real estate funds management businesses, across various real estate sectors,
providing Commercial experience and insight in relation to institutional investors, the whole Abacus Group’s
business and sector specialised investment strategies, capital allocation and developing third party capital
relationships. Steven was appointed Abacus Group’s Managing Director in April 2018, and is a member of
Property Champions of Change and a member and past Chairman of the Shopping Centre Council of Australia.
Tenure: 7 years 2 months
Trent Alston B. Build. (Hons), GMQ - AGSM, AMP – Insead, GAICD
Trent is a Non-Executive Director and has over 30 years of experience in the real estate and funds management
industry, with the last 13 years as Head of Real Estate for Challenger Limited. His experience includes direct and
wholesale property roles at Colonial First State Property and Lendlease. Trent is also a Non-Executive Director
of Landcom. Trent is Chair of the Abacus Group People Performance and Nomination Committee and a
member of the Abacus Group Audit and Risk, and Sustainability & WHS Committees.
Tenure: 5 year 9 months
Mark Haberlin BSc (Eng) Hons
Mark is a Non-Executive Director and is the Lead Independent Director. He has significant expertise in fields
that cover accounting and audit, capital transactions, mergers and acquisitions and risk management in the real
estate and financial services sectors. Mark was a partner at PwC for 24 years where he developed key accounting
and audit experience. Mark was a member of the PwC Governance Board and completed his last two years as
Chair. Mark is also a Non-Executive Director of LayBuy Holdings Limited and Australian Clinical Labs.
Mark is Chair of the Abacus Group Audit and Risk Committee and a member of the Abacus Group People
Performance and Nomination Committee.
Tenure: 6 years 7 months
Jingmin Qian CFA, BEc, MBA, FAICD
Jingmin is a Non-Executive Director and has significant expertise in the property, infrastructure and investment
sectors as well as rich experience in Asia. Jingmin previously worked at L.E.K. Consulting, Boral Limited and
Leighton Holdings, with a broad range of commercial responsibilities covering strategy, planning, investment
review, mergers and acquisitions, operational improvement and Asia expansion.
DIRECTORS’ REPORT
30 JUNE 2025
12
DIRECTORS AND SECRETARY (CONTINUED)
Jingmin has served as a member of the business liaison program of the Reserve Bank of Australia. Jingmin is a
non-executive director of listed entity IPH Limited since April 2019, a trustee of HMC Capital Partner Fund, a
member of Macquarie University Council, a director of the CFA Society Australia, Jing Meridian and the
National Vice President of the Australia China Business Council. Jingmin is a member of Chief Executive
Women.
Jingmin is Chair of the Abacus Group Sustainability and WHS Committee and a member of the Abacus Group
Audit and Risk and People Performance and Nomination Committees.
Tenure: 8 years
Sally Herman BA, GAICD (Resigned effective 27 September 2024)
Sally was a Non-Executive Director and joined the Abacus Group Board on 16 December 2022. Sally resigned
effective from the role of Non-executive director on 27 September 2024.
Sally was a member of the Abacus Group People Performance and Nomination, Sustainability & WHS
Committees.
Lucy Spenceley BA
Company Secretary (effective 1 July 2025)
Lucy has worked in the finance industry for over 20 years, with 13 years in governance roles. Lucy has a Bachelor
of Arts and is a member of the Governance Institute of Australia.
Lucy Rowe BA
Company Secretary (resigned 1 July)
Lucy is an experienced compliance and corporate governance professional, with over 20 years’ experience in the
financial services, oil and gas, and IT industries. Lucy has held the position of Company Secretary of a number of
listed and unlisted public companies in both the Australian and overseas’ markets over the last 16 years and has
also previously held the position of President of a Not-For-Profit Organisation for 4 years. Lucy holds a
Bachelor of Arts and a Graduate Diploma in Legal Studies majoring in financial services law and is an affiliate
member of the Governance Institute of Australia
DIRECTORS’ REPORT
30 JUNE 2025
13
DIRECTORS AND SECRETARY (CONTINUED)
Directors’ Meetings
The number of meetings of directors (including meetings of committees of directors) of AGHL, AFML (the
Responsible Entity of AT and AIT), and AGPL, held during the year and the number of meetings attended by
each director were as follows:
Board
Audit & Risk
Committee
People, Performance
& Nomination
Committee
Sustainability
& WHS
Committee
Independent
Board
Committee
Eligible
Attended
Eligible
Attended
Eligible
Attended
Eligible
Attended
Eligible
Attended
M Salkinder
8
8
-
-
-
-
4
3
-
-
T Alston
8
8
4
4
3
3
3
3
3
3
M Haberlin
8
8
4
4
3
3
-
-
3
3
J Qian
8
8
4
4
2
2
4
4
3
3
S Sewell
8
8
-
-
-
-
-
-
-
-
S Herman
2
2
-
-
1
1
1
1
-
-
Note: Sally Herman resigned as director effective 27 September 2024
Indemnification and Insurance of Directors and Officers
The Group has paid an insurance premium in respect of a contract insuring all directors, full time executive
officers and the secretary. The terms of this policy prohibit disclosure of the nature of the risks insured or the
premium paid.
Indemnification of Auditors
To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young, as part of the
terms of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified
amount) – except for any loss in respect of any matters which are finally determined to have resulted from Ernst
& Young’s negligent, wrongful or wilful acts or omissions. No payment has been made to indemnify Ernst &
Young during or since the financial year.
DIRECTORS’ REPORT
30 JUNE 2025
14
REMUNERATION REPORT
Letter from the Chair of the People, Performance and Nomination Committee
On behalf of the People, Performance and Nomination Committee and the Board, I am pleased to present the
Remuneration Report for FY25.
The report summarises Abacus’ performance and remuneration outcomes for FY25, the executive remuneration
framework, and changes to FY25 executive and non-executive remuneration.
FY25 Performance
Abacus has an asset backed, annuity style business model where capital is directed towards property assets that
provide potential for enhanced income growth to create value. Our people, market insight and positioning
capability together with strategic partnering are key enablers of our strategy.
The Funds from Operations profit result in FY25 was $82.7m, an increase of 1.7% on the prior year’s
performance from continuing operations. Pleasingly, our operating earnings increased across all areas of the
business with:
OĴce operating earnings up 9.8%,
Retail like-for-like operating earnings up 8.8%,
Returns from our 19.8% ownership in Abacus Storage King up 4.3%, and
Investment management fees up 2.2%.
FY25 Remuneration
During FY25 the committee approved fixed remuneration increases for both the Chief Financial OĴcer and the
Group General Manager, Self Storage and Fund Manager, Abacus Storage King (ASK). Both roles are uniquely
positioned with their relationship to ASK and the adjustment was based on independent benchmarking against
peers in ASX listed organisations. Further information can be found under FY25 Performance Outcomes and
Executive KMP Remuneration.
The Board considered financial and non-financial performance both in the context of the 2025 financial year and
over a multi-year period when determining incentive outcomes.
STI awards for Executive KMP correlated with annual performance outcomes against expectations, with
payments averaging 68.9% of maximum STI. 25% of Executive KMP STI is deferred for a further 12 months.
Further details on the STI Plan can be found on page 27.
At the 2024 Annual General Meeting held on 20 November 2024, securityholders voted FOR the Board
resolutions to grant new and modify existing performance rights to management and extend the VWAP period
from 30 to 90 days from 1 August 2023 to 31 October 2023 for Replacement and Corrective Right tranches.
Further details are provided of Replacement and Corrective Tranches within the Rewards, Governance and
Framework section of the Remuneration Report.
The FY22 LTI grant will vest at 82% of maximum in August 2025 based on combined EBIT CAGR and Relative
TSR for Abacus Group and Abacus Storage King.
The FY23 LTI grant will vest at 75% of maximum in August 2025 based on combined EBIT CAGR and Relative
TSR for Abacus Group and Abacus Storage King.
FY25 KMP Changes
In September 2024, Sally Herman resigned from the Abacus Group Board after joining us just over 1 year ago
through the de-stapling and was appointed as a Non-Executive Director on the ASK Board. I, along with my
DIRECTORS’ REPORT
30 JUNE 2025
15
REMUNERATION REPORT
fellow Directors, would like to sincerely thank Sally for her valuable contribution and leadership during her time on
the Abacus Board.
Eijective 1 October 2024, Kevin George has been appointed Group General Manager, Commercial and Fund
Manager of ABG. This appointment underscores the Group’s increasing strategic focus on its portfolio of
predominantly CBD and near-CBD oĴce assets. It also aligns with ABG’s long-term asset initiatives and key
performance priorities.
Looking Ahead
We believe we have set the correct incentive arrangements for our employees and, outside the current non-
binding indicative oijer on Abacus Storage King and the resultant impacts to the Group, we do not see any need
to amend the existing incentive program.
It has been a significant year for Abacus Group and the Board acknowledges the dedication of the team,
particularly through the current uncertain environment.
Trent Alston
Chair – People, Performance and Nomination Committee (PPNC)
DIRECTORS’ REPORT
30 JUNE 2025
16
REMUNERATION REPORT
The Board presents the FY25 Remuneration Report for Abacus in accordance with the Corporations Act 2001
and its regulations, which has been audited by EY. This report outlines the key remuneration policies and practices
for the year ended 30 June 2025.
It highlights the link between remuneration and corporate performance and provides detailed information on the
remuneration for Key Management Personnel (KMP).
This remuneration report is set out under the following headings:
SECTION
CONTENTS
PAGE
1.
Who is covered in this report - KMP
16
2.
FY25 Performance Outcomes
17
3.
FY25: How did we perform?
19
4.
Executive KMP remuneration
21
5.
Remuneration governance and framework
25
6.
Non-Executive Director remuneration
43
7.
Additional required disclosures
45
1. WHO IS COVERED IN THIS REPORT – KMP
For the purposes of this report, the KMP are those persons who for the purposes of the accounting standards are
considered to have authority and responsibility for planning, directing, and controlling the major activities of the
Group.
NAME
ROLE
TERM AS KMP
Non-Executive Directors (NED)
Myra Salkinder
Chair of the Board
Full Year
Trent Alston
Non-Executive Director
Full year
Mark Haberlin
Non-Executive Director
Full Year
Sally Herman
Non-Executive Director
Resigned - 30
September 2024
Jingmin Qian
Non-Executive Director
Full Year
Executive KMP
Steven Sewell
Managing Director (MD)
Full Year
Kevin George
Group General Manager (GGM), Commercial & Fund Manager ABG
Appointed – 1 October
2024
Evan Goodridge
Chief Financial Officer (CFO)
Full Year
Nikki Lawson
Group General Manager (GGM), Self Storage & Fund Manager ASK
Full Year
Gavin Lechem
Chief Investment Officer (CIO) and General Counsel
Full Year
DIRECTORS’ REPORT
30 JUNE 2025
17
REMUNERATION REPORT
2. FY25 PERFORMANCE OUTCOMES
The Abacus Performance and Reward framework aims to reward, engage, and develop our people focusing on,
value creation for our customers and community.
Our Remuneration Principles and Abacus Values
Our people are key to our success, providing a wealth of market insight, industry experience and strategic
partnering that enables our growth and evolution. The more we nurture and invest in our people, the more we
achieve.
The Abacus Performance and Reward strategy is guided by the following principles:
Reward
Reward and promote the results and behaviours consistent with the Abacus
purpose, objectives, and values.
Balance
Balanced between financial performance, strategic priorities, and continued
focus on increasing engagement of our people.
Alignment
Alignment of interests to stakeholders to focus on long term sustainable value
creation.
Abacus Values
Entrepreneurial
Responsible
Accountable
Maximum Remuneration Mix
Abacus strives to structure the balance between fixed and variable (at risk) remuneration so that a substantial
portion of the variable reward is performance-based and at risk. This approach aligns with the Board's strategic
vision for Abacus within the A-REIT industry.
The graph below illustrates the relative proportions of each component in the executive remuneration framework
for the Managing Director and other Executive Key Management Personnel (KMP) at Abacus for FY25,
expressed as a percentage of the total maximum opportunity.
Fixed Remuneration
STI Cash
STI Deferral
LTI
DIRECTORS’ REPORT
30 JUNE 2025
18
REMUNERATION REPORT
FY25 Components of Remuneration – Purpose, link to performance and outcomes
PURPOSE
LINK TO PERFORMANCE
FY25 OUTCOMES
Fixed Remuneration (FR)
To attract, engage and retain
individuals with capability,
diversity of thought and
experience to continue delivering
on our strategy.
Appropriately compensating our
employees so that we remain competitive.
Changes to FR are linked to a combination
of the responsibilities and complexities of
the role, incumbent skills and experience,
and market rates informed by
benchmarking.
To align the interests of the Board with
securityholders, the MD is required to
maintain a minimum holding of securities
equivalent to 100% of his fixed
remuneration. Executive KMP are required
to maintain a minimum holding of
securities that is equivalent to 50% of their
fixed remuneration.
The CFO's fixed remuneration was
increased by 13.6% in FY25. This role is
uniquely positioned, overseeing two
ASX-listed businesses. The adjustment
was based on independent
benchmarking against peers in the A-
REIT sector and other ASX listed
organisations.
The Group General Manager, Self
Storage and Fund Manager ASK
received a fixed remuneration increase
of 6.1% reflecting her roles and
accountabilities. This is the first
increase granted since commencing in
the role.
There are no remuneration changes for
Executive KMP in FY26.
Short Term Incentive (STI)
To focus performance on key
annual financial and non-financial
KPIs, including FFO profit.
A deferred STI was introduced to
aid retention, align with
securityholders’ interests, and
provide for a “consequence
management” governance
mechanism for misconduct,
fraud, malfeasance, or financial
misstatement.
The following factors are among those
considered by the Board in making its
assessment on the achievement of the
annual STI opportunity:
Financial performance.
Strategic objectives.
Environment, Social and Governance
objectives.
The value of STI awards offered in FY25
was up to a maximum of 150% of FR for
the MD, and 100% for the remaining
Executive KMP.
STI for Executive KMP is delivered
through 75% in cash and 25% deferred in
the form of rights to securities, which have
a deferral period of 12 months.
The STI outcome in FY25 was 60.8%
of maximum for the MD.
The average STI outcome for other
Executive KMP in FY25 was 70.9% of
maximum.
DIRECTORS’ REPORT
30 JUNE 2025
19
REMUNERATION REPORT
PURPOSE
LINK TO PERFORMANCE
FY25 OUTCOMES
Long Term Incentive (LTI)
The LTI Plan is aimed at
attracting, rewarding, and
retaining high performing
Executives and other nominated
participants for delivering
sustained long term growth and
aligning them with securityholder
interests.
LTI granted are in the form of performance
rights.
Performance rights are subject to three
independent performance conditions:
-
EBIT per security CAGR Abacus
Group
-
Relative TSR Abacus Group (ABG)
-
Relative TSR Abacus Storage King
(ASK)
50% of the performance rights are tested
on the third anniversary of the grant date
and 50% on the fourth anniversary of the
grant date.
The maximum LTI opportunity in FY25 was
120% of FR for the MD, 100% of FR for
the CFO and the CIO, and 75% of FR for
the Group General Managers.
The granting of Corrective and
Replacement rights, measured by
relative TSR was approved by
securityholders in the November 2024
AGM.
For LTI grants that were tested based
on performance requirements to 30
June 2025, the vesting outcomes in
August 2025 will be as follows:
-
FY22 Replacement Grant: 64% of
maximum.
-
FY22 modified1 LTI Grant: 82% of
maximum.
-
FY23 modified LTI Grant was 75%.
(see Section 5 for more information).
3. FY25: HOW DID WE PERFORM
One of the key principles of the Group’s remuneration framework is the alignment of interests to securityholders
to focus on long term sustainable value creation. This section provides a summary of both FY25 performance and
the Company’s five year financial performance outcomes.
Abacus’ FY25 FFO result slightly exceeded target. During the period, the Group continued to make significant
progress delivering on its business priorities. Of note, the Group:
maintained high levels across its Commercial portfolio occupancy at 92.1% despite the office leasing
environment remaining challenging, with a focus on customer centricity, achieving an NPS score of +27;
divested non-core assets at Market Central, Lutwyche and part of Virginia Park, Bentleigh East as well as
receiving significant interest in respect to the sale of The Oasis, Broadbeach;
remained a significant investor in and external manager of ASK, growing both its underlying assets and
earnings;
continued to progress the Group’s net zero emissions target for Scope 1 and 2 by 2030;
successfully obtained an A+ long-term issuer credit rating, with a Stable outlook from the Japanese
Credit Rating Agency (JCR)
renegotiated its syndicated and bank guarantee banking facilities extending tenure by a further 1.7 years
and 2.0 years, respectively;
1 “Modified” refers to the combination of the original grant made plus the Corrective grant for FY22 or FY23.
DIRECTORS’ REPORT
30 JUNE 2025
20
REMUNERATION REPORT
replaced 14 legacy systems with one enterprise resource planning (ERP) system during the period,
strengthening system automation;
distributed its first franking credits to investors, with the intention to distribute excess franking credits to
securityholders over the medium term; and
achieved a high level of employee engagement
Five year FFO performance
FFO Total earnings1
Abacus funds from operations ("FFO") from continuing operations per security (cents)2
Relationship between remuneration and Abacus performance
Abacus performance over the last five years is illustrated below.
Key financial performance indicators
Key financial performance Indicators
2021
2022
2023
2024
2025
Abacus funds from operations ("FFO") from
continuing operations per security (cents)1
10.24
7.32
8.82
9.10
9.26
FFO (total earnings) per security (cents)2
18.40
19.01
19.58
9.24
9.26
FFO Profit $m
136.4
160.9
175.0
82.5
82.7
Distributions paid and proposed (cents)
17.50
18.00
18.40
8.50
8.50
Franking credit distributions paid and
proposed (cents)
-
-
-
0.91
1.82
Payout Ratio (%)
95.1%
94.7%
94.0%
92.0%
91.8%
Closing security price (30 June)
$3.15
$2.57
$2.69
$1.16
$1.12
Net Tangible Assets per security3
$3.43
$3.85
$3.70
$1.76
$1.72
Weighted average securities on issue
741.1m
846.3m
893.5m
893.7m
893.7m
1Excludes the FFO performance of the ASK entities which formed part of Abacus Group until August 2023.
2FFO earnings are unaudited.
3Net tangible assets per security include the impact of the fair value movements.
0
2
4
6
8
10
12
14
16
18
20
2021
2022
2023
2024
2025
Cents per security
DIRECTORS’ REPORT
30 JUNE 2025
21
REMUNERATION REPORT
4. EXECUTIVE KMP REMUNERATION
MD FY25 Remuneration details – Target and maximum remuneration in FY25
The following sets out the awards made to the Managing Director for the year ended 30 June 2025.
FIXED
REMUNERATION
SHORT TERM INCENTIVE (STI)
LONG TERM INCENTIVE (LTI)
FR of $1,300,000 per
annum
Target STI of $975,000 (75% of FR)
Maximum STI of $1,950,000 (150% of FR)
The balanced scorecard was based on the following:
-
Financials - 60%
-
Strategy - 30%
-
Environment, Social, Governance - 10%
The Managing Director received 60.8% of his
maximum STI for FY25.
75% or $889,200 of this was received in cash and
25% or $296,400 has been received in rights and
deferred for one year.
Maximum LTI of $1,560,000 (120% of
FR)
100% of the LTI is granted as
performance rights.
-
50% of the rights will be tested
against performance
requirements in FY27.
-
50% of the rights will be tested
against performance
requirements in FY28
This at-risk portion aligns both the Group’s performance and the MD’s personal influence and contribution to the
Group’s performance. The total maximum and target for the MD for the full year is summarised in the graph
below.
Maximum remuneration represents total potential remuneration of FR, maximum STI and face value of LTI
(assuming 100% vesting subject to performance and employment conditions to be met). For STI, the amount is
based on 150% achievement of performance targets. Target remuneration represents total potential
remuneration of FR, target STI (amount based on 100% achievement of performance targets) and face value of
LTI.
Fixed Remuneration
STI Cash
STI Deferral
LTI
1,300,000
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
MD at Maximum
MD at Target
$
DIRECTORS’ REPORT
30 JUNE 2025
22
REMUNERATION REPORT
FY25 Managing Director STI Outcome
The following table sets out the performance of the MD against his KPI’s for the year ended 30 June 2025
(scorecard) which were reviewed and approved by the People, Performance and Nomination Committee
(PPNC) and the Board. These KPIs are intended to provide a link between remuneration outcomes and the key
drivers of long term securityholder value.
The FY25 STI balanced scorecard focused on four key priority areas: Financial Performance, Strategic Execution,
Customer and Employee Engagement.
The PPNC considers the performance of the Executive KMP against their KPIs and other applicable measures.
The Committee then recommends current variable remuneration payments, if any, to the Board for its approval.
The PPNC, along with the Board, reviews performance, at mid-year and the end of the financial year. These
reviews, guided by leaders’ values and behaviours, evaluate the Executive KMP's achievements against the STI
criteria for the entire year.
Managing Director’s performance against KPI’s
FY25 KPI’S
%
KPI
% OF
MAX
PERFORMANCE DETAIL
Funds from
Operations
(FFO) ABG
50%
54.5%
Above FFO target achieving $82.7m or 9.26 cps which was above FY24.
A DPS of 8.5 cps which was in line with the target rate.
Funds from
Operations
(FFO) ASK per
security
10%
53.0%
Delivered a cps of 6.47 which was above FY24
Groups position
and profitability
in the market
15%
55.0%
Implementing strategic initiatives that will improve the Group's competitive position
and profitability in the market.
Capital for ASK
15%
75.0%
Strong continued momentum, with both streams of acquisition and development
delivered.
Environment,
Social and
Governance
10%
87.5%
Employee engagement score of 83%
Customer engagement NPS of +27
The balanced scorecards for other Executive KMPs during FY25 are like that of the MD, but with strategic KPIs
applicable to their individual roles.
DIRECTORS’ REPORT
30 JUNE 2025
23
REMUNERATION REPORT
Executive KMP FY25 STI Outcomes
The FY25 performance assessment resulted in the Board awarding the below STI.
Executive
KMP
STI
Target % of
FR
STI Max %
of FR
Max STI
Potential $
Actual STI
awarded on
a % of Max
STI
potential
Actual Full
STI awarded
$
Actual STI
deferred $
STI
forfeited as
a % of Max
STI
potential
Steven Sewell
75%
150%
1,950,000
60.8%
1,185,600
296,400
39.2%
Kevin George1
60%
100%
610,000
68.2%
381,128
95,282
30.8%
Evan
Goodridge
60%
100%
625,000
72.2%
451,500
112,875
27.8%
Nikki Lawson
60%
100%
610,000
71.6%
436,516
109,129
28.4%
Gavin Lechem
60%
100%
655,200
71.6%
469,386
117,346
28.4%
1 Kevin George STI is prorated based on his contract.
Executive KMP remuneration details – Employment Arrangements
The Group General Manager, Commercial and Fund Manager ABG’s employment arrangements also include an
invitation to participate in a one-oij grant of equity with a face value of $400,000. The award will be granted in
the form of performance rights under the Abacus Group Equity Incentive Plan rules and vesting is subject to
Board approval at its August Meeting. The first tranche of the award (face value of $133,333) will be tested in
August 2025, subject to continued employment, two FY25 key performance indicators and behaviour consistent
with the Group’s values and policies. Any vesting into Abacus stapled securities would occur on or around 1
October 2025.
The second and third tranches of the award will vest into Abacus group stapled securities on or around 1 October
2026 and 1 October 2027, respectively, subject to continued employment, two FY26 and FY27 key
performance indicators and behaviour consistent with the Group’s values and policies.
