Property developer Stockland has seen its net profit fall almost 80 per cent due in part to weakness in the housing market and a major writedown.
Stockland made a net profit of $104.6 million for the 2012/13 financial year, a drop of 78.5 per cent on the previous year.
But that result was skewed by a $355 million writedown in the value of the company’s residential book.
Underlying profit, which excludes the writedown, was $494.8 million, a fall of 27 per cent on the previous year.
Stockland CEO Mark Steinert on Tuesday said the company had focused on reducing costs during a tough year.
“This has been a challenging year and we have responded with a number of important strategic decisions that position our business for stronger future returns,” he said in a statement.
“We significantly restructured the business to reduce costs and improve core processes and skill sharing.”
Steinert said the company continued to face difficult conditions due to weak consumer confidence.
“In Australia business confidence remains low and consumer spending is relatively soft as households continue to de-leverage,” the company said in its statement.
“We expect consumer sentiment will remain relatively subdued, however we do anticipate continued moderate economic growth.”