KEY POINTS:
Property investor St Laurence Property & Finance (SLPF) posted a half year net loss of $34.8 million, hit by a fall in property valuations, and increased loan provisions and write-offs.
The result for the six months to the end of September compared with a net profit of $19.5m a year earlier.
The latest period saw a $22.8m fall in property valuations, an increase in loan provisions and write-offs of $9.9m and a loss of $4m on equity accounted investments.
SLPF executive chairman Kevin Podmore said that following several years of strong growth from acquisitions and unrealised increases in asset values, the company had, along with other property entities, experienced a softening in asset values.
"The result is an indicator of current economic conditions, and the impact these are having in the property sector in particular," he said.
SLPF was highly focused on debt management in the current environment and would allocate surplus realised cash to lowering debt levels. It would continue to look to sell mature and non-strategic properties when the opportunities arose.
During the latest period, three mature properties were sold with proceeds applied to debt reduction.
The weighted average lease term of SLPF's portfolio increased from 3.5 years to 3.7 years, as a number of new leases and lease renewals were negotiated. Occupancy eased from 93.26 per cent to 92 per cent.
Mr Podmore said the operating environment would continue to be challenging into 2009.
SLPF , a fund managed by St Laurence Ltd, has more than $457m of property-based assets including investment properties, development properties and investments in property-backed securities.
St Laurence Ltd froze funds in June and has proposed a recapitalisation plan to be voted on by investors on Friday.
- NZPA
