FKP still a going concern despite its heavy debt load FKP Property Group is confident it will be able to continue as a going concern, with its strategy to refinance or close out $480 million of short-term debt and company notes due for repayment in the next 12 months "well advanced." The growing pressure on FKP was included in an extended "going concern" note in the company's 2013 full-year accounts. The accounts showed FKP booked a loss of $166.5m for the year based on impairments to its non-retirement properties. This compared with a loss of $350m the year before. The impairments were part of FKP's strategy to transform itself into a pure-play retirement trust by offloading its non-retirement assets. Underlying earnings fell 5.1 per cent during the period to $39.2m. No distribution was paid for the second half so full-year distribution was 1c, compared with 19.6c last year. No dividend will be paid in fiscal 2014. Speaking after the results, chief executive Geoff Grady denied suggestions the company was under pressure from its lenders. That's an unequivocal no. It's simply not true," he said. He pointed to the efforts the group had made in putting $200m of assets in due diligence to fund the rollback of $99.7m in notes in January next year. "FKP believes that it will be able to meet its short-term debt liabilities," Mr Grady said. Another $250m tranche of debt in its retirement business is due to expire in March next year. There is a third tranche of $98m of short-term debt. The company has other smaller tranches lapsing in the next 12 months. Chief financial officer David Hunt said the lenders were committed to extending the retirement debt. He said the group was not in risk of breaching its debt covenants. Several analysts expressed concern about FKP's debt refinancing. Morningstar analyst Tony Sherlock said the group was under pressure to refinance its debts, especially if the $200m in sales were not completed before the debt lapsed. "But if they get the $200m of asset sales done, they'll be laughing," he said. During 2013, FKP sold $134m in properties to shore up its balance sheet. Across the year, profits from FKP's $1 billion retirement business fell 27.7 per cent to $24m after selling company-owned retirement units. Profits in the group's residential arm rose 60 per cent to $30.2m. Mr Sherlock said earnings from the group's retirement division had disappointed and the group's long-term growth assumptions were "unrealistic." Mr Grady said sales within its retirement business were up 23 per cent to 622 and he was confident the trust, to be rebranded Aveo Group, would soon become Australia's leading retirement group. FKP would increase the number of lots brought to market each year to between 200 and 300 by fiscal 2016, up from between 20 and 30 in fiscal 2013. Separately, sister trust Aveo Healthcare posted a $3.3m loss for fiscal, an improvement on last year's $43.1m loss. FKP fell 1.5c to $1.385.