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Valad Property net loss $248m in FY08
09:47, Tuesday, 26 August 2008

Sydney - Tuesday - August 26: (RWE Aust Business News) - Valad
Property Group (ASX:VPG) posted a net loss of $248 million for the year
to June 30 2008, compared with FY07's net profit of $109.1m.
Revenue was up 436pc to $729.7m.
A final distribution of 4.85c, unfranked, will be paid August 29.

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Outlook
New managing director Peter Hurley said the recent business
review has been a necessary step to ensure that Valad responds
effectively to the tough prevailing conditions.
"The conditions that we are all facing have been challenging and
we are disappointed not to have met our original FY08 DPS and EPS
targets," he said.
"With no sign that uncertainty in the financial and property
markets will ease anytime soon, we have taken a very conservative view of
the future, and have begun a process to re-set the business so that
growth can be achieved from today.
"We see no benefit for any of our stakeholders in taking a
bullish view of our earnings in FY09, although we believe that working
off this base there is every possibility for over performance,
particularly with regard to our Funds Management business.
"We have also adjusted our distribution policy to pay out 75pc of
underlying earnings to better match our cash earnings over the coming
year."
Valad expects fiscal 2009 net profit in the range of $115 million
to $145 million, which translates to earnings per security of 7c to 9c
and distributions per security of 5.25c to 6.75c.
"The FY09 guidance represents our conservative view of reliable
earnings that we expect to achieve this year. This is obviously formed on
the basis that market conditions remain under stress but do not suffer a
material deterioration," Mr Hurley added.
"This will be a year of consolidation for Valad and we plan to
capitalise on our solid business platform in Asia Pacific and Europe. It
is this network of local property experts across 17 countries that is
attracting the significant and much appreciated support of our wholesale
fund investor base."

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Result
There was a 123pc rise in annual underlying profit to $169.6m.
Following a business review that highlighted the need to realign
operations amid challenging global market conditions, asset revaluations
and goodwill write-downs have led to the reported loss.
The business review undertaken over the past two months has
resulted in a $247m write-down of goodwill relating to the 2007
acquisition of the European platform, a write-down of $15m in the Asia
Pacific VCS portfolio and a $24m write-down of the Crownstone European
portfolio.
These unrealised devaluations, along with another $117m in
properties and fund co-investment, have also been included in the fiscal
2008 results.

*****
Board and management changes
Executive chairman Stephen Day, on medical advice, has decided to
change his role to executive director. Operational responsibility will
rest with Peter Hurley, who will become managing director.
Mr Hurley has been based in London for the past 12 months and
will eventually return to Sydney.
Trevor Gerber, who is currently deputy chairman, will become the
independent non-executive chairman.
Martyn McCarthy will continue his role as CEO Europe.