This article is from the Australian Property Journal archive
The Multiplex European Property Fund has announced net profit of $6.84 million for the 12 months to June 30 – a fall from $15.28 million a year earlier.
The result includes $39.24 million fall in property valuations and $26.10 million in fair value adjustments on the fund’s derivative instruments, both of which are non-cash items.
During the period, total revenue was $85.01 million.
The fund has announced a distribution of 8.59 cents – in line with the equivalent forecasted distributions outlined in the fund’s PDS.
Fund manager David Newling the fund has met all its earnings and distribution targets for its first year of operations.
“However, looking forward, it is unlikely that the fund will be immune to the events that are happening in the current global environment. In light of this and in the long term interests of unitholders, revising the distribution level for FY09 will allow the fund to concentrate on preserving the value of the Fund’s assets and to establish some liquidity in the fund,” he added.
Meanwhile, the Multiplex Acumen Property Fund has recorded a net loss of $21.3 million. The results include an impairment loss of $51.7 million on the fund’s A-REIT portfolio as a non-cash item. Total revenue was $43.3 million an increase from $36.8 million in June 2007.
The fund’s normalised net profit was $28.6 million, up 17.4% on the pcp, reflecting higher distribution income of $28.9 million (up 8.5% on the pcp) and $10.2 million in gains on sale of investments (up from $1.5 million in the pcp). Over 90% of these gains on sale arose from the passive wind up of several unlisted and listed property investments during the period.
The fund has declared distributions per unit of 11.165 cents up from 10.72 cents.
Fund manager Tim Spencer said as a result of uncertain domestic and global economic, financial and property markets, over half of the fund’s 59 investments reduced distributions for the 2008 financial year and/or provided guidance that their distributions would be lower for the year to June 30 2009.
“Based on current market conditions and baring unforeseen events, for the financial year ending June 30 2009, the Responsible Entity has a target distribution level of at least 9.0 cents per unit,” he concludes. “Looking to the future, the fund’s high level of realised undistributed income and its high level of portfolio diversification positions it well during this period of global equity market uncertainty. Through these challenging times, management will endeavour to continue to maximise long term returns to all unitholders.”
Multiplex European Property Fund shares traded 1 cent lower at 52 cents and Multiplex Acumen shares traded 0.005 cent higher at 56 cents.
Australian Property Journal
