Valad cautious amid uncertainty
Valad Property Group has adjusted its earnings guidance in the face of what it describes as uncertainty across all financial markets, particularly global property.
In an announcement issued on the Australian Securities Exchange today, Valad chairman Stephen Day said it was clear that the sub-prime crisis had proved challenging for both financial and property markets this year.
“These market conditions have impacted our 2008 financial year earnings with the combination of our decision to be careful with the deployment of available capital in our funds and the lower activity in the markets,” he said.
Day said that despite these conditions, Valad had successfully grown its funds management business during the financial year, having raised capital in six different funds or vehicles and extended the life of one fund by seven years, thus continuing to grow the company’s recurring earnings base.
“With low group gearing of approximately 32 per cent and around $800 million of purchasing power available to funds, Valad is now well positioned to take advantage of the opportunities created by the dislocation within markets,” he said.
Day said that Valad currently anticipated earnings per security growing in the 2009 financial year from the 11.1 cents per stabled security in financial year 2008, with guidance to be provided on August 26.
AUTHOR
Mike Taylor
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