This article is from the Australian Property Journal archive
ING Industrial Fund has delivered a weaker first half year profit result of $88.4 million for the six months to December 31 2008, down 10.53% from $98.8 million.
IIF’s statutory result, which includes fair value movements on investment properties and financial instruments, was a net loss of $449.5 million. This compares to a net profit of $230.1 million for the pcp.
CEO Paul Toussaint said the fund’s gearing has been adversely impacted by the recent large movements in foreign exchange rates and declining asset values. IIF’s Total Leverage Ratio (TLR) (total liabilities / total assets) is very close to the limit of 60% for its A$1.8 billion syndicated facilities, which reverts to 55% on June 2009.
During the past six months IIF contracted sales in Australia of $117 million, achieving a weighted average capitalisation rate of 7.5%. Proceeds were used to reduce debt and fund development commitments. These transactions resulted in total asset sales of $209 million in Australia for calendar year 2008.
Furthermore, the fund has agreed unconditional contracts to sell 22 retail properties in Canada for $C135 million. The sales comprise eight separate transactions, all of which are scheduled to close by mid March 2009, providing approximately $C67.5 million or $82 million of gross sales proceeds for IIF’s 50% interest.
Australian Property Journal
