CFS Retail Property profit soars by 84%


CFS Retail Property Trust has reported an 84 per cent lift in annual profit and says its development pipeline will continue to drive growth.

Net profit for 2006/07 was $1.11 billion, up from $605.92 million in the previous year.

CFS fund manager Michael Gorman said the result was underpinned by profitable completed developments, solid income growth and strong valuation increases.

Total distributable income was $234.5 million.

Distributable income comprises the total profit of $1.11 billion, less a net transfer to equity of $878.4 million.

The transfer included a net gain on investment property revaluations of $852.4 million.

Total earnings per unit were 52.38 cents compared to 29.21 cents for the previous financial year.

Mr Gorman said that with the increase in the retail property trust's development pipeline, and acquisitions made within and post the reporting period, it was in a solid position to deliver long-term benefits to unit-holders.

"At a portfolio level, the trust continues to benefit from the intensive leasing and management focus that has contributed to solid income and sales growth whilst slightly decreasing retailer occupancy costs," he said.

"We have replenished and increased the trust's development pipeline, a key driver of future value, and grown the asset base to further enhance revenue streams over the longer term."

The trust's total gross assets increased to $6.4 billion in the year ended June 30.

This included asset revaluations, including an $852.4 million increase on prior book value over the 12-month period.

"It is estimated that the (post-period) settlement of CFS's interest in the Myer Melbourne site and the remaining 50 per cent interest in Chatswood Chase Shopping Centre will increase gross assets by a further $558.1 million," the trust said.

The trust will pay a final distribution of 5.7 cents, taking the total distribution for the year to 11.60 cents per unit, up 4.5 per cent on the previous year.