17 May 2013

Loss reversed by property company

12:28 pm on 17 May 2013

Property company Augusta Capital turned in an annual net profit of $5.4 million compared with a loss of $650,000 last year.

The previous year's result was weighed down by write-downs in the value of its properties and by the costs of internalising the company's management contract.

The latest result was boosted by an increase in the value of its properties.

Radio New Zealand's business editor reports Augusta's distributable profit rose 37% to $5 million in the 12 months ended March, partly because rental income rose 14.5% and partly because leasing costs halved compared with the previous year.

Augusta both owns and manages commercial property and arranges and manages property syndicates.

It arranged three new schemes generating $1.4 million in arranging and underwriting fees during the year and those schemes will also generate $170,000 in ongoing annual management fees.

The company expects demand will reflect continued modest economic growth and the generally risk-averse mood of investors.

It will continue to focus on well-located properties which retain strong tenant demand as well as maintaining its conservative approach to building a business with diversity of income.