Investors in $453 million listed landlord Urbus Properties have been told next year's earnings will be down because of a temporary rental loss while a West Auckland project is finished.
Urbus is redeveloping the Waitakere Plaza shopping centre in Henderson, a $14.5 million expansion to be finished this year.
The 10-storecentre is dropping in size from 19,000sq m to 16,000sq m and being converted into a bulk retail centre, to be rebranded Waitakere Mega Centre.
Reduced rental income from that project would push down earnings next year, Urbus said in its full-year result yesterday.
But when the job was finished, lease terms and vacancy rates throughout the entire portfolio would improve.
Urbus, called Waltus until May 2001, made $41.5 million after-tax in the year to March, up 21 per cent on last year's $34.3 million. This year's result included unrealised revaluation gains of $17.3 million.
Urbus is the subject of a takeover offer from ING Property Trust.
