Australia's biggest diversified property trust, Stockland has said that it has recorded a fall of 79 per cent in profits for the year till as the residential business continued to struggle in the country.

The company said that its net income fell to A$104.6 million or about $95.4 million during the 12 months till 30 June, 2013 compared to A$487 million recorded in the previous year, the Sydney-based company said today in a statement to the Australian stock exchange. The company said that it expects the earnings per share in the year to June 30, 2014to be 6 per cent above this year's profit if the market conditions remain stable.

The company's earnings were also affected by A$355 million of write-downs on residential developments during the year. the company said that it is aiming to offer more profitable projects in the market and also pointed out that the earnings will remain lower as the company works impaired and low-margin projects in the country.

Managing Director Mark Steinert said, "We expect a steady improvement in our profitability in a risk-aware way. We didn't announce any impairments today, so we like to think we've dealt with that particular issue."