After suffering a profit drop in 2011, residential and commercial developer Australand expects to increase its earning in 2012 as building industry business conditions improve.
The group yesterday reported its full year result for 2011, noting the weak property market took its toll, with overall profit 15 per cent down on the previous year.
However the company “remains cautiously optimistic and is budgeting for an increase in operating earnings per security for 2012”.
Australand's managing director, Bob Johnston said:
"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. Our strategy of providing quality affordable product for our customers through both infill and greenfield developments is paying dividends.
"Our office and industrial investment portfolio continued to deliver growth in recurrent earnings for the Group with our C&I development division completing six new assets for the portfolio all leased to quality tenants. We also continue to make good progress on the leasing up of 357 Collins Street in Melbourne which we expect to be completed mid-year.
"Trading conditions were challenging through much of 2011 due to both global and domestic uncertainty, leading to a lack of business and consumer confidence. Despite some near term challenges, we expect the strength of the resources sector will, in time, have a positive impact on the broader economy and sentiment, supporting solid employment, continued population growth and renewed demand."
Australand shares rose following the announcement.
