VPG 0.00% $1.79 vodafone group plc.

perfect time to swallow revaluations

  1. 2,922 Posts.
    This is the perfect time to let revaluations eat into their profit sheet,they may as well do it now while the stock is on a low.
    It will be a very big second half profit !


    Valad H1 profit down to $21.1m

    Valad Property Group says it will meet its full year guidance after a strong start to the financial year and will ride out the turmoil on world capital markets through its diversification of investments and geographic markets.

    The property fund manager and developer, which has investments in Asia Pacific, Europe and the UK and North America posted a interim net profit of $21.1 million down from the previous corresponding period of $66.8 million due to revaluations.

    However, underlying earnings were up 139 per cent to $74.7 million for the six months to December 31 compared with the previous corresponding period.

    "Valad is well positioned to ride out current difficult market conditions and can react quickly and opportunistically," chairman Stephen Day said.

    "The group's strategy over the next six months will involve consolidating and capitalising on our businesses in existing geographies in Australia, NZ, UK and Europe," Mr Day said.

    "We will continue to integrate our UK/European platform while improving margins across the business and leveraging investor bases across regions."

    Mr Day said Valad wanted to realise strategic opportunities through its recently announced alliance with US-based retail trust manager Kimco Realty Corporation.

    He said diversification of its investments meant less risk in some parts of the market.

    "We can make it up in other parts of the business where diversification is working for us."

    "We have had a really excellent start to second half with the launch of funds such as Nordic Aktiv Fund 2, VPlus and VOF 12 and more in the pipeline," Mr Day said.

    Valad traditionally had an earnings skew towards the second half of the year.

    "We draw strong comfort that we are meeting our guidelines while building the business with a strong performance, low gearing, which is going lower, and prudent capital management.

    "This is combined with the ability to take on any opportunities that the market might come up with.

    "We are confident in our ability to maintain and grow earnings based on our diversified business platform of four key business lines across 13 countries," Mr Day said.

    Mr Day said the group would continue to maintain prudent capital management and keep gearing at the lower end of its target range.

    There was no unfunded debt expiring in fiscal 2008 and Valad's balance sheet gearing was 32 per cent.

    The company had $1.2 billion of debt available including $450 million for general corporate use.

    Distributions for the period were 6.25 cents per security, up from 5.40 cents per security and underlying earnings per security were unchanged at five cents.

    At 1320 AEDT Tuesday securities in the company were up 5.5 cents or 6.29 per cent to 93 cents.

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