National Property Trust reports $9.08m loss

Following downward property revaluations and increased borrowing costs, listed company National Property Trust today reported a net loss after tax of $9.08 million for the six months to 30 September.

“The result is satisfactory given the current economic environment,” its general manager John Crone said.

The trust’s distributable profit rose 1.5% from $4.78 million last year for the same period to $4.85 million this year.

“It is pleasing to see that the Trust was able to increase its distributable earnings as market conditions have remained difficult,” said Mr Crone.

Returns on the second quarter will be 1.12c a share, which means shareholders total cash distribution for the first half of the year are 2.25c. This is in line with its forecasted full year distribution of 4.5c.

In the most recent revaluation of its property portfolio, National Property Trust’s assets had $4.4 million shaved off them. Mr Crone said that values seems to have settled now, however.

The trust sold several assets in the six months to September, including the Goddards/Dumbarton properties in Tauranga and the Carlton/DFK sites in Auckland. The $62.05 million proceeds from these sales reduced the trust’s term loan with BNZ.

“The strategic focus on debt reduction and rebalancing the portfolio by reducing the Trust’s retail exposure has not only strengthened the portfolio it has also improved the balance sheet considerably over the last two and a half years,” Mr Crone said.

At press time, the trust’s shares were trading at 47c.