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Challenger announces half-year profit

Rachael Micallef  |  06 Feb 2013Text size  Decrease  Increase  |  

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Rachael Micallef is a journalist with InvestorDaily, a Sterling publication.


Challenger Diversified Property Group (CDI) has declared a half-yearly profit from operating activities of $22.9 million for the period ending 31 December.

In the fund manager's half-yearly results, it announced that its statutory net profit after tax, adjusted for fair value movements, increased by 10 per cent on the first half of 2012 to $20.8 million.

As a result of a portfolio rental increase in the second half of 2012, normalised earnings per unit (EPU) were boosted from 9.56 cents in the six months ending 30 June to 10.70 cents.

"The growth in net property income was underpinned by our leasing activities," Challenger fund manager Trevor Hardie said.

"Our focus on leasing is a key strategic priority, and over the past six months Challenger's future earnings have been strengthened, with fiscal 2014 expiries now standing at only 2.4 per cent of total portfolio income."

Property valuations in the six months to 31 December recorded an increase of 1.2 per cent or $10.3 million to reach $854 million.

As part of their 2013 outlook, Challenger will continue to work on growth through its long-term strategy, which is focused on portfolio enhancement, improving leasing metrics and active capital management.

"We need to start focusing on where we are going and how we will get there in the future ... We see this being achieved by following our three-pronged strategy," Hardie said.

"To achieve our vision of admittance into the ASX 200 index, we will need to grow further."