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 d
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%
This was partly offset by an increase in the trust’s cost of debt after it secured a renewed borrowing facility to September 2013.
The trust also had a $10.5 million (3.7%) portfolio revaluation gain, compared with a $7.1 million valuation decline last year.
During the year there were 70 rent reviews across its portfolio with an increase of 4.2% in rents reviewed.
ING Medical Properties has announced a full-year cash distribution of 8.5c per unit for the third consecutive year.
David Carr, general manager of the trust’s management company, said the strong occupancy rate had been a key factor in achieving the full year cash distribution.
“It is clear that the trust and unitholders have benefitted from investment in a sector where properties are tightly held and tenant demand is less influenced by market and economic factors.”
ING Medical Properties is also set for a re-brand after ING New Zealand became a wholly owned subsidiary of ANZ National Bank and the ING wealth management business was renamed OnePath.
The trust’s management company has been working to develop the new brand, including name, logo and visual identity, with a formal announcement "imminent."
