ING Medical boosts distributable profit by 13%

ING Medical boosts distributable profit 13%, lifts rental income

By Paul McBeth

Aug. 19 (BusinessDesk) – ING Medical Properties Trust, the specialist investor in health clinics, lifted its distributable profit 13% as it boosted rental income and maintained a near-full occupancy rate.

Net distributable income, property investors’ preferred measure as it excludes unrealised movements in fair value, rose to $11.7 million in the 12 months ended June, from last year’s $10.4 million, the Auckland-based company said in a statement. The trust made a net profit of $7.4 million, turning around a $2.2 million loss a year ago, bolstered by a $10.5 million gain in the revaluation on its investment properties. ING Medical boosted interest income 6.9% to $24.3 million, and lifted its overall occupancy rate to 99.6%.

“It is clear that the trust and unit holders have benefitted from investment in a sector where properties are tightly held and tenant demand is less influenced by market and economic factors,” said David Carr, general manager of ING Medical Properties Ltd., the trust’s manager. “This is a significant feat considering the New Zealand recession and global financial crisis through that period.”

The trust will pay a cash distribution of 2.125 cents per unit, plus imputation credits of 0.51 cents, taking the total annual distribution to 8.5 cents. ING Medical’s shares were unchanged at $1.25 in trading today, and have gained 4.2% this year.

It expects to make a net cash distribution of between 8 cents and 8.2 cents per unit next financial year, with higher total funding costs cutting the forecast.

The trust will rebrand as ANZ-owned ING NZ changes its moniker to OnePath.

The government’s tougher treatment of property taxation and claims on depreciation resulted in an unrealised hit of $15.5 million to the trust’s deferred tax.

(BusinessDesk)

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