ING Property Profit Falls on Values
ING Property Profit Falls on Values, Outlook Challenging
Nov. 26 – ING Property Trust, New Zealand’s fourth biggest listed property investor by value of assets, posted a slump in first-half profit after revaluing its property portfolio. The outlook for rental growth may be modest.
Profit fell to NZ$276,000, or 0.05 cents a unit, from NZ$18.9 million, or 3.51 cents, a year earlier, the trust said in a statement. Revenue rose 5% to NZ$43.7 million.
“The economic environment will remain challenging,” chairman Mike Smith said. “As a result rental growth beyond modest levels will be harder to achieve.”
The value of its property portfolio fell by 1.3% or NZ$14.2 million. The trust’s core properties reported earnings before interest and tax of NZ$39.4 million from NZ$36.2 million a year earlier.
The trust will pay a net distribution of 1.942 cents a unit. The units fell 1.6% to 62 cents and have dropped 40% this year.