Centro achieves record profit

The Centro Properties Group has capped off the 2005-06 financial year by reporting a record distributable operating earnings figure of $295.3 million, representing an increase of 16.5 per cent on the previous year.

The company’s services business, which includes its property trusts, was a major contributing factor to the result with this area of activity generating an income of $103.3 million. This figure is up from $57.6 million for the same period last year and represents a 79.3 per cent rise.

Centro chair Brian Healy said: “Centro’s point of difference within its services business is its strong funds under management (FUM) capabilities. The combination of continuing investor demand for direct retail property and Centro’s established and broad distribution channels including financial advisers and the growing administration platforms, has resulted in a record $426 million being raised by its managed funds throughout the year.”

Overall the firm’s FUM finished the financial year at $11.5 billion, a 26.4 per cent lift from last year’s level of $9.1 billion.

This growth was predominantly driven by the organisation’s involvement in the United States. Throughout the year Centro acquired $813 million of property in the US, including seven retail shopping malls.

As such, retail property continued to play a major role in Centro’s record result with 72 per cent of its 2006 net income stemming from the property ownership division.

Centro is confident of sustaining solid results and returns for investors in the coming financial year.

“Centro is very proud of its strong record of returns to investors. Having built and consolidated upon earnings accretive platforms, and with the development of Centro’s cemented co-investment business model, Centro’s property ownership business should continue to allow superior returns to be provided to investors,” Centro chief executive Andrew Scott said.