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CFS Retail lifts FY profit

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CFS Retail Property is confident of maintaining its momentum in the year ahead as it transitions to a fully independent and integrated retail property business on the back of a strong lift in full-year profit. 

In the year to June 30, CFS recorded a net profit of $400.1 million, a 35.6 per cent increase on the previous year.

The result is above expectations from analysts surveyed by Bloomberg of $391.9m. 

Total revenue in the year came to $834.7m, a 12.8 per cent increase on the $740m posted in 2013.

The group will pay a final dividend of 6.8c on August 29 to shareholders on the register at June 30.

Combined with an identical interim dividend of 6.8c, CFS' total dividend for the year is 13.6c.

CFS managing director and chief executive Angus McNaughton said 2014 had been a landmark year for the group, with the successful internalisation of management and the addition of a retail property asset management business and a funds management business to its existing property platform.

"As a result of the internalisation, CFS now has $14.2 billion of assets under management, including $8.9 billion held on balance sheet, relationships with over 5,100 retailers, and we directly employ over 800 people," he said. 

Deputy chief executive and chief investment officer Michael Gorman noted continued growth in the Australian economy, albeit at a below-trend pace.

"Retail sales growth also remains soft, as positive economic, income and house price growth is offset by weaker employment conditions and consumer caution following the announcement of the 2015 federal budget," he said.

"Additionally, unseasonably warm weather in autumn created challenges for some retailers in moving their winter stock." 

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Retail property group upbeat about FY15 after strong lift in full-year profit.

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