BLACKWALL Property Funds' listed P-REIT (ASX: PXT) has suffered a 34.7% decline in 1H13 net profit from $3.65 million to $2.39 million, as it prepares for the worst case scenario to pay the MacarthurCook Property Securities Fund, $19 million in damages.
CEO Stuart Brown said the trust is appealing a NSW Supreme Court decision to award MPS $19 million in damages and if the appeal is unsuccessful, P-REIT will have to sell some assets to pay the bill.
P-REIT’s revenue for the first half year declined by 2.4% to $6.32 million.
Brown said the trust currently has borrowings of $53 million, which has a term of maturity of less than 12 months. In addition, there is the $19.5 million legal liability.
The trust has non-current assets of $120.11 million of which $81.35 million is in direct property and $38.76 in securities. The current loan to value ratio is below 65%.
Brown said the trust has around $122 million of gross assets to satisfy the total liabilities of $74 million and if it unsuccessful in its appeal, the trust can sell assets to fund the judgement debt.
Property Review
