ING Property slides to annual loss as property values hit

ING Property Trust slid to an annual after-tax loss of $63.1 million, reversing the previous year's $72 million profit, as the slowing economy hit property values.

The result included independent property devaluations of $89.9m.

Operating profit before interest and disposals of $77.5m was 2.5 per cent higher than the $75.6m for the year ended March 31, 2008.

Net property income increased by $3.2m during the year.

The trust owns commercial property across New Zealand, including the Waitakere and Albany Mega Centres in Auckland.

At the end of the financial year, assets totalled $1.1 billion, and debt was $429m. The debt-to-total asset ratio of nearly 40 per cent was still below its trust deed limit of 50 per cent, and its banking covenant of 45 per cent, chairman Michael Smith said.

The trust aimed to reduce gearing levels to 35 per cent over the medium term, through property sales and putting off acquisitions.

The trust reduced the limit of its $600m ANZ banking facility to $500m after asset sales.

Sales since March 31 were at or above current book values, he said.

Currently seven properties were subject to conditional sale contracts with a total sales price of $46m.

In what the trust described as a difficult leasing environment, occupancy at year-end was 98 per cent, with a weighted average lease term of 4.2 years.

The trust declared a gross dividend of 8c per unit for the year.

Units in ING Property were up a cent at 57c in late afternoon trading.

- NZPA