Australand Property Group, the
Australian unit of Singapore’s CapitaLand Ltd., returned to
profit in the first half, driven by its investment properties.
Net income was A$72.2 million ($65.1 million) in the six
months ended June 30, from a A$268.8 million loss a year earlier,
the Sydney-based company said in a statement to the Australian
stock exchange today. Operating profit was A$60.4 million, from
A$60 million a year ago.
“A quality investment portfolio with a good tenant base”
is one of Australand’s strengths, Simon Wheatley, an analyst at
Goldman Sachs JBWere, wrote in a note earlier this month when he
initiated coverage of the stock with a “hold” rating.
Australand has benefitted from demand for residential
properties in Australia, driven by a growing population and a
housing shortage. Stable rents and relatively low vacancy rates
in its office portfolio also helped boost earnings, it said.
Operating profit for 2010 will be similar to the A$168.8 it
saw in 2009, Australand said.
Australand shares were up 0.8 percent at 10:10 a.m. in
Sydney trading.
To contact the reporter on this story:
Nichola Saminather in Sydney at
Nsaminather1@bloomberg.net.
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