Calan Healthcare's Property Values Increase
February 10, 2006
Calan Healthcare's Property Values Increase Strongly
Statement made by Miles Wentworth, Chief Executive and Director, Calan Healthcare Properties Limited (as Manager of Calan Healthcare Properties Trust)
Calan Healthcare Properties Trust (NZX Code: CHP) today announced that the market value of its property assets has increased by $0.06 per unit to $1.29 per unit since the market values were previously assessed per unit on 30 June 2005.
The updated valuations represent a combined market value of the properties of $219.7 million, an increase of $10.4 million since 30 June 2005. The independent valuations have been prepared by CB Richard Ellis Limited, Colliers International and DTZ New Zealand Limited.
The breakdown of revaluations at market value is as follows: - The Ascot Hospital and Carpark and the Auckland Laundry have been valued at $86.6 million as at 31 January 2006. These properties had a previously assessed market value of $83.6 million as at 30 June 2005. The updated valuation represents annualised growth of 6.0%.
- Other New Zealand properties have been valued at $49.0 million. These properties had a previously assessed market value of $46.3 million as at 31 December 2004. The updated valuation represents annualised growth of 5.9%. - The Australian properties have been valued at $NZ79.7 million ($A72.4 million converted at the closing rate of $0.9085 the cross rate as at 31 January 2006). These properties had a previously assessed market value of $NZ76.7 million ($A70.4 million) as at 30 June 2005. The updated valuation represents annualised growth of 4.9%. - The Ascot Clinics site which is carried as an Investment Property for Construction has been valued at $4.5 million, which is an increase of $1.7 million on the carrying value as at 30 June 2005.
For accounting purposes Calan's Net Tangible Assets per unit has increased to $1.254 per unit from $1.20 191 per unit as at 30 June 2005. This is lower than the assessed market value of the properties stated above as Calan's current accounting policies require the inclusion of theoretical disposal costs in property valuations, and would exclude the updated value of the Ascot Clinics site as it is an investment property under for construction.
Mr Wentworth stated that Calan is extremely pleased with the strong and steady increase in the value of its health property assets which demonstrates the quality of the portfolio and the underlying stability of health property assets. Calan's consistency of growth could not be achieved with a more diverse portfolio mix, and investors should be conscious of Calan's low risk, medium return investment profile when comparing Calan to commercial property investments, said Mr Wentworth.