This article is from the Australian Property Journal archive
JF Meridian Trust has experienced a dramatic profit tumble of around $12 million to $36.97 million for the six months to 31 December 2005.
JFM’s result compares to the $49.55 million net profit in the corresponding period last year.
Distributions for the period totalled 5.15 cents per unit, an increase of 6.9 sqm over the corresponding period.
Net tangible asset of JFM increased to $1.17 per unit.
Strong returns from JFM’s LPT portfolio as well as returns from JFM’s base earnings provided the Trust with solid earnings of 6.18 cents per unit under the new AIFRS.
The result was 18.6 sqm higher than our August 2005 budget of 5.21 cents per unit.
According to JFM director Tony Pitt said this half-year’s earnings result is lower than the 10.64 cents per unit reported for the corresponding period mainly due to the very strong performance of the LPT and equity portfolios in the December 2004 half-year.
He said the revaluation of mortgage assets particularly Cherrybrook Village Shopping Centre significantly lifted earnings during that period.
“JFM’s positive results for the half year are very pleasing and are due to management’s continued focus on maximising the performance of the Trust through active fund and asset management.
“The Trust’s balance sheet is well positioned with a diverse portfolio of quality investment assets and strong capital base with a gearing level of 28.8sqm of total assets.”
JFM’s strong performance in recent years has enabled the Trust to accumulate a retained earnings balance of $69.1 million — $41.6 million realized — ensuring it can continue to deliver high distributions into the near future.
By Kathryn O’Meara
