Medical trust loses $2.2m

Listed landlord ING Medical Properties Trust made a net after-tax loss of $2.2 million for the year to June, following last year's $8.6 million profit.

But most of its losses came from property devaluations and the trust's operating profit was $11.8 million, 2.3 per cent down on last year.

The trust, with properties valued at $286 million, owns 16 buildings rented to 98 tenants here and in Australia, including Ascot Hospital at Greenlane in Auckland and the Epworth Eastern Hospital in Box Hill, Melbourne.

Brent Sheather of Private Asset Management in Whakatane has complained to the trust's management about its gearing level.

"IMP's gearing is now at the top end of that of the New Zealand property companies and well above that of the Australian property sector average, post capital raisings. Our clients would like to see gearing closer to the 20 per cent level than 30 per cent."

As the result was in line with projections, a fourth-quarter distribution of 2.125c a unit was confirmed. The final quarter payment took the distribution for the full year to 8.5c a unit.

ING Medical chairman Bill Thurston said the focus remained on enhancing the trust's core portfolio position and ensuring its balance sheet retained a conservative profile.

So far, that strategy had been achieved through the disposal of two lower value, or non-core, assets in the latter part of the financial year, he said.

During the financial year gross rental income rose 9.7 per cent to $23.8 million, while the average increase in rents reviewed was 4.1 per cent. Occupancy levels rose to 98 per cent, from 94.3 per cent a year earlier.

- ADDITIONAL REPORTING: NZPA