20 Nov 2012

NPT says insurance wrangles will have bearing on result

8:22 am on 20 November 2012

The company made a profit of $9 million in the six months to September - a turnaround from the $10 million loss in the same period a year ago, helped by a revaluation of its properties.

Income fell a third to $5.6 million, mainly due to insurance payouts NPT received last year.

NPT says a highlight has been the rejunvenation of its flagship Eastgate Shopping Centre in Christchurch, which suffered extensive earthquake damage, though the firm is still in insurance talks over another Christchurch property, Natcoll House.

NPT chief executive Kerry Hitchcock says settling its insurance wrangles will have an important bearing on the size of the full-year result.

"It is dependent on the final insurance settlement. We do have outstanding business interruption insurance that needs to be clarified and some of those are complex insurance issues.

"But again, like last year, we're expecting our second half to be quite positive and we do expect a good result."

In the past six months, NPT sold lower yielding properties - including 342 Lambton Quay to Robert Jones Holdings - and terminated two lease arrangements.

It has also signed long-term leases on Auckland and Hawke's Bay properties.

Kerry Hitchcock says NPT is now better positioned for more acquisitions and investments that should provide yield and growth.

The total value of NPT's retail, commercial and industrial properties in Auckland, Hawke's Bay and Christchurch, rose by more than $8 million in the six months to $126 million.