Centro Properties slips to loss in FY08 - Update
8/29/2008 12:43 AM ET
(RTTNews) -
Thursday evening, Australia-based Centro Properties Group (CEOPF.PK: News ,CNP.AX: News ) reported a net loss for fiscal year 2008 compared to a profit in the prior year, hurt by a reduction in its U.S. and Australian retail property values and impairment of the company's investment in joint ventures.
The company said that for fiscal year 2008, its net loss after tax attributable to ordinary shareholders was A$2.06 billion, or 257.27 Australian cents per share, compared to a profit of A$469.72 million, or 57.83 Australian cents per share, in the prior year.
Centro, a high-profile victim of the global credit crunch, said that results for the year were impacted by non-cash and non-recurring items, including property revaluations of A$1.19 billion, asset impairment of A$772 million, unrealized derivative losses of A$181 million and restructuring costs of A$130 million.
Underlying earnings attributable to ordinary shareholders for the quarter declined 27.8% to A$242.0 million from A$335.3 million a year ago.
Revenue and income for the year surged 94% to A$745.08 million from A$383.19 million in the previous year primarily due to two business combinations that occurred in the second half.
Commenting on the results, Glenn Rufrano, the CEO of Centro said, "Maintaining the underlying value of the business has been a major focus of the management team. The headline loss of $2.06 billion does not reflect the operating performance of the Group for the past financial year."
Centro, which had more than A$8.5 billion of syndicated funds under management in Australia, borrowed heavily last year to fund its rapid expansion in the U.S. However, it found itself in trouble after the credit crunch surfaced and was unable to refinance maturing debt.
In June, the company announced that its financiers provided additional liquidity facilities by extending the financing arrangements to December. In order to repay its debt, the company intended to sell its stake in two open-ended wholesale funds, Centro Australia Wholesale Fund and Centro America Fund.
1
2
Next Page
|
|