Key Performance indicators over the three-year period are related to satisfactory development and execution of
the Group’s strategy as agreed by the Board.
Executive KMP remuneration details – realised remuneration table
This section provides details of the cash and value of other benefits received by the Executive KMP. This is a
voluntary disclosure to provide securityholders with increased clarity and transparency in relation to Executive
KMP remuneration.
Actual pay represents the pre-tax take home amounts by each Executive KMP for the financial years ended 30
June 2025. This consists of cash remuneration that was received in relation to FY25 which includes fixed pay and
the non-deferred portion of any FY25 STI which will be received. The table also includes the value of the deferred
STI awards from FY24 which vested during FY25 and prior year SAR’s and LTI awards which vested during FY25
based on share price at vesting/exercise date.
DIRECTORS’ REPORT
30 JUNE 2025
24
REMUNERATION REPORT
Name
Year
Fixed Pay $
Short Term
Incentive
(STI)
received as
cash
Previous
years DSTI
which were
realised
Previous
years LTI and
SARs which
were realised
Total
remuneration
received and
or realised
Awards which
lapsed or were
forfeited
Steven Sewell
FY25
1,300,000
889,200
330,699
1,504,725
4,024,624
(387,446)
Kevin George1
455,889
285,846
-
-
741,735
-
Evan Goodridge
625,000
338,625
100,660
179,407
1,243,692
(48,764)
Nikki Lawson
610,000
327,387
103,999
109,976
1,151,362
(43,076)
Gavin Lechem
655,200
352,039
119,913
311,370
1,438,522
(74,182)
1 Remuneration reflects period of service as Executive KMP eijective 1 October 2024.
Executive KMP remuneration details – statutory table
The table below is prepared in compliance with statutory obligations and accounting standards. The amounts
shown may diijer from the actual amounts received. It includes accounting values for current and prior years' LTI
grants, which have not been received yet as they are contingent upon meeting performance hurdles and service
conditions.
SHORT TERM BENEFITS
LONG TERM BENEFIT
SECURITY BASED
PAYMENT
TOTAL
YEAR
Base Pay
Short Term
Incentive
(STI)
Non-
monetary
benefits
Super
Long
Service
Leave
Deferred
STI Rights2
Rights2
$
Steven Sewell – Managing Director
FY25
1,270,068
889,200
10,406
29,932
21,043
307,036
1,199,325
3,727,009
FY24
1,272,601
1,047,682
11,857
27,399
25,718
351,848
1,029,385
3,766,490
Kevin George1- Group General Manager, Commercial and Fund Manager, ABG
FY25
433,440
285,846
-
22,449
7,200
138,9203
65,869
953,724
FY24
-
-
-
-
-
-
-
-
Evan Goodridge – Chief Financial Officer
FY25
595,000
338,625
-
30,000
26,026
113,101
303,444
1,406,197
FY24
522,500
318,900
-
27,500
18,484
98,521
212,864
1,198,769
Nikki Lawson – Group General Manager, Self Storage and Fund Manager, ASK
FY25
580,068
327,387
-
29,932
10,618
108,441
172,564
1,229,010
FY24
497,405
329,475
-
24,887
9,084
54,912
78,075
993,839
Gavin Lechem – Chief Investment Officer and General Counsel
FY25
625,268
352,039
-
29,932
9,914
121,197
380,142
1,518,492
FY24
627,500
379,897
-
27,500
15,411
122,498
299,643
1,472,449
1Remuneration reflects period of service as Executive KMP.
2Accrued not presently entitled. Includes both LTI and Executive Incentive plan (SAR’s).
3 For Kevin George, 91,279 rights relate to the first tranche of his ‘one oij’ grant of equity aligned to his STI. This is detailed on page 23.
DIRECTORS’ REPORT
30 JUNE 2025
25
REMUNERATION REPORT
5. REWARD, GOVERNANCE AND FRAMEWORK
The Abacus Performance and Reward framework aims to reward, engage, and develop our people focusing on,
value creation for our customers and stakeholders.
DIRECTORS’ REPORT
30 JUNE 2025
26
REMUNERATION REPORT
The Group’s remuneration governance
The People Performance and Nomination Committee is responsible for making recommendations to the Board
on the remuneration arrangements for non-executive directors and executives.
Board
People, Performance and
Nominations Committee (PPNC)
Management
Ensuring that the Abacus group
remuneration framework is
aligned with the group’s purpose,
values, strategic objectives, and
risk appetite.
Determining Non-Executive
Directors and Executive
remuneration.
Monitoring performance of the
Managing Director and executive
team in their implementation of
the strategy and overseeing
succession plans for the key
management team.
Review and approve the Group’s
remuneration policy to ensure remuneration
is competitive in the market and effectively
designed to attract, motivate, and retain
team members.
Reviewing and recommending to the Board
arrangements for the Executive KMP and
the Executive committee in relation to their
terms of employment, remuneration and
participation in the Groups incentive
programs (including performance targets).
Review and approve the structure of short-
term incentive plans annually to ensure they
are effectively designed to reward the
achievement of business and individual
objectives equitably.
Review the design of long term incentives
annually to ensure its design meets the
Group’s objectives, is aligned with industry
standards and is within the Group’s cost
parameters.
Recommend and implement the
Abacus Group’s remuneration
policies and practices ensuring
ease of understanding.
Providing information relevant to
remuneration decisions and
making recommendations.
Recommend and implement a
remuneration framework that is
fit for purpose.
Remuneration framework
Fixed Remuneration (FR)
What is fixed
remuneration?
Paid mainly as cash salary – comprises base salary, superannuation contributions and other non-
monetary benefits.
How is FR
determined?
Base salary is set in reference to each Executive’s position, performance, experience, and market
rates.
DIRECTORS’ REPORT
30 JUNE 2025
27
REMUNERATION REPORT
Short Term Incentive (STI)
What is the
purpose of the
short-term
incentive (STI)
plan?
The STI provides an incentive to deliver annual business plans that will lead to sustainable returns for
securityholders. We strive to set a series of financial and non-financial targets that are appropriately
ambitious in the context of our strategy, and which drive the right long term behaviours.
25% of any STI awarded to Executive KMP is deferred in the form of Rights with a 12-month
vesting period to provide increased alignment with securityholders.
What is the
performance
period?
1 July 2024 to 30 June 2025.
What is the award
opportunity?
For FY25 the target and maximum STI opportunity for Executive KMP as a percentage of FR were:
% of FR
MD
Other Executive KMP
Target
75%
60%
Maximum
150%
100%
What key
performance
indicators are
measured for STI
to be paid?
The following factors are among those considered by the Board in making its assessment on the
achievement of the STI opportunity:
Unifying Financial performance - FFO
Strategic Objectives
Unifying ESG performance – Customer, People, Safety and Risk
Why were these
measures chosen?
An FFO profit target range was chosen by the Board because FFO demonstrates the closest
correlation to securityholder value creation (measured by total securityholder return). FFO profit
reflects the statutory profit as adjusted by adding back tenant incentive amortisation, depreciation
on owner occupied property, plant & equipment (PP&E), change in fair value of investment
properties derecognised, capital costs, unrealised fair value gains / losses on investment properties,
adjustments arising from the effect of revaluing assets / liabilities carried at fair value (such as
derivatives, financial instruments and investments), and other non-recurring adjustments deemed
significant on account of their nature and non-FFO tax benefit/expense.
This measure, although underlying, is consistent with the Property Council of Australia guidelines, is
derived from financial disclosures and is hence transparent. It reflects the Directors’ assessment of
the result for the ongoing business activities of Abacus, in accordance with the Property Council
guidelines for reporting FFO profit.
The other financial and non-financial KPIs were chosen as they represent the key drivers for the
short-term success of the business and provide a framework for long term securityholder value.
How is
performance
assessed?
The People Performance and Nomination Committee considers the performance of the Executive
KMP against their KPIs considering a range of factors to ensure outcomes align to overall business
performance and investor outcomes. The Committee then recommends current variable
remuneration payments, if any, to the Board for its approval.
DIRECTORS’ REPORT
30 JUNE 2025
28
REMUNERATION REPORT
Short Term Incentive (STI)
What is the
relationship
between
performance
scales and
outcomes?
Performance Scales
STI Outcome
Below threshold
0% paid
Between threshold and maximum
25% - 100% of maximum incentive paid
Maximum
100% of maximum incentive paid
Are any STI
awards deferred?
25% of STI awarded to Executive KMP is delivered in the form of rights with a one year deferral
period.
How is the
number of rights
determined?
The number of rights to be granted will be calculated by dividing the deferred STI amount by the 10-
day volume-weighted average price of the ABG securities on the ASX for the period commencing
on the second trading day after the full year’s financial results announcement for the year in which
the STI award is made were released to the market, rounded to the nearest whole number.
Are distributions
paid on deferred
STI awards?
No distributions are paid to participants during the vesting period. Participants receive an
entitlement equal to accrued and reinvested distributions only on performance rights that vest.
Are there any
disqualification
provisions?
All STI incentive payouts are subject to annual ‘good behaviour’ and conduct checks, as determined
by the Board (or its delegate) in its absolute discretion. Failure to demonstrate good behaviour and
conduct may result in a reduction to or forfeiture of the STI payment for the Performance Period.
Examples include:
the participant resigns;
the participant has breached the Company Code of Conduct or core company policies;
and
the participant’s action/s led to a material WHS incident, material compliance issue,
material Corporate Social Responsibility (CSR) issue or material reputation issue.
The Board has discretion to delay the payment dates set out above, for example to allow time for it
to determine the appropriate outcome if there is an investigation underway by the Group or an
external third party.
The Group reserves the right to suspend or alter STI payments to any participant due to any action
which has caused the Group loss or reputational damage. This includes any deferred STI (in the form
of rights) in the event of fraud, malfeasance, dismissal for cause, or other misconduct.
How is STI treated
on cessation of
employment?
Unless the Board determines otherwise, an Executive will forfeit their STI award and unvested
deferred awards if they resign or if their employment is terminated with cause.
DIRECTORS’ REPORT
30 JUNE 2025
29
REMUNERATION REPORT
Long Term Incentive (LTI)
The LTI Plan is aimed at attracting, rewarding, and retaining high performing Executives and other nominated
participants for delivering sustained long term growth and aligning them with securityholder interests.
Who participates
in the LTI plan?
Participation is limited to Executive KMP and selected senior management positions by invitation
and as approved by the Board.
What is the
payment vehicle?
LTI awards are granted in the form of performance rights. Performance rights that vest subject to
ABG performance conditions entitle executives to receive Abacus Group securities or, at the
discretion of the Board, cash of equivalent value at exercise.
Performance rights that vest subject to ASK performance conditions will be settled in cash of
equivalent value to be invested in ASK securities within 12 months of vesting.
What is the
maximum
opportunity?
The maximum opportunity for the MD is 120% of FR and for other Executive KMP it ranges from
75% to 100% of FR.
How are the
grants calculated?
The number of performance rights that are granted to each participant is calculated by dividing the
maximum LTI opportunity (face value) by the face value of an Abacus security. The face value is
based on the 10-day VWAP for Abacus securities measured from the second trading day after the
full year results announcement for the year ended 30 June 2024 were released to the market.
What are the
performance
periods, vesting
periods, and
exercise periods?
The performance rights will be tested against the relevant Performance Conditions following release
of audited financial results for the final year of the relevant Performance Period.
For the Executive KMP, 50% of the performance rights are tested on the third anniversary of the
grant date and 50% on the fourth anniversary of the grant date.
Rights that vest subject to ABG performance conditions can be exercised up to 15 years from the
grant date. Rights that vest subject to ASK performance conditions can be exercised up to 12
months from the vesting date.
What are the
performance
conditions for
FY25?
The performance rights are subject to the following three independent performance conditions
(with a percentage of total performance rights granted to be separately tested against each
performance condition) that will be tested separately at the end of each of the applicable
performance periods:
Performance Condition
Weight (MD grant)
ABG EBIT per security CAGR
41.67%
ABG Relative TSR
41.67%
2ASK Relative TSR
16.66%
ABG EBIT per security CAGR is measured based on the compound annual growth rate in earnings
before interest and tax (EBIT) configured on a per security basis. The FY24 base year EBIT per
security for performance measurement is 13.73 cps.
2 Please note the Group General Manager, Commercial and Fund Manager, ABG is on ABG performance only.
DIRECTORS’ REPORT
30 JUNE 2025
30
REMUNERATION REPORT
Long Term Incentive (LTI)
ABG and ASK Relative Total Securityholder Return (TSR) is measured by taking into account the
change in the ABG/ASK security price over the relevant performance period as well as the
distributions received (and assumed to be reinvested into ABG/ASK securities on the ex-dividend
date). Tax and any franking credits (or equivalent) will be ignored. This outcome will then be tested
against a comparator group.
The performance requirements for each measure are as follows:
ABG EBIT per Security CAGR
Percentage % of Rights that vest
Less than 2%
0%
2%
50%
2 - 6%
Pro rata vesting from 50% to 100%
6%
100%
ABG / ASK Relative TSR percentile rank
Percentage % of Rights that vest
< 50th
0%
50th
50%
> 50th to 75th
Pro rata vesting from 50% to 100%
75th and above
100%
Why were these
measures chosen?
Growth in EBIT per security reflects management operational performance.
Relative TSR provides alignment with outcomes for securityholders that invest in the A-
REIT sector.
The comparator group for both the Abacus Group and Abacus Storage King Relative TSR
conditions is outlined below and has been derived from the ASX A-REIT’s.
Who is the
comparator group
for FY25?
The Board has determined the comparator group for the FY25 LTI for the Relative TSR test for
each of Abacus Group and Abacus Storage King to be:
-
BWP Trust (BWP)
-
Charter Hall Retail REIT (CQR)
-
Cromwell Property Group (CMW)
-
Dexus Property Group (DXS)
-
GPT Group (GPT)
-
Growthpoint Properties (GOZ)
-
Mirvac Group (MGR)
-
National Storage REIT (NSR)
-
Scentre Group Limited (SCG)
-
Region Group (RGN)
-
Stockland (SGP)
-
Vicinity Centres (VCX)
Do we allow for re-
testing?
No.
Additional
conditions relating
to the ASK related
rights?
On vesting, the ASK Related Rights which are tested against the Abacus Storage King Relative TSR
will be automatically exercised and converted to a cash equivalent amount (including distributions).
This amount (net of tax) must be applied by relevant KMP to be used to purchase Abacus Storage
King securities within 12 months of vesting.
DIRECTORS’ REPORT
30 JUNE 2025
31
REMUNERATION REPORT
Long Term Incentive (LTI)
Are there
distributions or
voting rights?
Rights do not carry any voting rights. No distributions are paid to Participants during the vesting
period. Participants receive an entitlement to securities equal to accrued and reinvested
distributions only on performance rights that vest.
What happens on
cessation of
employment?
Unless the Board determines otherwise:
if the participant’s employment is terminated for cause or they resign (or give notice of
their resignation) prior to their Rights vesting, all unvested Rights will lapse; or
if the participant ceases employment for any other reason prior to their Rights vesting, all their
unvested Rights will remain on foot and be tested in the ordinary course.
What happens if a
change in control
occurs?
The Board may in its absolute discretion, accelerate vesting on some or all of any unvested securities
taking into consideration service and performance prior to a change in control.
Forfeiture for
Fraud, Dishonesty
or Misstatement
The Board has discretion to determine that a participants Rights lapse in certain circumstances,
including where they act fraudulently or dishonestly, or they are in breach of their obligations of the
Group.
When is Board
discretion used?
Discretion can be applied to the proportion that may vest, taking into account behaviour
inconsistent with our Code of Conduct, reputational damage, and having regard to any matters that
it considers relevant (including any adjustments for unusual or non-recurring items that the Board
considers appropriate). The extent and reasons for any discretion will be disclosed.
Abacus Security
Trading Policy
In accordance with Abacus’ Trading Policy, no director, employee, or associate may trade in ABG
securities at any time if they are in possession of unpublished information which, if generally
available, might materially affect the price or value of ABG securities. They may only trade within
specified trading windows.
DIRECTORS’ REPORT
30 JUNE 2025
32
REMUNERATION REPORT
Security based payments
The tables below provide the grant date fair value and the maximum potential value of all outstanding LTI grants at
grant date for the Executive KMP.
If the performance conditions are not met, the minimum value of the LTI will be nil.
The table below shows LTI grants made during FY25, subject to performance conditions over the performance
period 1 July 2024 to 30 June 2028.
Performance Long Term Incentive Plan Grant FY25
Participant
LTI max
as a % of
FR
Performance
measure
Number of
performance rights
granted
Grant date fair
value per
performance right
Total estimated fair
value
Steven Sewell
50
EBIT ps1
529,748
1.15
609,209
50
ABG TSR2
529,748
0.62
330,826
20
ASK TSR3
211,899
0.61
128,410
Total
120
1,271,395
1,068,445
Kevin George
37.5
EBIT ps
186,430
1.15
214,395
37.5
ABG TSR
186,430
0.62
116,425
Total
75
372,860
330,820
Evan Goodridge
40
EBIT ps
203,749
1.15
234,311
40
ABG TSR
203,749
0.62
127,241
20
ASK TSR
101,874
0.61
61,735
Total
100
509,372
423,287
Nikki Lawson
18.75
EBIT ps
93,215
1.15
107,197
18.75
ABG TSR
93,215
0.62
58,212
37.5
ASK TSR
186,430
0.61
112,976
Total
75
372,860
278,385
Gavin Lechem
40
EBIT ps
213,954
1.15
245,633
40
ABG TSR
213,954
0.62
133,389
20
ASK TSR
106,797
0.61
64,719
Total
100
534,705
443,741
1EBITps is Underlying Earnings before Interest and Tax Compound Annual Growth Rate per security.
2ABG TSR is Relative Total Securityholder Return.
3ASK TSR will be cash settled.
DIRECTORS’ REPORT
30 JUNE 2025
33
REMUNERATION REPORT
Movements in LTI holdings of key management personnel during the year
The table below provides the movement of all security-based payments granted to the Executive KMP in respect
to LTI holdings.
KMP
BALANCE
1 JULY 20241
GRANTED AS
REMUNERATION
NO. LAPSED
DURING THE
YEAR1
LTIS EXERCISED
BALANCE
30 JUNE 20251
Steven Sewell
2,060,403
1,168,760
(196,306)
-
3,032,857
Kevin George
-
386,823
-
-
386,823
Evan Goodridge
543,707
441,422
(21,372)
-
963,757
Nikki Lawson
392,515
207,909
(24,266)
-
576,158
Gavin Lechem
686,608
465,311
(34,836)
(37,489)
1,079,594
Total
3,683,233
2,670,225
(276,780)
(37,489)
6,039,189
1Number of Abacus securities include participants receiving an entitlement equal to accrued and reinvested distributions only on
performance rights that vest.
Movements in LTI holdings (ASK cash settled securities) of key management personnel during the year
The table below provides the movement of all security-based payments granted to the Executive KMP in respect
to LTI holdings (ASK cash securities). The securities granted are in the form of ABG rights, with performance
measured against ASK securities and, if vested and exercised, are settled in cash.
KMP
BALANCE
1 JULY 20241
GRANTED AS
REMUNERATION
NO. LAPSED
DURING THE
YEAR1
LTIS EXERCISED
BALANCE
30 JUNE 20251
Steven Sewell
241,112
220,291
-
-
461,403
Evan Goodridge
102,010
105,424
-
-
207,434
Nikki Lawson
106,645
190,185
-
-
296,830
Gavin Lechem
121,521
111,078
-
-
232,599
Total
571,288
626,978
-
-
1,198,266
1Number of securities include participants receiving an entitlement equal to accrued and reinvested distributions only on performance
rights that vest.
DIRECTORS’ REPORT
30 JUNE 2025
34
REMUNERATION REPORT
Background of new issuances in LTI holdings (Replacement Rights)
Prior to the implementation of the de-stapling of Abacus Property Group in August 2023, Abacus Property
Group had on issue Performance Rights which on vesting entitled participants to receive securities in Abacus
Property Group (‘Pre De-Stapling Rights’). These Pre De-Stapling Rights (FY22 & FY23) were to be tested
against a Relative TSR hurdle, under which the VWAP of both Abacus Group and Abacus Storage King Group
securities (collectively ‘Combined Abacus Securities’) for the period were to be tested against the VWAP of
Combined Abacus Securities at the end of each relevant performance period and then compared against a
comparator group.
In connection with the de-stapling transaction, the ‘starting’ period VWAP that Pre De-Stapling Rights were to
be tested against was reset to be based on the 30-day VWAP of Combined Abacus Securities starting from the
de-stapling implementation date of 1 August 2023 (‘FY22 & FY23 Starting VWAP’). In addition, shortly
following implementation of the de-stapling of Abacus Property Group, new Performance Rights were granted
by Abacus Group (‘FY24 ABG Rights’). These FY24 ABG Rights were incentives granted as part of the FY24
remuneration arrangements for Abacus Group and entitled the participant to receive (on vesting) ABG
Securities only.
These Performance Rights were to be tested against a Relative TSR hurdle, with a ‘starting’ period VWAP based
on the 30-day VWAP of only ABG Securities starting from the de-stapling implementation date (‘FY24 ABG
Starting VWAP’). The FY22 & FY23 Starting VWAP and the FY24 ABG Starting VWAP were the same and set
during a period in which each of the ABG Securities and ASK Securities were still within the S&P/ASX 200
index. At the time of determining the Starting VWAP, it was not certain whether the ABG Securities and ASK
securities would remain in the S&P/ASX 200 index after the completion of de-stapling.
Shortly after the FY22 & FY23 Starting VWAP and the FY24 ABG Starting VWAP were set, ABG Securities
and ASK Securities were excluded from the S&P/ASX 200 index. To ensure an ongoing, effective and economic
incentive program (following the lapse of performance rights in FY24) the Board proposed to grant new
performance rights to management for those that had lapsed, being Replacement Rights, and modify those that
were yet to vest, being Corrective Rights.
At the 2024 Annual General Meeting held on 20 November 2024, securityholders voted FOR the Board
resolutions to grant new performance rights to management and extend the VWAP period from 30 to 90 days
from 1 August 2023 to 31 October 2023, to replace grants that had lapsed with all other performance hurdles
remaining the same as the lapsed grants.
The grant date of the Replacement Rights was 10 December 2024, at a security price of $1.20.
DIRECTORS’ REPORT
30 JUNE 2025
35
REMUNERATION REPORT
Movements in LTI holdings (Replacement Rights) of key management personnel during the year
The table below provides the grant date fair value and the number of Replacement Rights granted to Executive
KMP. Replacement Rights will be tested against performance conditions on 25 August 2025.
Participant
Tranche of Rights
Replaced
Number of
performance rights
granted
Fair value per
performance right
Total estimated fair
value
Steven Sewell
FY22
252,423
$0.52
131,260
Evan Goodridge
FY22
16,155
$0.52
8,401
Nikki Lawson
FY23
38,706
$0.58
22,449
Gavin Lechem
FY22
35,696
$0.52
18,562
The table below provides the movement of all Replacement Rights granted to the Executive KMP.
KMP
BALANCE
1 JULY 2024
GRANTED AS
REMUNERATION
NO. LAPSED
DURING THE
YEAR1
LTIS EXERCISED
BALANCE
30 JUNE 20251
Steven Sewell
-
261,875
-
-
261,875
Evan Goodridge
-
16,760
-
-
16,760
Nikki Lawson
-
40,155
-
-
40,155
Gavin Lechem
-
37,033
-
-
37,033
Total
-
355,823
-
-
355,823
1Number of securities include participants receiving an entitlement equal to accrued and reinvested distributions only on performance
rights that vest.
