Centro Retail Group has swung to a half year profit as a result of a slow down in property valuation declines and advantageous foreign exchange movements.
Net profit for the six months ending December 31, 2009 was $196.68 million, compared to a loss of $2.06 billion in the previous corresponding half.
Centro Retail Trust chief executive Glenn Rufrano said in a statement on Wednesday that net profit was boosted by foreign exchange and slower property valuation declines.
Underlying profit was down $8 million on the previous corresponding period to $80.7 million due to the ongoing difficult US economic situation and the impact of the stronger Australian dollar on net US income.
Revenue for the half was $39.4 million compared to $46.1 million.
Net tangible assets per security were 35 cents, down from 72 cents.
‘‘Revenue has decreased in comparison to the prior corresponding period due to unfavourable movements in the Australian/United States dollar foreign exchange rate and deteriorating macro economic factors which have had an adverse effect on the occupancy and profitability of (our)s US portfolio,’’ the company said in a statement.
Revenue from the Australian investments was stable.
Comparable Australian property values decreased by 1.6 per cent between June 2009 and December 2009 and property values in the US have decreased 3.9 per cent for the same period.
Centro US chief executive Michael Carroll said recovery in the US is anticipated to be bumpy and slow but he has seeing modest improvements particularly compared to the operating environment of 12 months ago.
‘‘Occupancy declined in the US by 70 basis points over the six months to 31 December 2009,’’ Mr Carroll said.
‘‘Prior US bankruptcies caused this decline, a trend fortunately not continued in 2010.Retail conditions are still difficult but are showing early signs of stabilising, he said.No interim distribution was declared.
AAP
