ING increases profit 181 per cent

ING Property Trust today announced an after-tax profit of $91.4 million for the year ended March 31 -- a 181 per cent increase on the $32.5m profit the previous year.

The 2006 result includes property revaluations that added $49.5m ($13.1m in 2005) to the value of the company's portfolio.

The trust announced a final gross dividend of 2.4875c per unit , taking the total gross dividend for the year to 9.95c per unit, comprising 9.39c per unit of cash and imputation credits attached of 0.56c per unit.

The trust's total assets increased to $915.4m, a 157 per cent increase on $356m the previous year.

Mike Smith, chairman of ING's manager, ING Property Trust Management Ltd, said the trust had substantially improved its size, scale and diversity during the period, at the same time reducing its tenancy, lease expiry and income risks for investors.

The trust took over Urbus Properties Ltd in July last year. It also attempted to take over Calan Healthcare Properties Trust, but settled for a 10.8 per cent stake after the $1.25 per unit offer failed to find favour with Calan unitholders.

Calan trust's independent directors advised its shareholders not to accept the offer, based on a report by independent advisers Ferrier Hodgson, which said the offer was too low and unfair.

In March this year, ING Property Trust Management secured the management rights to Calan Healthcare Trust from its former manager Calan Healthcare Properties Ltd, for an undisclosed sum.

Under the deal, it manages the Calan assets -- including buying and selling properties -- but does not own the underlying units.

In addition to the takeover of the Urbus portfolio, ING Property Trust acquired nine properties during the period for a total of $43.7 million.

These included a commercial office building in Willis St, Wellington, for $13.1 million; a modern purpose-built coolstore facility at 1478 Omahu Rd, Hastings, for $9.5 million; a new four-unit bulk retail development in Maui St, Hamilton, for $8.6 million; and two neighbouring properties in Porirua, near Wellington -- part of a long-term retail development.

A brand new $17 million convenience retail centre with a food and service focus in Manukau City was also acquired.

ING expected occupancy levels to remain at their current high levels in the coming year, with only 7.9 per cent of leases due to expire.

The trust said today it had ratified a revision to investment policy allowing it to invest in land to complete its own developments.

No more than 5 per cent of the portfolio value will be held in land development opportunities, where the land is not income producing or is producing a less than commercial return at the time of purchase.

ING Property Trust units last traded unchanged at $1.19 against a year high of $1.29 and a low of 90c.

- NZPA