Vesting Outcome for Managing Director and other Executive KMP
On 30 June 2025 the following was tested for the Managing Director:
the Replacement LTI Grant,
the second tranche of the modified FY22 LTI Plan, and
the first tranche of the modified FY23 LTI Plan.
On 30 June 2025 the following was tested for the other Executive KMP:
the Replacement LTI Grant,
the third tranche of the modified FY22 LTI Plan, and
the second tranche of the modified FY23 LTI plan,
noting some grants were made prior to them becoming KMP.
DIRECTORS’ REPORT
30 JUNE 2025
36
REMUNERATION REPORT
FY22 Replacement LTI Vesting Outcome – August 2025
PERFORMANCE
MEASURE
WEIGHTING
MINIMUM
MAXIMUM
RESULT
VESTING
OUTCOME
Relative TSR
100%
50th percentile
75th percentile
57th percentile
64%
FY22 & FY23 Modified LTI Vesting Outcome – August 2025
PERFORMANCE
MEASURE
WEIGHTING
MINIMUM
MAXIMUM
GROUP RESULT
PERFORMANCE
MEASURE VESTING
OUTCOME
FY22
FY23
FY22
FY23
EBIT CAGR
50%
3%
8%
10.1%
6.6%
100%
86%
Relative TSR
50%
50th
percentile
75th
percentile
57th
percentile
57th
percentile
64%
64%
Vesting Outcome % of maximum
82%
75%
Legacy Plans
a) LTI rights (Corrective Rights)
Background of modification of LTI rights (Corrective Rights)
At the 2024 Annual General Meeting held on 20 November 2024, securityholders voted FOR the Board
resolutions to grant new performance rights to management and extend the VWAP period from 30 to 90 days
from 1 August 2023 to 31 October 2023.
In this context, it was proposed to grant Corrective Rights to participants which has the effect of modifying
existing LTI rights (to be tested on each of 30 June 2025, 30 June 2026 and 30 June 2027) that had a starting
30 day VWAP period calculated during a period in which ABG Securities and ASK Securities were in the ASX
200.
Each of these Corrective Rights are tested against a Relative TSR performance condition consistent with the
LTIs issued in November 2024 detailed on page 29, and will, on vesting and exercise, entitle each holder to
receive an ABG Security.
The grant date of the Corrective Rights was 10 December 2024, at a security price of $1.20.
Through the issuance of Corrective Rights, the existing LTI rights that had a starting VWAP calculated during a
period in which ABG Securities and ASK Securities were in the ASX 200 were effectively modified.
The impact of the issuance means participants will only receive the percentage of rights which is equal to the
difference between their entitlement on any vesting of the Corrective Rights for a particular testing date and
their entitlement on any vesting of their existing LTI rights to be tested on the same testing date.
This adjustment ensures that participants will not receive more than 100% of the initial intended incentivisation
outcome.
DIRECTORS’ REPORT
30 JUNE 2025
37
REMUNERATION REPORT
Summary of existing LTI rights impacted by Corrective Rights prior to modification
GRANT
NO. OF EXISTING LTI
RIGHTS IMPACTED BY
MODIFICATION
GRANT DATE SECURITY
PRICE $ OF EXISTING LTI
RIGHTS PRIOR TO
MODIFICATION
MAXIMUM VESTING
PERIOD OF EXISTING LTI
RIGHTS
Steven Sewell
FY24 LTI rights
FY24 ASK LTI rights
FY23 LTI rights
FY22 LTI rights
560,345
56,035
228,102
91,912
1.16
1.16
2.74
3.40
23 August 2027
23 August 2027
24 August 2026
25 August 2025
Evan Goodridge
FY24 LTI rights
FY24 ASK LTI rights
FY23 LTI rights
FY22 LTI rights
189,655
26,983
45,621
5,883
1.16
1.16
2.74
3.40
23 August 2027
23 August 2027
24 August 2026
25 August 2025
Nikki Lawson
FY24 LTI rights
FY24 ASK LTI rights
FY23 LTI rights
136,315
24,785
34,976
1.16
1.16
2.74
23 August 2027
23 August 2027
24 August 2026
Gavin Lechem
FY24 LTI rights
FY24 ASK LTI rights
FY23 LTI rights
FY22 LTI rights
225,931
56,483
57,482
12,998
1.16
1.16
2.74
3.40
23 August 2027
23 August 2027
24 August 2026
25 August 2025
DIRECTORS’ REPORT
30 JUNE 2025
38
REMUNERATION REPORT
Impact of modification on existing LTI rights by grant of Corrective Rights
Grant
Relative TSR
starting and ending
VWAP period of
Existing LTI Rights
Relative TSR
starting and ending
VWAP period of
modified LTI Rights
Date of
Modification
Difference in Fair
Value of LTI Rights
due to modification
$
Steven Sewell
FY24 LTI rights
FY24 ASK LTI rights
FY23 LTI rights
FY22 LTI rights
30 days
30 days
30 days
30 days
90 days
90 days
90 days
90 days
10 December 2024
10 December 2024
10 December 2024
10 December 2024
38,178
-
7,632
1,953
Evan Goodridge
FY24 LTI rights
FY24 ASK LTI rights
FY23 LTI rights
FY22 LTI rights
30 days
30 days
30 days
30 days
90 days
90 days
90 days
90 days
10 December 2024
10 December 2024
10 December 2024
10 December 2024
12,922
-
1,526
125
Nikki Lawson
FY24 LTI rights
FY24 ASK LTI rights
FY23 LTI rights
30 days
30 days
30 days
90 days
90 days
90 days
10 December 2024
10 December 2024
10 December 2024
9,288
-
1,170
Gavin Lechem
FY24 LTI rights
FY24 ASK LTI rights
FY23 LTI rights
FY22 LTI rights
30 days
30 days
30 days
30 days
90 days
90 days
90 days
90 days
10 December 2024
10 December 2024
10 December 2024
10 December 2024
15,393
-
1,923
237
The FY24 ASK LTI rights will vest 50% in ABG securities and 50% cash settled.
b) Impact of De-stapling on Abacus Group LTI rights
This section outlines the approved treatment by securityholders of the Abacus Group Incentive Awards on foot
for employees that, on de-stapling implementation, either continued to be employed by Abacus Group or be
employed by Abacus Storage King but continue to hold relevant Abacus Group Incentive Awards.
The Abacus Group Board determined the treatments set out in the following table in order to preserve the overall
value of the Abacus Property Group Incentive Awards following the de-stapling, and to ensure that participants
do not receive a benefit that they would not have received before the de-stapling and are not disadvantaged by
the de-stapling.
DIRECTORS’ REPORT
30 JUNE 2025
39
REMUNERATION REPORT
What are the performance conditions for the FY22 & FY23 grants?
The performance rights are subject to two independent performance conditions (with a percentage of total
performance rights granted to be separately tested against each performance condition) that will be tested
separately at the end of each of the applicable performance periods:
The vesting hurdles for these LTI Rights will be tested against the compound annual growth rate in Earnings
Before Interest and Tax (EBIT Growth) and Relative Total Securityholder Return (TSR).
The performance period for testing the relevant LTI Rights against the EBIT Growth hurdle will remain the same
as the performance period which applied to those LTI Rights prior to De-stapling Implementation. The
performance period for testing the relevant LTI Rights against the TSR hurdle has been adjusted and reset to
commence on the 1st of August 2023.
50% of the LTI Rights scheduled to vest in each year will be subject to the EBIT Growth hurdle. The
EBIT Growth outcome will be based on the combined performance of Abacus Group and Abacus
Storage King (Combined EBIT Growth Outcome). In order for the LTI Rights subject to the EBIT
Growth hurdle to vest, the Combined EBIT Growth Outcome must be a minimum of 3% for the relevant
performance period and target is 8%. There is a pro rata vesting between 3-8%.
50% of the LTI Rights scheduled to vest in each year will be subject to the TSR hurdle. TSR measures the
growth in the price of securities plus cash distributions notionally reinvested in securities. The TSR
outcome will be based on the combined performance of Abacus Group Securities and Abacus Storage
King Securities (Combined TSR Growth Outcome).
Who is the comparator group?
The Board has determined the comparator group for the Relative TSR test for each of Abacus Group and Abacus
Storage King to be:
-
BWP Trust (BWP)
-
Charter Hall Retail REIT (CQR)
-
Cromwell Property Group (CMW)
-
Dexus Property Group (DXS)
-
GPT Group (GPT)
-
Growthpoint Properties (GOZ)
-
Mirvac Group (MGR)
-
National Storage REIT (NSR)
-
Scentre Group Limited (SGC)
-
Region Group (RGN)
-
Stockland (SGP)
-
Vicinity Centres (VCX)
For the LTI Rights to vest based on Relative TSR Growth:
50% of the rights vest if the Combined Relative TSR Growth Outcome is at least at the 50th percentile.
100% of the rights vest if the outcome reaches the 75th percentile.
Pro rata vesting occurs between the 50th and 75th percentiles.
DIRECTORS’ REPORT
30 JUNE 2025
40
REMUNERATION REPORT
FY22 & 23 Grant date fair value and maximum value for existing LTI grants
PLAN1
GRANT
DATE
SECURITY
PRICE $
NUMBER OF LTI RIGHTS
GRANTED
PERFORMANCE PERIOD
MAXIMUM
GRANT DATE
FACE VALUE $
ABG
ASK
Steven Sewell - MD
FY23
2.74
228,102
228,102
1 Jul 2022 to 30 Jun 2025
1,250,000
228,102
228,102
1 Jul 2022 to 30 Jun 2026
FY22
3.40
183,824
183,824
1 Jul 2021 to 30 Jun 2024
1,250,000
183,824
183,824
1 Jul 2021 to 30 Jun 2025
Evan Goodridge2- CFO
FY23
2.74
45,621
45,621
1 July 2022 to 30 June 2025
250,000
45,620
45,620
1 July 2022 to 30 June 2026
Gavin Lechem – CIO and GC
FY23
2.74
57,482
57,482
1 July 2022 to 30 June 2025
315,000
57,482
57,482
1 July 2022 to 30 June 2026
FY22
3.40
25,995
25,995
1 July 2022 to 30 June 2024
265,148
25,995
25,995
1 July 2022 to 30 June 2025
25,995
25,995
1 July 2022 to 30 June 2026
1 The FY23 grant was issued on 23 December 2022 (FY22: November 2021).
2 Remuneration reflects period of service as Executive KMP.
c) Executive Incentive Plan (Legacy SAR’s Plan)
The Executive Incentive plan ceased in the year ending 30 June 2021. The final SARs vesting under this plan
occurred in September 2024.
The table below discloses the number of SARs that vested or lapsed during the year.
No further grants will be made under this Plan.
Grant date fair value and maximum value for executive incentive plan (Legacy SARs)
PLAN1
GRANT
DATE
SECURITY
PRICE $
NUMBER OF LTI RIGHTS
GRANTED
PERFORMANCE PERIOD
MAXIMUM
GRANT DATE
FACE VALUE $
ABG
ASK
Steven Sewell - MD
FY21
2.71
96,825
96,825
1 July 2021 to 30 June 2024
787,185
1 The FY21 grant was issued on 17 November 2020.
DIRECTORS’ REPORT
30 JUNE 2025
41
REMUNERATION REPORT
Movements in SARs holdings of key management personnel during the year
The table below provides the movement of all security-based payments granted to the Executive KMP in respect
to SARs holdings.
KMP
BALANCE
1 JULY 2024
GRANTED AS
REMUNERATION
NO. LAPSED
DURING THE
YEAR1
SARS
EXERCISED
BALANCE
30 JUNE 20251
Steven Sewell (MD)
118,808
-
-
(118,808)
-
Evan Goodridge
12,074
-
-
(12,074)
-
Gavin Lechem
33,205
-
-
(33,205)
-
Total
164,087
-
-
(164,087)
-
1Number of securities include participants receiving an entitlement equal to accrued and reinvested distributions only on performance
rights that vest.
Minimum securityholding requirement for Executive KMP
To align the interests of the Board with securityholders, the Board introduced a minimum securityholding
requirement for Executive KMP.
The MD is required to maintain a minimum holding of securities equivalent to 100% of his fixed
remuneration. Executive KMP are required to maintain a minimum holding of securities that is equivalent
to 50% of their fixed remuneration.
Executive KMP had until the later of the de-stapling of Abacus Group and Abacus Storage King or the
date they become a member of the KMP to meet the minimum holding requirement.
Executive KMP ownership – securityholdings detail as of 30 June 2025
EXECUTIVE KMP
BALANCE
1 JULY 2024
VESTED/
EXERCISED1
PURCHASED /
(SOLD)
BALANCE
30 JUNE 2025
Steven Sewell
1,515,415
981,876
-
2,497,291
Kevin George
-
-
-
-
Evan Goodridge
201,996
168,411
-
370,407
Nikki Lawson
21,924
153,897
-
175,821
Gavin Lechem
526,974
279,466
-
806,440
1Includes securities that were tested on 30 June 2025 and will vest in August 2025
DIRECTORS’ REPORT
30 JUNE 2025
42
REMUNERATION REPORT
Executive KMP ownership – Minimum securityholding detail as at 30 June 2025
EXECUTIVE KMP
BALANCE
30 JUNE 2025
MSH REQUIREMENT
MSHR ASSESSMENT DATE
Steven Sewell
$3,505,157
$1,300,000
Aug-27
Kevin George
-
$305,000
Sep-28
Evan Goodridge
$524,910
$312,500
Aug-27
Nikki Lawson
$196,920
$305,000
Aug-27
Gavin Lechem
$1,310,030
$327,600
Aug-27
Unvested rights are not included in the calculation of the minimum holding of securities.
DIRECTORS’ REPORT
30 JUNE 2025
43
REMUNERATION REPORT
6. NON-EXECUTIVE DIRECTOR REMUNERATION
Objective
The Committee assesses the appropriateness of the nature and amount of remuneration of Non-Executive
Directors (NEDs) on a periodic basis by reference to market rates with the overall objective of attracting and
retaining Board members with an appropriate combination of industry and specialist functional knowledge and
experience.
Fee Structure and Policy
The following table outlines the Non-Executive Directors (NEDs) fee policy and any changes introduced for
FY25.
Maximum aggregate fees
approved by
securityholders
Abacus’ constituent documents and the ASX Listing Rules specify that the
maximum aggregate remuneration of Non-Executive directors must be approved
by securityholders. The last determination was at the annual general meeting held
on 14 November 2022 when securityholders approved an aggregate remuneration
limit of $1,250,000 per year.
Contracts
Upon appointment to the Board, all NEDs receive a letter of appointment which
summarises the Board policies and terms, including compensation, relevant to the
office of Director.
Non-Executive Director
fees reviews
The Board reviews NED fees on an annual basis in line with general industry
practice. This ensures fees are appropriately positioned in the market to attract and
retain high calibre individuals. The fees were last increased in July 2021.
NEDs are entitled to be reimbursed for all reasonable costs and expenses incurred
by them in performing their duties.
NED fee changes
There were no changes to the Board base fees and committee fees in FY25 and
there are no planned changes to the Board base fees and committee in FY26.
Refer to the below table for details of FY25 fees.
The aggregation of all Board and committee fees for FY25, remains below the
current pool limit.
Superannuation
The fees set out above include superannuation contributions in accordance with
relevant statutory requirements.
Post-employment
benefits
The Non-Executive directors do not receive retirement benefits. Nor do they
participate in any incentive programs.
DIRECTORS’ REPORT
30 JUNE 2025
44
REMUNERATION REPORT
Non-Executive Director fee levels (inclusive of superannuation) – Abacus Group
BOARD/COMMITTEE
ROLE
FY25
PER ROLE $
TOTAL
Board
Chair
$252,000
$252,000
Non-Executive Director
$113,000
$339,000
Audit and Risk Committee
Chair
$27,300
$27,300
Non-Executive Director
$12,285
$24,750
Work, Health Safety and Sustainability
Committee
Chair
$21,000
$21,000
Non-Executive Director
$10,500
$10,500
People Performance and Nomination
Committee
Chair
$23,000
$23,000
Non-Executive Director
$11,250
$11,250
Total
$719,870
Non-Executive Directors’ remuneration details – Abacus Group
NON-EXECUTIVE
DIRECTOR
FY
BASE FEES
NON-
MONETARY
BENEFITS
TOTAL CASH
PAYMENTS
AND SHORT-
TERM BENEFITS
SUPER
$
Myra Salkinder (Chair)1
FY25
252,000
-
252,000
-
252,000
FY24
245,757
-
245,757
6,243
252,000
Trent Alston
FY25
140,054
-
140,054
16,106
156,160
FY24
133,590
-
133,590
14,695
148,285
Mark Haberlin
FY25
135,919
-
135,919
15,631
151,550
FY24
136,531
-
136,531
15,018
151,550
Sally Herman2
FY25
30,224
-
30,224
3,476
33,700
FY24
131,460
-
131,460
3,340
134,800
Jingmin Qian
FY25
138,764
-
138,764
15,958
154,722
FY24
131,789
-
131,789
14,497
146,285
Mark Bloom3
FY25
-
-
-
-
-
FY24
11,587
-
11,587
1,275
12,862
1Myra Salkinder as Chair does not receive any fees for other sub-committees.
2 Sally Herman ceased as a director 30 September 2024.
3Mark Bloom ceased as a director 3 August 2023.
DIRECTORS’ REPORT
30 JUNE 2025
45
REMUNERATION REPORT
Minimum securityholding requirement for Non-Executive Directors FY25
The Board recognises the importance of aligning the interests of its senior executives and directors with the long
term interests of Abacus’ securityholders. To further align this interest, the Board has introduced a minimum
securityholding requirement for NEDs.
Each Non-Executive Director must accumulate and retain a minimum securityholding in Abacus securities
equivalent to their annual director’s fee inclusive of base fee, superannuation contributions and before any tax
deductions. The minimum securityholding was to be achieved progressively by the 4th anniversary of the later of
27 June 2022 or the date of their appointment, to meet the minimum holding requirement.
From FY24 the minimum securityholding is to be achieved progressively by the 4th anniversary of the later of
the de-stapling of Abacus Group and Abacus Storage King or the date of their appointment as a director.
NON-
EXECUTIVE
DIRECTOR
BALANCE 1
JULY 2024
PURCHASE /
SALE
BALANCE 30
JUNE 2025
MSHR
ASSESSMENT
MSHR
POLICY
MSHR
ASSESSMENT
DATE
Myra Salkinder
(Chair)
14,802,171
-
14,802,171
$23,572,839
$252,000
Aug-27
Trent Alston
45,250
41,975
87,225
$166,078
$156,160
Aug-27
Mark Haberlin
42,292
-
42,292
$107,928
$151,550
Aug-27
Jingmin Qian
45,167
-
45,167
$102,517
$154,722
Aug-27
Non-Executive Directors are bound by Abacus’s Securities Trading Policy. No additional remuneration is
provided to Non-Executive Directors to purchase these stapled securities.
All equity transactions with Non-Executive Directors have been entered into under terms and conditions no
more favourable than those that Abacus would have adopted if dealing at arm’s length. There have been no
movements in holdings since 30 June 2025.
7. ADDITIONAL REQUIRED DISCLOSURES
Executive KMP employment terms
The total remuneration package is reviewed annually, and the key terms are summarised below:
KMP
TERM OF
AGREEMENT
NOTICE
PERIOD (BY
COMPANY
OR BY
EMPLOYEE)
POST-
EMPLOYME
NT
RESTRAINTS
TERMINATION BENEFITS
Steven Sewell,
Managing
Director
No expiry date
9 months
12 months
No redundancy payment entitlements. If
there are any termination entitlements to be
paid, they will be limited by the current
Corporations Act 2001 (Cth) or the ASX
Listing Rules or both.
Other Executive
KMP
No expiry date
6 months
6 months
Covered by National Employment Standards
(NES).
DIRECTORS’ REPORT
30 JUNE 2025
46
REMUNERATION REPORT
Abacus may terminate an Executive KMP’s service at any time without notice if serious misconduct has
occurred. Where termination with cause occurs, the Executive is only entitled to remuneration up to the date of
termination.
Use of Remuneration advisors
The People and Performance and Nomination Committee engages external remuneration consultants from time
to time to provide independent benchmarking data and information on best practice. This ensures the Company
continually reviews assesses and adapts the remuneration governance functions to assist the Board and
Committee in making informed remuneration decisions. No remuneration recommendations as defined under
the Corporations Act 2001 (Cth) were provided to the Committee by remuneration consultants in FY25.
Loans to Key Management Personnel
There were no loans to key management personnel or their related parties at any time in 2025 or in the prior
year.
Other transactions with Key Management Personnel
During the year, transactions occurred between Abacus and key management personnel which were within
normal employee and investor relationships.
Directors and Officers Insurance
During the year, Abacus Group paid for a Directors and Officers Insurance policy. In accordance with usual
commercial practice, the insurance policy prohibits disclosure of details relating to the nature of the liabilities
covered by the insurance, the limit of indemnity and the amount of the premium paid under the contract.
DIRECTORS’ REPORT
30 JUNE 2025
47
SIGNIFICANT EVENTS AFTER BALANCE DATE
On 13 May 2025, Abacus Storage King (ASK) announced it had rejected a Non-Binding Indicative proposal
from Ki Corporation and Public Storage (the ‘Consortium’) of $1.47 per security. ASK’s Independent Board
Committee rejected the Proposal on the basis it was not in securityholders’ best interests.
ASK announced a revised non-binding indicative proposal from the Consortium on 14 July 2025 with a new price
of $1.65 per security. As previously announced, the Independent Board Committee has accepted a six week
period of due diligence to the Consortium to determine whether a binding proposal can be developed that is
capable of being recommended to securityholders. The Group holds an equity accounted investment in ASK and
associated management rights which would both be impacted should a sale proceed. There are no further updates
to provide at this time.
Other than as disclosed in this report, there has been no other matter or circumstance that has arisen since the
end of the financial year that has significantly affected, or may affect, the Group’s operations in future financial
years, the results of those operations or the Group’s state of affairs in future financial years.
ENVIRONMENTAL REGULATION AND PERFORMANCE
The Group is subject to environmental regulation in respect of its property activities and there are systems in
place for the management of the Group’s environmental responsibilities, and compliance with relevant licence
requirements and regulations. No material breaches of requirements or any environmental issues have been
identified during the year.
ROUNDING
The amounts contained in this report and in the annual financial report have been rounded to the nearest $1,000
(where rounding is applicable) under the option available to the Group under ASIC Corporations Instrument
2016/191. The Group is an entity to which the instrument applies.
AUDITOR’S INDEPENDENCE DECLARATION
We have obtained an independence declaration from our auditor, Ernst & Young, and such declaration is set out
on page 48.
Signed in accordance with a resolution of the directors.
Abacus Group Holdings Limited (ABN 31 080 604 619)
Myra Salkinder
Steven Sewell
Chair
Managing Director
Sydney, 25 August 2025
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Ernst & Young
200 George Street
Sydney NSW 2000 Australia
GPO Box 2646 Sydney NSW 2001
Tel: +61 2 9248 5555
Fax: +61 2 9248 5959
ey.com/au
Auditor’s independence declaration to the directors of Abacus Group
Holdings Limited
As lead auditor for the audit of the financial report of Abacus Group Holdings Limited for the financial
year ended 30 June 2025, I declare to the best of my knowledge and belief, there have been:
a.
No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit;
b.
No contraventions of any applicable code of professional conduct in relation to the audit; and
c.
No non-audit services provided that contravene any applicable code of professional conduct in
relation to the audit.
This declaration is in respect of Abacus Group Holdings Limited and the entities it controlled during
the financial year.
