australand property 1h net profit down 79pct

CANBERRA (Dow Jones)--Australian developer Australand Property Group (ALZ.AU) Monday reported a 79% drop in fiscal first half profit amid a downturn in residential market conditions, particularly in New South Wales state.

Australand's shares were also placed in a trading halt ahead of a capital raising to strengthen its balance sheet.

Australand said in a statement that its net profit, including unrealized losses from property revaluations and one-off write downs, in the six months ended June 30, 2008, was A$25.6 million.

The developer will pay a first half dividend of 8 Australian cents a share, unchanged from the year-ago period. But it revised its future dividend policy to distribute 100% of property trust earnings, while reducing the payout ratio in the development business to zero, at least until the end of 2009.

Australand announced a non-underwritten one-for-one renounceable entitlement offer at A$0.60 per security to raise between A$302 million and A$557 million of additional capital.


-By Rachel Pannett, Dow Jones Newswires; 61-2-6208-0901; [email protected]