Perth-based developer Aspen Group has reported a drop in interim net profit after tax to $7.7 million, down from $13 million the previous half year on the back of asset revaluations.
The results included a $6.9 million write-down on assets due to falling property values, a $4.7 million downward adjustment to the carrying value of associates and a $2 million gain on the group's interest rate swaps.
Revenue was up to $41.4 million, from $36.3 million in the prior corresponding period.
The company said highlights included a 10.4 per cent increase in net rental income from its investment property portfolio; a five per cent increase in the contribution from its funds management business; and an 8 per cent reduction in corporate overheads.
Aspen Group managing director Gavin Hawkins said the timing of upcoming residential settlements would drive its funds management income higher, resulting in a positive outlook for the full year result.
Aspen said it expected a 14 per cent increase in operating profit before tax in its full FY2011 results.
Mr Hawkins said Aspen had set a clear strategy in August to improve its property portfolio through asset recycling, expand its funds management network and extend its debt facilities while disposing of non-core assets.
"We've made excellent progress over the last six months in implementing our strategy, and the ground work that we have put in place demonstrates that the business is vey much on the right path to generate securityholder value over the next 12 months and beyond," he said.
The company paid an unchanged interim dividend of 2.1 cents per share.
At 12:00PM (WST) Aspen shares were also unchanged, trading at $0.46.