Ernst & Young
Jodie Inglis
Partner
25 August 2025
CONSOLIDATED INCOME STATEMENT
30 JUNE 2025
49
2025
2024
Notes
$'000
$'000
REVENUE
Rental income
152,621
144,373
Finance income
1(a)
4,106
6,957
Fee income
1(b)
19,566
17,180
Total Revenue
176,293 168,510
OTHER INCOME
Net change in fair value of investments and derivatives derecognised
1,007
658
Share of profit/(loss) from equity accounted investments
7(a)
74,638
24,977
Net change in fair value of investment properties derecognised
40 (8,244)
Other income
115
-
Total Revenue and Other Income
252,093 185,901
Net change in fair value of investment properties held at balance date
(72,173)
(275,407)
Net change in fair value of derivatives
(13,895)
(13,992)
Net change in fair value of investments held at balance date
3(a)
(330)
(1,798)
Net change in fair value from deconsolidation
20
- (5,614)
Property expenses and outgoings
(44,497)
(43,588)
Depreciation and amortisation expense
3(b)
(4,491) (4,091)
Finance costs
3(c)
(46,724) (41,557)
Administrative and other expenses
3(d)
(36,057)
(38,241)
PROFIT/(LOSS) BEFORE TAX FROM CONTUNUING OPERATIONS
33,926 (238,387)
Income tax expense
4(a)
(7,016)
(3,602)
NET PROFIT/(LOSS) AFTER TAX FROM CONTINUING OPERATIONS
26,910 (241,989)
Discontinued Operations
Net profit after tax from discontinued operations
21
- 951
NET PROFIT/(LOSS) AFTER TAX
26,910 (241,038)
PROFIT/(LOSS) ATTRIBUTABLE TO:
Equity holders of the parent entity (AGHL)
(9,950) (33,286)
Equity holders of other stapled entities
AT members
38,702 (178,499)
AGPL members
(4,033)
3,028
AIT members
2,191 (33,232)
ASPT members
- (7,913)
ASOL members
- 8,864
NET PROFIT/(LOSS) AFTER TAX
26,910 (241,038)
Basic and diluted earnings/(loss) per stapled security (cents)
2
3.01
(26.97)
Basic and diluted earnings/(loss) per stapled security from continuing operations (cents)
2
3.01
(27.08)
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
30 JUNE 2025
50
2025
2024
$'000
$'000
NET PROFIT/(LOSS) AFTER TAX
26,910 (241,038)
OTHER COMPREHENSIVE INCOME
Items that may be reclassified subsequently to the income statement
Share of other comprehensive income of an associate
1,582 (491)
Foreign exchange translation adjustments, net of tax associated with discontinued operations
- 1,145
TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE PERIOD
28,492 (240,384)
Total comprehensive income attributable to:
Members of the Group
28,492 (240,384)
TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE PERIOD
28,492 (240,384)
Total comprehensive income / (loss) attributable to members of the Group analysed by
amounts attributable to:
AGHL members
(9,950)
(33,286)
AT members
40,047 (178,917)
AGPL members
(3,796)
2,955
AIT members
2,191 (33,232)
ASPT members
- (6,852)
ASOL members
- 8,948
TOTAL COMPREHENSIVE INCOME/(LOSS) AFTER TAX ATTRIBUTABLE
TO MEMBERS OF THE GROUP
28,492 (240,384)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 JUNE 2025
51
2025
2024
Notes
$'000
$'000
CURRENT ASSETS
Investment properties held for sale
5
194,000
123,000
Cash and cash equivalents
9
23,946
23,556
Trade and other receivables
8(a)
42,057 28,502
Derivatives at fair value
1,279
3,971
Other
5,954
6,595
TOTAL CURRENT ASSETS
267,236 185,624
NON-CURRENT ASSETS
Investment properties
5
1,607,800
1,762,000
Property loans
6(a)
55,944 55,870
Equity accounted investments
7(b)
610,185
565,324
Deferred tax assets
4(c)
2,900
8,180
Property, plant and equipment
168
288
Other financial assets
6(b)
6,523 4,938
Intangible assets and goodwill
20
32,403
32,426
Derivatives at fair value
730 7,186
Other
4,500
4,500
TOTAL NON-CURRENT ASSETS
2,321,153
2,440,712
TOTAL ASSETS
2,588,389
2,626,336
CURRENT LIABILITIES
Trade and other payables
8(b)
60,516
61,919
Derivatives at fair value
538
-
Income tax payable
679
Other
6,626
6,226
TOTAL CURRENT LIABILITIES
68,359
68,145
NON-CURRENT LIABILITIES
Interest-bearing loans and borrowings
11
942,099
939,327
Derivatives at fair value
3,250
858
Deferred tax liabilities
4(c)
9,729 9,399
Other
1,623 1,474
TOTAL NON-CURRENT LIABILITIES
956,701
951,058
TOTAL LIABILITIES
1,025,060 1,019,203
NET ASSETS
1,563,329
1,607,133
TOTAL EQUITY
1,563,329
1,607,133
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
30 JUNE 2025
52
2025
2024
Notes
$'000
$'000
Equity attributable to members of AGHL:
Contributed equity
568,862
568,862
Treasury shares
(4,284)
(4,358)
Reserves
9,635
6,045
Retained earnings
45,394
93,324
Total equity attributable to members of AGHL:
619,607
663,873
Equity attributable to unitholders of AT:
Contributed equity
1,373,217
1,373,217
Reserves
928 (418)
Accumulated losses
(554,745)
(555,467)
Total equity attributable to unitholders of AT:
819,400
817,332
Equity attributable to members of AGPL:
Contributed equity
47,064
47,064
Reserves
163 (73)
Retained earnings
61,248 65,281
Total equity attributable to members of AGPL:
108,475
112,272
Equity attributable to unitholders of AIT:
Contributed equity
188,472
188,472
Accumulated losses
(172,625)
(174,816)
Total equity attributable to unitholders of AIT:
15,847
13,656
TOTAL EQUITY
1,563,329
1,607,133
Contributed equity
13
2,177,615 2,177,615
Treasury shares
(4,284)
(4,358)
Reserves
10,726
5,554
Retained earnings
(620,728) (571,678)
TOTAL EQUITY
1,563,329
1,607,133
CONSOLIDATED STATEMENT OF CASH FLOW
30 JUNE 2025
53
2025
2024
Notes
$'000
$'000
CASH FLOWS FROM OPERATING ACTIVITIES
Income receipts
187,279
203,025
Interest received
1,006
1,513
Distributions received
115
-
Income tax paid
(272) (2,827)
Finance costs paid
(48,441) (36,474)
Operating payments
(74,270) (89,263)
NET CASH FLOWS FROM OPERATING ACTIVITIES
9
65,417 75,974
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for investments and funds advanced
(2,041)
(1,267)
Proceeds from sale and settlement of investments and funds repaid
7,631
140,849
Purchase of property, plant and equipment
(7) (28)
Payments for investment properties and capital expenditure
(55,531) (188,028)
Proceeds from disposal of investment properties
58,549
110,523
Payment for other investments and financial assets
- (16,051)
NET CASH FLOWS FROM INVESTING ACTIVITIES
8,601
45,998
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of borrowing costs
(2,191)
(1,315)
Payment for treasury shares
(74)
(4,358)
Repayment of borrowings and financial instruments
(91,341) (249,098)
Repayment of principal portion of lease liabilities
- (33)
Proceeds from borrowings
95,938
122,752
Distributions paid
(75,960)
(70,149)
NET CASH FLOWS (USED IN) FINANCING ACTIVITIES
(73,628)
(202,201)
Net increase/(decrease) in cash and cash equivalents from continuing operations
1,966 (48,390)
Net (decrease) in cash and cash equivalents from discontinued operations
- (31,839)
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS
390 (80,229)
Net foreign exchange differences
- 42
Cash and cash equivalents at beginning of period from continuing operations
23,556 71,900
Cash and cash equivalents at beginning of period from discontinuing operations
- 63,588
Less cash balance attributable to discontinued operations at deconsolidation
21
-
(31,745)
CASH AND CASH EQUIVALENTS AT END OF PERIOD
9
23,946
23,556
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
30 JUNE 2025
54
Employee
Issued
Share of
equity
Treasury
Retained
Total
capital
reserves*
benefits
shares
earnings
equity
CONSOLIDATED
$'000
$'000
$'000
$'000
$'000
$'000
At 1 July 2024
2,177,615 (491) 6,045 (4,358) (571,678)
1,607,133
Other comprehensive income
- 1,582
- - - 1,582
Net income for the period
- - - - 26,910 26,910
Total comprehensive income for the
period
- 1,582
-
- 26,910
28,492
Performance rights
- - 3,590
- - 3,590
Treasury shares
- - - 74
- 74
Distribution to security holders
- - - - (75,960) (75,960)
De-stapling of discontinued operations
- - - - - -
At 30 June 2025
2,177,615 1,091 9,635 (4,284) (620,728)
1,563,329
Employee
Issued
Share of
equity
Treasury
Retained
Total
capital
reserves*
benefits
shares
earnings
equity
CONSOLIDATED
$'000
$'000
$'000
$'000
$'000
$'000
At 1 July 2023
2,596,650 228 4,144
- 760,668
3,361,690
Other comprehensive income
- 654
- -
654
Net income for the period
- - - - (241,038) (241,038)
Total comprehensive income for the
period
- 654
- - (241,038) (240,384)
Performance rights
- - 1,901
- - 1,901
Treasury shares
- - - (4,358)
- (4,358)
Distribution to security holders
- - - - (76,024) (76,024)
De-stapling of discontinued operations (419,035) (1,373)
- - (1,015,284) (1,435,692)
At 30 June 2024
2,177,615 (491)
6,045 (4,358) (571,678)
1,607,133
Attributable to the stapled securityholders
*The share of reserves are from equity accounted investments.
Attributable to the stapled securityholders
CONTENTS
30 JUNE 2025
55
Notes to
the financial
statements
About this report
Page 56
Segment information
Page 57
Results for the period
Operating assets
and liabilities
Capital structure
and financing costs
Group Structure
Other Items
1.
Revenue
5.
Investment
properties
9.
Cash and cash
equivalents
15. Parent entity
financial
information
16. Commitments and
contingencies
2.
Earnings per
stapled security
6.
Property loans
and other
financial assets
10. Capital
management
17. Related party
disclosures
3.
Expenses
7.
Investments
accounted for
using the equity
method
11.
Interest bearing
loans and
borrowings
18. Key management
personnel
4.
Income tax
8.
Trade receivables
and trade
payables
12. Financial
instruments
19. Security based
payments
13. Contributed
equity
20. Intangible assets
and goodwill
14. Distributions
paid and
proposed
21. Discontinued
operations
22. Summary of
material
accounting
policies
23. Auditor’s
remuneration
24. Events after
balance sheet date
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
56
Abacus Group (“Abacus” or the “Group”) is comprised of Abacus Group Holdings Limited (“AGHL”) (the
nominated parent entity), Abacus Trust (“AT”), Abacus Income Trust (“AIT”) and Abacus Group Projects Limited
(“AGPL”). Shares in AGHL and AGPL, and units in AT and AIT, have been stapled together so that none can be
dealt with without the other. The securities trade as one security on the Australian Securities Exchange (the
“ASX”) under the code ABG.
The financial report of the Group for the year ended 30 June 2025 was authorised for issue in accordance with a
resolution of the directors on 25 August 2025.
The nature of the operations and principal activities of the Group are described in the Directors’ Report.
MATERIAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
In applying the Group’s accounting policies management continually evaluates judgements, estimates and
assumptions based on experience and other factors, including expectations of future events that may have an
impact on the Group. All judgements, estimates and assumptions made are believed to be reasonable, based on
the most current set of circumstances available to management. Actual results may differ from these
judgements, estimates and assumptions. Material judgements, estimates and assumptions made by management
in the preparation of these financial statements are outlined below:
(a) Material accounting judgements
Control and significant influence
In determining whether the Group has control over an entity, the Group assesses its exposure or rights to variable
returns from its involvement with the entity and whether it has the ability to affect those returns through its
power over the investee. The Group may have significant influence over an entity when it has the power to
participate in the financial and operating policy decisions of the entity but is not in control or joint control of
those policies.
(b) Material accounting estimates and assumptions
Valuation of investment properties
The Group makes judgements in respect of the fair value of investment properties (Note 22(n)). The fair values
of these properties are reviewed regularly by management with reference to internal and external independent
property valuations and market conditions existing at reporting date, using generally accepted market practices.
The assumptions underlying estimated fair values are those relating to the receipt of contractual rents, expected
future market rentals, maintenance requirements, capitalisation rates and discount rates that reflect current
market conditions and current or recent property investment prices. These judgements, assumptions and
estimates have also been applied to investment properties held through investments accounted for using the
equity method.
Expected credit loss (ECL) provision and impairment of property loans and trade receivables
The Group has applied the simplified approach and recorded lifetime expected losses on trade receivables with
the exception of property loans. In estimating the ECL provision, historical recoverability and underlying risks
within the financial asset are considered.
In considering the ECL provision for property loan financial assets at amortised cost, the Group has established a
provision matrix which includes assessing the credit rating of each borrower to determine the probability of
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
57
MATERIAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS (CONTINUED)
(b) Material accounting estimates and assumptions (continued)
Expected credit loss (ECL) provision and impairment of property loans and trade receivables (continued)
default, loss given default and exposure at default, taking into account sensitivity factors to work out the ECL
provision for each property loan.
In considering the impairment of property loans and financial assets, the Group undertakes a market analysis of
the secured property development and other securities being utilised to support the underlying loan and financial
assets and identifies if a deficiency of security exists and the extent of that deficiency, if any. If there is an
indicator of impairment, fair value calculations of expected future cashflows are determined and if there are any
differences to the carrying value of the loan, an impairment is recognised.
Fair value of derivatives
The fair value of derivatives is determined based on discounted cash flow analysis using assumptions supported by
observable market rates adjusted for counterparty creditworthiness.
Fair value of financial assets
The Group holds investments in unlisted securities which are held at fair value based on valuation of underlying
asset values.
Impairment of goodwill, intangible assets and other non-financial assets
The Group determines whether goodwill, intangible assets and other non-financial assets are impaired at least on
an annual basis. This requires an estimation of the recoverable amount of the cash-generating units to which the
goodwill and intangible assets are allocated. For goodwill and intangible assets this involves fair value less costs to
sell calculations (FVLCS) which incorporate a number of key estimates and assumptions around cash flows and
fair value of investment properties upon which these determine the revenue / cash flows. The assumptions used in
the estimations of the recoverable amount and the carrying amount of goodwill and intangible assets are
discussed in Note 20.
Taxes
Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be
available against which the losses can be utilised. This requires management judgement to determine the amount
of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits,
together with future tax planning strategies. Further details on taxes are disclosed in Note 4.
NOTES TO THE FINANCIAL STATEMENTS – SEGMENT INFORMATION
The Group operates in Australia. The Group’s operating segments are regularly reviewed by the Chief Operating
Decision Maker (“CODM”) to make decisions about resource allocation and to assess performance.
The Group operates wholly within one business segment being the operation and management of Commercial
assets in Australia. The operating results presented in the consolidated statement of profit or loss represent the
same segment information as reported in internal management information.
The Group has no individual customer which represents greater than 10% of total revenue.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
58
1.
REVENUE
2025
2024
$'000
$'000
(a) Finance income
Interest on secured loans - amortised cost
3,104 5,780
Bank interest
1,002
1,177
Total finance income
4,106 6,957
(b) Fee Income
Asset management fees
13,065
11,298
Property management fees
764
1,161
Development management fees
5,737
4,721
Total funds management income
19,566
17,180
2. EARNINGS PER STAPLED SECURITY
2025
2024
Basic and diluted earnings per stapled security (cents)
3.01
(26.97)
Basic and diluted earnings per stapled security for continuing operations (cents)
3.01
(27.08)
Reconciliation of earnings used in calculating earnings per stapled security
Basic and diluted earnings per stapled security
Continuing operations
26,910
(241,989)
Discontinued operations
-
951
Net profit / (loss) ($'000)
26,910
(241,038)
Weighted average number of securities:
Weighted average number of stapled securities for basic earning per security ('000)
893,658
893,658
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
59
3. EXPENSES
2025
2024
$'000
$'000
(a) Net change in fair value of investments held at balance date
Net change in fair value of unlisted property securities held at balance date
(20)
1,594
Net change in fair value of other investments held at balance date
350 204
Total change in fair value of investments held at balance date
330 1,798
(b) Depreciation and amortisation expenses
Depreciation and amortisation of property, plant and equipment and intangible assets
150
236
Amortisation - leasing costs
4,341
3,855
Total depreciation and amortisation expenses
4,491
4,091
(c) Finance costs
Interest on loans and derivatives
46,230
40,099
Amortisation of finance costs
494 1,458
Total finance costs
46,724
41,557
(d) Administrative and other expenses
Wages and salaries
26,114 25,058
Contributions to defined contribution plans
1,571
1,517
Other expenses
7,847 8,090
Restructuring cost
525
3,576
Total administrative and other expenses
36,057
38,241
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
60
4. INCOME TAX
2025
2024
$'000
$'000
(a) Income tax expense
The major components of income tax expense are:
Income Statement
Current income tax
Current income tax charge
4,446 3,922
Adjustments in respect of current income tax of previous years
(166) (393)
Deferred income tax
Relating to origination and reversal of temporary differences
2,736
73
Total income tax expense
7,016
3,602
(b) Numerical reconciliation between aggregate tax expense recognised in the income statement and tax expense
calculated per the statutory income tax rate
A reconciliation between tax expense and the product of the accounting profit before income tax multiplied by the Group's
applicable income tax rate is as follows:
Profit/(loss) before tax from continuing operations
33,926 (238,387)
Profit before tax from discontinued operations
- 951
Profit before income tax expense
33,926 (237,436)
Prima facie income tax expense calculated at 30% (2024: 30%)
10,178 (71,231)
Less prima facie income tax expense on profit from Trusts
(8,535)
73,755
Prima Facie income tax of entities subject to income tax
1,643 2,524
Adjustment of prior year tax applied
(166) (393)
Unrecognised tax benefit on tax losses
1,442
2,818
Share of results of joint ventures and associates
5,094 (225)
Security acquisition rights
(1,105)
(811)
Other items (net)
108 (311)
Total income tax expense
7,016
3,602
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
61
4. INCOME TAX (CONTINUED)
2025
2024
$'000
$'000
(c) Recognised deferred tax assets and liabilities
Deferred income tax relates to the following:
Deferred tax liabilities
Revaluation of investment properties at fair value
5,106
-
Revaluation of investments and financial instruments at fair value
- 124
Other
9,851 9,481
Gross deferred income tax liabilities
14,957
9,605
Set off against deferred tax assets
(5,228)
(206)
Net deferred income tax liabilities
9,729 9,399
Deferred tax liabilities
9,729 9,399
Deferred tax assets
Provisions - employee entitlements
6,451 3,609
Losses available for offset against future taxable income
756
3,865
Other
921
912
Gross deferred income tax assets
8,128 8,386
Set off of deferred tax liabilities
(5,228)
(206)
Net deferred income tax assets
2,900
8,180
TAX CONSOLIDATION
AGHL and its 100% owned Australian resident subsidiaries have formed a tax consolidated group. AGHL is the
head entity of the tax consolidated group. The head entity and the controlled entities in the tax consolidated
group continue to account for their own current and deferred tax amounts. These amounts are measured in a
manner that is consistent with the broad principles in AASB 112 Income Taxes. The nature of the tax funding
agreements are discussed further below.
Nature of the tax funding agreement
Members of the respective tax consolidated groups have entered into tax funding agreements. The tax funding
agreements require payments to/from the head entity to be recognised via an inter-entity receivable/(payable)
which is at call. To the extent that there is a difference between the amount allocated under the tax funding
agreement and the allocation under Interpretation 1052, the head entity accounts for these as equity
transactions. The allocation method utilised under Interpretation 1052 is the Stand-alone taxpayer approach.
The amounts receivable or payable under the tax funding agreements are due upon receipt of the funding advice
from the head entity, which is issued as soon as practicable after the end of each financial year. The head entity
may also require payment of interim funding amounts to assist with its obligations to pay tax instalments.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
62
5. INVESTMENT PROPERTIES
2025
2024
$'000
$'000
Freehold investment properties
1,801,800
1,885,000
Total investment properties
1,801,800 1,885,000
2025
2024
$'000
$'000
Investment properties held for sale
Commercial 1
194,000 123,000
Total investment properties held for sale
194,000
123,000
Investment properties
Commercial
1,607,800
1,762,000
Total investment properties
1,607,800
1,762,000
Total investment properties including held for sale
1,801,800 1,885,000
1. Properties held for sale include Oasis Shopping Centre in FY25 and 81 James Ruse Drive, Camellia and Market Central, Lutwyche in
FY24. Market Central, Lutwyche was sold in FY25, and 81 James Ruse Drive, Camellia is no longer held for sale as at 30 June 2025.
RECONCILIATION
A reconciliation of the carrying amount of investment properties at the beginning and end of the period is as
follows. All investment properties are classified as Level 3 in accordance with the fair value hierarchy outlined in
Note 12:
30 Jun 2025
30 Jun 2024
30 Jun 2025
30 Jun 2024
Freehold investment properties
$'000
$'000
$'000
$'000
Carrying amount at beginning of the financial period
123,000
- 1,762,000
2,099,876
Additions
-
-
- 88,097
Capital expenditure
-
- 46,228 90,099
Net change in fair value as at balance date
-
- (72,173)
(275,407)
Net change in fair value derecognised
40
-
- (8,244)
Disposals
(58,549)
-
- (110,410)
Properties transferred to / (from) held for sale
129,509 123,000 (129,509) (123,000)
Rental straightlining adjustment
-
- 1,254
989
Carrying amount at end of the period
194,000
123,000
1,607,800
1,762,000
Held for sale
Non-current
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
63
5. INVESTMENT PROPERTIES (CONTINUED)
Investment properties are carried at the Directors’ determination of fair value. The determination of fair value
includes reference to the original acquisition cost together with capital expenditure since acquisition and either
the latest full independent valuation, latest independent update or directors’ valuation. Total acquisition costs
include incidental costs of acquisition such as property taxes on acquisition, legal and professional fees and other
acquisition related costs.
Sensitivity Information
Significant input
Fair value measurement sensitivity
to significant increase in input
Fair value measurement sensitivity
to significant decrease in input
Net operating income
Increase
Decrease
Adopted capitalisation rate
Decrease
Increase
Rate per unit
Increase
Decrease
Optimal occupancy
Increase
Decrease
Adopted discount rate
Decrease
Increase
The adopted capitalisation rate forms part of the income capitalisation approach.
When calculating the income capitalisation approach, the net market rent has a strong interrelationship with the
adopted capitalisation rate given the methodology involves assessing the total net market income receivable from
the property and capitalising this in perpetuity to derive a capital value. In theory, an increase in the net market
rent and an increase (softening) in the adopted capitalisation rate could potentially offset the impact to the fair
value. The same can be said for a decrease in the net market rent and a decrease (tightening) in the adopted
capitalisation rate. A directionally opposite change in the net market rent and the adopted capitalisation rate
could potentially magnify the impact to the fair value.
The adopted discount rate of a discounted cash flow has a strong interrelationship in deriving a fair value given the
discount rate will determine the rate in which the future cashflows and terminal value are discounted to the
present value.
External valuations are conducted by qualified independent valuers who are appointed by the Chief Financial
Officer who is also responsible for the Group’s internal valuation process. He is assisted by in-house certified
professional valuers who are experienced in valuing the types of properties in the applicable locations.
Investment properties are independently valued on a staggered basis every two years unless the underlying
financing requires a different valuation cycle.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
64
5. INVESTMENT PROPERTIES (CONTINUED)
The majority of the investment properties are used as security for secured bank debt outlined in Note 11.
