• 3.0% increase in investment property holdings to $87.2m
• 8.5% increase in property rental income
• NTA per share $1.64
• Reduction in bank debt of $3.6m
• Overall gearing remains low at 31.7%

Desane Group Holdings Limited (ASX: DGH) is pleased to announce its results for the half year ended 31 December 2024, confirming Earnings Before Interest & Tax (EBIT) of $1.5m ($0.8m NPAT). Key financial highlights include an increase of 3.0% in investment property holdings to $87.2m, an increase of 8.5% in property rental income over the previous corresponding period, and NTA per share of $1.64. The company has also achieved key capital management highlights, such as a reduction in bank debt of $3.6m and an overall gearing ratio remaining low at 31.7%. Operationally, the company has secured a new 5-year lease with Brisbane City Council for premises at 16 Industrial Ave, Wacol, and has seen a valuation uplift of 8.6% for 159 Allen Street, Leichhardt, resulting in an improved leasing profile and operational earnings heading into FY25 and FY26. The company is focused on unlocking additional value from its existing property portfolio, which may require capital and/or debt funding, and has resolved to not recommend the payment of an interim dividend for the half year ended 31 December 2024.

Desane has not provided any high-importance, price-sensitive forward-looking financial metrics in the announcement.

Despite broader challenges in the property investment market arising from persistent inflationary pressures and volatile interest rates, Desane has delivered a positive result for the first half of FY25. The fundamental drivers of the industrial sector remain broadly positive with continued tailwinds in the form of population growth, government infrastructure projects, interest rates and inflation. There is a market expectation that demand for quality and well-located industrial sites should remain positive in 2025 which will no doubt improve Desane's operational earnings. The key factor determining Desane's residential development pipeline in the short to medium term will be the continued high cost of construction which is affecting feasibilities right across the private sector. Management will maintain a disciplined and proactive approach to all of its projects over the second half of FY25.