Last years financials. Am expecting an increase of anything...

Last years financials. Am expecting an increase of anything between $160-220 mill for 2005:



AUSTRALAND PROPERTY GROUP
AUSTRALAND HOLDINGS LIMITED (ABN 12 008 443 696)
AUSTRALAND PROPERTY LIMITED (ABN 90 105 462 137) AS THE RESPONSIBLE ENTITY OF
AUSTRALAND PROPERTY TRUST (ARSN 106 680 424)
REGISTERED OFFICE: LEVEL 3, 1C HOMEBUSH BAY DRIVE, RHODES NSW 2138
WWW.AUSTRALAND.COM.AU
ASX ANNOUNCEMENT
31 January 2005
AUSTRALAND ACHIEVES RECORD PROFIT FOR 2004
Australand Property Group (“Australand”) today announced a net profit after tax of $145.1
million for the year ended 31 December 2004, which compares favourably to the forecast net
profit after tax of $143.6 million as disclosed in the Product Disclosure Statement and
Prospectus for the non-renounceable 1 for 7 Entitlement Offer and Institution Placement
(“Prospectus”) dated 29 April 2004. This is the eighth consecutive record profit for the Group
since listing in 1997.
The key elements of the 2004 result were:
• Net profit after tax increased 52.4% to $145.1 million on gross revenue of $1,231.0 million,
compared to revenue of $1,405.4 million in the previous year.
• The Investment Property division contributed $60.9 million to the net profit after tax,
compared to $9.8 million in the prior year, representing a full year contribution from
Australand Wholesale Property Trust and Australand Wholesale Property Trust No. 2, and
a contribution of $10.5 million from Australand Wholesale Property Trust No. 3 acquired in
May 2004.
• Australand’s development operations contributed $96.3 million to the net profit after tax,
down from the prior year contribution of $107.6 million, mainly due to all of the Group’s
external interest being borne by the development operations.
• Earnings per stapled security were 18.6 cents, up 9% on the previous year amount of 17.1
cents per stapled security.
• Gearing (total liabilities / tangible assets) reduced from 51.1% to 45.6%.
• Net tangible asset backing per stapled security increased to $1.43 compared to $1.36 per
stapled security for the previous year.
• The total dividends / distributions for the year were in line with the Prospectus forecast of
16.5 cents per stapled security, up 23.5% from13.36 cents per security for 2003. The final
2004 dividend / distribution of 4.5 cents per stapled security (comprising a 2.35 cent fully
franked dividend and a 2.15 cents distribution, tax deferred to approximately 24%) is to be
paid on 2 February 2005.
Australand’s Managing Director Mr. Brendan Crotty, said: “This is an outstanding result for the
Group and confirms that Australand is on track to achieve our stated medium term strategy of
reducing the Group’s dependence on development profits and increasing the level of recurrent
investment income, so that investment property assets will contribute at least 50% of total net
income by 2007.”
“ In support of this strategy, it is anticipated that Australand will seek to acquire Australand
Wholesale Property Trust No.4 and Australand Wholesale Property Trust No.5, which have a
combined asset base of approximately $360 million, by late 2005 / early 2006. These
acquisitions, combined with properties to be developed by the Commercial & Industrial division
and retained by the Group, should enable the Group to achieve this strategy”, Mr. Crotty said.
DIVISIONAL RESULTS
Each division contributed to the result as follows:
• Land & Housing Division achieved an operating profit before tax of $127.6 million, an
increase of approximately 41% from the previous year, principally due to an overall
increase in land and housing margins.
2
• Apartments Division - as foreshadowed earlier this year, the Apartments Division’s pre tax
operating profit is lower than the corresponding period in 2003 principally due to the lower
level of pre-sales held at the start of the period and delays in obtaining relevant consent
approvals at sites in Sydney and South East Queensland. The Apartments Division’s
operating profit before tax reduced to $16.4 million from $46.5 million in the previous year.
• Commercial & Industrial Division’s operating profit before tax of $8.5 million was down
from 2003 result of $28.7 million principally due to the write-down of the carrying value of
some projects in the 1st half of 2004. The December 2004 half year contributed $15.8
million reversing the June half-year loss of $7.3 million.
• The Investment Property operations generated an operating profit of $60.9 million
reflecting a full year contribution from Australand Wholesale Property Trust and Australand
Wholesale Property Trust No.2 and an 8 month contribution from Australand Wholesale
Property Trust No.3.
MAJOR FINANCIAL TRANSACTIONS
The following major financial transactions occurred in 2004:
• Equity of $189 million was raised in May 2004 through a non-renounceable 1 for 7
entitlement offer, raising $164 million, and an institutional placement of $25 million. These
funds were used to fund the acquisition of Australand Wholesale Property Trust No. 3 and
to reduce the level of gearing.
• The acquisition of Australand Wholesale Property Trust No.3 increased the total value of
the Group’s investment property assets from approximately $380 million to approximately
$600 million, with a resultant increase in the proportion of recurrent income.
• Group debt was refinanced during the year including:
- a new $600 million Syndicated Multi Option funding facility completed in June 2004;
- raising of $315 million via a 5 year commercial mortgage backed securitisation
(“CMBS”) issue in June 2004;
- repayment of the Group’s $50 million unsecured notes on 30 June 2004; and
- increase in the average debt maturity from 1.4 years to 3.8 years.
• The construction programme for Australand Wholesale Property Trust No.5 was
completed in October 2004.
• A number of projects were placed in joint ventures during the year to free up working
capital and diversify project risk.
OUTLOOK
The Group has confirmed its intention to increase recurrent income so that it is greater than
development income by late 2006 / early 2007. Implementation of the current strategic plan is
expected to progressively increase property investment income as a percentage of total profit,
via the retention of income producing properties, developed by the Commercial and Industrial
Division, for a considerable period post 2007.
In commenting on the Group’s outlook for 2005, Mr. Crotty said “Although market sentiment is
likely to constrain the profitability of the Apartments division for the foreseeable future, solid
performances by the Land & Housing and Commercial & Industrial divisions and higher
investment property income, should enable the Group to deliver a profit result for 2005, which
will support distributions to stapled security holders at least equivalent to total 2004 distributions
of 16.5 cents per stapled security.”
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For further information, please contact:
Brendan Crotty David Craig
Managing Director Chief Financial Officer
Tel: +61 2 9767 2002 Tel: +61 2 9767 2041
Email: [email protected] Email: [email protected]