Calan raises payout

Property developer and investor Calan Healthcare Properties has raised its payout to unitholders saying asset sales had allowed it to pay down debt, boosting its financial performance.

Calan said it would increase its pre-tax distribution for the June quarter to 2.2 cents a unit, bringing its full year payout to 8.5c.

It also said its September quarter payout would be 2.3 cents per unit and it expected to at least maintain that level of distribution "on an ongoing basis".

That would see Calan deliver 9.2 cents per unit to investors for the year to June 2006 - an increase of 8.2 per cent on 2005.

"Proceeds from the sale of non-core and non-yielding assets were used to retire debt, which has enhanced the trust's financial performance for 2005," Calan said.

The trust also said 2006 would see it benefit from the now completed Epworth Eastern Hospital in Melbourne.

Calan said it achieved its major objectives during the year to June by completing the Epworth Eastern hospital and transforming its asset portfolio into "a fully performing one".

In April Calan said it had sold its stake in the Ascot Hospital and Clinics for $7.2 million and that it would use the money to reduce borrowings.

At the time, it said its planned pay down in debt would lift its pre-tax earnings by $440,000 a year.

Calan units closed unchanged at $1.09 yesterday at the higher end of their range over the last 12 months.

- NZPA