valad loss narrows as business steadies

http://www.smh.com.au/business/valad-loss-narrows-as-business-steadies-20100225-p54p.html

Valad loss narrows as business steadies
February 25, 2010 - 2:25PM

Valad Property Group has made a smaller first-half loss than last year and says its business is now stable and the fund manager is focused on growing revenue.

The group, which manages $9 billion in assets, posted a net loss of $103.6 million for the six months to December 31, 2009 compared with an $821 million loss in the prior corresponding period.

The result included writedowns of $46.2 million on the property investment portfolio and $58.6 million on other assets including co-investments.

Underlying profit was $3.6 million down 74 per cent from $14 million in first half 2008/09.

Valad, which did not declare a dividend, said that revenues from ordinary activities were down 56 per cent at $84.1 million for the half year.

Managing director Peter Hurley said the business was now stable and there was opportunity for growth through the scale of our existing business and through new business.

''We manage $9 billion of assets and as markets recover the value of our direct and indirect property interests will increase, as will our fees in line with property values,'' he said.

Valad securities were down half a cent at 10.5 cents.

AAP