Challenger Wine Trust (CWT) said profit from operating activities was $16 million for the year ended 30 June 2008, up 12% on the prior year. Net profit after tax was $13.5 million, up 72% on full year 2007.
Fund manager Nick Gill said it was a strong result for CWT, underpinned by a re-aligned property portfolio following a number of transactions during the financial year.
"The result also highlights the underlying strength of the agricultural sector, especially for a diversified portfolio in the Australasian vineyard sector," Mr Gill said.
Looking ahead, Mr Gill said CWT would continue to deliver a stable and predictable income return to unitholders.
"This is expected to continue into the 2009 financial year, with positive outcomes from rent reviews marginally outstripping any adverse effect on operating profit if vineyards with lease expiries are not re-leased or sold," Mr Gill said.
"At this point in time we are providing distribution guidance of 9.5c per unit up on the FY08 distribution of 9.4c per unit."
Mr Gill said CWT's tenancy arrangements provided a strong platform for predictable income returns.
"When combined with the geographic and tenant diversity of CWT's vineyard portfolio across Australia and New Zealand, we believe CWT is well placed to continue generating sustainable returns for unitholders into the future."
The company said it independently valued all properties in fiscal 2008, ensuring that current market conditions and vineyard sector issues, including water availability, domestic and international wine markets, grape varietal mix and industry trends were taken into consideration.
"The overall impact on CWT's portfolio value as a result of the FY08 independent property valuations is no net change in fair value," the company said.
"A decrease in the valuation of investment properties and vines of $3.7 million, representing around 1.2% of gross portfolio value, was offset by an incremental increase in the fair value of water rights," CWT said.
At 1436 AEST, Challenger Wine Trust was trading up 2c at 59c.