KEY POINTS:
Property investment company St Laurence Property & Finance Ltd has reported half year net profit after tax of $15.7 million, up from $6.4 million a year earlier.
Executive chairman Kevin Podmore said the healthy surplus was mainly due to an increase in value of the group's investment property
assets, along with active and disciplined management.
"For the past two years, SLPF has enjoyed record returns with double digit growth in our investment property portfolio," he said.
"While some of this growth can be attributed to market conditions, a large proportion is a direct result of the management team which has worked hard to add value to our portfolio."
Group operating revenue for the six months to the end of September was $39.6m, from $26.3m in the corresponding period a year earlier.
Key components of the revenue included property revaluations of $18.1m, compared to nil a year earlier, rental income of $14.5m from $11.6m, interest income of $3.5m from $3.9m, and equity earnings of $2m from $7.9m, St Laurence said.
A tax expense of $4.1m was recorded in the six month period under New Zealand International Financial Reporting Standards for taxation payable on the revaluation gains in the investment property portfolio.
Total group assets increased to $484.3m from $438m at March 31, primarily due to recent property revaluations and a rights issue in April.
Investment property remained the group's single biggest asset class, accounting for $332.3m, or 66.6 per cent of total assets.
The investment property portfolio was made up of 47 per cent office, 33 per cent industrial, and 20 per cent retail. Two-thirds of it was in Auckland, 26 per cent in Wellington, and 8 per cent in the rest of New Zealand, St Laurence said.
A further capital raising was likely before the end of the financial year. The proceeds, along with property sale proceeds, may be used to fund current and future development activities, St Laurence said.
Mr Podmore said the group's existing investment portfolio continued to perform strongly with further opportunity for rental growth through current leasing activity and at rent review.
Development opportunities would provide a steady flow of investment assets, development margins and enhanced rental streams over time.
St Laurence was also looking to divest some of its properties that were reaching maturity and full development potential.
- NZPA