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

 

Non-cash tax charge delivers Argosy a $93 million loss

Non-cash tax charge delivers Argosy a $93 million loss

Nov. 29 (BusinessDesk) - Argosy Property Trust posted a $93 million first-half net loss, although that reflected a $103.2 million non-cash charge for government tax changes.

Net distributable income fell 16.3% to $17.5 million as net property income fell 13% to $35.6 million for the six months ended September 30, reflecting asset sales during the last year, while earnings before interest and tax fell 8.7% to $31.4 million.

Before the tax charge, the trust made a $10.2 million profit compared with a $5.6 million loss in the same six months a year earlier, which reflected property devaluations. The trust's board decided it wasn't necessary to revalue the portfolio in the latest six months.

The trust, formerly ING Property Trust, said the tax charge doesn't affect its
bank loan covenants.

The trust said it focused on maintaining and improving the quality of its property portfolio during the six months.

It sold the 792 Great South Road retail property in Auckland for $10.5 million, more than $700,000 above its March 31 valuation. It also bought the remaining strata title it didn't already own at the bulk retail centre at Wagener Place, St Lukes for $10.5 million and has a valuation $1 million higher than the price paid.

Both transactions settled after September 30 and will add to the trust's yield and average lease term, it said.

It also has unconditional agreements to sell three properties and some vacant land for about $26.4 million with settlement occurring through to mid 2013 at its Palmerston North joint venture.

The trust negotiated 40 leases in the six months and increased the weighted average lease term to 5.3 years from five years previously. However, occupancy fell to 95.7% at September 30 from 95.7% at March 31.

Debt rose to 41.8% of total assets at September 30 compared with 40.1% at March 31 and management is actively negotiating a number of sales to reduce it, the trust said.

The trust will pay 1.75 cents per unit for the September quarter, which won't carry imputation credits, and it still expects to pay seven cents per unit for the full year.

The trust says post balance-date activity levels in the property market “provide some grounds for greater optimism” although there is still a “need for careful and competent management.”

Argosy units are trading at 78 cents, near the top of its 61 cents-to-81-cents trading range over the last 12 months.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Westpac: Sets Out Plan To Go Cheque-Free

Westpac NZ has announced details of its plan to phase out cheques, after signalling in May that it would be supporting a move to other forms of payment. Cheques will cease to be available as a means of payment after 25 June 2021. Westpac NZ General ... More>>

ALSO:

NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>

ALSO:

Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>

ALSO:

Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Fonterra: Farmers Taking Another Step Towards New Zealand’s Low Emissions Food Production

They’re hot off the press and intended to help take the heat out of climate change. Fonterra farmers are already among the world’s most sustainable producers of milk and now have an additional tool in their sustainability toolbox. Over the last few ... More>>

ALSO:



Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>

ALSO:

Dairy: Fonterra Sells China Farms

Fonterra has agreed to sell its China farms for a total of $555 million (RMB 2.5 billion*1), after successfully developing the farms alongside local partners. Inner Mongolia Natural Dairy Co., Ltd, a subsidiary of China Youran Dairy Group Limited ... More>>

ALSO: