APN Property Group (APN) has appointed a new managing director while also releasing its earnings guidance for the coming financial year.
David Blight, the former global chairman and chief executive of ING Real Estate Investment Management and vice chairman of ING Real Estate, will take up the role of APN managing director in November.
Blight is relocating to Melbourne from the Netherlands to take up the position. Current APN managing director Chris Aylward will continue with the group as an executive director.
The group has also announced its anticipated profit for the financial year ending June 30, 2009, stating its expectation to deliver profit after tax of $5.7 million — an almost 50 per cent reduction in last year’s profit after tax of $10.1 million.
This figure includes the non-cash cost of share options to employees, including a “substantial one time cost of shares” to be issued to Blight, and Blight’s base salary of $850,000. Cash profit after tax is forecast to be $8.2 million.
The forecast highlights that there will be “some cost cutting to reflect lower revenues”, including a reduction in overhead expenses through “staff reduction and other cost constraints”.
“Allowing for market uncertainties and potential budget variances, directors forecast profit after tax for the full year to fall within the range of $5.0 million to $6.5 million,” a statement from APN said.
Blight’s career in real estate and funds management dates back to 1989, when he commenced with Armstrong Jones before it was acquired by ING Group affiliates. While Blight was managing director of ING Real Estate Investment Management he saw the business grow from $800 million to $5 billion over six years.
On commencement with APN, Blight will be issued 10 million APN shares, which today were trading between 50 and 53 cents. Blight will also have access to a further 6 million shares should he achieve certain performance targets.
Blight’s initial term at APN will expire at the end of 2011.
