Some Countdown stores are in Investore's portfolio. Photo:
Big box retail and supermarket property company Investore has reported a heavy loss as the value of its portfolio was hit by the weaker property market.
Key numbers for the 12 months ended March compared with a year ago:
- Net loss $150.2m vs $118.2m profit
- Net rental income $60.3m vs $58.3m
- Property devaluation $185.2m decrease vs $91m gain
- Underlying operating earnings $31m vs $29.9m
- Final dividend 7.9 cents per share
However, the company's underlying operating earnings increased by 4 percent from the previous year and its net rental income was up by 3 percent.
Investore said it continued to take a "prudent approach to capital management", which meant its operating earnings were insulated from the effects of the higher interest rate environment, which affected the value of its portfolio.
It said the approach also shielded operating earnings from the volatility across the wider economy.
The company also announced a number of initiatives to protect its balance sheet in the higher interest rate environment.
It intended to sell some non-core assets worth between $25 million and $50m - if the "appropriate value" is met.
It also announced a dividend reinvestment plan which would open the door for eligible shareholders to reinvest the net proceeds of their dividends into additional Investore shares.
Investore's portfolio was independently valued at $1.06 billion, compared to $1.2b a year ago.
