Property trust lifts distribution despite smaller portfolio

The National Property Trust lifted its half year distributable profit 1.5 per cent to $4.85 million, despite having a smaller portfolio than a year ago.

After allowing for a $4.4 million unrealised loss in property valuations and a $4.4 million loss on sale of investment properties, the trust's net loss for the six months to the end of September was $9.03 million, compared with a $9.3 million loss a year earlier.

Previously, the trust said the total value of its portfolio of commercial, retail and industrial properties had decreased by 2.2 per cent to $196.7 million, after allowing for asset sales and capital spending.

Yesterday the trust said its net asset backing per unit had dropped, as the result of property sales and revaluations, to 71.78c at the end of the period from 79.8c at March 31.

A 1.125c per unit dividend distribution had been recommended for the September quarter, bringing the 2009 financial year-to-date distributions to 2.25cpu, in line with the targeted distribution for the full financial year of 4.5cpu.

John Crone, general manager of trust manager The National Property Trust, said property values appeared to have stabilised in the past six months. He believed the trust could continue to deliver further rental growth as the portfolio was under-rented.

- NZPA