Trans Tasman Properties first half profit up 70%

By NZPA

Tuesday 10th August 2004

Trans Tasman Properties today posted a first half net profit after tax (npat) of $12.2 million, nearly 70% up on the same period last year.

Trans Tasman Properties executive chairman Don Fletcher said the increased profit reflected the company's changing focus, "with more emphasis on earnings derived from development activity and less on the traditional portfolio of existing properties".

The npat of $12.2 million for the six months to June 30 was 69.4% up on the $7.2 million posted during the previous corresponding period. The company did not declare a dividend.

Fletcher said the group's total revenue for the period was down slightly at $26.7 million compared with $32 million last year.

"The decrease in revenues follows the further disposal of properties in the second half of 2003 resulting in lower rental incomes, partially offset by $2.6m of development earnings this year."

Meanwhile operating expenses fell to $16.8 million from $20.9 million for the same period last year, primarily due to lower interest charges following the sale of properties.

During the half year Trans Tasman Properties sold the Fletcher Penrose Complex for $72 million and its four Takapuna properties for $30 million.

Trans Tasman Properties said it had been actively pursuing development opportunities in New Zealand.

Last week the company confirmed Air New Zealand would be an "anchor tenant" at its yet-to-be built central Auckland business complex on the corner of Fanshawe St and Beaumont St.

Construction would start on the $60 million and 19,745sq m complex next month with completion scheduled for April 2006.

The company's net asset value per share at June 30 was 64.2 cents per share and total assets decreased to $657.3 million and liabilities decreased to $273.1 million.

Trans Tasman Properties shares were trading unchanged at 37c by midday today.

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