TTP reports huge profit drop

Singapore-based property developer Trans Tasman Properties today reported a huge drop in net profit, blaming timing issues for the fall.

TTP posted a net profit of $4.3 million for the year ended December 31, down from $30.7 million the previous year.

The company said the drop in earnings reflected the timing of completing development properties and projects.

No dividend was declared.

After the balance date TTP's spin-off, Asian Growth Properties (AGP), listed on the London Stock Exchange Alternative Investment Market (AIM). TTP sold 97.5 per cent of its investment in AGP by an off-market pro-rata share buyback, which led to the cancellation of 424 million TTP shares.

AGP comprises TTP's four Hong Kong property developments, valued at $283 million, leaving TTP with just over $100 million of real estate in New Zealand and Australia.

Since the balance date TTP has also conditionally sold development properties Viaduct 1 and Viaduct 2 in Auckland for $28.5 million and announced the conditional purchase of another development site at the Auckland Viaduct for $16 million.

Shares in TTP were unchanged at 45c in early trading, having ranged between 37c and 50c over the past year.

- NZPA