Trust announces projected revaluation gain
ING Property Trust announces projected revaluation gain
Listed property trust ING Property Trust (the Trust) has announced the largest ever annual portfolio revaluation gain in its portfolio, likely to result in an increase in value of approximately $48 million.
The revaluation gain increases the Trust’s total assets to just over $900 million. The net asset backing of the Trust increases by 9 cents per unit to $1.15 from $1.06 (as at 30 September 2005).
Managing Director of ING Property Trust Management Limited Andrew Evans said the gain is still subject to formal confirmation from the external auditors, and will be released in mid-May as part of the full-year financial results.
He attributed the projected valuation gains achieved to a combination of factors, being the very supportive market fundamentals and internally generated value driven by the Trust’s asset management strategy.
This strategy is to focus on the active management of leases and tenants (the overall occupancy in the portfolio is 99.6%, with a tenant retention rate of 97%) and the active recycling of capital through value-added expenditure, as well as property acquisitions and disposals.
The Trust also advised it has now sold a total of nine properties during the 2006 financial year for $44.6 million. These sales achieved gains, after the allowance for selling costs, of $6.9 million. The Trust now has 15 properties, with a value of $55 million, identified for future sale. These properties did not form part of the 31 March 2006 revaluation process, and are held in the books at the lower of cost or net realisable value.