Melbourne inner city apartment originator Central Equity continues to go from strength to strength despite increased building costs, according to its chairman Eddie Kutner.
The doyen of inner city living in Melbourne, Central Equity revealed at its AGM in Melbourne today that it has some $480 million worth of contracted sales in the kitty which will be reflected in the 2004 financial year.
These sales will underpin its performance in 2004, says Kutner.
The financial year just past was first class for Central Equity with:
– A record net profit after tax of $32.8 million, an increase of 35.9%
– An attractive return on shareholders’ funds of 18%
– Earnings per share have increased from 29 cents to 38 cents
– Total revenue of $239 million : up 7.8%
– Net assets backing per share as at 30 June, 2003 is $2.13.
However, Kutner warned that challenges do lay ahead for the inner city apartment market including:
– Negative sentiment
– Increasing price structures created by escalating building costs and the GST; and
– Uncertainty surrounding interest rates.
Central Equity has a number of city projects which are underway or have just been completed and has diversified into house and land in selected areas.
