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Wednesday 12th May 2004 |
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Operating revenue lifted to $45.7 million from $35.7 million to give a pre-tax profit of $24.2 million against $18.3 million a year earlier.
Its diluted earnings per share rose to 14 cents from 10.6 cents.
The 3.62 cents per share had imputation credits of 0.878cps attached.
Chairman Denis Thom said the strong result endorsed the adopted strategy to grow the portfolio in overall size through strategic acquisitions.
Urbus shareholders will receive an unchanged gross final dividend of 4.5 cents per share payable on June 11, leaving the annual dividend unchanged on 9cps -- 90% of operating profit.
He said Urbus would invest up to 10% of its assets in development opportunities to ensure capital and earning growth.
"The environment has changed and it is important the company has the platform to retain and attract new tenants," Thom said.
The portfolio of 56 properties was independently re-valued at balance date at $405.2 million, Thom said. The $10.1 million revaluation gain is in addition to net gains of $720,000 from the disposal of four Wellington office properties.
Including the revaluation gain, net asset backing per share was estimated to have risen to $1.00 from 90 cents.
Urbus' portfolio is now 34% industrial, 45% retail and 21% office. The target is industrial and retail at 40% each and office at 20%. The portfolio is now 67% weighted towards Auckland.
A further key strategy has been to improve the liquidity of the portfolio with 50% of the properties valued at $10 million or less.
The portfolio's average weighted lease term is 4.4 years.
As at balance date Urbus had reduced its loan to value ratio (LVR) from 43% to 36% which sits at the lower end of the self imposed range of 35-40%. Current banking covenants allow a LVR up to 55%.
Urbus shares have risen to 92 cents from 72 cent at March 31 last year, which Mr Thom was a fairer reflection of value.
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