Recent News

NPT Half Year Valuation Updates

30th October 2009

The National Property Trust (NPT, the “Trust’) today announced valuation updates for the half year to 30 September 2009. These have resulted in a net reduction of $4.4 million in the value of NPT’s portfolio for the six month period. After allowing for asset sales and capital expenditure the total value of the Trust’s portfolio has decreased by 2.2 percent to $196.7 million as at 30 September 2009. The valuations, determined by independent valuers, are subject to review by NPT’s auditors.

The General Manager of The National Property Trust Limited, John Crone says “The lower valuations are largely attributable to weaker capitalisation rates and an easing in market rentals. It is pleasing to see a slowing in the rate of decline in values indicating that the property market may be stabilising.”

Capital Management

NPT also announced that the sale of the Goddard Centre and adjoining Dumbarton building in Tauranga was settled on 20 October 2009. As previously announced, the net proceeds from this property sale, along with the proceeds of the recent sale of the Rialto/Carlton building in Newmarket, have been used to reduce debt. The Trust has also taken the opportunity to cancel $40 million of interest rate swaps. The cancelled swaps had a fixed rate of between 7.33 percent and 8.04 percent and durations of between five to eight years. The cancellation cost of approximately $3.9 million will not have any adverse impact on the Trust’s interest cover calculations or dividend distributions.

Mr Crone says “Our recent property sale successes have improved the Trust’s balance sheet and, combined with our capital management initiatives, the Trust is now in a strong financial position. With the debt to equity ratio sitting at just below 23 percent NPT is now one of the more conservatively geared Listed Property Trusts in the country.”

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