The weighted average capitalisation rate for Abacus is 6.77% (30 June 2024: 6.50%).
The current occupancy rate for the principal commercial portfolio excluding development assets is 92.1% (30
June 2024: 94.2%).
The key assumptions and estimates used in the valuations include:
•
forecast future rental income, based on the location, type and quality of the property, which are
supported by the terms of any existing leases, other contracts or external evidence such as current
market rents for similar properties;
•
lease assumptions based on current and expected future market conditions after expiry of any current
lease; and
•
the capitalisation rate and discount rate derived from recent comparable market transactions.
The property valuations have been prepared based on the information that is available at 30 June 2025.
In the event that there are any unanticipated material circumstances, this may impact the fair value of the
Group’s investment property portfolio, and the future price achieved if a property is divested. The potential effect
of a decrease / increase in weighted average capitalisation rate of 25 bps on property valuation would have the
effect of increasing the fair value by up to $69.1 million (2024: $72.1 million) or decreasing the fair value by
$64.2 million (2024: $66.8 million) respectively.
During the year ended 30 June 2025, 67% (2024: 63%) of the number of investment properties in the portfolio
were subject to external valuations; the remaining 33% (2024: 37%) were subject to internal valuation.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
65
5. INVESTMENT PROPERTIES (CONTINUED)
Ownership
Interest
%
Fair Value
2025
$'000
Capitalisation
Rate
2025
%
Fair Value
2024
$'000
Capitalisation
Rate
2024
%
Commercial
Walker Street, North Sydney NSW1
100
225,500
6.92
236,900
6.65
314-336 Bourke Street, Melbourne VIC
50
225,000
6.00
216,000
6.00
77 Castlereagh St, Sydney NSW
100
206,000
6.25
203,000
6.00
201 Elizabeth Street, Sydney NSW
32
196,800
6.38
198,400
6.13
The Oasis, Broadbeach QLD2
100
194,000
7.00
170,000
7.25
324 Queen Street, Brisbane QLD
100
141,000
7.75
142,700
7.25
452 Johnston Street, Abbotsford VIC
100
103,000
7.50
122,500
6.50
14 Martin Place, Sydney NSW
50
110,000
5.88
105,000
5.88
Industry Lanes, Richmond, VIC
50
89,500
6.25
96,000
5.88
Westpac House, Adelaide SA
50
81,000
7.50
82,000
7.25
Kingsgate, Fortitude Valley QLD
50
72,000
7.50
75,500
6.75
181 James Ruse Drive, Camellia NSW4
100
63,500
N/A
65,200
N/A
Market Central, Lutwyche QLD3
-
-
-
57,800
6.75
51 Allara Street, Canberra ACT
100
43,000
8.50
57,000
7.25
11 Bowden Street, Alexandria NSW
100
39,000
7.25
44,500
6.63
Riverlands, Milperra NSW
100
12,500
N/A
12,500
N/A
Total Commercial
1,801,800
6.77
1,885,000
6.50
1. Includes both 83 and 99 Walker Street, North Sydney NSW.
2. Held for sale and classified as current.
3. In September 2024, Abacus divested Market Central, Lutwyche QLD.
4. Valued in 2025 and 2024 using direct comparison method
6. PROPERTY LOANS AND OTHER FINANCIAL ASSETS
2025
2024
$'000
$'000
(a) Non-current property loans
Secured loans - amortised cost
55,972 55,894
Provision for secured loans - amortised cost
(28) (24)
55,944
55,870
(b) Non-current other financial assets
Investment in unlisted securities - fair value
6,523 4,938
6,523
4,938
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
66
7. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD
(a) Extract from joint ventures and associates’ profit and loss statements
2025
2024
2025
2024
2025
2024
2025
2024
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Revenue
478,430 290,471 18,931 10,102 51,785 17,813 549,146 318,386
Expenses
(189,385) (154,990) (17,385) (7,871) (15,120) (22,195) (221,890) (185,056)
Net profit / (loss)
289,045 135,481 1,546 2,231 36,665 (4,382)
327,256
133,330
Share of net profit / (loss)
56,149 26,187 353 1,086 18,136 (2,296)
74,638 24,977
Abacus Storage King*
Fordtrans Pty Ltd ^
Other Joint Ventures
Total
* Abacus Group’s share of profit from ASK includes the elimination of related party transactions. Interest income of $0.8 million (2024:
$1.3 million) and interest expense of $36.2 million (2024: $32.3 million) were included in the net profit of ASK for the year ended 30
June 2025.
^Included in the net profit of Fordtrans Pty Ltd for the year ended 30 June 2025: interest income of $2.1 million (2024: $1.8 million) and
interest expense of $3.6 million (2024: $4.1 million). Abacus Group’s share of net profit from Fordtrans Pty Ltd includes additional costs
related to the oversight of development activities.
(b) Extract from joint ventures and associates’ balance sheets
2025
2024
2025
2024
2025
2024
2025
2024
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Current assets
167,568 220,296 2,137 2,417 5,852 5,144 175,557 227,857
Non-current assets
3,446,425 3,008,566 217,704 247,535 202,035 168,086 3,866,164 3,424,187
3,613,993 3,228,862 219,841 249,952 207,887 173,230 4,041,721 3,652,044
Current liabilities
95,677 84,920 35,291 67,119 5,440 5,369 136,408 157,408
Non-current liabilities
1,188,734 1,029,590 43,789 15,107 41,838 42,499 1,274,361 1,087,196
Net assets
2,329,582 2,114,352 140,761 167,726 160,609 125,362 2,630,952 2,407,440
Share of net assets
459,670 418,723 70,381 83,863 80,134 62,738 610,185
565,324
Abacus Storage King*
Fordtrans Pty Ltd^
Other Joint Ventures
Total
There were no impairment losses or contingent liabilities relating to the investment in the joint ventures and associates.
* Upon de-stapling in 2023, ASK issued 260.8 million securities to Abacus Group for $415.1 million by settling a portion of an outstanding
loan with Abacus Group and acquiring units in Abacus Repository Trust. The Group has received or is going to receive $18.1 million (2024:
$14.5 million) of management fee (from Abacus Storage King for the management services provided during the period. Details on
transactions with ASK are disclosed in Note 17(d).
Included in the net assets of ASK as at 30 June 2025: cash and cash equivalents $119.5 million (2024: $89.0 million), non-current
interest bearing loans and borrowings $1,142.6 million (2024: $990.2 million), and deferred tax liability $34.2 million (2024: $32.5
million).
^Included in the net assets of Fordtrans Pty Ltd as at 30 June 2025: cash and cash equivalents $0.5 million (2024: $0.8 million), current
interest bearing loans and borrowings $Nil (2024: $58.7 million) and non-current interest bearing loans and borrowings $28.8 million
(2024: Nil).
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
67
7. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (CONTINUED)
1. Abacus Storage King
Post de-stapling, Abacus owns 19.8% (2024: 19.8%) of securities in ASK. Abacus’ share of distributions
(including capital distributions) which are exclusive of foreign tax credits, for the year ended 30 June 2025 was
$16.1 million (2024: $15.6 million).
2. Fordtrans Pty Ltd (Virginia Park) (“VP”)
Abacus has a 50% interest in the ownership and voting rights of Fordtrans Pty Ltd. VP’s principal place of
business is in Bentleigh East, Victoria.
VP owns a sizeable Business Park providing a mixture of industrial and office buildings as well as supporting
facilities including gymnasium, swim centre, childcare centre, children’s play centre and cafe. Abacus jointly
controls the venture with the other partner under the terms of a Unitholders Agreement and requires unanimous
consent for all major decisions over the relevant activities.
Abacus’ share of distributions (including capital distributions) for the year ended 30 June 2025 was $14.3 million
(2024: $0.9 million).
8. TRADE RECEIVABLES AND TRADE PAYABLES
2025
2024
$'000
$'000
(a) Trade and other receivables
Distribution receivable
16,792
15,158
Trade debtors
25,871
13,561
Expected credit loss
(606)
(217)
Total Trade and other receivables
42,057
28,502
(b) Trade and other payables
Distribution payable
37,980 37,980
Trade payables and others
17,534
21,591
Unearned income
5,002 2,348
Total Trade and other payables
60,516 61,919
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
68
9. CASH AND CASH EQUIVALENTS
2025
2024
$'000
$'000
Reconciliation to Statement of Cash Flow
For the purposes of the Statement of Cash Flow, cash and cash equivalents comprise the following:
Cash at bank and in hand1
23,946
23,556
Cash and cash equivelants
23,946
23,556
1. Cash at bank earns interest at floating rates. The carrying amounts of cash and cash equivalents represent fair value.
Net profit from continuing operations
26,910 (241,989)
Net profit from discontinued operations
- 951
Net profit
26,910 (241,038)
Adjustments for:
Depreciation and amortisation of non-current assets
4,491
4,406
Net change in fair value of derivatives
13,895
16,791
Net change in fair value of investment properties held at balance date
72,173 275,407
Net change in fair value of investments held at balance date
330 4,659
Net change in fair value of investment properties derecognised
(40)
8,244
Net change in fair value of investment and financial instruments derecognised
(1,007)
(658)
Net change in fair value from deconsolidation
- 5,614
Share of profit from equity accounted investments
(63,430)
(25,022)
Increase / (decrease) in payables
9,730
4,771
(Increase) / decrease in receivables and other assets
2,365
22,800
Net cash from operating activities
65,417 75,974
Less: Net cash from operating activities from discontinued operations
- (9,788)
Net cash from operating activities from continuing operations
65,417
66,186
(a) Disclosure of financing facilities
Refer to Note 11.
(b) Disclosure of non-cash financing facilities
Non-cash financing activities include capital raised pursuant to the Abacus’ distribution reinvestment plan. During the year
no stapled securities were issued (2024: no stapled securities issued).
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
69
10. CAPITAL MANAGEMENT
Group entities comply with capital and distribution requirements of their constitutions and/or trust deeds, the
capital requirements of relevant regulatory authorities and continue to operate as a going concern. Abacus also
protects its equity in assets by taking out insurance.
Abacus assesses the adequacy of its capital requirements, cost of capital and gearing (i.e. debt/equity mix) as part
of its broader strategic plan. In addition to tracking actual against budgeted performance, Abacus reviews its
capital structure to ensure sufficient funds and financing facilities (on a cost effective basis) are available to
implement its strategy, that adequate financing facilities are maintained and distributions to members are made
within the stated distribution guidance (i.e. paid out of funds from operations).
The following strategies are available to the Group to manage its capital: issuing new stapled securities, its
distribution reinvestment plan, electing to have the distribution reinvestment plan underwritten, adjusting the
amount of distributions paid to members, activating a security buyback program, divesting assets, active
management of its fixed rate swaps and collars, directly purchasing assets from joint ventures, or (where
practical) recalibrating the timing of transactions and capital expenditure so as to avoid a concentration of net
cash outflows.
During the year, Abacus successfully negotiated and agreed terms on its syndicated banking facility to extend the
facility tranches tenor on average by a further 1.7 years. Abacus also extended its $12.5 million Bank Guarantee
facility by two years to June 2028. Abacus has no bank debt expiring in the financial year ending 30 June 2026,
with the majority of debt expiring from the financial year ending 30 June 2027 onwards.
Abacus has a total gearing covenant as a condition of the current $1.125 billion Headstock syndicated facility and
the $11 million Bilateral facility. The total gearing covenant requires Abacus to have total liabilities (net of cash) to
be less than or equal to 50% of total tangible assets (net of cash). As at date of reporting period, Abacus was
compliant in meeting all its debt covenants.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
70
11. INTEREST BEARING LOANS AND BORROWINGS
2025
2024
$'000
$'000
Non-current
Bank loans - A$
907,530
904,272
Loan from related party - A$ 1
36,543
35,293
Less: Unamortised borrowing costs
(1,974) (238)
(a) Total non-current
942,099
939,327
1 - Details of loan maturity and applicable interest rate are disclosed in Note 17(d)
2025
2024
$'000
$'000
(b) Maturity profile of non-current interest bearing loans
Due between one and five years
942,099
939,327
Due after five years
-
-
942,099
939,327
2025
2024
$'000
$'000
Available financing facility
Total facilities - bank loans
1,136,000
1,182,750
Facilities used at reporting date - bank loans
(905,560) (904,250)
230,440
278,500
Abacus maintains a range of interest-bearing loans and borrowings. The sources of funding are spread over a
number of counterparties and the terms of the instruments are negotiated to achieve a balance between capital
availability and cost of debt.
Bank loans are A$ denominated and are provided by several banks at interest rates which are set periodically on a
fixed or floating basis. The loan facilities term to maturity varies from June 2027 to June 2031. The bank loans
are secured by charges over the investment properties and certain property, plant and equipment.
Approximately 79.7% (30 June 2024: 76.0%) of bank debt drawn was subject to fixed rate hedges and the
drawn bank debt had a weighted average term to maturity of 3.3 years (30 June 2024: 3.4 years). Hedge cover
as a percentage of available facilities at 30 June 2025 is 63.8% (30 June 2024: 58.1%).
Abacus’ weighted average interest rate for the year ended 30 June 2025 was 5.11% (30 June 2024: 4.41%
including discontinued operations). The weighted average interest rate included line fees on undrawn facilities.
(c) Assets pledged as security
The carrying amounts of assets pledged as security for current and non-current interest bearing liabilities are:
2025
2024
$'000
$'000
Non-current
First mortgage
Investment properties
1,510,300 1,522,400
Total non-current assets pledged as security
1,510,300 1,522,400
Total assets pledged as security
1,510,300 1,522,400
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
71
11. INTEREST BEARING LOANS AND BORROWINGS (CONTINUED)
(d) Defaults and breaches
During the current and prior years, there were no defaults or breaches of any of the Group’s Loans.
12. FINANCIAL INSTRUMENTS
FINANCIAL RISK MANAGEMENT
The risks arising from the use of the Group’s financial instruments are credit risk, liquidity risk and market risk
(interest rate risk, and price risk).
The Group’s financial risk management focuses on mitigating the unpredictability of the financial markets and its
impact on the financial performance of the Group. The Board reviews and agrees policies for managing each of
these risks, which are summarised below.
Primary responsibility for identification and control of financial risks rests with the Treasury Management
Committee under the authority of the Board. The Board reviews and agrees policies for managing each of the
risks identified below, including the setting of limits for trading in derivatives, hedging cover of interest rate risks
and cash flow forecast projections.
The main purpose of the financial instruments used by the Group is to raise finance for the Group’s operations.
The Group has various other financial assets and liabilities such as trade receivables and trade payables, which
arise directly from its operations. The Group also enters into derivative transactions principally interest rate
derivatives. The purpose is to manage the interest rate exposure arising from the Group’s operations and its
sources of finance.
Details of the material accounting policies and methods adopted, including the criteria for recognition, the basis
of measurement and the basis on which income and expenses are recognised, in respect of each class of financial
asset, financial liability and equity instruments are disclosed in the section about this report and Note 22 to the
financial statements.
(a) Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to
meet its contractual obligations including any adverse economic events such as the current inflationary
environment, and arises principally from the Group’s receivables from customers, investment in securities and
options, secured property loans and interest bearing loans and derivatives with banks.
The Group manages its exposure to risk by:
- derivative counterparties and cash transactions are limited to high credit quality financial institutions;
- policy which limits the amount of credit exposure to any one financial institution;
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
72
12. FINANCIAL INSTRUMENTS (CONTINUED)
(a) Credit Risk (continued)
- providing loans as an investment into joint ventures, associates, related parties and third parties where it is
satisfied with the underlying property exposure within that entity;
- regularly monitoring loans and receivables balances on an ongoing basis;
- regularly monitoring the performance of its associates, joint ventures, related parties and third parties on an
ongoing basis; and
- obtaining collateral as security (where required or appropriate).
Credit risk exposures
The Group’s maximum exposure to credit risk at the reporting date was:
2025
2024
$'000
$'000
Trade and other receivables
42,057 28,502
Other financial assets
5,954 4,938
Cash and cash equivalents
23,946
23,556
Derivatives at fair value
2,009 11,157
Cash and other financial assets
73,966
68,153
Secured property loans - amortised cost *
55,944 55,870
Secured property loans
55,944
55,870
Total credit risk exposure
129,910
124,023
Carrying Amount
* The secured property loan is with one borrower.
(b) Liquidity Risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of
funding through an adequate and diverse amount of committed credit facilities, the ability to close out market
positions and the flexibility to raise funds through the issue of new stapled securities or the distribution
reinvestment plan.
The Group’s policy is to maintain an available loan facility with banks sufficient to meet expected operational
expenses and to finance investment acquisitions for a period of 90 days, including the servicing of financial
obligations. Current loan facilities are assessed and extended for a maximum period based on the Group’s
expectations of future interest and market conditions.
The table below shows an analysis of the contractual maturities of key liabilities which forms part of the Group’s
assessment of liquidity risk.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
73
12. FINANCIAL INSTRUMENTS (CONTINUED)
(b) Liquidity Risk (continued)
Carrying
Amount
Contractual
cash flows 1 Year or less
Over 1 year
to 5 years
Over
5 years
30 June 2025
$'000
$'000
$'000
$'000
$'000
Liabilities
Trade and other payables
60,516 60,516 60,516
- -
Interest bearing loans and borrowings incl derivatives#
945,888 1,103,373 44,302 1,058,473 598
Total liabilities
1,006,404 1,163,889 104,818 1,058,473 598
Carrying
Amount
Contractual
cash flows
1 Year or
less
Over 1 year
to 5 years
Over
5 years
30 June 2024
$'000
$'000
$'000
$'000
$'000
Liabilities
Trade and other payables
61,919
61,919
61,919
-
-
Interest bearing loans and borrowings incl derivatives#
940,185
1,121,608
49,926 1,071,682
-
Total liabilities
1,002,104 1,183,527 111,845
1,071,682
-
# Carrying amount includes fair value of derivative liabilities. Contractual cash flow includes contracted debt and net swap
payments using prevailing forward rates.
(c) Market risk
Market risk is the risk that changes in market prices, such as interest rates and equity prices will affect the
Group’s income or the value of its holdings of financial instruments. The objective of market risk management is
to manage and control market risk exposures within acceptable parameters, while optimising the return.
Interest rate risk / Fair value interest rate risk
The Group’s exposure to the risk of changes in market interest rates relates primarily to its long-term bank debt
obligations which are based on floating interest rates. The Group has a policy to maintain a mix of floating
exposure and fixed interest rate hedging with fixed rate cover highest in years 1 to 5.
The Group hedges to minimise interest rate risk by entering into variable to fixed interest rate swaps which also
helps deliver interest covenant compliance and positive carry (net rental income in excess of interest expense) on
the property portfolio. Interest rate swaps have the economic effect of converting borrowings from variable rates
to fixed rates. Under the interest rate swaps, the Group agrees to exchange, at specified intervals, the difference
between fixed and variable rate interest amounts calculated by reference to the agreed notional principal
amounts. At 30 June 2025, after taking into account the effect of interest rate swaps, approximately 79.7%
(2024: 76.0%) of the Group’s drawn debt is subject to fixed rate hedges. Hedge cover as a percentage of
available facilities at 30 June 2025 is 63.8% (2024: 58.1%).
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
74
12. FINANCIAL INSTRUMENTS (CONTINUED)
(c) Market risk (continued)
The Group’s exposure to interest rate risk and the effective weighted average interest rates for each class of
financial asset and financial liability are:
Floating
interest rate
Fixed interest
less than 1 year
Fixed interest
1 to 5 years
Fixed interest
over 5 years
Non interest
bearing
Total
30 June 2025
$'000
$'000
$'000
$'000
$'000
$'000
Financial Assets
Cash and cash equivalents
23,946
- -
-
- 23,946
Receivables
-
- -
- 42,057
42,057
Secured loans
-
- 55,944
-
- 55,944
Derivatives
- 1,279 730
-
- 2,009
Other financial assets
-
- -
- 5,954 5,954
Total financial assets
23,946
1,279
56,674
- 48,011
129,910
Weighted average interest rate*^
3.85%
5.50%
Financial liabilities
Interest bearing liabilities - bank
905,556
- -
-
- 905,556
Interest bearing liabilities - other
-
- 36,543
-
- 36,543
Derivatives
- 538 3,250
-
- 3,788
Payables
-
- -
- 60,516 60,516
Total financial liabilities
905,556
538
39,793
- 60,516
1,006,404
Notional principal swap balance
maturities*
-
325,000
1,250,000
-
- 1,575,000
Weighted average interest rate
on drawn bank debt*
5.11%
*
calculated for the year ended 30 June
^
weighted average interest rate excludes the impact of derivatives
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
75
12. FINANCIAL INSTRUMENTS (CONTINUED)
(c) Market risk (continued)
Floating
interest rate
Fixed interest
less than 1 year
Fixed interest
1 to 5 years
Fixed interest
over 5 years
Non interest
bearing
Total
30 June 2024
$'000
$'000
$'000
$'000
$'000
$'000
Financial Assets
Cash and cash equivalents
23,556
- - - - 23,556
Receivables
- - - - 28,502 28,502
Secured loans
- - 55,870
- - 55,870
Derivatives
- 3,971 7,186
- - 11,157
Other financial assets
- - - - 4,938 4,938
Total financial assets
23,556 3,971 63,056
- 33,440 124,023
Weighted average interest rate*^
4.35%
4.70%
Financial liabilities
Interest bearing liabilities - bank
857,284
- 46,750
- - 904,034
Interest bearing liabilities - other
- - 35,293
- - 35,293
Derivatives
- - 858
- - 858
Payables
- - - - 61,919 61,919
Total financial liabilities
857,284
- 82,901
- 61,919 1,002,104
Notional principal swap balance
maturities*
-
610,000 825,000
- - 1,435,000
Weighted average interest rate on
drawn bank debt*
4.41%
*
calculated for the year ended 30 June
^
weighted average interest rate excludes the impact of derivatives
The following table is a summary of the interest rate sensitivity analysis:
Carrying amount
-1%
+1%
Floating
Profit
Equity
Profit
Equity
30 June 2025
$'000
$'000
$'000
$'000
$'000
Financial assets
23,946 (239)
- 239
-
Financial liabilities
905,556 (9,796)
- 7,525
-
Carrying amount
-1%
+1%
Floating
Profit
Equity
Profit
Equity
30 June 2024
$'000
$'000
$'000
$'000
$'000
Financial assets
23,556 (236)
- 236
-
Financial liabilities
857,522 (2,841)
- 5,502
-
AUD
AUD
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
76
12. FINANCIAL INSTRUMENTS (CONTINUED)
(d) Fair Values
The fair value of the Group’s financial assets and liabilities are approximately equal to that of their carrying values.
Details of the Group’s fair value measurement, valuation technique and inputs are detailed below.
Class of assets /
liabilities
Fair value
hierarchy
Valuation technique
Inputs used to measure fair
value
Investment properties
Level 3
Discounted Cash Flow (""DCF"")
Net operating income
Direct comparison
Adopted capitalisation rate
Income capitalisation method
Rate per unit
Optimal occupancy
Adopted discount rate
Securities – unlisted
Level 3
Pricing models
Security price
Underlying net asset
Property valuations
Derivative – financial
Level 2
DCF (adjusted for counterparty
Interest rates
instruments
Credit worthiness)
Consumer price index (“CPI”)
Volatility
Level 1
Quoted prices (unadjusted) in active market for identical assets or liabilities;
Level 2
Inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices); and
Level 3
Inputs for the asset or liability that are not based on observable market data.
There were no transfers between Levels 1, 2 and 3 during the period.
Income capitalisation
method
This method involves assessing the total net market income receivable from the property
and capitalising this in perpetuity to derive a capital value, with allowances for capital
expenditure reversions.
Direct comparison
This method directly compares and analyses sales evidence on a rate per unit.
