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NPT full-year distributable profit rises

NZN 23/05/2016 Jonathan Underhill

NPT, the listed property investor whose managing director Kerry Hitchcock left suddenly in March, reported a 1 per cent gain in full-year distributable profit and said it will lift its dividends for 2017, a year in which it is focused on keeping a lid on corporate and management expenses.

Distributable profit, which excludes fair value changes and lease adjustments, was $6.1 million in the 12 months ended March 31, from $6m a year earlier. Net rental income rose 0.4 per cent to $11.5m in the year, while an unrealised gain in the fair value of investment properties contributed to a 32 per cent increase in net profit to $8.4m.

NPT itself moved into its new head office in its own AA Centre in Auckland, in what it intends to be a "showcase" for the Auckland property it is refurbishing floor by floor.

The AA Centre is currently valued at $36.2m, second to Eastgate on $58m and ahead of its Roskill Centre site in Auckland on $35m. The value of its portfolio rose 2 per cent to $169.4m as at March 31.

"Further repositioning of the AA Centre will continue across the year as NPT looks to take advantage of the strong office leasing market in the Auckland CBD," the company said. NPT's balance sheet has enough capacity "to complete our capital works programme and add to the portfolio should a suitable opportunity arise."

NPT has a $70m bank facility, which had $22m undrawn as at March 31, it said.

It declared a fourth quarter dividend of 0.875 cents a share, meeting its guidance of payments for the full year of 3.5 cents. It is forecasting payments for 2017 will rise 2.7 per cent to 3.7 cents a share.

NPT shares rose 1.5 per cent to 69 cents and have gained 6.2 per cent in the past 12 months.

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