National Property posts $9m loss on valuation drop

Wednesday 26th November 2008

National Property Trust posted a first-half loss of $9.3 million, reflecting a $13.8 million decrease in the value of its properties.

The total value of assets fell to $290.6 million, including the sale of a property, from $317.6 million. John Crone, of the trust's management company, said the result was satisfactory given current market conditions. The trust's units jumped 7.7% to 42 cents.

National Property's distributable surplus in the first half rose 14% to $4.78 million. It will pay a dividend of 1.24 cents a unit for the three months ended September 30, bringing year-to-date payments to 2.48 cents.

"Movement in valuations has largely arisen from softening capital yields however we are comfortable with the position given that most of our properties have achieved improved passing and market rents," Crone said.

Borrowing costs will decrease in the current year, reflecting the rapid decrease in interest rates.

By Jonathan Underhill

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