Revaluations boost Urbus Properties' profit

By Chris Hutching

Friday 14th May 2004

Urbus Properties this week announced an audited after-tax profit of $34.3 million for the year ended March 31, 2004, up from $18.3 million last year.

The profit includes revaluation gains of $10.1 million that are required to be posted as part of a company's after-tax result even if the properties are retained in the company's portfolio.

The revaluation gain lifts net asset backing per share from 90c to $1 and earnings per share from 10.5c to 19.8c.

Urbus chairman Denis Thom said it was a strong result and the dividend payout ration would be increased from 80% to 90% of operating profit.

Shareholders will receive a gross final dividend of 4.5c a share, taking the gross full year dividend 9c a share, the same as last year.

Urbus plans to invest up to 10% of its portfolio in development projects.

The portfolio of 56 properties was re-valued at balance date at $405.2 million, a $10.1 million revaluation gain.

The company also sold four Wellington properties for $720,000.

The growth in the portfolio has been achieved in line with a determined effort to implement the sector and geographic mix strategy.

The sector mix is now 34% industrial (32% last year), 45% retail (40%) and 21% office (28%).

The target is industrial and retail at 40% each and office at 20%. The portfolio is now 67% weighted towards Auckland.

A key strategy is to improve the liquidity of the portfolio, with 50% of the properties valued at $10 million or less. Currently, this stands at 51%.

The portfolio's average weighted lease term is 4.4 years and the percentage of over rented property now stands at just 0.8%, down from 3.8% last year.

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