Newmarket Trust result dips

By Christine Nikiel

Friday 15th March 2002

Newmarket Property Trust financial results dipped slightly this year amid market speculation it would merge with Colonial First State Property.

The trust's net surplus after tax dropped 5.5% on last year's result to $1,911,400, with its total rental income falling 5.4% on last year to $4,288,589.

At the trust's annual meeting in December, Colonial general manager Geoff McWilliams told trust unit-holders to "watch this space" as far as future plans went and a strategy for the company would be announced in April.

The trust has re-leased its key Rialto Country Road space in Auckland's Newmarket to mini-department store Ultimo Emporium, against the trend for fashion retailers to move north to 277.

It also announced a yield of 12.5% on an average market price of 50c.

The trust's weighted average lease term increased from 2.27 years to 3.91 years. Trust managing director David Keys said ideally the term would be five years but the retail fashion market was fickle and the trust did not want redundant retailers locked into a long-term lease. All 11 leases up for renewal were re-signed and negotiations were under way on a lease renewal for a major tenant in the AA Centre.

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