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Calan Healthcare h1 profit falls 6%


Thursday 22nd February 2007

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Calan Healthcare Properties said today its first half net profit fell 6% due to a number of write-downs.

For the six months ended December, after-tax profit fell to $5.0 million, and total property revenue rose by 5.6% to $9.7m.

The difference in profit was due to write-offs of $400,000 property evaluation costs and $100,000 property assets, chairman Bruce Davidson said.

Net tangible asset backing fell to $1.28 per unit from $1.30 as at June 30, as the strong exchange rate cut the conversion of the company's Australian properties into New Zealand dollars, Davidson said.

That offset a gain of $2.1m after the revaluation of seven properties.

Overall, the value of the trust's property portfolio fell by 1.5% to $221m. The weighted average lease term was 10.2 years, the sector's highest, and vacancy levels were 0.7% and expected to fall further.

Calan had unconditionally bought Ascot Central in Auckland, which together with neighbouring Ascot Hospital will form the country's largest private hospital, medical and clinical campus, Davidson said.

The trust continued to look for acquisitions in New Zealand and Australia, and expected a slightly better performance for the full year. Calan and ING Property Trusts continued to investigate a merger of the two portfolios.

The interim dividend rose to 4.7c per unit from 2.2cpu a year earlier.

The unit price for the trust has risen about 16% since the Government's tax reforms, and today was down 2c at $1.48.

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