Centro Retail Group
(ASX:CER) has rebounded from a loss of $2.68 billion in fiscal 2009, to post a net profit of $113 million for the twelve months to 30 June.
The property investment company says the result reflects a more stable operating environment, yet cautions that challenges remain.
Centro’s favoured measure of performance, underlying profit, fell 14 per cent to $160 million, because of a stronger Australian dollar impacting the company’s translation of US earnings, and the lower average occupancy in its US assets.
Looking ahead Centro says an improved second half of the 2010 fiscal year indicates an improving property outlook, however the group remains cautious as trading volumes have remained below average.
Centro says while there are some indications of US economic recovery, any meaningful improvements in portfolio fundamentals is expected to lag, and in particular the group continues to face considerable leasing challenges.
No dividend has been declared for fiscal 2010, compared to a dividend of 0.38 cents in the year to 30 June 2009.
