Australand Property Group Ltd has posted a slide in full-year profit and warned subdued tenant demand, as well as a lower than usual forward workload, could weigh on the year ahead.
In the twelve months to December 31, Australand posted a net profit of $135.33 million, a 25 per cent decline on the previous corresponding period's $179.97 million.
In the same period, revenue was $1.056 billion, a four per cent lift on the $1.015 billion in the first half of the previous year.
The group will pay an unfranked final dividend of 11 cents to shareholders on February 7, bringing total distributions for the year to an unfranked 21.5 cents.
Australand said, subject to market conditions not changing materially throughout 2014, it expects to deliver growth in operating earnings per security for the full year 2014.
The group said while business confidence had improved, operating conditions in the commercial and industrial sectors were expected to remain challenging for 2014.
"Leasing activity remains relatively subdued and the occupancy of the group’s investment portfolio has reduced reflecting these conditions.
"Investment appetite for well leased assets, however, remains strong and is expected to underpin valuations despite the softer underlying fundamentals."
Subject to market conditions not changing materially throughout 2014, Australand said it still expects to deliver growth in operating earnings per security for the full year 2014.
As in 2013, the group expects earnings to be skewed to the second half of the year.