Devaluations send National Property Trust into loss

National Property Trust (NPT) today reported a $10.99 million bottom line loss in the year to May 31 as a result of an unrealised writedowns in its properties of $16.04m.

The result compares with a $15.51m net profit in the 2005 year.

NPT still declared a dividend of 1.2 cents per unit which will be paid on September 1.

Revenue rose 3.8 per cent to $18.423m and the pre-tax operating surplus rose to 21 per cent to $3.93m.

A $1.13m tax credit boosted the operating surplus to $5.05m -- 31 per cent up on 2005.

Kevin Podmore, executive chairman of manager, National Property Ltd of St Laurence Holdings, said the result was in line with expectations and reflected significant changes during the year.

The company said it anticipated annual gross dividend for the next three years would be in the range of at least 5.5 to 6.5 cents per unit per annum.

Gross revenue for the year rose 8 per cent to $29.14m as a result of higher rental income and better leases in its commercial property.

Direct costs were unchanged at $14.5m.

The new manager undertook an extensive review of the trust after it took over in November and decided to focus on lower-risk opportunities.

"A set of investment criteria has been adopted to create a more conservative approach to new investment which includes the decision by management not to invest in developments that add a significant element of risk or cost to the portfolio," Mr Podmore said.

The review also decided NPT's balance sheet needed strengthening and a $35m rights issue was completed this month.

Mr Podomore said the trust's business relationship with St Laurence, which owns 32 per cent of the trust, would help revitalise NPT's portfolio.

NPT units last traded at 72 cents. They have traded between 64 and 99 cents in the last year.

- NZPA