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Net annual after-tax profit from listed landlord National Property Trust fell by more than $10 million, a drop its management chief blamed on falling property values.
The trust made $29.07 million in the year to May 2007 but this fell to $18.43 million in the 10 months to March 31, 2008.
Kevin Podmore, chairman of National's management company St Laurence, said the trust made big valuation gains previously but these gains had slowed lately.
Podmore also expressed concerns about the state of the retail market. Half the trust's properties are shops.
This week's result also showed the value of National's real estate portfolio had shrunk from $311 million last year to $304 million.
The trust's vacancy rate has risen from 1.2 per cent last year to 2.9 per cent this year. Net rental income fell from $19.8 million last year to $18.85 million in the past 10 months.
John Crone, of the trust's management company, was upbeat about the result. He said the business was focused on operational efficiency and enhancing value in its portfolio.
Unit holder funds rose from $172 million to $190 million. National has also cut borrowing levels and showed a reduction from 41 per cent debt-to-asset ratio last year to 35 per cent.
The trust said it expected rental growth to be slow, the market to be discounting many financial investments and the retail market to tighten. Yields are expected to soften and there will be low levels of growth in property values.
ING Property Trust this week announced a $71.7 million after-tax profit for the March 2008 year, down on the previous $102.3 million. The latest result included $43 million in revaluation gains.
The trust said the big profit change was due to record revaluation gains made in the previous period which were not as strong in the latest year.
