FKP BANKS ON RETIREMENT AND RESIDENTIAL FOR RECORD EARNINGS

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.

Get our daily business news

Sign up to our free email news updates.

 
Finexia’s Childcare Income Fund secures ‘very strong’ rating from Foresight Analytics & Ratings
Partner Content
Private credit specialist Finexia Financial Group (ASX: FNX) has secured a “very...
Finexia
Advertisement

Related Stories

Tritium charged down as administrators called in

Tritium charged down as administrators called in

Five months after attempting to turn its fortunes through jobs cuts...

Just Wines acquires collapsed spirit subscription service Liquor Loot for $1.2m

Just Wines acquires collapsed spirit subscription service Liquor Loot for $1.2m

Only eight months since rescuing non-alcoholic specialty store Sans...

UniSuper pumps $623m into Macquarie green energy and climate fund

UniSuper pumps $623m into Macquarie green energy and climate fund

One of the nation’s largest super funds, UniSuper, has commit...

Founder-led Solution Underwriting acquired by UK insurance provider CFC

Founder-led Solution Underwriting acquired by UK insurance provider CFC

After 14 years in business and with 55 staff spread across four Aus...