Trust has big profit turnaround

The trust, which has nearly $300 million in assets and is listed on the NZX, yesterday reported an after-tax profit of $36.22 million for the year to May 31. This is a significant turnaround on last year’s $10.99 loss.

Net operating surplus before tax rose significantly 90.6% from $3.93 million to $7.48 million. Net surplus after tax was up 33.9% from $5.05 million to $6.76 million.

Gross revenue increased 10.5% to $20.36 million, due to higher rental income and increased occupancy in both the commercial and retail components of the property portfolio. Occupancy across the portfolio is now 98.8%.

A key driver behind the profit increase was revaluation gains of 11.8%.

“We are pleased with the result which is in line with expectations. The main contributing factors included a reduction in vacant space across the portfolio, positive movements in valuations and the closing out of swap contracts which frees-up the Trust to follow its strategy of reducing debt in the current interest rate environment," National Property Trust chairman Kevin Podmore said.

The company announced a final dividend of 1.755 cents per unit, taking the dividend distribution payout for the full year to 5.505 cents per unit. It also said that next year’s dividend would be around 5 cents per unit.

NPT intend to register under the PIE regime which will provide a favourable increase for all unitholders when it comes into effect later this year.

Find out more about the trust here