National Property Trust Interim Profit Rises

26 January 2007

National Property Trust Interim Profit Rises From $2.47M to $3.74M

Listed property trust The National Property Trust (NPT) is pleased to announce a 51.5% increase in net surplus after tax for the six months ended 30 November 2006 to $3.74 million, up from $2.47 million recorded in the previous corresponding period.

Net surplus before tax rose significantly during the period, up from $1.86 million to $4.0 million. Gross revenue rose from $8.71 million to $10.08 million. Net rentals made a significant contribution to the increase in the bottom line after increasing by $1.18 million to $9.85 million during the period.

NPT executive chairman Kevin Podmore says, “This result is a substantial improvement on the previous year which is a reflection of the Trust’s newly implemented fiscal and operating strategy.”

“Operating expenses and non-current liabilities decreased as a result of the change in capital structure and repayment of debt. This was achieved after receiving proceeds from the $35 million convertible preference unit (CPU) issue last year,” Mr Podmore said.

The manager of NPT is The National Property Trust Limited, a wholly-owned subsidiary of property investment and finance group St Laurence. “The Manager’s strategy is to focus on managing properties for yield and low-risk growth opportunities, and to target capital expenditure projects that add value. This strategy is now beginning to yield results,” Mr Podmore stated.

“A revitalised capital base and return to sustainable earnings is allowing the Trust to firmly focus on our core role of managing properties and delivering investment value to unitholders,” Mr Podmore says.

A final distribution of 1.2 cents per unit was paid to unitholders for the year ended 31 May 2006, and a first quarter distribution of 1.25 cents per unit paid on 1 December 2006.

The Manager is also pleased to confirm that a gross dividend distribution of 1.25 cents per unit for the quarter ended 30 November 2006 will be paid on 2 March 2007. No imputation credits will be attached to this distribution.

During the period NPT’s property portfolio achieved growth from both rental reviews and renewals. The portfolio is now 97.9% leased, up by 2% from May 2006. Village Rialto Cinemas in Newmarket Auckland reported strong sales and growing pedestrian numbers after its newly refurbished premises were opened last year. Three new tenants occupied spaces on both the ground floor and Level 1 during the period and St Laurence is currently reviewing plans to revamp the foodcourt to complement the cinema refurbishment.

The Goddards Centre in Tauranga is also now fully leased following the opening of the Caci Clinic on Level 1, whilst the Eastgate Shopping Centre in Christchurch will be fully leased when NZ Post/Kiwi Bank opens a new outlet in the mall in April. A significant redevelopment of the first floor of this mall has been completed with the relocation of Configures Express Gym to new premises, allowing for the introduction of a 1,250 square metre store for Number 1 Shoes.

NPT’s Gill Street property in New Plymouth is also now 100% occupied after the Lone Star restaurant leased the additional tenancy created on the ground floor, and PricewaterhouseCoopers leased levels six and seven and secured naming rights to the building. A refurbishment of the entranceway and foyer was completed in July 2006.

Mr Podmore says the manager is pleased with the progress made to date and looks forward to growing the Trust in line with its strategy. “NPT is currently considering a number of opportunities to expand the portfolio in line with the Trust’s strategic direction and investment criteria,” he says.

ENDS

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