This article is from the Australian Property Journal archive
The MFS Diversified Trust has had a bumper half year, the sale of assets and a portfolio revaluation gain help deliver a net profit of $12.3 million for the first half to December 31, 2005.
In the six months period, the sale of the Marina Mirage Shopping Centre and associated assets contributed $10.27 million, while a portfolio revaluation contributed a gain of $13.53 million.
Executive director Craig White said MFS remain confident that the strong operating performance achieved in the first half will continue for the remainder of the year.
During the half, the trust achieved earnings per share of 45.44 cents per unit as compared to 5.26 cents per unit for the 2004 corresponding period, while the net tangible asset backing per security at the end of the half rose to $1.21.
All properties within the trust were re-valued during the half resulting in an increase in total property values of 11.6%.
The trust currently holds a portfolio of 19 properties with a combined asset value of approximately $131 million.
During the first half, the trust also raised $40 million, of which the proceeds were used to retire debt and buy additional assets.
The trust also formed a strategic alliance with ASX-listed National Leisure and Gaming Limited for the future acquisition and operation of pub and hotel assets.
The trust will undertake a major restructure and buy approximately $80 million worth of new property assets.
White said strong the financial performance was evidence of MFS’ ability and expertise to not only drive value from the Trusts diversified portfolio of assets but also identify unique investment opportunities for its investors.
“The proposed stapled structure will present investment opportunities and income streams previously unavailable to the Trust and provide a platform to enhance future capital growth for investors,” he added.
By Adam Parsons
