Business Description:
Challenger Diversified Property Group (CDI) is a traditional Listed Property Trust (LPT or A-REIT) deriving most of its revenue from rental income from its passive property investments. CDI is constituted by two trusts, Challenger Diversified Property Trust 1, which holds CDI’s ‘passive’ assets and Challenger Diversified Property Trust 2, which holds 'active' property transactions (including developments) undertaken on behalf of CDI.

Strategy Analysis:
The key portfolio strategy is to have a combination of 'core' properties plus 'value-add' properties. CDI's core properties will be represented by quality assets, which are intended to be long-term investments. The value-add properties will be represented by assets that, through repositioning and/or development, can enhance earnings and capital growth prospects. Upon completion of development of value-add properties, these assets will be held as core properties or be sold to realise gains. Challenger Diversified Property Group reported NPAT of $51.49m for the year ended 30 June 2011. Revenues from ordinary activities were $87.77m, down 1.0% from last year. Diluted EPS was 5.48 cents compared to 1.97 cents last year. Net operating cash flow was $46.30m compared to $45.62m last year. The final dividend declared was 2 cents, taking the full year dividend to 4 cents compared with 4.2 cents last year.