Centro Properties Group reported a full-year net loss of $652.7 million. The shopping mall operator said that underlying profit fell to 24.2 percent to $173.8 million, compared to $229.2 million for the previous corresponding period.

Centro Chief Executive Officer Robert Tsenin said, “Centro’s statutory net loss of $652.7 million is an improvement on the net loss of $3.54 billion for the prior corresponding period. This improvement is largely due to significantly lower property devaluations and the favorable impact on translation of our net US dollar liability position resulting from appreciation of the Australian dollar against the US dollar.”

Centro said one of the most significant items of the losses is the movement in the Australian and US dollar foreign exchange rate. “The appreciation of the Australian dollar, from an average of 75 cents in FY09 to 88 cents in FY10, has reduced the Australian dollar equivalent of US dollar denominated net income, thereby decreasing Investment and Services Business income from US investments as well as decreasing interest expense on US dollar denominated debt,” the company said.

Property investment income for the year was $253 million, down 15 percent due to reduced net operating income from US investments due to lower rental income and increased interest rates impacting the cost of debt in its Australian fund investments.

“The complexity of the Centro Group is also driving the need for a restructure. The way the Centro Group is currently structured, especially with assets owned in multiple co-ownership vehicles, makes it extremely difficult to efficiently raise capital. This situation has limited Centro’s ability to undertake value adding developments or take advantage of new investment opportunities,” Centro said.

The company said restructuring measures have been undertaken so far, including the development of a Strategic Business Plan and identifying a number of financial restructuring alternatives for the Centro Group.

Source: Centro