2 Aug 2010

Property for Industry reports $29m half-year loss

12:17 pm on 2 August 2010

Property for Industry says its half year loss has nearly doubled because of tax changes announced in May's budget.

The listed industrial property investor reported a loss of $29 million for the six months in June.

Property companies have been heavily affected by the government's tax changes, which will stop them claiming depreciation allowances for buildings.

Property for Industry's deferred tax liability jumped an extra $35 million.

Excluding unrealised losses from the tax changes, the firm's underlying profit rose by 2.5% percent to $9.2 million. Revenue rose 3% to $16.4 million.

Property for Industry's general manager, Ross Blackmore says costs remained stable, almost all the company's buildings are tenanted and it has renewed nearly all leases due to expire this year.

The company sold one property during the period, and now has 54 properties worth $360 million. It has three development projects underway at a cost of about $9 million.