National Property Trust has reported an unaudited loss of $13.23 million after tax, an improvement on last year's $21.28 million loss.Its gross operating profit was $9.2 million, down just slightly on the previous year's $9.37 million operating profit.The
National Property Trust has reported an unaudited loss of $13.23 million after tax, an improvement on last year’s $21.28 million loss.
Its gross operating profit was $9.2 million, down just slightly on the previous year’s $9.37 million operating profit.
The trust’s distributable earnings were 0.56c a share above what it had forecast.
“The result reflects the current commercial property market and reinforces the board’s strategy to reduce debt and carefully manage the property portfolio so as to maximise value was correct,” said new chairman Jim Sherwin, who took over from Kevin Podmore in April.
“This strategy has resulted in net rental income increasing by approximately 5% after adjusting for the sale of the properties during the year.”
National Property Trust has reduced its gearing from 36.7% down to 22% in the year to March 31, with proceeds from three major asset sales contributing to its debt reduction.
It reduced its banking facility from $110 million to $90 million in March, which it expects to have a positive impact on its profit for the year ahead.
During the year it sold the Rialto Centre and Carlton DFK building at Newmarket and the Goddards Centre.
The trust’s portfolio, following the above sales and full revaluations, is now down to $191.2 million. This time last year it was $266.7 million.
The portfolio includes the Eastgate Shopping centre at Christchurch, Heinz Wattie’s Warehouse at Hastings and AA Centre office tower in Auckland.
The crisis of the manager’s parent company St Laurence’s recent receivership is troubling shareholders, with a meeting scheduled for July when shareholders will vote to remove the manager.
“I have begun my tenure as chairman among much media speculation in respect to the receivership of the manager’s ultimate parent company, St Laurence Ltd,” Mr Sherwin said.
“The directors would like to reiterate that it is very much business as usual for the manager and NPT and reassure unitholders that the receivership does not affect their investment in NPT.”
National Property Trust shares were trading at 49c at press time.
