Argosy reports $10.2m profit

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Argosy Property Trust, the former ING Property Trust, has reported an interim profit of $10.2 million, excluding a $103.2 million deferred tax item.

Many companies have reported deferred tax expenses resulting from the accounting treatment of the Government's decision to remove tax deductions on buildings.

Companies are now advising that the charge is an unintended consequence of the International Accounting Standard 12 and an exposure draft has been released by the International Accounting Standard Board to address this.

If approved, the liabilities are expected to reverse.

Argosy's core property portfolio generated $35.6 million of net property income, down from $40.9 million last year and produced earnings before finance costs and tax of $31.4 million, down from $34.4 million last year. The reduced income is a result of asset sales during the last year.

Including the deferred tax liability the property trust made an after-tax loss of $93 million for the six months to September 30, which compares to a loss of $5.6 million last year. The trust declared a cash distribution of 1.75c a unit for the September quarter.

- NZPA