Latest: Property provisions knock Swire Pacific, Westfield Trust fills $250m notes issue, Thistle profit steady on revenue rise, restructure helps Tourism Asset Holdings, Irish building materials group on expansion drive, think of another way to say writedown, peppercorn rents out for HK development sites, think of another way to say writedown, peppercorn rents out for HK development sites, Westfield to take over its US-listed reit, Taiwan’s way out of property oversupply, Developers Diversified up 6.8%.
10 March 2001
Swire Pacific’s net profit fell 12.4% to $HK3.89 million ($NZ1.12 million) in 2000 on turnover down 10.7% to $HK15 billion. The result was helped down by $HK2.1 million in provisions and restructuring costs, including $HK1.7 million on the Ocean Shores apartments in Tseung Kwan O.
9 March 2001
Westfield Trust has completed an $A250 million issue of medium-term notes “into the domestic debt capital capital market” â€”â€“ an example of how selling your assets (in this case, the former St Lukes Group into the Sydney-based Westfield trust) can reduce future opportunities. If Westfield can get its money in Australia, it won’t worry about issuing a prospectus here.
Thistle Hotels plc, 46% owned by Brierley Investments and 12% by the Singapore Government, raised net profit 0.74% to Â£54.8 million on revenue up 8% to Â£324.4 million. Thistle owns 56 hotels in Britain.
Australia’s largest hotel owner, Tourism Asset Holdings Ltd, has made both profit and asset value gains from a restructure undertaken in the past year. Net profit after tax for the December year rose 5% to $A19 million, all of which will be paid out in dividends. The 1999 net result included $A6.1 million of abnormals, which arose when Accor Asia Pacific’s management contracts at seven hotels were converted into long-term leases. The company now has a $3.5 million (indexed) annual capex lid for its 45 leased hotels. The company put $A31.4 million into its asset revaluation reserve as a result of a Colliers Jardine valuation which took the new leasing arrangements into account.
8 March 2001
Irish building materials group CRH will use a 1:4, 1.1 billion euro ($NZ2.4 billion) rights issue to continue its expansion, probably in Europe to reduce its reliance on the US where it has 60% of its business. CRH made 60 acquisitions costing E1.6 billion last year. It raised pretax profit 10% to E697 million on turnover up 32% to E8.7 billion.
7 March 2001
Mealymouthed tripe on a $US21.7 million shopping centre portfolio writedown, by JDN Realty Corp of Atlanta, which said it had delayed reporting its fourth quarter earnings as a result. It said the year-end closing process was complicated by the tax consequences on “the non-cash impairment charges” at its development subsidiary and added: “The impairment charges are a result of our determined goal to strengthen the portfolio and which, we believe, is in the best interest of our shareholders.” Judging by the second quarter results, JDN was already in bother last June, with funds from operations down 34% to $US10.9 million and net earnings down 13.8% to $US9.4 on slightly higher revenue.
Hong Kong’s Court of Final Appeal has told nine big land development companies, which banded together to fight a land rental case, they must pay rent on development sites where they’ve habitually paid nothing or a nominal sum. The companies had objected to the Commissioner of Rating & Valuation setting rent at 3% of rateable value on 59 development sites. They also reckoned the basis shouldn’t be the land’s potential value when this was already taken into account in assessing the premium in the land sale. The court found the commissioner could take their character as development sites into account.
6 March 2001
Australian shopping centre owner Westfield Holdings has launched a tender to mop up the remaining 22.5% of shares of Westfield America Inc which it, or Westfield America Trust, doesn’t own. The cash offer of $US16.25/share is slightly below today’s trading price. New York-listed Westfield America Inc is the fourth-largest listed shopping centre reit in the US. Westfield America Trust, like the group umbrella company Westfield Holdings, is listed in Australia. The tender will run until 3 April.
5 March 2001
Taiwan’s way out of a long-term oversupply of commercial property is to open the market to foreigners. A government report said it would need to involve an investment plan helpful to domestic construction, economic development and environmental improvement. In the background is Taiwan’s ambition to join the World Trade Organisation this year.
Cleveland-based shopping centre owner Developers Diversified Realty Corp raised funds from operations 6.8% on a diluted basis last year, although actual earnings fell 6.4% to $US129.3 million after the sale of $US250 million of properties and joint venture interests. The company averaged $US12.38/ftÂ² on new leases and $US13/ftÂ² on renewals in the fourth quarter ($NZ308 and $NZ324/mÂ² ). Tenant sales rose 2.6% for the year to $US236/ftÂ² ($NZ546/mÂ² ).