Trans Tasman offshoot now into developing apartments
Australian Growth Properties Ltd, just over 50%-owned by Trans Tasman Properties Ltd, increased profit by 4.2% to $A6.5 million on ordinary revenue down 82.2%, from $A116.1 million to $A20.7 million.
The revenue comparison doesn’t compare rental income in the 2 periods — the 2001 figure included $A92.1 million from property sales. Sales revenue fell 15.2% from $A23.7 million.
Expenses were correspondingly reduced, from $A102.5 million to $A7.9 million, and borrowing costs fell from $A7.4 million to $A5.9 million.
Earnings/share (basic & diluted) were A2.2c in both periods.
Total assets rose slightly from the December balance date, from $A476.5 million to $A480.1 million. Liabilities rose from from $A177 million to $A180.2 million.
Net tangible asset backing fell from $A1.10 to A99.4c.
Australian Growth will pay an A2c unfranked dividend, after paying nothing at the half-year in 2001.
Chief executive Don Fletcher said the company’s 601 Bourke St redevelopment in Melbourne was completed in February with 37% of the space leased and an offer has been made on another 24%.
The company has received development approval for 65 York St in Sydney (James Hardie House), which will bring 8500mÂ² of refurbished B grade space on to the market in the last quarter of this year.
Mr Fletcher said Australian Growth had advanced $A13.75 million of project finance to support a serviced apartment development which has received substantial presales. He said the projected return was higher than on the company’s traditional investments, with earnings to flow through this year and in 2003.