Australand First-Half Operating Profit Rises on Investment Property Unit

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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