Blue Sky FY18 Results and Business Update

  • Changes to business model under way, strong cost discipline introduced, improvements to corporate governance being implemented and portfolio rationalisation well progressed.
  • Commitment to focus on institutional grade assets with the ability to achieve scale and genuine competitive advantage.
  • Fee-earning assets under management (‘FEAUM’) of $3.4 billion, including equity and debt capital deployed of $2.8 billion at 30 June 2018.
  • Discussions progressing on key terms for a capital partnership with Oaktree Capital Management (‘Oaktree’).

FY18 RESULTS

  • Underlying revenue of $24.9 million, compared with $68.0 million in the financial year ended 30 June 2017
  • Underlying Net Loss After Tax of $85.6 million, compared to a $25.5 million Net Profit After Tax in FY17, impacted by:
  • Provisions against the recoverability of receivables from related parties (principally investment funds) of $31.5 million;
    • Fees repaid in relation to terminated real estate development projects of $14.7 million;
    • Write down of the carrying values of Australian real estate development platforms as a result of the termination of four projects totalling $16.4 million, and non-cash valuation adjustments to Blue Sky’s carrying value of its interests in its US commercial property and student accommodation joint ventures of $5.1 million;
    • Write down of the carrying value of co-investments into investment funds of $2.6 million; and
    • Unanticipated costs in relation to staff retention, corporate and legal advice and other external service providers of $9.7 million.
  • Underlying Net Tangible Assets (‘NTA’) at 30 June 2018 were $152.4 million ($1.97 per share). On a pro forma basis and considering the estimated impact of new accounting standard AASB 15 from 1 July 2018, NTA is expected to reduce to $1.70 per share.
  • Cash balance of $40.0 million at 30 June 2018, with no corporate debt.

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