Discounted cash flow
method
Under the DCF method, the fair value is estimated using explicit assumptions regarding
the benefits and liabilities of ownership over the assets’ or liabilities’ life including an exit
or terminal value. The DCF method involves the projection of a series of cash flows
from the assets or liabilities. To this projected cash flow series, an appropriate, market-
derived discount rate is applied to establish the present value of the cash flow stream
associated with the assets or liabilities.
Pricing models – unlisted
securities
The fair value is determined by reference to the net assets which approximates fair value
of the underlying entities.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
77
12. FINANCIAL INSTRUMENTS (CONTINUED)
(d) Fair Values (continued)
The following table is a reconciliation of the movements in unlisted securities classified as Level 3 for the period
ended 30 June.
Unlisted
securities
$'000
Opening balance as at 30 June 2024
4,938
Fair value movement through the income statement
(328)
Additions
1,913
Closing balance as at 30 June 2025
6,523
Unlisted
securities
$'000
Opening balance as at 30 June 2023
3,987
Fair value movement through the income statement
(198)
Additions
1,149
Closing balance as at 30 June 2024
4,938
Sensitivity of Level 3 - unlisted securities and options
The potential effect of using reasonable possible alternative assumptions based on a decrease / increase in the
property valuations by 5% would have the effect of reducing the fair value by up to $0.1 million (30 June 2024:
$0.1 million) or increase the fair value by $0.1 million (30 June 2024: $0.1 million) respectively.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
78
13. CONTRIBUTED EQUITY
2025
2024
(a) Issued stapled securities
$'000
$'000
Stapled securities
2,220,407
2,220,407
Issue costs
(42,792)
(42,792)
Total contributed equity
2,177,615 2,177,615
Number
Number
2025
2024
(b) Movement in stapled securities on issue
'000
'000
At beginning of financial period
893,658
893,658
- distribution reinvestment plan
-
-
Securities on issue at end of financial period
893,658
893,658
Stapled securities
14. DISTRIBUTIONS PAID AND PROPOSED
2025
2024
$'000
$'000
(a) Distributions paid during the period
June 2024 half: 4.25 cents per stapled security (2023: 9.40 cents)
37,980 84,004
December 2024 half: 4.25 cents per stapled security (2023: 4.25 cents)
37,980 37,980
(b) Distributions declared and recognised as a liability^
June 2025 half: 4.25 cents per stapled security (2024: 4.25 cents)
37,980 37,980
^ The final distribution of 4.25 cents per stapled security was declared on 23 June 2025. The distribution will be paid on or
around 29 August 2025 and will be approximately $38 million.
50% of distribution is to be paid from Abacus Trust (which do not pay tax provided they distribute all their taxable
income) hence, there were no franking credits attached. The other 50% of the distribution is to be paid from Abacus
Group Holdings Limited as fully franked dividends with $8.1 million franking credits attached.
The total amount of franking credits available for the subsequent financial years including franking credits that will arise from
the payment of income tax payable at the end of the financial year, based on a tax rate of 30 per cent, is $67.7 million
(2024: $75.9 million).
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
79
15. PARENT ENTITY FINANCIAL INFORMATION
2025
2024
$'000
$'000
Results of the parent entity
Profit / (loss) for the year
(1,641)
30,545
Total comprehensive income / (expense) for the year
(1,641)
30,545
Financial position of the parent entity at year end
Current assets
630,870 654,256
Total assets
827,749 843,136
Current liabilities
19,413
18,676
Total liabilities
241,247 220,678
Net assets
586,502 622,458
Total equity of the parent entity comprising of:
Issued capital
568,862
568,862
Accumulated profit/(losses)
(74,243)
(74,243)
Profit available for dividend distribution
86,532 126,153
Employee options reserve
9,635
6,044
Treasury shares
(4,284)
(4,358)
Total equity
586,502 622,458
(a) Parent entity contingencies
There are no contingencies of the parent entity as at 30 June 2025 (2024: Nil).
(b) Parent entity capital commitments
There are no capital commitments of the parent entity as at 30 June 2025 (2024: Nil).
In July 2025, AGHL has provided a letter of support to its subsidiaries who have entered into interest free inter-
entity loans within the Group as the support for the subsidiaries to continue as a going concern.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
80
16. COMMITMENTS AND CONTINGENCIES
(a) Operating lease commitments – Group as lessor
Future minimum rentals receivable under non-cancellable operating leases as at 30 June 2025 are as follows:
2025
2024
$'000
$'000
Within one year
106,765
110,063
Within two years
91,200
100,986
Within three years
77,745
86,974
Within four years
60,453
71,229
Within five years
48,665
52,388
More than five years
81,617 117,109
466,445
538,749
These amounts do not include contingent rentals which may become receivable under certain leases on the basis
of retail sales in excess of stipulated minimums and, in addition, do not include recovery of outgoings.
(b) Capital and other commitments
At 30 June 2025 the Group had numerous commitments which principally related to property and investment
acquisition settlements, loan facility guarantees for the Group's interest in the jointly controlled property
developments and funds management vehicles, and commitments relating to property refurbishing costs.
Commitments planned and/or contracted at reporting date but not recognised as liabilities are as follows:
2025
2024
$'000
$'000
Within one year
- gross settlement of property and investment acquisitions
879
2,655
- property refurbishment costs
13,843 18,759
- property development costs
- 1,523
14,722
22,937
(c) Contingencies
At 30 June 2025 the Group had a $12.5 million bank guarantee facility which expires in June 2028 (2024: $12.5
million) and $10.0 million of bank guarantees had been issued from the facility (2024: $10.0 million).
Bank guarantees issued at reporting date but not recognised as liabilities are as follows:
2025
2024
$'000
$'000
Bank guarantees
- Australian Financial Service Licences
10,000 10,000
- redevelopment of investment properties
1,005
1,005
11,005
11,005
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
81
17. RELATED PARTY DISCLOSURES
(a) Subsidiaries
The consolidated financial statements include the financial statements of the following entities:
2025
2024
Entity
%
%
Abacus Group Holdings Limited and its subsidiaries
Abacus Finance Pty Limited
100
100
Abacus Funds Management Limited
100
100
Abacus Investment Pty Ltd
100
100
Abacus Note Facilities Pty Ltd
100
100
Abacus Property Services Pty Ltd
100
100
Abacus Storage Funds Management Limited
100
100
Abacus Camellia Investments Pty Limited
100
100
Abacus Riverlands Investments Pty Limited
100
100
Abacus Group Projects Limited and its subsidiaries
Abacus Property Pty Ltd
100
100
Abacus Allara Street Trust*
74
74
Abacus Ventures Trust*
51
51
Abacus Trust and its subsidiaries:
Abacus Abbotsford Trust
100
100
Abacus Ashfield Mall Property Trust
-
100
Abacus Bowden Street Trust
100
100
Abacus K1 Property Trust
100
100
Abacus Lutwyche Trust
100
100
Abacus Oasis Trust
100
100
Abacus Richmond Trust
100
100
Abacus Shopping Centre Trust
-
100
Abacus Virginia Trust
100
100
Abacus Westpac House Trust
100
100
Abacus Westpac House No. 2 Trust
100
100
Abacus 14 Martin Place Trust
100
100
Abacus 324 Queen Street Trust
100
100
Lutwyche City Shopping Centre Unit Trust
100
100
Oasis JV Unit Trust
100
100
Abacus Income Trust and its subsidiaries:
Castlereagh Sub 1 Trust
100
100
Castlereagh FH Sub 1 Trust
100
100
Equity interest
* These entities are wholly owned by Abacus
(b) Ultimate parent
AGHL has been designated as the parent entity of the Group.
(c) Key management personnel
Details of payments are disclosed in Note 18.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
82
17. RELATED PARTY DISCLOSURES (CONTINUED)
(d) Transaction with related parties
2025
2024
$'000
$'000
Transactions with related parties other than associates and joint ventures
Revenues
Property management fees received / receivable
408 355
Transactions with associates and joint ventures
Revenues
Management fees received / receivable from joint ventures and associates
18,828
15,257
Share of (loss)/profit from joint ventures and associates
74,638
24,977
Other transactions
Loan advanced from joint ventures
1,685 1,628
Loan repayments to joint ventures
(434) (297)
Loans advanced to associate*
- 76,324
Distribution received / receivable
17,625 19,960
* The loans provided to and by an associate, Abacus Storage King were fully repaid as part of the de-stapling process in the year
ended 30 June 2024
Terms and conditions of transactions
Fees to and purchases and fees charged from related parties are made in accordance with commercial terms in
the management agreements.
Outstanding balances at year-end are unsecured and settlement occurs in cash.
There are no ECL provisions incurred with respect to amounts payable or receivable from related parties during
the year.
The term to maturity of the loan facility from a related party is April 2027 with an interest rate of 4.70% (2024:
4.71%).
Ultimate controlling entity
Ki Corporation Limited (“Ki”) is the ultimate controlling securityholder in the Group with a holding of
approximately 50.0% of the ordinary securities of the Group (2024: Calculator Australia Pty Ltd held 50% of
the ordinary securities of the group).
During the year, Abacus Property Services Pty Ltd was engaged to manage the following properties:
Property
Relationship with Ki
Charge per annum
2025
2024
$
$
14 Martin Place
Tenants-in-common
3% of gross rental
285,111
271,264
4 Martin Place
100% owned by Ki
3% of gross rental
408,152
355,108
Mrs Myra Salkinder is the Chair of the Group and is a senior executive of Ki. Mark Bloom was a Non-Executive
Director of the Group (retired on 3 August 2023) and is a consultant to Ki.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
83
18. KEY MANAGEMENT PERSONNEL
(a) Compensation for key management personnel
2025
2024
$
$
Short-term employee benefits
6,404,308 5,798,531
Post-employment benefits
193,417 162,354
Other long-term benefits
74,800
68,698
Security-based payments
2,910,039 2,247,746
9,582,564
8,277,329
(b) Loans to key management personnel
There were no loans to key management personnel or their related parties at any time in 2025 or in the prior
year.
(c) Other transactions and balances with key management personnel and their related parties
During the financial year, transactions occurred between the Group and key management personnel which are
within normal employee and investor relationships.
19. SECURITY BASED PAYMENTS
(a) Recognised security payment expenses
2025
2024
$'000
$'000
Expense arising from equity-settled payment transactions
4,089 3,522
Type of security – based payment plan
(i)
Long Term Incentives (LTI)
The LTI plan has been designed to align the interests of executives with those of securityholders by providing for a
significant portion of the remuneration of participating executives to be linked to the delivery of Earnings Before
Interest and Tax (“EBIT”) and Relative Total Securityholder Return (“RTSR”).
Key executives have been allocated LTIs in the current financial year. Allocations were based on the performance
assessment completed in determining current variable incentive awards for the prior financial year, adjusted to
take into account other factors that the Board considers specifically relevant for the purpose of providing LTIs.
The LTIs granted during the year vest as follows:
Executive KMP
Grant
Tranche
Vesting date
Potential
number to vest
1,040,306
FY25 Grant
Tranche One – 50% of Grant
August 2027
1,040,306
Tranche Two – 50% of Grant
August 2028
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
84
19. SECURITY BASED PAYMENTS (CONTINUED)
(a) Recognised security payment expenses (continued)
Other Executives
Grant
Tranche
Vesting date
Potential
number to vest
Tranche One – 33% of Grant
August 2026
58,169
Tranche Two – 33% of Grant
August 2027
581,270
Tranche Three – 33% of Grant
August 2028
581,270
FY25 Grant
Modifications to LTIs – Corrective Rights
Modifications were made during the year to tranches which were issued in 2022, 2023 and 2024, to change the
performance criterion within RTSR from the original issuance, being an increase in the initial Volume Weighted
Average Price (‘VWAP’) period from 30 days to 90 days. The tranches impacted and fair value upon
modification is as follows:
Grant
Tranche
Vesting date
Potential
number to vest
Fair Value of
Modification
Tranche One – 33% of Grant
August 2025
1,681,132
$0.119
Tranche Two – 33% of Grant
August 2026
1,681,132
$0.074
Tranche Three – 33% of Grant
August 2027
1,681,132
$0.058
Tranche Two – 50% of Grant
August 2026
1,059,832
$0.022
FY24 Corrective Rights
FY23 Corrective Rights
Tranche One – 50% of Grant
August 2025
1,059,832
$0.035
FY22 Corrective Rights Tranche One – 100% of Grant
August 2025
384,049
$0.035
A Monte Carlo simulation approach was used to value the modifications.
(ii)
Abacus Storage King Long Term Incentive Rights (ASK LTI Rights)
The ASK LTI Rights plan has been designed to align the interests of Executive KMP of Abacus Group with those
of Abacus Storage King (‘ASK’) securityholders by providing for a significant portion of the remuneration of
participating executives to be linked to the delivery of Relative Total Securityholder Return (“RTSR”) based on
the performance of ASK.
Executive KMP have been allocated LTIs of ABG securities in the current financial year linked to the
performance of ASK. Allocations were based on the performance assessment completed in determining current
variable incentive awards for the prior financial year, adjusted to take into account other factors that the Board
considers specifically relevant for the purpose of providing ASK LTIs.
The ASK LTIs granted during the year vest as follows:
Grant
Tranche
Vesting date
Potential
number to vest
FY25 Grant
Tranche One – 50% of Grant
August 2027
303,500
Tranche Two – 50% of Grant
August 2028
303,500
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
85
19. SECURITY BASED PAYMENTS (CONTINUED)
(a) Recognised security payment expenses (continued)
(ii)
Abacus Storage King Long Term Incentives (ASK LTI) (continued)
Modifications to ASK LTIs
Modifications were made during the year to tranches which were issued in 2024, to extend the assessment
period of the RTSR hurdle. The tranches impacted and fair value upon modification is as follows:
Grant
Tranche
Vesting date
Potential
number to vest
Fair Value of
Modification
Tranche Two – 50% of Grant
August 2027
124,403
Nil
FY24 Grant Modified
Tranche One – 50% of Grant
August 2026
124,403
Nil
A Monte Carlo simulation approach was used to value the modifications.
(iii)
Replacement Rights
Key Executives were also awarded Replacement Rights during the year, as previous grants had lapsed based upon
hurdles that were impacted by the de-stapling of Abacus Storage King from Abacus Group in August 2023.
Tranches that were initially awarded in the financial year ended 30 June 2022 and 2023 and had lapsed in 2024
were re-issued as new rights, with a change in performance criterion within RTSR from the original issuance being
an increase in the initial Volume Weighted Average Price (‘VWAP’) period from 30 days to 90 days.
The Replacement Rights granted during the year vest as follows:
Executive KMP
Grant
Tranche
Vesting date
Potential
number to vest
FY22 Replacement Rights
Tranche One – 100% of Grant
August 2025
304,274
FY23 Replacement Rights
Tranche One – 100% of Grant
August 2025
38,706
Other Executives
Grant
Tranche
Vesting date
Potential
number to vest
FY22 Replacement Rights
Tranche One – 100% of Grant
August 2025
84,875
FY23 Replacement Rights
Tranche One – 100% of Grant
August 2025
124,663
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
86
19. SECURITY BASED PAYMENTS (CONTINUED)
(a) Recognised security payment expenses (continued)
(iv)
Deferred Short Term Incentives (Deferred STI)
25% of an Executive KMP’s short term incentive is deferred by 12 months and settled in the form of rights. The
deferred STI was introduced to aid retention, better align Executive KMP with securityholders’ interests, and
provide for a “consequence management” governance mechanism for misconduct, fraud, malfeasance, or
financial misstatement.
An Executive KMP also received 325,998 securities in the form of a one-off Deferred STI during the year, with
108,666 securities each vesting in three equal tranches in October 2025, 2026 and 2027 with a fair value of
$1.227 per security. The fair value was determined with reference to the share price upon grant date.
During the year, ABG has purchased no securities ($nil) on the market in advance to cover future LTI and
deferred STI payments. There are unallocated securities held in a Trust account and accounted for as a reduction
in equity reserve as a result of purchases in prior periods.
(v)
Security Acquisition Rights (SARs)
The deferred variable incentive plan ceased in the year ending 30 June 2021 and has been replaced by the LTI
plan. The deferred variable incentive plan was delivered in the form of an annual grant of security acquisition rights
(SARs) under the deferred security acquisition rights plan (SARs Plan). The SARs continued to vest under this
plan until September 2024.
When SARs vested, they converted into ABG and ASK securities on a one for one basis.
(b) Summary of Performance Rights granted
(i)
Long Term Incentives (LTI)
The following table illustrates movements in LTI during this year:
2025
2024
No.
No.
Opening balance
6,067,109
2,265,376
Granted during the year
6,664,872
4,194,875
Forfeited during the year
(608,879)
(333,519)
Exercised during the year
(97,987)
(59,623)
Outstanding at the end of the year
12,025,115
6,067,109
Exercisable at the end of the year
2,637,761
418,767
The weighted average fair value of LTI granted during the year excluding modifications was $0.89 (2024: $0.79).
The fair value of LTI was calculated utilising the security price on grant date for non-market measures, and a
valuation model for market measures.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
87
19. SECURITY BASED PAYMENTS (CONTINUED)
(b) Summary of Performance Rights granted (continued)
(i)
Long Term Incentives (LTI) (continued)
The following table lists the inputs to the model used for the performance rights’ plans for the year ended 30
June 2025 and 30 June 2024:
2025
2024
Expected volatility (%)
24
26
Risk-free interest rate (%)
3.72-3.76
3.90 - 4.00
Life of instrument (years)
1.7 - 3.7
1.7 - 3.7
Model used
Monte Carlo
Monte Carlo
The expected life of the performance rights is based on historical data and current expectations and is not
necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that
the historical volatility over a period similar to the life of the performance rights is indicative of future trends,
which may not necessarily be the actual outcome.
(ii)
Abacus Storage King Long Term Incentives (ASK LTI)
2025
2024
No.
No.
Opening balance
612,000
-
Granted during the year
867,116
612,000
Forfeited during the year
-
-
Exercised during the year
-
-
Outstanding at the end of the year
1,479,116
612,000
Exercisable at the end of the year
-
-
The weighted average fair value of ASK LTI granted during the year excluding modifications was $0.61 (2024:
$0.62). The fair value of ASK LTI was calculated utilising a valuation model.
The following table lists the inputs to the model used for the performance rights’ plans for the year ended 30
June 2025 and 30 June 2024:
2025
2024
Expected volatility (%)
25 27
Risk-free interest rate (%)
3.72-3.73
3.90-3.91
Life of instrument (years)
2.7 - 3.7
2.7-3.7
Model used
Monte Carlo
Monte Carlo
The expected life of the performance rights is based on historical data and current expectations and is not
necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that
the historical volatility over a period similar to the life of the performance rights is indicative of future trends,
which may not necessarily be the actual outcome.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
88
19. SECURITY BASED PAYMENTS (CONTINUED)
(b) Summary of Performance Rights granted (continued)
(iii)
Replacement Long Term Incentives (Replacement LTI)
The following table illustrates movements in FY22 Replacement LTI during this year:
2025
No.
Opening balance
-
Granted during the year
403,721
Forfeited during the year
(144,128)
Exercised during the year
-
Outstanding at the end of the year
259,593
Exercisable at the end of the year
259,593
The weighted average fair value of FY22 Replacement LTI granted during the year was $0.52. The fair value of
FY22 Replacement LTI was calculated utilising a valuation model.
The following table lists the inputs to the model used for the performance rights’ plans for the year ended 30
June 2025:
2025
Expected volatility (%)
23
Risk-free interest rate (%)
3.8
Life of instrument (years)
0.7
Model used
Monte Carlo
The following table illustrates movements in FY23 Replacement LTI during this year:
2025
No.
Opening balance
-
Granted during the year
169,487
Forfeited during the year
(60,507)
Exercised during the year
-
Outstanding at the end of the year
108,980
Exercisable at the end of the year
108,980
The weighted average fair value of FY23 Replacement LTI granted during the year was $0.58. The fair value of
FY23 Replacement LTI was calculated utilising a valuation model.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
89
19. SECURITY BASED PAYMENTS (CONTINUED)
(b) Summary of Performance Rights granted (continued)
(iii) Replacement Long Term Incentives (Replacement LTI) (continued)
The following table lists the inputs to the model used for the performance rights’ plans for the year ended 30
June 2025:
2025
Expected volatility (%)
23
Risk-free interest rate (%)
3.78-3.83
Life of instrument (years)
0.7-1.7
Model used
Monte Carlo
(iv)
Deferred Short Term Incentives (Deferred STI)
The following table illustrates movements in Deferred STI during this year:
2025
2024
No.
No.
Opening balance
547,964 217,046
Granted during the year
931,368 459,437
Forfeited during the year
- -
Exercised during the year
(36,129) (128,519)
Outstanding at the end of the year
1,443,203 547,964
Exercisable at the end of the year
1,117,205 453,103
The weighted average fair value of Deferred STI, excluding the one-off grant to an Executive, granted during the
year was $1.31 (2024: $1.11). The fair value of STI is the security price on grant date.
(v)
Security Acquisition Rights (SARs)
The following table illustrates movements in SARs during this year:
2025
2024
No.
No.
Opening balance
370,086 936,061
Granted during the year*
21,427
Forfeited during the year
-
-
Exercised during the year
(370,086) (587,402)
Outstanding at the end of the year
- 370,086
Exercisable at the end of the year
-
-
* To achieve a closer alignment of interests of securityholders and senior executives, when a tranche of SARs vests, the
holder will be paid in respect of each SAR vesting an amount (a notional distribution) equivalent to the aggregate of the
distributions per Abacus security paid during the period.
The weighted average remaining life of the performance rights (all tranches of LTIs and SARs) at 30 June 2025
was 2.0 years (2024: 1.8 years).
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
90
20. INTANGIBLE ASSETS AND GOODWILL
Description of the Group’s intangible assets
2025
2024
Notes
$'000
$'000
Goodwill
Balance at 1 July
32,394
32,394
At the end of the year
32,394
32,394
Software
At 1 July, net of accumulated amortisation
32
69
Amortisation charge for the year
(23) (37)
At the end of the year, net of accumulated amortisation
9
32
Total goodwill and intangibles
32,403
32,426
Impairment tests for goodwill and intangible assets
(i)
Description of the cash generating units and other relevant information
Goodwill and intangible assets acquired through business combinations for the purposes of impairment testing
are allocated to the respective Group’s property / asset management businesses. The property / asset
management business of the Group has been identified as a cash generating unit (CGU), as it generates cash
flows that are independent from the cash flows of other assets or group of assets within the Group. Goodwill is
subject to annual impairment testing with the recoverable amount of the CGU determined based on a fair value
less cost to sell (FVLCS) calculation using cash flow projections as of 30 June 2025 covering a five-year period.
(ii)
Key assumptions used in valuation calculations
Goodwill and intangible assets – the calculation is most sensitive to the following assumptions:
(a)
Management and other fee income: based on market rates and revenue / funds under management within
the financial year and the underlying growth rate of 3% (2024: 2%).
(b)
Discount rates: reflects management’s estimate of the time value of money and the risks specific to each
unit that are not reflected in the cash flows
(c)
Property values of the funds / properties under management for Abacus Funds Management Limited:
based on the fair value of properties
(d)
Selling costs: management’s estimate of costs to sell the funds / properties under management
(e)
For Abacus Funds Management Limited, a pre-tax discount rate of 8.6% (2024: 10%) and a terminal
growth rate of 3.0% (2024: 2.5%) have been applied to the cash flow projections for goodwill.
