This article is from the Australian Property Journal archive
SUMMARY first half year results for the six months ended December 31 2008.
RETIREMENT and student accommodation operator ING Real Estate Community Living has recorded an interim net operating income of $15 million, a fall of 37% when compared to $23.9 m in December 2007.
The fund said the decline is largely attributed to the Australian Garden Villages portfolio. Its results in December 2007 were cushioned by the ILF income guarantee that expired in June 2008 and the SCV master lease that terminated in September 2008.
ILF has announced an interim distribution of 1.5 cents, which was paid for the three months to September quarter. There were no distributions for the December quarter. Last year, the fund distributed 5.725 cents for the six months period.
SKI fields owner Living and Leisure Australia Group, has returned to profit following its recapitalisation with James Packer’s private equity arm Arctic Capital. LLA yesterday achieved a first half year net profit after tax of $10.4 million compared to $11.9 million loss in corresponding FY08 period.
Formerly known as MFS Living and Leisure Trust, LLA’s profit represents a $22.3 million financial turnaround and an increase in operating EBITDA to $24.7 million (excluding property) (H1 FY08 $21.6 million).
Chief executive John Schryver said no distribution will be paid.
PROPERTY funds manager and financial service group Over Fifty Group Limited has reported a weaker interim profit result of $2.54 million, down from $5.28 million.
OFG delivered a statutory net loss after tax of $9.82 million compared to a net profit after tax of $3.65 in the same period last year. This first half year result included $4.88 million impairments of property trust investments; $1.75 million loss on property revaluations; $1.06 million write down for doubtful debt – mortgages; and $1.91 million fall in mark to market of financial instruments.
OFG has decided it will not pay an interim dividend for the half year and said the priority at this time is to reduce debt.
SERVICED apartment manager Oaks Hotels & Resorts has announced a first half year net profit after tax of $6.47 million which was an increase of 35.8% over the same period last year of $4.76 million. The statutory result, including non cash losses of $2.1 million, was $4.43 million – down 7.13% from last year.
Chief Executive Officer Brett Pointon said despite the global economic downturn the group has achieved significant growth and met all its forecasts for the period. Oaks revenue from ordinary activities grew 13% from $54.8 million to $61.9 million.
The board announced an interim dividend of 3 cents.
Pointon has forecast guidance of an Operational EBITDA between $36 million to $39 million for FY09.
PROPERTY funds manager Viento Group has delivered a woeful loss after income tax of $6.21 million – worst than last year’s loss of $1.82 million. Revenue for the half-year also fell from $2.12 million to $1.55 million.
Viento will not pay a dividend for the period, unchanged from last year.
BRISBANE developer and car park owner Ariadne has delivered an after tax loss of $405,000 compared to a net profit of $2.34 million in December 2007.
Chief executive Murray Boyte said the result was adversely affected by property impairment write downs of $673,000 and interest rate swap charge of $1.58 million. Excluding these non-cash charges, Ariadne reported a profit for the period of $1.84 million, however, no interim dividend was declared.
Boyte said Ariadne has no exposure to the property sector, other than minimal residual exposure to residential property and does not hold any redevelopment sites. S&K Car Park Management Pty Ltd, the 50% owned car park group, reported a profit contribution of $2.16 million and Boyte expects trading conditions to remain difficult.
OVER 50s and senior homes developer Community Life has booked a net loss of $2.5 million because of a $3.3 million write down to the company’s investment in its associate RewardsCorp Limited.
Revenue was up due to the sale of one property. As at December, the company owns and manages 65 studio styled units located at its Waratah (Newcastle) site which are rented as budget and student accommodation.
Occupancy levels average approximately 90% and continue to provide a stable rental return.
PROPERTY development financier Indigo Pacific Capital has announced a net loss of $6.5 million for half year, after writing down $6.5 million.
Total income for the period was $4.6 million, $0.8 million less than the previous corresponding period due to a drop in interest rates flowing on from the reduction in the Reserve Bank cash target rate.
Operating expenses excluding impairment were $284,007 compared to $554,394.
The impairment booked during the period was $11 million. IPA said no interim dividend will be paid.
CHILDCARE centre property trust Australian Education Trust has announced a distributable income of $5.2 million for the first half year – down from $9.99 million.
The trust’s statutory result was a net loss of $41.28 million which comprised of a reduction in fair value of financial instruments of $21.3 million and devaluation on investment properties of $25.1 million.
WESTERN Australian based developer Peet Limited has credited falling interest rates and government incentives for holding up the company through the tough times.
Peet Limited announced an operating profit after tax of $14.5 million, which 5.2% lower than the previous year. Revenue was up 23% to $71.17 million.
Managing director Brendan Gore said the group’s results had been achieved in extremely challenging market conditions.
“Falling interest rates and government incentives have helped activate our core markets – first and second homebuyers – and this increased activity, together with our continuing focus on optimising performance,” he added.
But the group did write down $4 million from its land bank, resulting in a $10.5 million statutory profit – down 31.2%.
Peet will pay a dividend of 3 cents per share.
Looking ahead, Gore said based on the key factors already improving affordability continuing – particularly for first and second homebuyers – it is expected that the Victorian market will remain solid and the WA operations will continue to make a positive contribution.
Australian Property Journal
