Medical landlord and potential takeover target Calan Healthcare Properties Trust has increased net profit by just 1 per cent but is predicting a better result next year.
It did note, however, its distribution was up 8.2 per cent, from 8.5c last year to 9.2c.
"Barring unforseen circumstances, the board isprojecting a slightly enhanced performance and distribution for the 2006-07 year," Calan's manager said.
Operating revenue rose 16.5 per cent from $16.3 million to $19 million and rental income rose 29 per cent to $18 million.
Net profit rose 1 per cent to $10.6 million.
Fund manager ING bought Calan's management this year and said this month it was investigating launching a full takeover but has not yet decided to proceed.
Last week, Calan's independent directors formed a subcommittee to consider the idea and said the deal had to be beneficial to Calan's unit holders if it were to proceed.
The value of Calan's real estate portfolio rose 9.8 per cent from $204.3 million last year to $224.3 million this year, although it said about half this gain was because of exchange rate movements.
Calan owns a large healthcare asset in Melbourne so fluctuations in the value of the New Zealand dollar against the Australian currency affects its portfolio value.
Calan's Epworth Rehabilitation Brighton asset in Melbourne rose in value by almost $1 million or 7 per cent.
Calan's founders Martin Lyttelton and Brian Freestone have resigned as directors while chief executive Miles Wentworth will stay with the trust until September 30 "to facilitate a smooth transition across to ING's management".
The board paid tribute to all three, saying it appreciated their contribution.
This year's annual meeting will be held in Auckland but the board is yet to set a date.
