NPT Limited’s Property Portfolio Gains 6.9% in Half Year

News Release 15 October 2012

For immediate release
NPT Limited’s Property Portfolio Gains 6.9% in Half Year

NPT Limited today reported an increase of $8.15 million in its property portfolio valuation for the six months ended 30 September 2012, a rise of 6.9% over that period. The listed property company’s portfolio of retail, commercial and industrial property was valued at $126.30 million, up from $118.15 million as at 31 March 2012. During this period, capital expenditure of $0.99 million was incurred.

Kerry Hitchcock NPT’s chief executive says, "The 6.9% gain in NPT’s portfolio over the last six months is very positive news for the company. After a challenging 2011-2012, these property valuations reflect the hard work from NPT’s team over the past six months. Leasing activity is strong and we continue to seek cost-efficiencies.”

Christchurch’s Eastgate Shopping Centre has risen in value 14.9% in the six month period from $35.50 million to $40.80 million; an increase of $5.3 million. Since April, when Eastgate received its positive CERA certification after the 2011 earthquakes, Eastgate has experienced a significant increase in leasing enquiries and rental activity. Lincraft, the Australian fabric craft and home furnishing store has signed an eight year lease for a 1500m2 space and will open in mid-November. Number One Shoes has a new lease for some of the Centre’s newly reconfigured ground floor space. More leases are in the pipeline at Eastgate.

Heinz Wattie’s National Distribution Centre, located by Hastings’ proposed food hub, continues to provide a good return for shareholders, says Mr Hitchcock. The property’s value increased from $24.75 million in March to $27.0 million, a rise of $2.25 million (9.1%) over the last six months. This figure reflects the 15 year lease renewal that was signed in May with Heinz Wattie’s.

The valuation at Print Place in Middleton, Christchurch has risen from $12.5 million to $12.70 million at 30 September 2012. This increase has been driven by a strong demand for well-placed industrial property, resulting in favourable rent reviews.

The AA Centre in Auckland’s Albert Street has risen in value $0.7 million (2.5%) from $28.50 million at 31 March to $29.20 million at 30 September 2012. A three year lease renewal for the Department of Internal Affairs and a new six year lease with AA Insurance has contributed to this increase.

Christchurch’s Natcoll House continues to be the subject of a material damage insurance claim from the 2011 earthquakes; negotiations continue with the company’s insurers. This property’s valuation remains at the current book value of $12 million.

The portfolio valuation excludes NPT’s former Wellington property at 342 Lambton Quay, which was sold on 18 September to Robt. Jones Holdings Limited.

“As we predicted six months ago, NPT is experiencing positive growth in its property portfolio with a number of leases locked down. With the healthy leasing activity at Eastgate, we’re pleased to see the commitment of retailers to the centre. The increase in the portfolio valuation is very pleasing, and NPT is well positioned for future acquisition and growth,” says Mr Hitchcock.

NPT Limited is an NZX-listed company (NPT). It has a diversified portfolio of retail, commercial and industrial properties located in Auckland, Hawke’s Bay and Christchurch.

ENDS

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