Better occupancy rates mean big turnaround for ING

Renting space in two key Auckland buildings helped listed landlord ING Medical Properties Trust improve its performance.

The trust yesterday declared an after-tax profit of $6.7 million in the December half, a big turnaround from the previous $2.8 million loss.

David Carr, general manager of the trust's manager, said the result came from getting more rent, as a result of driving occupancy levels in the portfolio from 96 per cent to 99 per cent.

"Compared to the commercial property sector, we've gone against the grain which is to be expected in terms of the underlying pressure in healthcare. We continue to have demand for our assets because it flows through to income and earnings," he said. The manager leased about 400sq m in its Eastmed, an integrated family health care centre in St Heliers.

Its Ascot Central at Greenlane is now 88 per cent occupied with 450sq m available but the trust leased 600sq m there to four tenants, Carr said.

The value of the trust's properties dropped from $293 million by December 2008 to $287 million in this half after some assets were sold.

Gross income from property rentals rose from $11.7 million previously to $12.3 million in the latest half.

The trust has an 8.5 years weighted average lease term and low gearing and is predicting good rental growth from its diversified asset base.