Losses on asset sales and lower interest income have resulted in a drop in Trans Tasman Properties' profits.
Tuesday, August 23rd 2005, 8:09AM
by The Landlord
The property developer, with one foot in New Zealand and the other in Hong Kong, reported a net surplus of $6.5 million in the six months to June 30, down from $12.2 million in the first half of 2004.
Operating revenue more than doubled from $30.6 million in the first half of 2004 to $62.4 million in the latest result, and net asset value per share rose from 64.3 cents to 66.6.
TTP shareholders, who have been waiting for a dividend, were again disappointed with no payout proposed.
The company said the first half had been a period of consolidation after building up its development interests in 2004.
Its transition from a passive property investor to an active investor was now largely complete. The business had sold off big parts of its portfolio to invest heavily in projects in Hong Kong.
The company is 61.3 per cent-owned by SEA Holdings New Zealand, which is run by Hong Kong businessman Jesse Lu. It has three projects under way in Hong Kong, and sold or settled the sale of EDS House in Wellington, Qantas House and Finance Centre, and the partially completed Air New Zealand head office in Auckland.
