Vacancies affect Prop Trust earnings

The National Property Trust's June quarter distributable earnings per unit are 4.8 per cent down on a year earlier, as vacancy rates increased.

Distributable earnings for the quarter were $2.29 million or 1.18c per unit, down from 1.24cpu for the same period a year earlier.

General manager John Crone said that while the trust had traded close to its earnings forecast, it was clear that trading conditions remained challenging with softening rentals and higher vacancy rates.

Also, the proposed corporatisation of the trust, while of long term benefit to unit holders, would result in costs to the trust associated with the transition during the next eight months, Crone said today.

Manager, The National Property Trust Ltd, said that due to softening interest rate swaps the trust recorded an unrealised fair value swap loss of $770,000 for the quarter to June 30.

The manager is reviewing the trust's distribution forecasts after being authorised by unit holders to develop a detailed proposal to corporatise and internalise management of the trust.

Under the trust policy of distributing 90 per cent of distributable earnings to unit holders, the first quarter's distribution, for the three months to June, is 1.059cpu.

- NZPA