NPT Limited Announces Trading Profit of $9.94 million
NPT Limited Announces Trading Profit of $9.94 million for Year
NZX-listed property company, NPT Limited, today announced a trading profit of $9.94 million for the year ended 31 March 2012. This compares with a $8.80 million trading profit for the 2010-2011 year; an increase of 12.5%. Following unrealised gains and losses, NPT’s net loss after tax is $2.298 million for the year, compared with a $14.67 million net loss after tax for the same period last year.
Shareholders will receive a dividend of 175 cents per share for the quarter ended 31 March 2012, bringing the total distribution for the 2011-2012 year to 4.00 cents per share. The record date will be 5pm on Wednesday, 20 June with a payment date of Wednesday, 4 July 2012.
NPT Limited’s acting chief executive, Kerry Hitchcock, says, “In August last year NPT had stated the dividend payment would be 3.00 cents per share for the financial year ending in 31 March 2012 due to the uncertainties around the company’s Christchurch property portfolio. Most of those issues have now been resolved and the directors have adjusted the payment upwards to reflect this. NPT’s financial position is solid and we’re pleased to deliver this sound result to shareholders.”
Following its corporatisation on 1 April 2011, NPT had forecast administration cost savings of $500,000 for the 2012 year. The actual savings for the 12 month period are $728,000.
The company is awaiting an insurance settlement on its material damage claim at Christchurch’s Natcoll House.
During the year NPT’s directors made a strategic decision to buy out two long-dated interest rate swaps at a cost of $3.8 million. As a result, the overall cost of the company’s funding has been significantly reduced.
As advised to the market in April, NPT Limited recorded unrealised adjustments the company’s property portfolio from $161.79 million in 2010-2011, down to $143.15 million for the 2012 year.
The decrease in portfolio value is mostly attributable
to Christchurch’s earthquake-hit Eastgate Shopping
Centre’s that had Farmers terminate its lease early. NPT
has spent $13.81 million on earthquake repairs and
reconstruction of the shopping centre. In March the company accepted a full and final insurance settlement of $18.05 million, including GST. In April, Eastgate received positive CERA certification confirming that the centre meets the new stricter seismic standards.
“The 2012-13 year looks encouraging for NPT Limited; most of the challenges of the last financial year are behind us. Properties in NPT’s portfolio are well-placed for positive returns for the year ahead. There is significant leasing activity underway in a number of properties which will have material impact on our weighted annual lease term, create positive cash flow for the company and add value for shareholders,” says Mr Hitchcock.
“With most of the issues around our Christchurch properties now resolved, a rebuilt management team, continuing property efficiencies and the retiring of some debt, the company is looking at future growth. NPT will continue to enhance its current properties, as well as pursing growth opportunities in new markets.”
NPT Limited is an NZX-listed company (NPT). It has a diversified portfolio of retail, commercial and industrial properties located in Auckland, Hawke’s Bay, Wellington and Christchurch. NPT was established in 1994 as a unit trust, The National Property Trust. On 1 April 2011 the trust was corporatised and became NPT Limited.