(iii)
Sensitivity to changes in assumptions
The CGU earns management and development fees from managing Abacus Storage King (ASK). As disclosed in
Note 24, ASK has received a revised non-binding indicative proposal from Ki Corporation and Public Storage to
acquire all of the outstanding stapled securities in ASK, not already owned by Ki or its subsidiaries. If acquisition
takes place, the ASK management arrangement currently undertaken by the Group will be transferred to ASK
resulting in a loss of income for the CGU. While there is a significant headroom in the FVLCS model at 30 June
2025, this goodwill will be reduced to nil if ASK management fees are absent.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
91
21. DISCONTINUED OPERATIONS
On 16 February 2023, the Group announced its intention to create a new ASX listed Self Storage REIT to be
known as Abacus Storage King REIT (ASK). ASK was established by de-stapling Abacus’ existing Self Storage
assets and became an externally managed REIT with a majority independent Board of Directors. The de-stapling
of ASK completed on 4 August 2023. Upon deconsolidation, ASK settled a portion of an outstanding loan to
Abacus Group for $415.1 million, in exchange for 19.9% of the equity in ASK by Abacus Group. The investment in
ASK is classified as an equity accounted investment by Abacus Group (Note 7). The difference between the fair
value of the equity accounted investment in ASK upon deconsolidation and consideration provided was
recognised as a loss of $5.6m.
At the date when control of the Self Storage assets and business was lost, the balance sheet attributable to ASPT
and ASOL was as follows, ultimately leading to the loss recognised on loss of control by Abacus Group as
summarised below:
3 August 2023
$'000
Assets
Cash and cash equivalents
31,745
Investment Property
2,550,626
Property, Plant and equipment
25,803
Trade and receivables
24,808
Equity accounted Investments
16,046
Derivative financial instruments
28,863
Other financial assets
221,284
Other
6,183
Intangibles
72,451
Total assets
2,977,809
Liabilities
Trade and other payables
95,310
Provisions
5,909
Derivative financial instruments
1,775
Deferred tax liabilities
47,480
Other liabilities
2,269
Interest-bearing liabilities
1,389,375
Total liabilities
1,542,118
Total net assets and reserves attributable to members of ASPT and ASOL derecognised
1,435,691
Valuation of loans attributable to Abacus Group
415,136
Investment equity accounted at fair value by Abacus Group
409,522
Loss recognised on loss of control
(5,614)
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
92
21. DISCONTINUED OPERATIONS (CONTINUED)
The financial performance of the discontinued operations segment for the year ended 30 June 2024 was as
follows:
2024
$'000
Storage Income
16,427
Fee Income
1,289
Finance income
50
Total Revenue
17,766
OTHER INCOME
Net change in fair value of investment properties held at balance date
-
Net change in fair value of investment held at balance date
(2,861)
-
Net change in fair value of derivatives
(2,799)
Other income
-
Total Revenue and Other Income
12,106
Net change in fair value of investment properties derecognised
(1)
Storage expenses
(4,016)
Share of (loss)/profit from equity accounted investments
45
Depreciation and amortisation expenses
(314)
Finance costs
(2,950)
Administrative and other expenses
(3,919)
PROFIT BEFORE TAX FROM DISCONTINUED OPERATIONS
951
Income tax expense
-
NET PROFIT AFTER TAX FROM DISCONTINUED OPERATIONS
951
Net change in fair value of PPE, investments and financial instruments derecognised
The net cash flow for the discontinued operations for the year ended 30 June 2024 were as follows:
2024
$'000
Operating
9,788
Investing
(29,494)
Financing
(12,133)
Net cash (outflow) / inflow
(31,839)
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
93
22. SUMMARY OF MATERIAL ACCOUNTING POLICIES
(a)
Basis of Preparation
The financial report is a general-purpose financial report, which has been prepared in accordance with the
requirements of the Corporations Act 2001 and Australian Accounting Standards. The financial report has also
been prepared on a historical cost basis, except for investment properties and derivative financial instruments
which have been measured at fair value, interests in joint ventures and associates which are accounted for using
the equity method, and certain investments and financial assets measured at fair value.
The financial report is presented in Australian dollars and all values are rounded to the nearest thousand dollars
($'000) unless otherwise stated under the option available to the Group under ASIC Corporations Instrument
2016/191. The Group is an entity to which the instrument applies.
(b)
Statement of Compliance
The financial report complies with Australian Accounting Standards and International Financial Reporting
Standards (IFRS), as issued by the AASB and IASB respectively.
(c)
New accounting standards and interpretations
(i) Changes in accounting policy and disclosures
The accounting policies adopted are consistent with those of the previous financial year except for the adoption
of new standards and interpretations effective as of 1 July 2024.
There are amendments and interpretations that apply for the first time on 1 July 2024 as follows, but they do not
have a material impact on the consolidated financial statements of ABG.
-
AASB 2020-1, AASB 2020-6 Amendments to Australian Accounting Standards - Classification of
Liabilities as Current or Non-current (effective for annual reporting periods from 1 January 2024)
The amendments to paragraphs 69 to 76 of AASB 101 specify the requirements for classifying liabilities as
current or non-current. The amendments clarify:
•
What is meant by a right to defer settlement
•
That a right to defer must exist at the end of the reporting period
•
That classification is unaffected by the likelihood that an entity will exercise its deferral right
•
That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms
of a liability not impact its classification
(ii) Accounting Standards and Interpretation issued but not yet effective
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
effective have not been adopted by ABG for the annual reporting period ended 30 June 2025. The
amendments are effective for annual reporting periods beginning on or after 1 January 2026 and must be applied
retrospectively. ABG is currently assessing the impact the amendments will have on current practice and whether
existing loan agreements may require amendments.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
94
22. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
(c)
New accounting standards and interpretations (continued)
(ii) Accounting Standards and Interpretation issued but not yet effective (continued)
The significant new standards or amendments are outlined below:
-
AASB 2024-2 Amendments to Australian Accounting Standards – Classification and Measurement of
Financial Instruments (effective 1 January 2026).
This amends AASB 7 Financial Instruments: Disclosures and AASB 9 Financial Instruments to:
(i)
clarify the date of recognition and derecognition of some financial assets and liabilities;
(ii)
clarify and add further guidance for assessing whether a financial asset meets the solely
payments of principal and interest criterion;
(iii)
add new disclosures for certain instruments with contractual terms that can change cash flows
(such as some financial instruments with features linked to the achievement of environment,
social and governance targets); and
(iv)
update the disclosures for equity instruments designated at fair value through other
comprehensive income.
-
AASB 2024-3 Amendments to Australian Accounting Standards – Annual Improvements Volume II
(effective 1 January 2026).
This makes minor improvements to address inconsistencies or to clarify requirements in:
(i)
AASB 1 First-time Adoption of International Financial Reporting – to improve consistency
between AASB 1 and AASB 9 in relation to the requirements for hedge accounting, and
improve the understandability of AASB 1;
(ii)
AASB 7 Financial Instruments: Disclosures – to improve consistency in the language used in
AASB 7 with the language used in AASB 13 Fair Value Measurement;
(iii)
AASB 9 Financial Instruments – to clarify how a lessee accounts for the derecognition of a
lease liability when it is extinguished and address an inconsistency between AASB 9 and
AASB 15 Revenue from Contracts with Customers in relation to the term ‘transaction price’;
(iv)
AASB 10 Consolidated Financial Statements – to clarify the requirements in relation to
determining de facto agents of an entity; and
(v)
AASB 107 Statement of Cash Flows – to replace the term ‘cost method’ with ‘at cost’ as the
term is no longer defined in Australian Accounting Standards
-
AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets between
an Investor and its Associate or Joint Venture (effective for annual reporting periods beginning on or after 1
January 2028)
The amendments to AASB 10 Consolidated Financial Statements and AASB 128 Investments in Associates
and Joint Ventures clarify that a full gain or loss is recognised when a transfer to an associate or joint venture
involves a business as defined in AASB 3 Business Combinations. Any gain or loss resulting from the sale or
contribution of assets that does not constitute a business, however, is recognised only to the extent of
unrelated investors’ interests in the associate or joint venture.
NOTES TO THE FINANCIAL STATEMENTS
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22. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
(c)
New accounting standards and interpretations (continued)
(ii) Accounting Standards and Interpretation issued but not yet effective (continued)
-
AASB 18 Presentation and Disclosure in Financial Statements (effective for annual reporting periods
beginning on or after 1 January 2027)
AASB 18 has been issued to improve how entities communicate in their financial statements, with a particular
focus on information about financial performance in the statement of profit or loss. The key presentation and
disclosure requirements established by AASB 18 are:
•
The presentation of newly defined subtotals in the statement of profit or loss
•
The disclosure of management-defined performance measures (MPM)
•
Enhanced requirements for grouping information (i.e. aggregation and disaggregation)
AASB 18 is accompanied with limited consequential amendments to the requirements in other accounting
standards, including AASB 107 Statement of Cash Flows.
AASB 18 introduces three new categories for classification of all income and expenses in the statement of profit
or loss: operating, investing and financing. Additionally, entities will be required to present subtotals for ‘operating
profit or loss’, ‘profit or loss before financing and income taxes’ and ‘profit or loss’. For the purposes of classifying
income and expenses into one of the three new categories, entities will need to assess their main business activity,
which will require judgement. There may be more than one main business activity.
AASB 18 also requires several disclosures in relation to MPMs, such as how the measure is calculated, how it
provides useful information and a reconciliation to the most comparable subtotal specified by AASB 18 or
another standard.
AASB 18 will replace AASB 101 Presentation of Financial Statements.
The amendments and new standards are not expected to have a material impact on the Group with the exception
of AASB 18 for which management is currently assessing the impact.
(d) Basis of consolidation
The consolidated financial statements comprise the financial statements of AGHL and its subsidiaries, AT and its
subsidiaries, AIT and its subsidiaries, and AGPL and its subsidiaries collectively referred to as the Group, and also
includes ASPT and its controlled entities ASOL until 3 August 2023, as ASPT and ASOL were de-stapled from
the Group on this date.
Subsidiaries are all those entities over which the Group has power over the investee such that the Group is able to
direct the relevant activities, has exposure or rights to variable returns from its involvement with the investee and
has the ability to use its power over the investee to affect the amount of the investor’s returns.
The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using
consistent accounting policies with adjustments made to bring into line any dissimilar accounting policies that
may exist.
NOTES TO THE FINANCIAL STATEMENTS
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96
22. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
(d)
Basis of consolidation (continued)
All intercompany balances and transactions, including unrealised profits from intra-group transactions, have been
eliminated in full and subsidiaries are consolidated from the date on which control is transferred to the Group and
cease to be consolidated from the date on which control is transferred out of the Group. Where there is a loss of
control of a subsidiary, the consolidated financial statements include the results for the part of the reporting
period during which the Group has control.
The acquisition of subsidiaries is accounted for using the purchase method of accounting. The purchase method
of accounting involves allocating the cost of the business combination to the fair value of the assets acquired and
the liabilities and contingent liabilities assumed at the date of acquisition.
Non-controlling interests are allocated their share of net profit after tax in the consolidated income statement
and are presented within equity in the consolidated statement of financial position, separately from the equity of
the owners of the parent.
(e)
Foreign currency translation
Functional and presentation currency
Both the functional and presentation currency of the Group are in Australian dollars. Each entity in the Group
determines its own functional currency and items are included in the financial statements of each entity are
measured using that functional currency.
Transactions and balances
Transactions in foreign currencies are initially recorded in the functional currency by applying the exchange rates
ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are
retranslated at the rate of exchange ruling at the balance sheet date.
All exchange differences in the consolidated financial report are taken to profit or loss with the exception of
differences on foreign currency borrowings on translation of foreign operations that provide a hedge against a net
investment in a foreign operation. These are taken directly to equity until the disposal of the net investment, at
which time they are recognised in profit or loss. On disposal of a foreign operation, the cumulative amount
recognised in equity relating to that particular foreign operation is recognised in profit or loss. Tax charges and
credits attributable to exchange differences on those borrowings are also recognised in equity.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rate as at the date of the initial transaction. Non-monetary items measured at fair value in a foreign
currency are translated using the exchange rates at the date when the fair value was determined.
At reporting date the assets and liabilities of foreign operations are translated into the presentation currency of
the Group at the rate of exchange prevailing at balance date and the financial performance is translated at the
average exchange rate prevailing during the reporting period. The exchange differences arising on translation are
taken directly to the foreign currency translation reserve in equity.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
97
22. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
(f)
Revenue recognition
Revenue is recognised when performance obligations have been met and is measured at the amount that reflects
consideration received or receivable to the extent it is probable that the economic benefits will flow to the Group
and the revenue can be reliably measured. The following specific recognition criteria must also be met before
revenue is recognised:
Rental income
Rental income from investment properties is accounted for on a straight-line basis over the lease term. Lease
incentives granted are recognised as an integral part of the total rental income.
Finance income
Revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the
amortised cost or principal of a financial asset and allocating the interest income over the relevant period using
the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the
expected life of the financial asset to the net carrying amount of the financial asset.
Management and other fee income
Revenue from rendering of services is recognised in accordance with the performance obligations under the
terms and conditions of the service agreements and the accounting standards.
Dividends and distributions
Revenue is recognised when the Group’s right to receive the payment is established.
Net change in fair value of investments and financial instruments derecognised during the year
Revenue from sale of investments is recognised on settlement when all performance obligations under the
contract have been met. Performance obligations are generally considered to have been met at the time of
settlement of the sale. Financial instruments are derecognised when the right to receive or pay cash flows from
the financial derivative has expired or when the entity transfers substantially all the risks and rewards and the
performance obligations of the financial derivative through termination. Gains or losses due to derecognition are
recognised in the income statement.
Net change in fair value of investments held at balance date
Changes in market value of investments are recognised as revenue or expense in determining the net profit for
the period.
(g)
Expenses
Expenses including rates, taxes and other outgoings, are brought to account on an accrual basis and any related
payables are carried at cost.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
98
22. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
(h)
Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term deposits with
an original maturity of three months or less that are readily convertible to known amounts of cash which are
subject to an insignificant risk of changes in value.
For the purposes of the Statement of Cash Flow, cash and cash equivalents consist of cash and cash equivalents
as defined above.
(i)
Trade and other receivables
Trade and other receivables, which generally have 30 day terms, are held to collect contractual cash flows and
these contractual cash flows are solely payments of principal and interest. At initial recognition, these are
measured at amortised cost at the transaction price.
Trade and other receivables are subsequently measured at amortised cost using the effective interest rate
method, reduced by impairment losses. Interest income and impairment losses are recognised in the income
statement. The receivable is written off when there is no reasonable expectation of recovering the contractual
cash flows. Any gain or loss on derecognition is also recognised in the income statement.
In assessing for impairment under AASB 9, the Group assesses on a forward-looking basis the expected credit
losses associated with its financial assets carried at amortised cost. For trade receivables, the Group applies the
simplified approach permitted by the standard, which requires lifetime expected losses to be recognised from
initial recognition of the receivables.
To measure the expected credit losses, trade debtors and other receivables have been grouped based on shared
credit risk characteristics and the days past due. The expected loss rates are based on outstanding balances, days
past their due date and the corresponding historical credit losses experienced. Historical loss rates are adjusted to
reflect current and forward looking information on macroeconomic factors (including GDP) affecting the ability
of customers to settle their debts.
(j)
Derivative financial instruments and hedging
The Group utilises derivative financial instruments, interest rate derivatives to manage the risk associated with
foreign currency and interest rate fluctuations. Such derivative financial instruments are recognised at fair value
through profit or loss (“FVTPL”).
The Group has set defined policies and implemented hedging policies to manage interest and exchange rate risks.
Derivative instruments are transacted in line with these policies to achieve the economic outcomes in line with
the Group’s treasury and hedging policy. They are not transacted for speculative purposes.
The Group does not employ hedge accounting and as such derivatives are recorded at fair value with gains or
losses arising from the movement in fair values recorded in the income statement.
(k)
Investments and other financial assets
All investments are initially recognised at cost, being the fair value of the consideration given.
Financial assets in the scope of AASB 9 Financial Instruments are classified as either financial assets at fair value
through profit or loss or financial assets at amortised cost. The Group determines the classification of its financial
assets after initial recognition and, when allowed and appropriate, re-evaluates this designation at each financial
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
99
22. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
(k)
Investments and other financial assets (continued)
year-end. At 30 June the Group’s investments in unlisted securities have been classified as financial assets at fair
value through profit or loss and property loans are classified as loans and receivables at amortised cost.
Financial assets at fair value through profit or loss
The Group classifies its financial assets that do not meet the Solely Payments of Principal Plus Interest (‘SPPI’)
criterion and derivatives at FVTPL.
At initial recognition, the financial asset is measured at its fair value and transaction costs are recognised in profit
or loss as incurred. Financial assets at FVTPL are subsequently measured at fair value. Any gains and losses from
changes in fair value are recognised through profit or loss unless they have been designated and qualify as cash
flow or net investment hedging instruments, where the effective portion of changes in fair value is recognised in
either a cash flow or foreign currency reserve within equity. Any gain or loss on derecognition is recognised in the
income statement.
The Group holds investments in unlisted securities.
Loans and receivables
Loans and receivables are non-derivative financial assets that are not quoted in an active market with SPPI. Such
assets are carried at amortised cost using the effective interest method. Gains and losses are recognised in profit
or loss when the loans and receivables are derecognised or impaired.
Subsidiaries
Investment in subsidiaries are held at lower of cost or recoverable amount as disclosed within the parent entity
note.
(l)
Interest in joint arrangements and associates
The Group’s interest in joint venture entities and associate is accounted for under the equity method of
accounting in the consolidated financial statements. The investment in the joint venture entities and associate is
carried in the consolidated balance sheet at cost plus post-acquisition changes in the Group’s share of net assets
of the joint ventures and associate, less any impairment in value. The consolidated income statement reflects the
Group’s share of the results of operations of the joint ventures and associate.
Investments in joint ventures and associate are held at the lower of cost or recoverable amount in the investing
entities.
The Group’s interest in joint operations that give the parties a right to the underlying assets and obligations
themselves is accounted for by recognising the Group’s share of those assets and obligations.
(m)
Property, plant and equipment
Property, plant and equipment is stated at historical cost less accumulated depreciation and any impairment
losses.
Depreciation is calculated on a straight-line basis over the estimated useful life of the asset as follows:
Plant and equipment – over 5 to 15 years Right-of-use property – up to 5 years
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
100
22. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
(m)
Property, plant and equipment (continued)
Impairment
The carrying values of property, plant and equipment are reviewed for impairment when events or changes in
circumstances indicate the carrying value may not be recoverable. For an asset that does not generate largely
independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset
belongs.
If any such indication exists and where the carrying values exceed the estimated recoverable amount, the assets
or cash-generating units are written down to their recoverable amount.
The recoverable amount of property (including land and buildings), plant and equipment is the greater of fair value
less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market assessments of the time value of money
and the risks specific to the assets.
Impairment losses are recognised in the income statement.
Disposal
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset.
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in the income statement in the year the asset is
derecognised.
(n)
Investment properties
Investment properties are measured initially at cost, including transaction costs. The carrying amount includes the
cost of replacing parts of an existing investment property at the time that the cost is incurred if the recognition
criteria are met, and excludes the costs of day-to-day servicing of an investment property. Subsequent to initial
recognition, investment properties are stated at fair value, which reflects market and property specific conditions
at the balance sheet date. This includes investment properties under redevelopment because fair value can be
calculated based on estimated fair value on completion of redevelopment after allowing for the remaining
expected costs of completion plus an appropriate risk adjusted development margin. Gains or losses arising from
changes in the fair values of investment properties are recognised in the income statement in the year in which
they arise.
Investment properties are derecognised either when they have been disposed of or when the investment property
is permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gains or
losses on the retirement or disposal of an investment property are recognised in the income statement in the year
of retirement or disposal.
Investment properties under construction are carried at cost until when the construction is near completion
(70%-80% complete) because the fair value of an investment property under construction cannot be reliably
measured.
Transfers are made to investment property when, and only when, there is a change in use, evidenced by
commencement of an operating lease to another party or ending of construction or development. Transfers are
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
101
22. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
(n)
Investment properties (continued)
made from investment property when, and only when, there is a change in use, evidenced by commencement of
development with a view to sale.
For a transfer from investment property to inventories, the deemed cost of property for subsequent accounting
is its fair value at the date of change in use. For a transfer from inventories to investment property, any difference
between the fair value of the property at that date and its previous carrying amount is recognised in profit or loss.
Land and buildings that meet the definition of investment property are considered to have the function of an
investment and are therefore regarded as a composite asset, the overall value of which is influenced by many
factors, the most prominent being income yield, rather than diminution in value of the building content due to the
passing of time. Accordingly, the buildings and all components thereof, including integral plant and equipment,
are not depreciated.
Investment properties are independently valued on a staggered basis every two years unless the underlying
financing requires a more frequent independent valuation cycle. In determining fair value, the capitalisation of
net income method and the discounting of future cashflows to their present value have been used.
Lease incentives provided by the Group to lessees, and rental guarantees which may be received by the Group
from third parties (arising from the acquisition of investment properties) are included in the measurement of fair
value of investment property. Leasing costs and incentives are included in the carrying value of investment
property and are amortised over the respective lease period, either using a straight-line basis, or a basis which is
more representative of the pattern of benefits.
Under AASB 140, investment properties, including any plant and equipment, are not subject to depreciation.
However, depreciation allowances in respect of certain buildings, plant and equipment are currently available to
investors for taxation purposes.
(o)
Leases
The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement
and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific
asset or assets and the arrangement conveys a right to use the asset.
Group as lessee
At the lease commencement date, a right-of-use asset and a corresponding lease liability is recognised.
The liabilities arising from the lease are initially measured on a present value basis. Lease liabilities include the net
present value of future lease payments, less any lease incentives receivable. When adjustments to lease payments
based on an index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset.
Lease payments are allocated between principal and finance cost.
Right-of-use assets are measured at cost comprising:
– the amount of the initial measurement of the lease liability;
– any lease payments made at or before the commencement date, less any lease incentives received;
– any initial direct costs incurred; and
– any restoration costs.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
102
22. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
(o)
Leases (continued)
Right-of-use property assets are measured and classified as either investment property or property plant and
equipment in accordance with the policies above.
Group as a lessor
Leases in which the Group retains substantially all the risks and benefits of ownership of the lease assets are
classified as operating leases.
The Group accounts for a modification to an operating lease either due to a change in scope or consideration of
the lease as a new lease from the effective date of the modification, considering any prepaid or accrued lease
payments relating to the original lease as part of the lease payments for the new lease.
(p)
Goodwill
Goodwill on acquisition is initially measured at cost being the excess of the cost of the business combination over
the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities. Following
initial recognition, goodwill is measured at cost less any accumulated impairment losses and is not amortised.
Goodwill is reviewed for impairment, annually or more frequently if events or changes in circumstances indicate
that the carrying value may be impaired.
For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date,
allocated to each of the Group’s cash-generating units, or groups of cash-generating units, that are expected to
benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the Group are
assigned to those units or groups of units. Each unit or group of units to which the goodwill is so allocated:
-
Represents the lowest level within the Group at which the goodwill is monitored for internal management
purposes; and
-
Is not larger than a segment based on either the Group’s primary or the Group’s secondary reporting format
determined in accordance with AASB 8 Operating Segments.
Impairment is determined by assessing the recoverable amount of the cash-generating unit (group of cash-
generating units), to which the goodwill relates. When the recoverable amount of the cash-generating unit
(group of cash-generating units) is less that the carrying amount, an impairment loss is recognised.
When goodwill forms part of a cash-generating unit (group of cash-generating units) and an operation within that
unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of
the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in this manner
is measured based on the relative values of the operation disposed of and the portion of the cash-generating unit
retained.
Impairment losses recognised for goodwill are not subsequently reversed.
