FKP Property Group has sunk to a $166.5 million full year loss after taking a hit on the value of a raft of non-retirement properties it is preparing to offload.
The newly appointed chief executive, Geoff Grady, has put the company on the path of becoming a pure play retirement home owner and operator.
Before the impairments, underlying profit of $39.2 million was in line with the group's guidance and slightly below the 2012 result. No dividend was declared.
Earlier this month, Mr Grady flagged impairments, including a $107.4 million write-down on the residential land division and $48.7 million from the commercial business, including the Gasworks development at Newstead in Brisbane, undeveloped land at Mackay and office suites at Brookvale in Sydney.
Mr Grady said on Wednesday that all non-retirement assets were on the market and about $200 million worth of properties already had interest, with due diligence under way. He did not make a formal earnings growth forecast while FKP goes through its restructure.
Richard Jones, from JP Morgan, said FKP appeared to be heading in the right direction with the focus on cash flow, asset realisation and simplification. But analysts said the group risked becoming a takeover target, particularly with Stockland keen to sell its 14.9 per cent stake.
Mr Grady said FKP had a target of an 80 per cent asset weighting to retirement by 2016.
"Proceeds from non-retirement asset sales will be used to reduce gearing and accelerate the retirement development pipeline," he said.
Mr Grady said the past year has been transformational. "In the year ahead we will continue to divest non-retirement assets as we transition FKP Property Group to Aveo Group. Investors will consider the name change at the upcoming annual meeting.
"While market and property conditions continue to be challenging, we achieved 622 retirement unit sales in 2013, up 23 per cent on 2012, representing one of the best sales rates since pre the financial crisis."
"FKP's level of deposits on hand at June 30, 2013, was the highest in the last five years and provides a solid foundation for 2014."