George St completion pushes rent up 82%
Australian Growth Properties Ltd, half owned by Trans Tasman Properties Ltd, increased net profit after tax by 29.5% to $A13.745 million, which will be paid out as an unfranked final dividend at A6.19744c/share.
Gross rent increased 82% to $A40.3 million and profit from continuing operations increased 47.5% to $A26.4 million before finance costs.
Finance costs increased (from $A5 million to $A13.9 million) due to the expensing of finance charges directly relating to 363 George St. Finance costs of $11.9 million relating to the development were capitalised in the previous year.
No income tax was payable on net profit due to the benefit of income tax losses carried forward from previous years.
During the year the company bought back & cancelled 7.8 million shares for $A4.2 million, at A53.5c/share.
Ordinary shareholders will get a bonus share for every 61.705 shares held, making a total 3.6 million bonus shares to be issued so the holders of dividend-deferred shares don’t accrue a benefit over ordinary shareholders from the buyback programme.
A previous bonus issue, last October, cut net tangible assets back by $A4.2 million to $A299.5 million at the December balance date, representing a fall from $A1.06 to $A1 asset backing. After the bonus issue on 15 March, NTA will fall another A1c to A99c.
The company increased portfolio value by $A1.32 million, compared to an $A7.3 million writedown in 2000, but the investment portfolio has been pared back by nearly $A80 million, from $A530.5 million to $A451.9 million, plus an $A14.67 million development property.
Total assets at December 2001 were $A476.5 million, against total liabilities of $A177 million. Bank borrowings were cut back from $A217.4 million to $A151 million, representing 32% of total property assets.
AGP said occupancy was at 95% of net lettable area, leaving 4312mÂ² vacant. The estimated gross annual rental for vacant space is $A2.2 million.
Individual valuation changes from December 2000 were:
363 George St complex, $A246 million, down $A4 million
345 George St, $A138.5 million, up $A16.5 million
65 York St, $A28.5 million, down $A2.8 million
Penrhyn House, Canberra, $A37.5 million, up $A800,000
Other property, $A1.4 million, down $A400,000
Total change $A10.1 million, less $A8.8 million capex for an $A1.3 million gain.The company bought 601 Bourke St, Melbourne, for $A10.8 million last October. The 8155mÂ² building is being redeveloped at an estimated cost of $A7.5 million, including marketing & leasing.
AGP sold 5 properties for $A92.1 million, using the proceeds to reduce bank debt.
The group has estimated income tax losses of $A119 million, up $A4 million. The company said tax law changes would impact on losses it could carry forward & the timing of their accessibility.