By ANNE GIBSON
One of New Zealand's largest listed real estate companies, Trans Tasman Properties, has increased its half-year after-tax profit by 48 per cent to $10.6 million.
This was despite a "considerable drop in business confidence" throughout the New Zealand economy, the company said.
The result for the six months ended June 30 was released yesterday.
The previous half-year after-tax profit was $7.2 million. Chairman Don Fletcher says the improvement is a pleasing result, particularly in the present economic environment.
Trans Tasman increased total assets from $1341.1 million to $1394 million. But debt was also up, from $650.5 million to $699 million.
This was despite an injection of $30 million from seven property sales to Greg Wilkinson's Axis Property Group, announced late last month.
No property revaluations were included in the half-year result, with executive director Rod Hodge saying these would be contained in the full-year result.
Trans Tasman's decision to suspend dividend payouts to its shareholders remains in force, with this also due to be reviewed when the full year's result is announced in February.
Trans Tasman's liabilities increased from $650 million to $699 million, owing to continuing drawdowns by subsidiary Australian Growth Properties to fund its Sydney office tower. Trans Tasman has a 46.8 per cent stake in AGP.
AGP this week announced a half-year operating profit of $A10 million, down from the previous result of $A12.2 million.
Trans Tasman announced losses on property sales in New Zealand of $7.4 million. The write-off of goodwill relating to the investment in Australian listed property trust Global Property Fund was $3.6 million.
Total revenue for the six months was $50.2 million "even after the sale of over $40 million of non-core and regional properties in the preceding 12 months," Trans Tasman said.
The company said in July that it was delaying construction of a 30-level $100 million tower on its site spanning Shortland and Fort streets because of market conditions.
None of the analysts in Auckland and Wellington had any praise for the half-year result, with one slating a profit of $10 million on assets of $1.3 billion: "Logic would tell you that's not a good result."
Trans Tasman shares closed up 0.7c at 19.7c.
Trans Tasman half-year profit jumps
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