FKP reveals progress into becoming a pure play retirement group

Rebranding and holding disposal slated.

In its strategy and group update released on the Singapore Exchange, FKP Property Group (FKP) announced that in in line with the Group’s strategy to evolve to a pure play retirement owner, operator and manager, FKP Property Group will be rebranded to Aveo Group, subject to securityholder approval.

FKP’s holding in PBD Developments Limited will also be disposed. Further, the company plans A revaluation of the Group’s property asset values as at 30 June 2013 has been completed. The impact of the revaluation is a $187.9m impairment. The impairment is predominantly attributable to non-retirement property assets and is in the context of the Group’s strategy for their rationalisation.

The valuation of the Australian retirement assets as at 30 June 2013 remains unchanged and is supported by an independent valuation.

The reported NTA per stapled security at 31 December 2012 was $3.98. The 30 June 2013 pro forma NTA per stapled security decreases by $0.44 to $3.54 based on the after tax impact of the impairments. Consistently with the AICD best practice guidelines, these impairments are excluded from the determination of the Group’s underlying result. For the year ended 30 June 2013, the underlying result is expected to be in the range of $38m to $40m.

FKP’s CEO Mr Geoff Grady said: “The write downs are a necessary step in executing our strategy. With the gradual recovery of the retirement sector, we are confident about the outlook for our business and are well progressed on delivering our strategy of becoming Australia’s leading pure play retirement group."