Bendigo Stock Exchange listed PFA Diversified Property Trust has posted a net profit of $38.7 million for the year to June 30 2006, an increase of 26% over last year’s result.
Over the year, the trust’s gross operating revenue rose 26% to $39 million.
Property Funds Australia’s managing director Chris Morton said the year has been an active one for the trust.
“We would expect that our unitholders would be very satisfied from this year’s performance. This is particularly so given that unitholders received a 6.76 cents per unit special distribution and enjoyed a more than respectable 17% total return over the year.
“This financial year, the trust has continued to benefit from the stability of income through diversity, increasing rents and further strong improvements in the value of the trust’s portfolio as evidenced by the upward revaluations of seven of the trust’s property assets, with those property values on average increasing by 15%. Another impressive financial result for the trust is the earnings per unit (before amortisations and unitholder distributions) being 24.5 cents over the year, which given a unit price of $1.09, is a very creditable result,” he added.
As at June 30 2006, the trust owned 16 properties located in Queensland, New South Wales, Victoria, Western Australia, Australian Capital Territory and Tasmania – valued in excess of $407 million.
During the year, seven properties were revalued adding $25.5 million to the portfolio’s value. In addition, the trust bought three properties including 180 Queen Street in Brisbane for $18 million, a 50% interest in Civic Tower at 66-69 Goulburn Street, Sydney for $54.8 million and the Citigate Melbourne hotel at 270 Flinders Street, Melbourne for $34 million.
As a result, NTA per unit increased to $1.17 per unit over the year.
“We have recently completed a strategic analysis of the trust’s portfolio, and decided that it was appropriate to market the Garden Square Office Park located at Upper Mt Gravatt in Brisbane for sale. We see its divestment as consistent with the ongoing diversification strategy for the trust, particularly given the overweight nature of the trust’s exposure to the Brisbane office market.”
“We intend to continue the diversification process and grow the trust on a careful and considered basis to preserve the Trust’s stability of income and its reasonably high yield,” Morton said.
“We recognise that our unitholders appreciate the Trust’s stability of return, with a high percentage increasing their investment in the Trust during the two capital raisings that occurred during the year as well as in the 2005 Special Distribution Reinvestment Plan. We recognise and appreciate their ongoing support and confidence,” Morton said. “We remain positive about the underlying fundamentals of the Trust and its future. We believe that the Trust offers value in the market whilst providing stable and tax effective income returns.”
The trust’s ordinary distribution was 9.48 cents per unit for the year to June 30 2006, in line with previous forecasts.
The trust’s distribution rate has now increased to 9.8 cents per unit and is forecast to continue for the 2006/07 financial year.
By Nelson Yap
