Global property investor Stockland Group
(ASX:SGP) has reported a huge loss for the full year after revaluations of its investment properties and impairment charges.
Net loss for the 12 months to June 30 came to $1.8 billion, compared to a profit of $704.6 million the year before.
Before the property revaluations, the company’s underlying earnings came to $631.4 million, down 6.3 per cent.
Managing director Matthew Quinn says that despite the large headline accounting loss, the company has delivered a reasonable operating result given the difficult economic conditions.
The company says its accounting loss was due to a number of negative non-cash items including a $1.13 billion downward revaluation of investment properties, a $462 million inventory impairment charge, a $362 million goodwill impairment, a $334 million impairment of strategic investments and a $95 million charge related to fair value adjustments of financial instruments and foreign exchange movements.
Stockland says its guidance for fiscal 2010 is for earnings per share of 28 cents, down from 38.8 cents in fiscal 2009 before accounting adjustments.
Looking back over the past five years Stockland’s best net profit was in 2007.
