Brisbane Markets Limited (BML) is providing the following update to shareholders in relation to a number of relevant matters.
Market Rental Review and Lease Extension
Shareholders would be aware from previous communications that BML has 114 leases that were due to expire on 31 August 2024, and that all Tenants with expiry leases have exercised their option to extend the lease for a further term.
Further, there are 135 leases that are subject to a market rental review at 1 September 2024, including the 114 leases mentioned above. The process in determining the market rental review included BML and Brismark each appointing a third-party valuer to conduct a market rental assessment, and a process of negotiation was progressed in accordance within an agreed framework.
This lengthy process has now concluded with BML making a rental offer to Brismark and agreement being reached in relation to the applicable rates of market rent to apply. The majority of leases have seen increases to the net rent of 1.5% to 4.5%, which follows on from the 3.4% CPI increase at 1 July.
Valuation at 30 June 2024
BML has completed the valuation of properties at 30 June 2024, with the properties owned being valued at $419.5 million compared to a value of $413.0 million at 31 December 2023. This is a pleasing result in an environment of increasing interest rates and yields.
Dividend Statements
Shareholders need to be aware that BML is currently working through some issues in relation to the dividends paid to shareholders during the year, to ensure that the franking of dividends is managed to achieve the best outcome for shareholders and the company.
This process may require BML to reissue the dividend statements to shareholders, so we suggest that you defer finalisation of your income tax affairs for 30 June 2024. BML is hopeful that there will be little or no impact to the majority of shareholders and is currently seeking confirmation from the Australian Taxation Office in relation to the matter.
We will be in further communication in relation to this matter during September.
Andrew Young
Managing Director and CEO
Shareholders interested in buying or selling shares in BML, or who need any information in this regard, may register their interest by clicking here or to sell your shares, please click here.
For more information regarding this notice, please contact BML on (07) 3915 4200.