Property Trust's portfolio value drops 5pc

National Property Trust has suffered a $28.08 million half-year drop in real estate valuations, slicing nearly 5 per cent off the worth of its buildings and land.

John Crone, the trust management company's general manager, said the portfolio was valued at $293 million a year ago but stood at $266.8 million last month. This was in line with value falls in other listed property vehicles, he said, citing Kiwi Income Property Trust, AMP NZ Office Trust and Kermadec.

Colliers International had valued the trust's assets previously, Crone said. CB Richard Ellis did the latest round which showed a 4.9 per cent drop in the six months from September last year to last month.

The trust had low vacancy levels of around 2.6 per cent, he said. The 18-level AA Building in Albert St suffered a $4.2 million value cut yet only part of a floor was vacant, Crone said.

The trust's industrial properties were performing well and Christchurch warehouse/factory at Print Place rose from $9.6 million last September to $10.92 million last month.

Eastgate mall in Christchurch is the trust's largest asset and its value has been sliced by almost $14 million, from $90 million last March to $84 million by September, and now to $76.3 million.

"Over the last 12 months, capitalisation rates have eased by an average of over 0.75 per cent. Even though passing rent has improved by almost 2 per cent, these gains have only partially offset weaker market conditions," Crone said in a statement to the NZX.

National did not release a list of valuation changes on a property-by-property basis. But Crone supplied this to the Herald on request.

The trust will declare a full list of valuations after board clearance. Next month, the trust will release those valuations and its annual results for the year to March 31, 2009.

The trust's management is owned by St Laurence. Late last year, St Laurence Finance's 9000 debenture investors were asked to accept up to 13 years of drip-fed repayments on the $250 million owed. The trust has buildings in Auckland, Napier, Tauranga, Wellington and Christchurch.

Kermadec, which says on its website it has property assets valued at $137 million, released revaluations last week and said it suffered a 6.1 per cent or $8.4 million drop in the value of its portfolio for the six months to March 31, 2009.

Chris Francis, director of Augusta Funds Management, which runs Kermadec, said the full list would be released with the annual result.