Calan Healthcare Properties Trust today reported a 30 per cent fall in net profit for the six months ended December 31.
The trust posted a net profit of $3.2 million for the period, down from $4.7 million for the same time the previous year.
The trust said the net profit
was affected by a $1.9 million one-off loss on the sale of the Artemis Medical Centre.
The trust said previous write-downs of the Artemis Medical Centre had been reversed and the net loss included in the current financial statement.
Without this adjustment the trust said net surplus after tax was up 8.8 per cent on the prior half year.
The trust said in a statement it had made substantial progress over the past six months in changing its portfolio to a low risk, medium return healthcare property fund.
Its new flagship investment, the $50 million Epworth Eastern hospital complex in Melbourne was nearing completion and was expected to be finished in April, with its opening scheduled mid year.
The sale of non-revenue producing assets during the six months freed up $11m for future investment. The trust said funds released by the asset sales would generate additional pre-tax earnings of more than $970,000 over the coming 12 months through interest savings.
As a result of the asset sales, rental income declined by 3 per cent to $6.8 million.
A final quarterly dividend of 2.15c per unit will be paid, up from 2c per unit. This will bring the distribution for the year ending June to 8.45 cents per unit, up from 8 cents per unit.
Shares in Calan last traded yesterday at 97c, having ranged between 84c and $1.01 over the past 12 months.
- NZPA
