nicoleleethats a bit harsh. revenues are increasing and profits...

nicolelee
thats a bit harsh. revenues are increasing and profits were always going to be down because of the aggressive expansion strategy (is losses from new floors). recovery in commercial property, especially in the US, has only really just levelled out - recovery yet to hit- look at the price of Westfield. expansion is now slowing with SRV so the losses from immature floors will drop rapidly, and profits from mature floors rise rapidly (assuming economic recovery continues). give it 3 years and it will be making >50c a share and the current price will look like a bargain, IMO.
the big query is whether the the model in the areas it has expanded to will be as successful as australia. who knows, but they have gone to a lot of areas, so they may have to close a few down if they cannot get them to work, but at least they dont have all their eggs in one basket (although a lot of eggs in the US of course).