Listed property investor NPT has returned to profit in the first half, reflecting an increase in the value of its rejuvenated Eastgate Shopping Centre in Christchurch after the value of property tumbled in the year earlier period.
Profit in the six months ended September 30 was $8.77 million, or 5.42 cents a share, from a loss of $9.83 million, or 6.07 cents a year earlier, the Wellington-based company says in a statement. Net rental income fell to $5.6 million from $9.1 million.
Profit a year ago was wiped out by a $22 million drop in the value of property and a net loss of $4.77 million from the Canterbury earthquakes. Eastgate has since received CERA certification and risen in value by $5.3 million to $40.8 million.
Its Natcoll House retains it valuation of $12 million, though NPT is still in talks with insurers about its quake damage claim.
"This year's first-half result brings the company's operating profit figure back in line with current trading conditions. Rental income has softened but on the upside there have also been a reduction in operating costs and interest payments," chief executive Kerry Hitchcock says.
At Eastgate, "foot traffic has increased and brisk Christmas trade is expected".
NPT shares last traded at 62 cents and have gained 25% this year. The company will pay a second-quarter dividend of 0.575 cents per share.
Interest expenses fell to $1.6 million from $2.6 million after the company bought out two long-date interest rate swaps.
The total value of NPT's property portfolio rose to $126.3 million as at September 30 from $118 million a year earlier. Its weighted average lease term increased to 6.2 years from 3.4 years after strong leasing activity, it says.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Fellet unmoved by media company 'for-sale' signs as Sky TV mulls capital options
- Economics of Tiwai Point smelter still going backwards, Woodward's Kidd says
- Budget 2016: The debt picture softens
- Former Mighty River engineer sentenced to jail for fraud
- Google's Paris office raided in multi-billion tax evasion swoop
Most listened to
- AMA: Orion boss Ian McCrae delivers 10 quickfire answers to 10 quickfire questions from readers
- Government debt will top out at about 26% of GDP, well below most other countries, says Professor Niall Ferguson
- Taxpayers' Union director Jordan Williams is not sold on the government's 'Soviet-style' tourism accommodation plan
- Europe expansion could come quicker than planned, says Invert Robotics CEO James Robertson
- In his Editor’s Insight, Nevil Gibson argues the government’s role in tourism is more critical to economic growth than housing