By Christine Nikiel
Friday 31st May 2002 |
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DENIS THOM: Urbus is not in 'Oh God' country yet |
The company yesterday announced an audited operating after-tax profit of $15.1 million before revaluation adjustments. Urbus, the restructured portfolio of management company Waltus - which merged its 27 properties in 2000 - first listed shares at $1 each. This week shares were languishing at 75c.
The company's 5000-odd shareholders have not had an easy ride. Share prices plummeted to as low as 54c just three months after the company began trading. "It's not 'oh God' country though," chairman Denis Thom said. "We're confident when we're through with the rationalisation process we'll have a clearer way."
Urbus' listing on the secondary board meant it did not get as much analysis and scrutiny as the main board, Mr Thom said. Urbus shareholders did not trade a lot, he said, because the company was not so well-known. "We need to give a better message to shareholders. Naturally we're concerned but we obviously believe the share prices are undervalued." Asked whether Urbus would list soon, Mr Thom said if Urbus listed it would be "closer to the end of the year or early next year at the latest." Urbus is in the process of flogging off its dead wood properties and "rationalising" its $200 million portfolio. Mr Thom said Urbus wanted to focus on industrial and bulk retail, as those were the strongest markets.
Urbus recently sold four buildings for $6.1 million and bought two industrial properties in Wellington and Auckland for $7.45 million. Urbus also bought six industrial buildings in Auckland for $16.5 million. They had an average weighted lease term remaining of over six-and-a-half years.
The properties had a combined annual market rental of $1.68 million and an annual yield on purchase price of 10.16%, Mr Thom said.
Urbus total net lettable area under management is 318,724sq m, with a vacancy rate of 1.75%, according to the company website.
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