KEY POINTS:
Kermadec Property Fund has beaten its prospectus forecast with an annual net profit of $6.18 million, and said it was "cautiously optimistic" about this financial year.
Kermadec, which listed on the stock exchange in December 2006, had forecast a $3.39m annual net profit in its 2006 prospectus.
Net profit excluding property revaluations, one-off items and tax was $5.74m, above the forecast $5.06m.
Property revaluation gains for the year totalled $2.52m, lifting the adjusted net tangible assets per share to $1.14 per share.
Total assets rose by 29 per cent to $138.8m, with the purchase of two properties funded by new equity of $16.8m and borrowings of $12.4m.
Kermadec has eight properties valued at $145 million. Just over 10 per cent of the company is owned by its founders Starline Group's Jamie Peters and the Francis family.
Shareholders last week approved a deal to buy the Finance Centre podium building on Auckland's Queen St for $17.5 million from a subsidiary of the Augusta Group, which is controlled by the Francis family.
PricewaterhouseCoopers prepared an independent appraisal which said the deal was fair and would increase the Kermadec asset base, but the company would still be about $100 million smaller than the next largest property vehicle, leaving it as the smallest of the eight listed property investors.
Today's annual financial results describes eight major rent reviews achieving average increases of 17 per cent, and an overall increase in net rental income of $390,000.
"The board of Kermadec remain cautiously optimistic about the company's outlook over the 2009 year, with the softening economy posing risks but also providing opportunities,"the company said.
Kermadec expected to maintain its annual dividend at current levels.
A final quarterly gross dividend 2.17c per share brought total dividends to 8.66cps, in line with forecasts.
Kermadec shares were up 2c at 77c, having traded between $1.10 and 70c in the last year.
- NZPA, NZ HERALD STAFF
