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Nicholas Grove is a Morningstar journalist.

Property trust Australand (ALZ) on Wednesday said net operating profit for the 2011 year rose 6 per cent to $135.4 million, which is in line with both company guidance and Morningstar estimates.

The company said its statutory net profit for the year was $140.6 million, down 15 per cent on the prior corresponding period due to the net effect of investment property revaluation gains, impairment of development assets and unrealised losses on derivatives.

Operating earnings per security were 23.5 cents, while statutory earnings per security stood at 24.4 cents, Australand said.

Net tangible assets (NTA) per security were $3.46 and gearing stood at 33.0 per cent, the company said.

Australand declared distributions per security of 21.5 cents, in line with Morningstar's forecast and up from 20.5 cents in the prior year.

"Residential sales volumes were up 15 per cent on 2010 and the value of contracts on hand at year-end was up by a similar amount," Australand managing director Bob Johnston said in a statement.

"Our strategy of providing quality affordable product for our customers through both infill and greenfield developments is paying dividends."

Looking forward, the company said its outlook for 2012 is dependent on the timing of business and consumer confidence being restored.

"The domestic economy is soft in most sectors outside of resources and we anticipate that conditions will remain challenging for at least the first half of 2012," the company said.

"Despite the near-term challenges, the group remains cautiously optimistic and is budgeting for an increase in operating earnings per security for 2012."

"With low vacancy and minimal lease expiry, the Investment Property division provides reliable and predictable earnings which underpin an expected 2012 distribution of 21.5 cents per share, which is in line with the 2011 distribution."