Australand reports of rising half year net profit, reaffirms earnings guidance for 2010
Real estate developer Australand Property Group (ASX: ALZ) said on Tuesday that its half-year net profit has more than doubled, enabling the company to reach its full year earnings guidance for fiscal year 2010.
Australand said that it netted a total of $72.222 million from its revenue of $281.507 million, which is ten percent lower from the first half of fiscal 2009, declaring that the company is set to issue a half year distribution of 10 cents per security, unfranked, and possibly another 10.5 cents for the full year results.
The company said that its fundamentals in residential, commercial and industrial sectors are positive and achieving its full year earnings guidance is almost a certainty with possible more rooms for expansion in the year after, adding that the group's operating profit in 2010 should be the same as the numbers realised in the previous year.
Australand said that it remains optimistic that "development activity in the commercial and industrial division will strengthen during the second half of 2010, leading to growth in 2011," adding that the company's residential division full year earnings before interest and tax (EBIT) contribution is projected to be in line with 2009.
The company said that its quality assets have been stabilised and earnings culled from investment properties should steady as existing rental growths and new assets are introduced from the group's development pipeline.
Its investment property division registered and EBIT of $82.6 million, which the company said is sustaining its distributions, stressing that "our portfolio metrics remain strong, with high occupancy, long leases and fixed rental growth supporting the predictable nature of the divisions' earnings."
Australand said that its commercial and industrial division EBIT was $10.9 million, with the residential EBIT posting a turnover of $23.7 million, as it cited much better operating results coming from the residential sector with most activities occurring in its Melbourne and Sydney markets.
It added that the company's development activities are now parallel with improvements seen in the economy, stating that 'the commercial and industrial divisions' forward workload has increased substantially since the end of 2009, and enquiry levels are continuing to improve."