Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Trust announces interim profit increase of 24%

NEWS RELEASE New Zealand • 27 February 2008

INVESTMENT . INSURANCE . REAL ESTATE www.ingnz.com


ING Medical Properties Trust announces interim profit increase of 24%

ING Medical Properties Trust (the Trust) today announced it has recorded an unaudited net profit after tax of $5.3 million for the six-month period to 31 December 2007. This is an increase of 24% over the same period last year (excluding unrealised currency and interest rate swap movements).

Total property revenue has increased to $10.5 million, 8.3% above the $9.7 million for the same period last year. At period end, the net tangible asset backing is $1.29 per unit, up from $1.28 as at 30 June 2007 (excluding deferred tax on revaluation gains on capital account property).

The increase can be attributed to the exchange rate movement over the period. The Trust’s debt-to-total- assets ratio remains conservative at 29% (which will increase to 33% after the completion of Ascot Central).

David Carr, General Manager of the Manager of the Trust says that “the Trust has been actively managing the existing portfolio while pursuing a number of opportunities in the healthcare property sector. The result reflects the strength of this strategy”.

The pre-tax income distribution for the six months to 31 December 2007 increased 4.3% to 4.9 cents per unit from 4.7 cents for the half year to 31 December 2006. Based on a unit price of $1.16, the equivalent gross yield is 10.7% for 33% marginal tax payers and 11.7% for 39% marginal tax payers.

Highlights for the period include: • Total property revenue increased by 8.3% • 4.3% increase in interim distributions • Portfolio occupancy of 99.5% • Upcoming lease expiries of less than 1% in the balance of the financial year • Acquisition of the Apollo Health and Wellness Centre • Completion of Kensington Hospital, Whangarei Endoscopy unit extension • New eight-year lease term agreed with Biomed, Pt Chevalier, Auckland • Exposure to rises in interest rates minimised • Reduction in bank fees • Unitholder approval of an increase in the maximum gearing ratio • Improved corporate governance, including: . Unitholders to nominate and vote on independent Directors . Lower threshold for unitholders to request an extraordinary meeting of the Trust to unitholders holding 5% or more of the units . Separate auditor for the Manager and the Trust


Operating overview The Trust has a low risk portfolio of quality assets with excellent tenant covenants, long-term secure lease structures with earnings resilience and sustainable rental growth. The Trust’s weighted average lease term remains by far the longest of the New Zealand Listed Property sector, at 9.4 years (the New Zealand Listed Property Trust average as at 31 December 2007 was 5.8 years), providing strong core earnings underpinned by secure lease contracts.

Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Crown Accounts: Slightly Softer Growth Expected In PREFU

A slightly softer growth forecast is the main feature of largely unchanged Pre-election Fiscal Update compared to the Budget forecasts three months ago, Finance Minister Steven Joyce says. More>>

ALSO:

Water: Farming Leaders Pledge To Help Make Rivers Swimmable

In a first for the country, farming leaders have pledged to work together to help make New Zealand’s rivers swimmable for future generations. More>>

ALSO:

Unintended Consequences: Liquor Change For Grocery Stores On Tobacco Tax

Changes in the law made to enable grocery stores to continue holding liquor licences to sell alcohol despite increases in tobacco taxes will take effect on 15 September 2017. More>>

Back Again: Government Approves TPP11 Mandate

Trade Minister Todd McClay says New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP11 countries have agreed on. More>>

ALSO:

By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>

ALSO: