Babcock & Brown has forecast an EPS growth of 40% for the 2006 financial year.
The company said it expects the strong momentum in the business at the present time to flow through to EPS growth of at least 35% for the full year, compared to the previous guidance of 20% EPS growth.
“However, the first half forecast could still be impacted by significant market adjustments, which could affect the quantum of performance fees or the value of certain investments which we are required to mark to market,” Babcock & Brown chief executive Phil Green.
“What is pleasing about the 2006 results to date is that the momentum is spread across our business with a number of different transactions and activities contributing to the upgrade in our outlook.
“Our specialised funds and asset management platform has reported strong organic growth in the first four months of 2006,” he added.
Green said the company’s joint venture with GPT is well on track to meet its target portfolio of $5.6 billion by the end of 2006.
Since February 2006, the joint venture has under contract assets totalling approximately $3.9 billion.
“The acquisitions since February have predominantly been in the European light industrial sector together with the mezzanine loan provided in the recent transaction announced by BNB in the US multi family sector.
“A portion of our European real estate activities continue outside the joint venture and we expect this will result in the establishment of at least one Babcock & Brown listed or wholesale focused real estate fund in the region over the next twelve months.
“Our Australian real estate business continues to perform well having successfully navigated its way through what has been a very lean time in the Australian residential property market and is presently looking at innovative listed fund opportunities both in conjunction with GPT and outside the joint venture,” he added.
Green concluded that the pipeline of opportunities continues to grow and will continue lay the foundation for a strong 2007.
By Adam Parsons
