FKP BANKS ON RETIREMENT AND RESIDENTIAL FOR RECORD EARNINGS

Written on the 25 August 2011

FKP BANKS ON RETIREMENT AND RESIDENTIAL FOR RECORD EARNINGS

DIFFICULT trading conditions have not stopped FKP Property Group (ASX: FKP) from reporting a FY11 net profit of $82.3 million, representing a 62 per cent increase on the previous financial year.

Strong contributions from its residential and retirement divisions underpinned the earnings. Residential reported a 19 per cent jump in sales revenue to $118.9 million, while the average margin on retirement resales increased from $79,000 to $91,000 in fiscal 2011.

FKP CEO and MD Peter Brown (pictured), says the strong result reflects his employer’s assets and diversification.

“The underlying quality of our assets has driven strong profit growth with both our Residential Communities and Retirement divisions delivering record contributions for the year – a testament to the strength of our residential platform and mature retirement portfolio,” says Brown, in a statement to the ASX.

Having reweighted its development portfolio towards residential, FKP is poised to deliver further growth from its national residential platform. The developer will focus on unlocking value from the roll out of the master-planned communities and residential apartments.

Comprising 250 apartments and mixed-use space, the first stage at Albion Mill in Brisbane is expected to be launched in September. Applications for master plan approval and a development permit for stages two and three have been submitted.

More residential apartments to be developed include the mixed-use urban renewal project at The Gasworks in Newstead, which is will create 1,700 apartments and generate more than $850 million in revenue.

Meanwhile, the retirement division profit is tipped to show positive growth in FY12 through continued improvements to ongoing unit buybacks and reactivation of the development pipeline.

FKP owns or manages a total of 76 villages and more than 9,786 units across Australia.

Shares are trading at $0.50 per unit.


Latest News

AUSTRALIA READY TO DISRUPT GLOBAL CARBON FIBRE MANUFACTURING

AUSTRALIA for the first time has the capacity to produce carbon fibre from scratch and at scale, following the launch...

HONG KONG FUND INVESTS $212.8 MILLION IN G8 EDUCATION

G8 EDUCATION (ASX: GEM) has secured $212.8 million from Hong Kong-based CFCG Investment Partners to pay down debt and...

MERGER DELIVERS THE FINANCIAL GOODS FOR TERRY WHITE

TERRY White Group has posted a solid half-year net profit of $1.3 million amid a period of major transformation fo...

BLUE SKY APPOINTS TWO NEW INDEPENDENT DIRECTORS

BLUE Sky Alternative Investments (ASX: BLA) has appointed two new independent, non-executive directors to its board: ...

Related News

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

LESS TALK, MORE SMALL BUSINESS ACTION IN 2017

THE future growth and prosperity of Australian SMEs could be undermined if governments lose sight of the sector...

TEST DRIVE A POST GRAD AT BOND

THERE'S only one way to really move your career into the fast lane, says Bond University, and 'test driving...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter