National Property Trust Posts NZ$9 mln Loss

Published: Wed 26 Nov 2008 02:20 PM
National Property Trust Posts NZ$9 mln Loss on Valuation Drop
Nov. 26 – National Property Trust Ltd. posted a first-half loss of NZ$9.3 million, reflecting a NZ$13.8 million decrease in the value of its properties.
The total value of assets fell to NZ$290.6 million, including the sale of a property, from NZ$317.6 million. John Crone, of the trust’s management company, said the result was satisfactory given current market conditions. The trust’s units jumped 7.7% to 42 cents.
National Property’s distributable surplus in the first half rose 14% to $4.78 million. It will pay a dividend of 1.24 cents a unit for the three months ended Sept. 30, bringing year-to-date payments to 2.48 cents.
"Movement in valuations has largely arisen from softening capital yields however we are comfortable with the position given that most of our properties have achieved improved passing and market rents," Crone said.
Borrowing costs will decrease in the current year, reflecting the rapid decrease in interest rates.

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