Thakral Hldgs' property value rises

Jul 27, 2006
The Business Times

THAKRAL Corporation's Australian-listed affiliate Thakral Holdings has reported an increase in the value of its properties of A$94 million (S$112 million) or 15.5 Australian cents per stapled security, following an annual independent revaluation.

It is an increase Thakral Holdings says will prove positive for its bottom line, thanks to revised accounting rules in Australia that now require revaluation amounts from commercial and retail properties to be taken to the income statement.

The company made the announcement to the Australian Stock Exchange yesterday.

Thakral said almost $53 million of the total property revaluation increase will be added to its estimated net profit for the year of about $36 million. This means its total profit is expected to be $89 million - an increase of 145 per cent from the previous year.

Thakral's results are still being finalised and will be announced on Aug 18.

The company also said yesterday that the new accounting rules would inevitably lead to greater volatility in its annual results, and that it would be unreasonable to expect this level of valuation increase every year.

Thakral said the effect of the property revaluation had upped its net tangible asset backing - based on full fair value of the assets - from 80.5 cents at June 30, 2005 to 96 cents per stapled security.

Last week, Thakral announced a final distribution of 3.75 cents - taking its total distribution for the year to 6.5 cents, up from 6.25 cents last year.