Trust Posts Record Profit Of $14.9m

29 May 2002

Colonial First State Property Trust announced today a record net surplus of $14.9m, after revaluation, for the year ended 31 March 2002, up 15.2% on the same period last year. Net income for the year was $25.4m.

Trust general manager Lloyd Cundy says the record profit result is a reflection of a continuation of strong tenancies, favourable rental reviews, the addition of the Millennium Centre to the Trust’s portfolio and a full year of revenue from Panasonic House, which was purchased in July 2000. The Trust’s NTA at balance date was 99.29 cents per unit.

Unitholders will receive a final quarterly gross dividend of 2.6374 cents per unit (made up of a 2.21 cents per unit cash distribution and a 0.4274 cents imputation credit). Total gross distributions for the year to 31 March 2002 amounted to 10.55 cents per unit.

Major activity in the Trust’s portfolio during the year centred on the purchase of the Millennium Centre in Auckland in August 2001 for $42.6m and the signing of an unconditional sale contract for the Sovereign Centre in Wellington in February this year for $16.85m. The Trust has maintained its virtually fully tenanted status.

On a like for like basis, the property portfolio valuation increased from $250.445m to $252.525m ($2.08m or 0.82%). After allowing for capital expenditure and costs of sale, the net property portfolio valuation increased $44,000, which in turn increased the net surplus for the period to $14.9m.

Mr Cundy says the Trust’s unit price performed very strongly over the 12 months to 31 March 2002. The Colonial First State Property Trust gave a total pre-tax return of 14.4% for the year to 31 March 2002 compared to a 14.1% gross return achieved by the NZSE Property Share Index and a 7.8% gross return achieved by the NZSE 40.

“A low interest rate environment and a competitive New Zealand dollar encouraged many local and offshore investors to become more active in the New Zealand property market over the past twelve months.”

“The New Zealand listed property market looks set to continue benefiting from vulnerable sharemarkets and a relatively low interest rate environment in 2002.”

ENDS

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