NPT posts 16% drop in annual profit on smaller lift in valuations

Monday 25th May 2015

NPT, the listed property investor, posted a 16 drop in annual profit, reflecting a bigger uplift in the year earlier period from a revaluation of properties.

Net profit fell to $6.4 million, or 3.94 cents per share, in the 12 months ended March 31, from $7.6 million, or 4.71 cps, a year earlier, the Auckland based company said in a statement. The latest earnings included a $1.2 million boost following a revaluation of its investment properties, lower than the $2.6 million gain booked a year earlier. Revenue increased 3.7 percent to $16.5 million.

The retail, commercial and industrial property investor has been repositioning its portfolio to focus more on Auckland, the country's largest city. In the past year its trading profit, which excludes one time items, tax and unrealised changes in valuations, increased 16 percent to $6.96 million as it benefited from a full year's trading at its Roskill retail centre in Auckland, which it bought in October 2013 for $32.85 million.

"NPT has balance sheet capacity for growth and the company's focus will remain on acquisition of property where both sound cashflow and growth opportunities exist," the company said, adding it will sell properties when the value has been maximized and opportunities for acquisition are identified for growth.

NPT will pay a 1.1 cps share quarterly dividend on July 3, taking its total for the year to 3.5 cps, ahead of guidance for dividends to be in line with the previous year's 3.2 cps. The company said today it expects a minimum dividend of 3.5 cps for the 2016 year.

Shares in NPT last traded at 65 cents and have gained 4.8 percent so far this year.

BusinessDesk.co.nz

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