Federation Centres says a rise in profit reinforces the rationale behind its $22 billion merger with fellow property company Novion this year.
The retail landlord, which announced the merger in February, said statutory profit increased 68.7 per cent to $675.1 million for the year ended June 30.
Underlying earnings for the group were $683.1m, up 6.2 per cent on the prior year on an aggregated basis.
Revenues also rose, up 59.1 per cent to $1.328 billion.
“This strong financial result reinforces the strategic rationale for bringing these two high quality retail property businesses together," Federation Centres chief executive Angus McNaughton said.
The integration process was on track, with over 60 per cent, or $31m, of estimated operational savings on an annualised basis already locked in and the company set to achieve targeted operational savings, he said.
Federation Centres announced a final dividend of 8.5 cents, unfranked, payable on August 27 for shareholders on the register at June 30. The final dividend brings the company's total dividend to 16.9c, in line with guidance.
The company surprised the market earlier this month when it announced that former Novion boss Mr McNaughton would take over as chief executive, replacing Federation's Steven Sewell, who had been named leader of the combined group in merger documents.
Federation and Novion's merger created a $22bn real estate investment trust.
The group will change its name to Vicinity Centres pending shareholder approval at the annual general meeting in October.