GPT says well positioned for 09 after posting $3.25bln loss
Property trust GPT Group has delivered a $3.25 billion annual net loss but says the company has a well positioned balance sheet amid challenging global operating conditions.
GPT posted a net loss of $3.25 billion for calendar 2008, reflectiong the impact of non cash items including asset revaluations and the mark to market of GPT’s derivative positions.
Acting chief executive Michael O’Brien said 2008 was a challenging year throughout as credit and real estate markets continued to deteriorate.
“We are seeking to reposition the business for the long term through a focus on the ownership, management and development of high quality Australian real estate, and a more conservative financial structure,” Mr O’Brien said in a statement.
GPT said it had a “well positioned balance sheet” entering 2009 and continues to forecast realised operating income of $347 million for the year.
GPT said the impact of the credit crisis on the real estate environment had been unprecedented in recent history, and global operating conditions remain extremely challenging.
Australian property groups have been hit hard, with builder Lend Lease Corporation Ltd delivering a $596.4 million half year loss and shopping centre owner Centro Properties Group posting a $2.4 billion first-half loss on Thursday.
GPT raised $1.6 billion in October to reduce its debt and strengthen its balance sheet, resulting in net debt of $4.1 billion at December 31.
The company said it had repaid a number of existing finance facilities and has $475 million of funding requirements over the next 12 months.
“We are committed to improving our balance sheet strength and maintaining varied funding sources in light of ongoing constraints in credit markets, and what we see as a material and long-term change in the investment market,” Mr O’Brien said.
GPT delivered a 75 per cent fall in realised operating income of $468.8 million during the 12 months to December 31, and a cash distribution of 17.7 cents per security for the year, lower than the previous year’s 28.9 cents.
GPT securities dropped 1.5 cents to 49 cents by 1027 AEDT.
AAP
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real estate February 27, 2009
That’s a staggering fall, if not a fall from grace. The share price didn’t move much considering the weight of the news.
Real estate Trusts in Australia are taking a hammering