After listing on the Australian Securities Exchange in October 2006, the Challenger Diversified Property (CDI) group has managed to push its way through tough market conditions to post a net profit after tax of $36 million for the year ended June 30, 2008.
The result confirmed earnings per unit of 6.71 cents and distributions per unit of 8.45 cents, however a change to its distribution policy will see the company paying its distributions from profit from operating activities after providing maintenance capital expenditure.
The company has issued distribution guidance for the new financial year of 7.5 cents.
In its analysis of activity, it said in recognition of the importance of up-to-date property valuations during a time of rapidly changing market conditions, all properties in the CDI portfolio were independently re-valued as at 30 June, resulting in a write-down of $27 million or 3 per cent of gross portfolio value.
Commenting on the result, CDI fund manager Trevor Hardie said that the fundamentals of the property portfolio continued to underpin its performance.
Looking at the new financial year, Hardie said that the quality of CDI’s portfolio with its Australian focus and reliance on rental income underpinned by long leases and quality tenants made the company a “back to basics property trust investment”.
