NZ revaluations hurt Trans Tasman Properties

By Phil Boeyen, ShareChat Business News Editor

Wednesday 27th February 2002

Shares in property company Trans Tasman Properties (NZSE: TTP) have been marked down after the company reported a full year loss and a drop in operating profit.

The net loss of $3.89 million for the year ended December includes a $61.7 million writedown on its New Zealand portfolio to $461.1million.

"While disappointed with the extent of the writedown, the directors believe the group's New Zealand property valuations reflect the current CBD office market in New Zealand," the company says in a statement.

On an operating basis total revenues rose to $106.3 million from $102.3 million previously but the operating surplus before unusual items dipped by nearly 30% to $27.3 million.

"The decline in operating surplus was the result of lower market rentals on the New Zealand properties and the impact of properties sold during the year," the company says.

"Inclusion of interest costs on AGP's property at 363 George St, Sydney for the full year was the primary reason for the increase in this expense. Previously this cost had been capitalised to the cost of the development."

After tax and minority interests the company recorded an operating deficit of $3.9 million compared with a surplus of $23.5 million the year before. This included losses from sale of properties of $20.1 million and bond issue costs of $1.6 million.

In line with the board's previously stated policy of only making distributions from reported profits the company will not be paying a final dividend.

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