31/08/2009 - 09:07

Aspen posts $64.7m loss on writedowns

31/08/2009 - 09:07

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Property developer Aspen Group has booked a full-year loss after tax of $64.7 million after accounting for $97.9 million of writedowns.

Property developer Aspen Group has booked a full-year loss after tax of $64.7 million after accounting for $97.9 million of writedowns.

However, the group said it recorded an operating profit after tax of $33.2 million for the year ending June 30 2009, down 24.2 per cent on the previous year.

Basic earnings per share before significant items was 11.91 cents, down from 18.06 cents on the prior reporting period.

"FY09 has been a year of consolidation, debt reduction and of maintaining balance sheet strength of both the Group and its funds," Aspen managing director Angelo Del Borrello said.

"The achievements to date now position the Group to capitalise on future market opportunities."

During the 2009 financial year the group raised $72.6 million, used to reduce debt and strengthen its capital position with Aspen today saying it is now well placed to withstand an additional 22 per cent fall in property values.

Total revenue for the reporting period dipped 9.2 per cent to $70.2 million.

The group's property portfolio recorded a 32 per cent lift in rental revenues driven by first time contributors, the Karratha Accommodation Village for Woodside Petroleum and L'Oreal's 10-year lease of premises in St Kilda.

"Rental income is forecast to again increase in 2010 on the back of strong performances across the portfolio and a full year contribution from the Karratha Accommodation Village," Aspen said.

Aspen's funds management division contributed $19.3 million to total revenue, a slump of 46 per cent on the previous financial year due to lower development and transactional activity.

Looking ahead, Aspen Group has forecast operating earnings to be between six and 6.7 cents per share.

Shares in Aspen were up one cent to 41 cents at 11:34 AEST.

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