Asset backing started at 96.4c, finishes at 57.5c
Newmarket Property Trust started out in 1995 as a subsidised bond issue backed by investment & development properties and has ended its time as a loss-making semi-detached unit still not clear on direction.
FAI Metlife took the Rialto, adjoining Newmarket Broadway office block, Rialto carpark on Teed/Kent Sts and the George Court building on Karangahape Rd to the market in 1995 in a $66 million float ($22 million to be retained by FAI Metlife), backed by a $67 million portfolio.
Net asset backing then was put at 96.4c.
Total assets are about where they were to start with, at a tad under $70 million, but net assets are down to just under $40 million, for backing of 57.5c/unit.
The units have been trading around 50c, a modest 13% discount.
In its last annual result before being absorbed into the affairs of the National Property Trust, Newmarket reported a $3.47 million deficit after tax & $6.64 million of negative revaluations for the June year.
Before realisations & revaluations, the net surplus fell from $4.44 million to $4.07 million on revenue down $75,000 to $8.82 million.
Direct costs increased by $297,000, including restructuring costs of $462,000 related to the takeover offer from National and the aborted offer from the Symphony Group.
The Rialto on Broadway, Carlton DFK Centre and the AA Centre fell in value, partly offset by a $190,000 revaluation gain on the George Court sign and a $772,000 gain on the sale of the Rialto Carpark, which was sold for $7.25 million in June.
The trust is seeking refunds from Inland Revenue for overpaid tax for the 1994-99 financial periods totalling $1.2 million. This money was previously treated as current assets but has been reclassified as contingent assets.
Newmarket has paid gross distributions of 7.65c/unit. For 2002. (6.57c/unit in 2001), including a special 1.5c/unit in August, but will not pay a final dividend.
The National Property Trust’s management company now controls about 87% of Newmarket, which is down to 120 unitholders.