According to listed healthcare property vehicle ING Medical Properties Trust, while capitalisation rates are stabilising there is a recession ‘lag effect' negatively affecting occupancy and rents.In a roadshow presentation to its investors, the trus
According to listed healthcare property vehicle ING Medical Properties Trust, while capitalisation rates are stabilising there is a recession ‘lag effect’ negatively affecting occupancy and rents.
In a roadshow presentation to its investors, the trust said that new tenants are taking shorter term leases.
Tenants now require “ultimate flexibility”, the trust said, and it found it needed to work constructively and proactively with tenants.
As NBR 24/7 reported in October, some investors had been concerned about the impact of ANZ National Bank’s 100% takeover with whether they would face costs for rebranding being one issue.
ING Medial Properties revealed on its roadshow that though the company will change its name and therefore its stock exchange ticker code also in the coming months, all rebranding costs would be covered by the manager.
“It is definitely business as usual – the trust’s strategy is unchanged,” the trust said.
As at December, its gearing was 34% with 92.1% of its $98.1 million debt hedged. Its bank facility is committed to March 2011.
While it would be impacted by the budget’s changes including removing depreciation allowances from buildings, it does have 35% of its portfolio in Australia.
Occupancy is at99.6%, with less than 300sq m remaining vacant, being 4% of its Ascot Central building and 5% of its Eastmed facility at Auckland. Across its portfolio the weighted average lease term was 8.3 years.
At press time, shares were trading at $1.22 each.
