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ING Property profit falls on values

Wednesday 26th November 2008

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ING Property Trust, New Zealand's fourth biggest listed property investor by value of assets, posted a slump in first-half profit after revaluing its property portfolio. The outlook for rental growth may be modest.

Profit fell to $276,000, or 0.05 cents a unit, from $18.9 million, or 3.51 cents, a year earlier, the trust said in a statement. Revenue rose 5% to $43.7 million.

"The economic environment will remain challenging," chairman Mike Smith said. "As a result rental growth beyond modest levels will be harder to achieve."

The value of its property portfolio fell by 1.3% or $14.2 million. The trust's core properties reported earnings before interest and tax of $39.4 million from $36.2 million a year earlier.

The trust will pay a net distribution of 1.942 cents a unit. The units fell 1.6% to 62 cents and have dropped 40% this year.

By Jonathan Underhill

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