National Property Trust six month profit down 13 percent

By NZPA

Monday 10th February 2003

Christchurch-based property investor National Property Trust posted a 13 percent fall in interim profit as a result of its flagship shopping centre development.

The trust's unaudited post-tax surplus of $1.94 million for the six months ended November was down on $2.18 million the previous year.

Executive chairman Paul Dallimore said in a statement that the lower returns were in line with budget.

The Eastgate shopping centre in Christchurch hit the trust's result, which Mr Dallimore said was expected to return to normal levels once the redevelopment is completed in two months.

Eastgate is 96 percent leased, including The Warehouse, Farmers and Countdown.

Earnings a unit were 1.57c, before tax, compared with last year's 4c a unit. The net tangible asset backing fell to 92c a unit, as at November 30, compared with the previous period's 99.3c unit.

Gross turnover increased to $8.60 million from $6.96 million, reflecting increased activity following the acquisition of the Newmarket Property Trust in September.

The gross dividend, paid quarterly, was 2.25c per unit compared with 2c the same period the previous year, and will be paid to unit holders on March 7.

Gross dividends for the first half totalled 4.5c.

The trust planned to sell one of Newmarket's Auckland properties, the AA building, with negotiations at "an advanced stage" with one party, Mr Dallimore said.

Income for the period included the sale of NZI house in Nelson for $1.84 million, and vacant land in Christchurch for $864,750.

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