NPT Limited Announces Trading Profit Of $5.4M For Half Year

NPT Limited Announces Trading Profit Of $5.4 Million For Half Year

NZX-listed property company, NPT Limited, today announced a trading profit of $5.4 million before abnormal expenses and unrealised adjustments for the six months to 30 September 2011; this compares with a $4.4 million trading profit for the same period last year, an increase of 22.7%. The net loss after tax was $9.8 million for the half year, compared with a $13.0 million net loss after tax for the same period last year.

Shareholders will receive a dividend of 0.75 cents per share for the quarter ended 30 September 2011.

NPT’s acting chief executive officer, Kerry Hitchcock, says, “This half year loss was largely attributed to unrealised write-downs on the company’s properties. The major impact on NPT’s portfolio was from the significant on-going effects from the Canterbury earthquakes on two of the company’s Christchurch properties – the Eastgate Shopping Centre in the eastern part of the City, which suffered major damage, and Natcoll House in the red zone.

NPT is currently awaiting settlement of material damage insurance claims on Eastgate and Natcoll House; rentals continue to be recovered from insurance companies in line with NPT’s business interruption policies.

After seeking independent professional advice on Christchurch’s Natcoll House, NPT’s directors are of the opinion that the building is not repairable following the damage from this year’s earthquakes. The matter is now with NPT’s insurers for their consideration. The directors retain the view that this will result in a contingent asset as at 30 September 2011.

NPT’s property portfolio was re-valued to $162.15 million at 30 September 2011 compared with $168.60 million on 31 March 2011. These valuations include Sel Peacock Drive which was sold unconditionally prior to 30 September 2011 and settles on 7 November 2011.

NPT’s investment in its Heinz Watties property in Hastings is providing an excellent return with an increase in its net valuation of $0.93 million from 31 March 2011. This reflects the recent capital expenditure on the property and an increase in rents.

Subsequent to the reporting period, NPT has confirmed a 10-year lease with Medlab South, signed last week, at its property located in Print Place, Addington, Christchurch.

“NPT is well positioned for future growth, despite the uncertainty surrounding two of our Christchurch properties. We have continued to seek property management efficiencies and cost savings. We believe the company is well positioned to resolve these outstanding issues in Christchurch and pursue growth opportunities in other markets,” says Mr Hitchcock.

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.

ENDS

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