25 Nov 2009

$5.6m half-year loss for ING Property Trust

8:24 am on 25 November 2009

The property investor ING Property Trust, which has been writing down the value of its shrinking portfolio, has reported a half- year loss.

The company lost $5.6 million in the six months to September, compared with a $276,000 profit in the same period a year earlier.

Revenue fell 6% to nearly $41 million because the trust has fewer properties, having sold 20 since December last year in order to reduce debt and strengthen its financial position.

While the economy is giving signs of recovery, the trust's general manager, Peter Mence, says property markets are still showing signs of strain.

Mr Mence says that if ING settles all its proposed sales, its debt gearing will fall below its target of 35% to the value of the property portfolio.

It currently stands at 37.5%, below the 45% level set by its banks.

Excluding one-off charges and unrealised valuation changes, underlying profit stood at $2.2 million, a turnaround from the $10.6m loss in the same period a year ago.