Challenger Diversified Property Group (CDI) has reaffirmed its full-year earnings and distribution guidance, despite a slip in first-half net profit primarily due to fair value adjustments.
In the six months to December 31, Challenger posted a net profit of $15.17 million, a 27% decline on the previous corresponding period's $20.80 million.
The group said net profit after tax was adversely impacted by investment property fair value adjustments of $9 million for the period including incentives, capital expenditure and straight-lining.
In the same period, revenue was $47.16 million, a 0.4% lift on the $47.34 million in the first-half of the previous fiscal year.
The group will pay an interim dividend of 9.2 cents.
Fund manager Trevor Hardie said the group had reaffirmed its full-year normalised earnings guidance of 22.3 cents per unit and distribution guidance at 18.5 cent per unit.
"The leasing market is starting to show signs of improvement and with the consistent execution of our strategy and sound metrics, Challenger remains well positioned," he said.