Net revenue for the year was $202 million, a decline from the previous fiscal year's net revenue of $378 million. Company executives say the decrease in net revenue is "primarily due to lower proceeds on the sale of developments, lower interest income received from VCS and lower funds management fee income."
The company's portfolio took a serious hit in value over the past year due to write-downs. Net assets decreased from the June 30, 2008 total of $1.73 billion to $409 million.
Over the past 18 months, Valad has been working on strategic dispositions in order to strengthen its balance sheet. From the time the initiative began, the company has sold $187.6 million of assets at an average cap rate of 8.8% in Australia and New Zealand. In Valad managed funds, the company disposed of $171 million of properties. The money was used primarily to repay debt.
As the future remains uncertain, Peter Hurley, managing director, says the company will not be providing earnings or distributions guidance now. "While we are seeing the early stages of a recovery in financial and property markets, significant market challenges remain… Notwithstanding this, our real estate portfolio is sound, and has an average cap rate of 8.6%. It has high occupancies, low delinquencies and high retention rates."
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