Capital Properties shines in tough times

By Campbell McIlroy

Friday 26th May 2000

Capital Properties announced a better than forecast result for the year despite having its portfolio devalued by 4.9%.

The company's operating surplus after tax for the year to March 31 of $13.1 million was 16% ahead of forecast.

The improved result was mainly attributable to the acquisition of Shortland Properties in December last year.

Despite the good result the company had its portfolio revalued down by 4.9% to $380 million.

Chief executive Nick Wevers said the valuation, by an independent valuer, was still only a small percentage change but reflected the recent increases in interest rates and marginally higher yields on all property investments.

From an operational point of view the result was pleasing, especially considering the difficult market for listed property companies.

The company signed lease for a total of 27,100sq m over the last 12 months, representing 12.5% of the portfolio, taking the company's occupancy rate to approximately 95.5%.

The final dividend for the year to March 31 was 2.2425c a share with imputation credits of 0.6245c a share. This takes the total dividends for the year to 8.97c a share with imputation credits totalling 2.58c a share.

The gross annual yield for the 50c partly paid shares was 23.1%.

Payment on the second instalment is due on June 30. Instalment receipts bought at the time of the float cost an additional 50c a share, and those bought subsequently cost 57c a share.

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