National Property assets surge past $100M

By Phil Boeyen, ShareChat Business News Editor

Friday 10th August 2001

National Property Trust has delivered a 9% lift in tax paid earnings and says assets under ownership have jumped 71% to $111 million.

In the year ended May tax-paid earnings for NAP stood at $3.3 million compared with $3 million previously. Sales revenue jumped from $5.66 million to $7.15 million.

Following the purchase of the Hornby and Eastgate shopping centres in Christchurch the trust says its assets are now valued at $111 million compared with last year's $64.8 million.

Trust spokesman, Paul Dallimore, says the highlight of the year was the successful acquisition of the assets of Southway Properties. The latest results included two months contribution from the assets.

"The acquisition will make a significant contribution to profit performance in the current year and the diversification of our property portfolio with a retail emphasis will be positive for National's unitholders in the longer term.

"The expansion is an evolutionary step for National, increasing our exposure to retail property at a time when consumer spending trends are showing positive signs."

The trust is planning to redevelop the Eastgate shopping centre, located in Christchurch's eastern suburbs, and says it has completed the concept plans and feasibility study and the project will proceed as quickly as possible, subject to securing funding

"We are very pleased with the levels of interest being shown by leading New Zealand retailers and can confirm that the major tenants at Eastgate have been secured."

Mr Dallimore says the estimated $29 million Eastgate redevelopment will increase the trust's exposure to retail property to between 50% and 60% of the overall portfolio.

"This change to a strong retail asset base has excellent potential to increase our rental stream, add momentum to our earnings growth and further increase our underlying net asset backing."

The trust says its commercial properties are also continuing to perform very satisfactorily. Around a third of the properties came up for rental renewal during the year to May and all available space was successfully tenanted with the weighted average lease terms being extended to 4.5 years.

The trust's net tangible asset backing per unit has increased to 98 cents from 93 cents last year, on a higher issued capital of 54.4 million units compared with 39.2 million previously.

Debt funding has increased to just under $50 million, which equals 44.6% of the gross value of the trust fund compared with the 45% limit set out in the trust deed.

A fourth period distribution of 1.22 cents per unit has been announced bringing the year's total to 7.88 cents per unit compared with 8.2 cents per unit the previous year.

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