Funds are to be used to repay debt.

The ING Medical Properties Trust has reported a net profit after tax of $7.4 million for the year to June 30, a turnaround from its $2.2 million loss last year.

However, the current year’s tax expense includes an unrealised adjustment of $15.5 million to deferred tax as a consequence of the recent government tax changes disallowing depreciation on buildings.

The trust’s operating profit before tax increased 14% to $13.4 million due to an increase in portfolio occupancy and rental income, with overall portfolio occupancy levels improving 1.6% to 99.6%

The old adage of healthcare being a recession-proof sector has helped the ING Medical Properties Trust increase its half-year operating profit by 15.3%.

The trust today announced an unaudited interim operating profit before tax of $6.76 million for the six months to December 31 last year, up from $5.87 million in the same period in 2008.

The increase was mainly a result of a 4.9% increase in rental income to $12.36m and reduced interest rate expense due to lower rates.

The ING Medical Properties Trust has confirmed a non-imputed dividend of 8.5c a share for the year ending June 30 after reporting a slightly lower operating profit of $11.8 million.

The trust attributed the 2.3% drop in profit to the continued leasing of the recently completed Ascot Central building and an increase in the trust’s cost of debt.