Australand reports net loss of A$298.2m

CapitaLand’s Australian unit, Australand, said on Tuesday that it made a net loss of A$298.2 million.

It said the accounting loss was due to revaluation losses on investment properties amounting to A$249.4 million.

Moreover, it incurred the impairment of development and joint venture assets amounting to A$148.4 million, on top of a non-recurring finance cost of A$20.7 million.

But Australand said it achieved a net operating profit after tax of A$120.2 million for the full year ended in December, in line with its guidance.

Going forward, Australand said an improved outlook and economic conditions will help to strengthen development activity. It added that it intends to seek approval at its annual general meeting to undertake a five into one consolidation of its stapled securities.

It said that this will reduce the large number of securities on issue following the recent entitlement offers.

CapitaLand is due to announce its group results on Thursday.

Source : Channel NewsAsia – 9 Feb 2010

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