ING Property posts $63m loss

Tuesday 19th May 2009

ING Property Trust posted a full-year loss as it joined a growing list of property investors being forced to recognize a reduction in the value of their portfolios.

ING Property reported a net loss of $63.1 million in the 12 months ended March 31, from a profit of $71.7 million profit a year earlier. The value of the trust’s portfolio fell by $89.9 million in the latest year, compared to a gain of $43 million in 2008.

Kiwi Income Property Trust, Kermadec Property Fund and Goodman Property Trust have all announced a loss in full-year earnings as deteriorating portfolio values wipe their profitability. ING has been lining up properties for sale to reduce its debt levels, buffering the trust from the current downturn.

Relative to the market, “the trust’s diversified portfolio of good quality investments is well-positioned,” said chairman Michael Smith in a statement. “The strategy to reduce the trust's debt is appropriate given the current conditions, however, it will impact distribution levels.”

The property manager sold 17 properties for $116.2 million in the last six months of the year, with seven further properties valued at $46 million subject to conditional contracts. As at March 31, the trust’s total assets were $1.1 billion and debt was $429 million, with a debt-to-total-assets ratio of 39.6%.

The board reduced the limit of its banking facility to $500 million after the asset sales.

The company announced it would pay a gross dividend of 8 cents per share.

The stock rose 1.8% to 57 cents in trading today, having shed 17% in the year-to-date.

Businesswire.co.nz

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