Augusta Capital, formerly Kermadec Property Fund, has seen its property portfolio's value fall by 1 percent, or $950,000, since September last year, taking the annual loss to $1.38 million.
The company, which bought its management company last month, said its portfolio at March 31 was worth $94.52 million. The portfolio had gained $720,000 in the year ended March 2011.
It sold $8.52 million of non-core properties during the year and the remainder of the portfolio's value rose $3.27 million. However, $4.65 million of capital spending “was not fully reflected in valuation increases at the year end.”
The capital spending was mostly on the new Countdown Metro supermarket at the Finance Centre in Auckland and about $700,000 on upgrading an elevator at Brookfields House.
Despite the overall fall in values, the capitalisation rate the valuers used fell to 8.58 percent from 9.08 percent the previous year, reflecting the quality of the Countdown lease, improved occupancy at Brookfields House and the poorer quality of the buildings sold, Augusta said.
Augusta's syndicated properties, which include the recently completed Carter's Tauranga and the soon-to-be-completed Farmers Hastings, gained 0.4 percent, or $600,000 to $173.64 million. This portfolio has a weighted average lease expiry of 9.3 years and a weighted average gearing of 4.3 percent.
Augusta said its syndicating subsidiary recently launched a new offer on a property in Barton Street, Hamilton which is leased to ASX-listed JB Hi Fi and Wilson Carparking.
It said the valuations for both the directly-owned portfolio and the syndicated properties are subject to independent audit. It will report its annual results by May 21, Augusta said.
Augusta shares last traded at 66 cents on April 19, off the high at 66.5 cents immediately before the company bought the management contract. Kermadec traded between 59 cents and 67 cents during it last year.