Business Description:
FKP Property Group (FKP) is a stapled security comprising a unit in the trust and a share in the management company. FKP is effectively a retirement property owner and operator, with ancillary businesses in residential development and funds management, adopting a capital recycling business model where property is developed and vended into third party managed funds.

Strategy Analysis:
FKP aims to be the market leader as owner/developer in the Australian retirement industry. They have a strategy of diversification and integration to maintain a comprehensive property portfolio expertise in development, construction, land subdivision, retirement village ownership and management, property investment and asset management. FKP Property Group reported NPAT up 63% to $82.3m for the year ended 30 June 2011. Earnings were in line with guidance and were underpinned by strong contributions from the Residential Communities and Retirement divisions. Revenues from ordinary activities were $350.5m, down 27% from last year. Diluted EPS was 7.01 cents compared to 4.53 cents last year. Net operating cash flow was $52.8m compared to $142.3m last year. The final dividend declared was 1.6 cents, taking the full year dividend to 3.0 cents compared with 1.5 cents last year. Looking ahead, the Company's future growth will be generated from the delivery of the existing development pipeline which is supported by the stability of the recurring income generated from the high quality retirement portfolio.