Centro Properties Group
(ASX:CNP) has upgraded its full year earnings forecast after an ASX enquiry into recent spikes in the company’s share price and volumes.
In November the company advised that it expected operating results for the financial year to June 30, 2010 to be around 45% lower than fiscal 2009.
The company also tipped a 20% fall in earnings for Centro Retail Trust (ASX:CER), compared with the year before.
However the company now says it expects profit for the year to be 25 - 35% lower than last year’s result of $229 million.
For Centro Retail Trust, the company expects a 15% decline in profit compared to the $185 million recorded last fiscal year.
Centro says the revised earnings outlooks are due to actual and projected interest rates in the US being lower than previously forecast.
In response to the ASX’s query over an increase in volumes, the company says its investor base has more than doubled since December 2007 to over 32,000 investors.
It also said ownership of its shares had moved from predominantly a group of institutional, long-term investors to a predominantly retail investor base, saying that these investors more frequently invest for a shorter time frame which may result in more volatility in stock prices and trade volumes.
For fiscal 09 Centro Properties Group posted a massive $3.5 billion loss.
