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The National Property Trust Announces Interim Result

Fuseworks Media
Fuseworks Media
The National Property Trust Announces Interim Result

26 November 2008 - The National Property Trust (NPT) today announced a 14.1 per cent increase in distributable surplus of $4.78 million, for the six month period ended 30 September 2008. This compares to $4.19 million for the previous corresponding period ended 30 November 2007. The change in interim reporting dates is as a result of NPT changing its balance date this year to 31 March.

Net operating surplus before tax for the period was up 40.9 per cent at $4.72 million, compared to $3.35 million recorded for the six months to 30 November 2007. The result was assisted by lower interest expense and no performance fee being incurred during the period.

Excluding properties that have been sold during the previous corresponding period, successful rent reviews since April 2008 resulted in 11 per cent growth or almost $670,000 being added to annual rental income.

After allowing for the recently announced decreases in property valuations, the Trust reported a net deficit after tax and asset revaluations of $9.30 million. The $13.77 million decrease in valuations is largely attributable to higher capitalisation rates being applied by the Trust's independent valuers as a result of the current market conditions.

John Crone general manager for The National Property Trust Limited (NPTL) says, "This is a satisfactory result given the current market conditions. Despite a deficit due to movement in valuations, it is pleasing to see increases in underlying earnings and distributable surplus. Movement in valuations has largely arisen from softening capital yields however we are comfortable with the position given that most of our properties have achieved improved passing and market rents."

"Cashflow for the Trust is expected to improve as a result of growth in rental income. We believe the Trust can continue to deliver further rental growth with the portfolio still under rented by an estimated 7.83 per cent as at 30 September 2008," Mr Crone says.

As at 30 September 2008, the majority of the Trust's properties were performing in line with trading forecasts. Proceeds from the sale of three properties over the past 18 months have been applied to debt reduction. "Focusing on reducing debt has placed the Trust in a sound position in the current environment."

In line with expectations, the Manager has recommended a 1.24 cent per unit dividend distribution, for the quarter ended 30 September 2008, be paid on 8 January 2009. No imputation credits will be attached to this distribution. This brings the year to date distributions for the 2009 financial year to 2.48 cents per unit, which is in line with the targeted distribution of 5 cents per unit.

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