(q)
Impairment of non-financial assets other than goodwill
Intangible assets that have an indefinite useful life are not subject to recognised in and are tested annually for
impairment, or more frequently if events or changes in circumstances indicate that they might be impaired.
Other non-financial assets are tested for impairment whenever events or changes in circumstances indicate that
the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
103
22. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTIUNED)
(q)
Impairment of non-financial assets other than goodwill (continued)
asset’s carrying amount exceeds its recoverable amount. Recoverable amount is the higher of an asset’s fair value
less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest
levels for which there are separately identifiable cash inflows that are largely independent of the cash inflows from
other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered
an impairment are tested for possible reversal of the impairment whenever events or changes in circumstances
indicate that the impairment may have reversed.
(r)
Trade and other payables
Trade payables and other payables are carried at amortised cost. They represent liabilities for goods and services
provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes
obliged to make future payments in respect of the purchase of these goods and services. The amounts are
unsecured and are usually paid within 30 days of recognition.
(s)
Provisions and employee leave benefits
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past
event and it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation.
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle
the present obligation at the balance sheet date. If the effect of the time value of money is material, provisions
are discounted using a current pre-tax rate that reflects the time value of money and the risks specific to the
liability. The increase in the provision resulting from the passage of time is recognised in finance costs.
Employee leave benefits
i)
Wages, salaries, annual leave and sick leave
Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave
expected to be settled within 12 months of the reporting date are recognised in respect of employees’ services up
to the reporting date. They are measured at the amounts expected to be paid when the liabilities are settled.
Expenses for non-accumulating sick leave are recognised when the leave is taken and are measured at the rates
paid or payable.
ii)
Long service leave
The liability for long service leave is recognised and measured as the present value of expected future payments
to be made in respect of services provided by employees up to the reporting date using the projected unit credit
method. Consideration is given to expected future wage and salary levels, experience of employee departures,
and periods of service. Expected future payments are discounted using market yields at the reporting date on
national government bonds with terms to maturity and currencies that match, as closely as possible, the
estimated future cash outflows.
(t)
Distributions and dividends
Trusts generally distribute their distributable assessable income to their unitholders. Such distributions are
determined by reference to the taxable income of the respective trusts. Distributable income may include capital
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
104
22. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
(t)
Distributions and dividends (continued)
gains arising from the disposal of investments and tax-deferred income. Unrealised gains and losses on
investments that are recognised as income are usually retained and are generally not assessable or distributable
until realised. Capital losses are not distributed to securityholders but are retained to be offset against any future
realised capital gains.
A liability for dividend or distribution is recognised in the Balance Sheet if the dividend or distribution has been
declared, determined or publicly recommended prior to balance date.
(u)
Interest-bearing loans and borrowings
All loans and borrowings are initially recognised at cost, being the fair value of the consideration received net of
transaction costs associated with the borrowing.
Subsequent to initial recognition, interest-bearing loans and borrowings are stated at amortised cost net of
establishment costs, with any difference being recognised in the Consolidated Statement of Comprehensive
Income over the period of the borrowings on an effective interest basis, subject to set-off arrangements.
The entity derecognises a financial liability when its contractual obligations are discharged, cancelled or expired.
The entity also derecognises a financial liability when there has been a substantial modification to the terms and
cash flows of the liability and recognises a new financial liability based on the modified terms, with the difference
being recognised in the Consolidated Statements of Comprehensive Income.
Borrowings are classified as non-current liabilities where the Group has an unconditional right to defer settlement
of the liability for at least 12 months after the balance sheet date.
Borrowing Costs
Borrowing costs are recognised as an expense when incurred unless they relate to a qualifying asset or to upfront
borrowing establishment and arrangement costs, which are deferred and amortised as an expense over the life of
the facility. A qualifying asset is an asset that generally takes more than 12 months to get ready for its intended
use or sale. In these circumstances, the financing costs are capitalised into the cost of the asset. Where funds
are borrowed by the Group for the acquisition or construction of a qualifying asset, the amount of the borrowing
costs capitalised are those incurred in relation to the borrowing.
(v)
Contributed equity
Issued and paid up capital is recognised at the fair value of the consideration received by the Group. Stapled
securities are classified as equity. Incremental costs directly attributable to the issue of new securities are shown
in equity as a deduction, net of tax, from the proceeds.
(w)
Taxation
The Group comprises taxable and non-taxable entities. A liability for current and deferred tax and tax expense is
only recognised in respect of taxable entities that are subject to income tax and potential capital gains tax as
detailed below.
Trust income tax
Under current Australian income tax legislation AT and AIT are not liable to Australian income tax provided
securityholders are presently entitled to the taxable income of the trusts and the trusts generally distribute their
taxable income.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
105
22. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
(w)
Taxation (continued)
Company income tax
AGHL and its Australian resident wholly-owned subsidiaries have entered into tax funding agreements with their
Australian resident wholly-owned subsidiaries, so that each subsidiary agrees to pay or receive its share of the
allocated tax at the current tax rate.
The head tax entity and the controlled entities in each tax consolidated group continue to account for their own
current and deferred tax amounts.
In addition to its own current and deferred tax amounts, the head tax entity also recognises the current tax
liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed
from controlled entities in the tax consolidated group.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as
amounts receivable from or payable to other entities in the Group.
Any difference between the amounts assumed and amounts receivable or payable under the tax funding
agreements are recognised as a contribution to (or distribution from) wholly-owned tax consolidated entities.
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be
recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted by the balance sheet date.
Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused tax
assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the
deductible temporary differences, and the carry-forward of unused tax assets and unused tax losses can be
utilised, except:
when the deferred income tax asset relating to the deductible temporary difference arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the time of the
transaction, affects neither the accounting profit nor taxable profit or loss; or
-
when the deductible temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures, deferred tax assets are only recognised to the extent that it is probable that the
temporary differences will reverse in the foreseeable future and taxable profit will be available against which
the temporary differences can be utilised.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred
income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each balance sheet date and are recognised to the
extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred income tax is provided on all temporary differences at the balance sheet date between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences, except:
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
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22. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
(w)
Taxation (continued)
-
when the deferred income tax liability arises from the initial recognition of an asset or liability in a transaction
that is not a business combination and, at the time of the transaction, affects neither the accounting profit
nor taxable profit or loss; or
-
when the taxable temporary differences associated with investments in subsidiaries, associates and interests
in joint ventures, and the timing of the reversal of the temporary differences can be controlled and it is
probable that the temporary differences will not reverse in the foreseeable future.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year
when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the balance sheet date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in the income
statement.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current
tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity
and the same taxation authority.
Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST except when the GST incurred on a
purchase of goods and services is not recoverable from the taxation authority, in which case the GST is
recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and
receivables and payables are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables
or payables in the balance sheet.
Cash flows are included in the Cash Flow Statement on a gross basis and the GST component of cash flows
arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority are
classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the
taxation authority.
(x)
Earnings per stapled security (EPSS)
Basic EPSS is calculated as net profit attributable to stapled securityholders, adjusted to exclude costs of
servicing equity (other than distributions) divided by the weighted average number of stapled securities on issue
during the period under review.
Diluted EPSS is calculated as net profit attributable to stapled securityholders, adjusted for:
-
costs of servicing equity (other than distributions);
-
the after tax effect of dividends and interest associated with dilutive potential stapled securities that have
been recognised as expenses; and
-
other non-discretionary changes in revenues or expenses during the period that would result from the
dilution of potential stapled securities;
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
107
22. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
(x)
Earnings per stapled security (EPSS) (continued)
divided by the weighted average number of stapled securities and dilutive potential stapled securities, adjusted for
any bonus element.
(y)
Security based payment plans
Executives of the Group receive remuneration in the form of security based payments, whereby Executives
render services as consideration for equity instruments (equity-settled transactions).
The cost of equity-settled transactions is determined by the fair value at the date when the grant is made, using
an appropriate valuation model and is recognised, together with a corresponding increase in other capital reserves
in equity, over the period in which the performance and/or service conditions are fulfilled. The cumulative
expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the
extent to which the vesting period has expired and the Group’s best estimate of the number of equity
instruments that will ultimately vest. The income statement expense or credit for a period represents the
movement in cumulative expense recognised as at the beginning and end of that period and is recognised in
employee benefits expense (Note 19).
No expense is recognised for awards that do not ultimately vest, except for equity-settled transactions for which
vesting is conditional upon a market or non-vesting condition. These are treated as vesting irrespective of
whether or not the market or non-vesting conditions are satisfied, provided that all other performance and / or
service conditions are satisfied.
When the terms of an equity-settled award are modified, the minimum expense recognised is the expense had
the terms not been modified, if the original terms of the award are met. An additional expense is recognised for
any modification that increases the total fair value of the security based payment transaction, or is otherwise
beneficial to the employee as measured at the date of modification.
When an equity-settled award is cancelled, it is treated as if it vested on the date of cancellation, and any expense
not yet recognised for the award is recognised immediately. This includes any award where non-vesting
conditions within the control of either the entity or the employee are not met.
When the award securities are acquired from the market in advance, the unallocated securities are treated as
reduction of equity reserve.
A portion of security based payments are classified as cash-settled, as Executives are awarded a cash equivalent
of shares to purchase securities. For these securities the fair value is measured upon issue and recorded as an
expense. Until the liability is settled, the fair value will be remeasured at each reporting period.
(z)
Non-current assets held for sale or distribution and discontinued operations
The Group classifies non-current assets and disposal groups as held for sale if their carrying amounts will be
recovered principally through a sale transaction or deemed disposal rather than through continuing use. Upon
classification as held for sale, assets of a disposal group are recognised at the lower of carrying amount and fair
value less costs to sell with the exception of investment properties, other financial assets and derivatives which are
valued in accordance with Note 22(n) and Note 22(j) respectively.
Property, plant and equipment and intangible assets are not depreciated or amortised once classified as held for
sale. Assets and liabilities classified as held for sale are presented separately as current items in the statement of
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2025
108
22. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
(z)
Non-current assets held for sale or distribution and discontinued operations (continued)
financial position.
A segment, entity or operation disposed of or wound up qualifies as discontinued operations if it is a component
of the Group that represents a separate major line of business or geographical area of operations. Discontinued
operations are excluded from the results of continuing operations and are presented as a single amount as profit
or loss after tax from discontinued operations in the statement of profit or loss. Additional disclosures are
provided in Note 21. All other notes to the financial statements include amounts for continuing operations, unless
indicated otherwise.
23. AUDITOR’S REMUNERATION
2025
2024
$
$
Amounts received or due and receivable by Ernst & Young Australia:
- Fees for auditing the statutory financial report of the parent covering the Group and
auditing the statutory financial reports of any controlled entities
704,465 680,000
- Services required by legislation to be provided by the auditor
- compliance services
27,169 41,239
- Other assurance and agreed-upon-procedures services under other legislation or
contractual arrangements where there is discretion as to whether the service is provided
by the auditor or another firm
42,380 8,812
Total
774,014
730,051
24. EVENTS AFTER BALANCE SHEET DATE
On 13 May 2025, Abacus Storage King (ASK) announced it had rejected a Non-Binding Indicative proposal
from Ki Corporation and Public Storage (the ‘Consortium’) of $1.47 per security. ASK’s Independent Board
Committee rejected the Proposal on the basis it was not in securityholders’ best interests.
ASK announced a revised non-binding indicative proposal from the Consortium on 14 July 2025 with a new price
of $1.65 per security. As previously announced, the Independent Board Committee has accepted a six week
period of due diligence to the Consortium to determine whether a binding proposal can be developed that is
capable of being recommended to securityholders. The Group holds an equity accounted investment in ASK and
associated management rights which would both be impacted should a sale proceed. There are no further updates
to provide at this time.
Other than as disclosed in this report, there has been no other matter or circumstance that has arisen since the
end of the financial year that has significantly affected, or may affect, the Group’s operations in future financial
years, the results of those operations or the Group’s state of affairs in future financial years.
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
30 JUNE 2025
109
Body corporate
Body corporate
Country of
% of share
Country of
Entity name
Entity type
incorporation
capital held
tax residence
Abacus Group Holdings Limited
Body corporate
Australia
100
Australia
Abacus Finance Pty Limited
Body corporate
Australia
100
Australia
Abacus Funds Management Limited
Body corporate
Australia
100
Australia
Abacus Investments Pty Ltd
Body corporate
Australia
100
Australia
Abacus Note Facilities Pty Ltd
Body corporate
Australia
100
Australia
Abacus Property Services Pty Ltd
Body corporate
Australia
100
Australia
Abacus Storage Funds Management Limited
Body corporate
Australia
100
Australia
Abacus Camellia Investments Pty Limited
Body corporate
Australia
100
Australia
Abacus Riverlands Investments Pty Limited
Body corporate
Australia
100
Australia
444 Queen Street Pty Limited
Body corporate
Australia
100
Australia
Abacus 77 Castlereagh Street Pty Limited
Body corporate
Australia
100
Australia
Abacus Repository Pty Limited
Body corporate
Australia
100
Australia
Abacus U Stow It A1 Pty Limited
Body corporate
Australia
100
Australia
Abacus U Stow It B1 Pty Limited
Body corporate
Australia
100
Australia
Abacus USI C Pty Limited
Body corporate
Australia
100
Australia
Lutwyche City Shopping Centre Pty Limited
Body corporate
Australia
100
Australia
Oasis JV Pty Limited
Body corporate
Australia
100
Australia
Abacus Group Projects Limited & its subsidiaries
Abacus Group Projects Limited
Body corporate
Australia
100
Australia
Abacus Property Pty Ltd
Body corporate
Australia
100
Australia
Abacus U Stow It A2 Pty Limited
Body corporate
Australia
100
Australia
Sucaba UST Pty Limited
Body corporate
Australia
100
Australia
Abacus Allara Street Trust
Trust
N/A
N/A
Australia
Abacus Ventures Trust
Trust
N/A
N/A
Australia
Abacus Trust & its subsidiaries
Abacus Trust
Trust
N/A
N/A
Australia
Abacus Abbotsford Trust
Trust
N/A
N/A
Australia
Abacus Bowden Street Trust
Trust
N/A
N/A
Australia
Abacus K1 Property Trust
Trust
N/A
N/A
Australia
Abacus Lutwyche Trust
Trust
N/A
N/A
Australia
Abacus Oasis Trust
Trust
N/A
N/A
Australia
Abacus Richmond Trust
Trust
N/A
N/A
Australia
Abacus Virginia Trust
Trust
N/A
N/A
Australia
Abacus Westpac House Trust
Trust
N/A
N/A
Australia
Abacus Westpac House No. 2 Trust
Trust
N/A
N/A
Australia
Abacus 14 Martin Place Trust
Trust
N/A
N/A
Australia
Abacus 324 Queen Street Trust
Trust
N/A
N/A
Australia
Lutwyche City Shopping Centre Unit Trust
Trust
N/A
N/A
Australia
Oasis JV Unit Trust
Trust
N/A
N/A
Australia
Abacus Income Trust & its subsidiaries
Abacus Income Trust
Trust
N/A
N/A
Australia
Castlereagh Sub 1 Trust
Trust
N/A
N/A
Australia
Castlereagh FH Sub 1 Trust
Trust
N/A
N/A
Australia
Abacus Group Holdings Limited & its subsidiaries
DIRECTORS’ DECLARATION
30 JUNE 2025
110
In accordance with a resolution of the Directors of Abacus Group Holdings Limited, we state that:
In the opinion of the directors:
(a)
the consolidated financial statements, notes and the additional disclosures included in the
Directors’ report designated as audited, are in accordance with the Corporations Act 2001,
including:
(i)
giving a true and fair view of the Group’s financial position as at 30 June 2025 and of its
performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards (including Australian Accounting
Interpretations) and the Corporations Regulations 2001;
(b)
the financial report also complies with International Financial Reporting Standards as disclosed in
Note 22(b); and
(c)
there are reasonable grounds to believe that the Group will be able to pay its debts as and when
they become due and payable.
(d)
The consolidated entity disclosure statement required by section 295(3A) of the Corporations
Act 2001 is true and correct.
This declaration has been made after receiving the declarations required to be made to the directors in
accordance with sections 295A of the Corporations Act 2001 for the financial year ended 30 June 2025.
On behalf of the Board.
Myra Salkinder
Steven Sewell
Chair
Managing Director
Sydney, 25 August 2025
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Ernst & Young
200 George Street
Sydney NSW 2000 Australia
GPO Box 2646 Sydney NSW 2001
Tel: +61 2 9248 5555
Fax: +61 2 9248 5959
ey.com/au
Independent auditor’s report to the members of Abacus Group Holdings
Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of Abacus Group Holdings Limited (the Company) and its
subsidiaries (collectively the Group), which comprises the consolidated statement of financial position
as at 30 June 2025, the consolidated income statement, the consolidated statement of
comprehensive income, the consolidated statement of changes in equity and the consolidated
statement of cash flows for the year then ended, notes to the financial statements, including material
accounting policy information, the consolidated entity disclosure statement and the directors’
declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
Act 2001, including:
a.
Giving a true and fair view of the consolidated financial position of the Group as at 30 June 2025
and of its consolidated financial performance for the year ended on that date; and
b.
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the financial
report section of our report. We are independent of the Group in accordance with the auditor
independence requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
Accountants (including Independence Standards) (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with
the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial report of the current year. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide
a separate opinion on these matters. For each matter below, our description of how our audit
addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the
financial report section of our report, including in relation to these matters. Accordingly, our audit
included the performance of procedures designed to respond to our assessment of the risks of
material misstatement of the financial report. The results of our audit procedures, including the
procedures performed to address the matters below, provide the basis for our audit opinion on the
accompanying financial report.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Investment Properties
Why significant
How our audit addressed the key audit matter
The Group’s total assets include investment
properties either held directly or through an
interest in Joint Ventures and associates. These
assets are carried at fair value, which was
assessed by the directors with reference to
either external independent property valuations
or internal valuations and are based on market
conditions existing at the reporting date.
The valuation of investment properties is
inherently subjective given there are alternative
assumptions and valuation methods that may
result in a range of values. A small difference in
any one of the key market input assumptions,
when aggregated across all the properties, could
result in a significant change to the valuation of
investment properties.
Two approaches are generally used: the Income
Capitalisation approach and the Discounted
Cash Flow approach to arrive at a range of
valuation outcomes, from which the valuers
derive their best estimate of the value at a point
in time.
We have considered this a key audit matter due
to the extent of judgment required in
determining fair value. We draw attention to
Note 5 of the financial statements which
discloses accounting policy and sensitivities to
changes in the key assumptions that may impact
these valuations.
Our audit procedures included the following:
We discussed the following matters with
management:
movements in the Group’s
investment property portfolio;
changes in the condition of the
properties including tenancy
matters and development status on
a sample basis.
On a sample basis, we performed the
following procedures for selected
properties:
Evaluated the key valuation
assumptions and inputs. These
assumptions and inputs included the
adopted capitalisation rate and a
number of leasing assumptions
including market and contractual
rent, forecast occupancy levels and
future capital expenditure. We
agreed the passing rental income in
the valuations to the audited passing
rental income.
Tested the mathematical accuracy
of valuations.
Involved our real estate valuation
specialists to assist with the
assessment of the valuation
assumptions and methodologies.
Where relevant we compared the
valuation against comparable
transactions utilised in the valuation
process.
Evaluated the suitability of the
valuation methodology based on the
type of asset.
Assessed the qualifications,
competence and objectivity of the
valuers.
Assessed the appropriateness of
disclosures included in Note 5 of the
financial report.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Information other than the financial report and auditor’s report thereon
The directors of the Company are responsible for the other information. The other information
comprises the information included in the Group’s 2025 annual report other than the financial report
and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not and will not
express any form of assurance conclusion thereon, with the exception of the Remuneration Report
and our related assurance opinion.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information obtained prior to the date of this
auditor’s report, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of:
►
the financial report (other than the consolidated entity disclosure statement) that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001; and
►
the consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001; and
for such internal control as the directors determine is necessary to enable the preparation of:
►
the financial report (other than the consolidated entity disclosure statement) that gives a true
and fair view and is free from material misstatement, whether due to fraud or error; and
►
the consolidated entity disclosure statement that is true and correct and is free of misstatement,
whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters relating to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgment and maintain professional scepticism throughout the audit. We also:
►
Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
►
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s internal control.
►
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
►
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditor’s report to the related disclosures in the financial report or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
to the date of our auditor’s report. However, future events or conditions may cause the Group to
cease to continue as a going concern.
►
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events
in a manner that achieves fair presentation.
►
Plan and perform the Group audit to obtain sufficient appropriate audit evidence regarding the
financial information of the entities or business units within the Group as a basis for forming an
opinion on the Group financial report. We are responsible for the direction, supervision and
review of the audit work performed for the purposes of the Group audit. We remain solely
responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, actions
taken to eliminate threats or safeguards applied.
From the matters communicated to the directors, we determine those matters that were of most
significance in the audit of the financial report of the current year and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Report on the audit of the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 14 to 46 of the directors’ report for the
year ended 30 June 2025.
In our opinion, the Remuneration Report of Abacus Group Holdings Limited for the year ended 30
June 2025, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in
accordance with Australian Auditing Standards.
Ernst & Young
Jodie Inglis
Partner
Sydney
25 August 2025
ADDITIONAL INFORMATION
Number of holders of ordinary full paid securities
8,639
Number of holders holding less than a marketable parcel or ordinary fully paid stapled
securities
1,089
Voting rights attached to ordinary fully paid stapled securities.
One vote per security
Top 20 largest security holdings as at 24 July 2025
HOLDER NAME
NUMBER OF
SECURITIES
% ISSUED
SECURITIES
Ki Corporation Limited
446,738,859
49.99%
J P Morgan Nominees Australia Pty Limited
114,016,192
12.76%
HSBC Custody Nominees (Australia) Limited
97,644,313
10.93%
Citicorp Nominees Pty Limited
71,783,383
8.03%
Arym Investment Holdings Pty Ltd
14,600,000
1.63%
National Nominees Limited
8,575,962
0.96%
BNP Paribas Noms Pty Ltd
7,801,576
0.87%
BNP Paribas Nominees Pty Ltd
6,164,468
0.69%
BNP Paribas Nominees Pty Ltd
6,112,552
0.68%
Solium Nominees (Aus) Pty Ltd
3,681,462
0.41%
Quixley Finance Pty Limited
2,957,515
0.33%
Warbont Nominees Pty Ltd
2,160,363
0.24%
IOOF Investment Services Limited
1,431,240
0.16%
Gil Investment Company Pty Ltd
1,118,541
0.13%
Netwealth Investments Limited
1,048,162
0.12%
Neweconomy Com Au Nominees Pty Limited
997,583
0.11%
Mr. Peter Edward Morgan & Mr. Robert Scott Morgan
895,381
0.10%
The Trust Company (Australia) Limited
800,000
0.09%
Mr. Carlos Gil
782,754
0.09%
HSBC Custody Nominees (Australia) Limited
765,603
0.09%
Total Securities of Top 20 Holdings
790,075,909
88.41%
Total of securities
893,657,633
Spread of securities as at 24 July 2025
RANGE
HOLDERS
NUMBER OF
SECURITIES
% ISSUED SECURITIES
1-1,000
1,960
857,634
0.10%
1,001-5,000
2,871
7,989,493
0.89%
5,001-10,000
1,533
11,353,994
1.27%
10,001-100,000
2,131
56,105,238
6.28%
100,001-9,999,999,999
144
817,351,274
91.46%
Totals
8,639
893,657,633
100%
Substantial security holders1
SECURITYHOLDER
NUMBER OF SECURITIES
Ki Group Entities
446,738,859
1As disclosed in substantial securityholder notices provided to the ASX prior to 24 July 2025