Business Description:
Australand Property Group (ALZ) is a stapled security comprising a unit in three trusts and a share in the management company. ALZ owns, develops, and manages industrial, residential and investment property. Activities include development of residential land, housing and apartments, development of and investment in income producing commercial and industrial properties, and property management. The Singapore-based property group, CapitaLand Limited, which owns approximately 59% of the issued capital.

Strategy Analysis:
Following return to more normal conditions, ALZ´s competitive advantage comprises scale through an Australia wide development presence supported by an integrated service approach, aiming to optimise the synergies for capital recycling between the commercial-industrial development business and the ownership-management business to offer annuity style income with growth potential for the short term. The cyclical residential development business is run in parallel, offering volatile income but with greater growth potential in the medium to long term. Australand Property Group reported NPAT up 17% to $84.79m for the half-year ended 30 June 2011. This included the revaluation of Investment Property assets resulting in a net increase of $25.3m, 1.2% of the total portfolio value. Revenues from ordinary activities were $279.33m, compared to $281.51m from the same period last year. Aggregate sales revenue was $85.6m (HY10: $70.8m), which comprised revenue of $68.9m from wholly-owned projects and $16.7m from JV projects. Basic and Diluted EPS was 14.7 cents compared to 12.5 cents last year. Net operating cash flow was $11.53m compared to $2.51m last year. The interim dividend declared was 10.5 cents compared with 10.0 cents last year.