Babcock & Brown chief executive Phil Green yesterday identified the biggest risk his company faced as credit tightening in the property sector. Green said the company had been accelerating its sales program in its real estate division to ensure that it was not caught short by a possible credit squeeze. Green, who was presenting B&B's results for the 2007 calendar year, said the company had done some work to strengthen its balance sheet, including the negotiation of a substantial increase in its corporate debt facility.The company reported a 58 per cent rise in net profit after tax, up from $406 million to $643 million. Green said B&B was on track to report net profit of  $750 million for 2008.Earnings per share of $1.84 were up 50 per cent on 2006 and the return on equity increased slightly from 31 to 32.4 per cent.Assets under management increased 63 per cent from $44.1 billion to $54.4 billion.Among the company's four segments infrastructure was the biggest contributor, with income of $902 million up 91.9 per cent on 2006. Operating leasing provided the biggest increase in income, up 122 per cent to $394 million.Corporate and structured finance suffered a 52.6 per cent fall in income, down to $154 million and the real estate division increased income by 5.7 per cent to $492 million.Green said: "The biggest risk we face is credit tightening in the property sector."The company has $400 million of real estate contracted for sale. Green said disposition activity centred around European retail portfolios.At the corporate level the company increased a three-year evergreen debt facility in April last year. At December 31 B&B had undrawn capacity in that facility of $240 million.At December 31 it also had unrestricted cash of $364 million.Green said: "Unutilised capacity combined with contracted asset sales, further asset recycling, coupled with prudent reinvestment and an already approved increase in our corporate facility will generate cash and available reserves of approximately $1.5 billion by the middle of 2008."Since the beginning of 2008 the group has obtained credit approved debt facilities in excess of  $12 billion in relation to syndications, refinancings and new debt facilities across B&B and its managed funds."Green said group funding costs had remained fairly steady, helped by the company's move up the credit ratings to investment grade. In the infrastructure division funding was 25 to 30 basis points higher. He said:  "Will it go out to 50 basis points? It could."