This article is from the Australian Property Journal archive
ING Real Estate Healthcare Fund has returned to profit, delivering a statutory profit of $5.9 million for FY09 compared to a loss of $4.4 million in the previous corresponding year.
IHF net operating income was up slight from $5.5 million to $5.6 million. However, operating income per unit decline to 8.6 cents down from 10.9 cents primarily due to new units issued as part of the equity raising during the year.
IHF announced a full year distribution of 7.65 cents per unit in line with guidance.
IHF CEO Miles Wentworth said management has been active in pursuing these capital management initiatives and their successful achievement has resulted in an enhanced risk return profile for unitholders and a stronger capital position with the recapitalised balance sheet.
During the period, IHF reduced debt to total assets to 52% from 65% in FY09 following the placement raising $13.1 million and the sale of the Epworth Rehabilitation Hospital at Camberwell for $18.5 million. The fund also successfully refinanced two facilities totalling $69 million for new three year period.
Wentworth said the three key priorities is to deliver attractive risk adjusted returns, adding that IHF has set its sights on become be the pre-eminent healthcare REIT within Australian and New Zealand.
Wentworth expects earnings for FY11 will be challenged as debt refinancings are marked to market resulting in increased margins.
He forecast a distribution of 3.825 cents per unit for the half year to 31 December 2010.
“Management will continue to investigate growth and diversification opportunities for the fund,” he concluded.
Australian Property Journal
