Macqaurie’s satellite Office, Leisuire and Countrywide property funds recapped mixed half-year results in tough market conditions. The three property trusts have lost around 77% of their market capitalisation as global property prices have tumbled.
The trusts acknowledged said that while the global economic environment remained challenging they would focus on strengthening their balance sheets and refinancing its debt.
Macquarie Countrywide Trust (MCW) reported a net loss for the six months to 31 December of $714.1 million.
The group, which has a 96.3% occupancy rate across its 258 properties globally, said it would continue to divest itself over some of its international holdings and re-focus on the more lucrative Australian market.
In a review of its half-year numbers, the company noted the loss was predominantly due to continuing writedowns on the fair value of its assets.
Looking at its capital management strategy, the company reported debt to total assets of 58.8%, which was being reduced in the short-term by the sale of two US property portfolios.
Despite the gearing, the trust said it remained within all debt covenants.
Meanwhile, Macquarie Office Trust (MOF) said that it had been particularly affected by the current global economic crisis as it posted a $1.086 loss for the six months to 31 December 2008.
Like its Macquarie Countrywide Trust brother, the group said its results were significantly affected by writedowns on its assets.
Despite the result the group reaffirmed its belief that it would remain viable as they focus in the second half of the year on reducing debt as it offloads some of its assets, including Naylor House in Adelaide for $49 million.
The group was in due diligence stage to sell a further $128 million from its Australian portfolio, the company reported.
Macquarie Office Trust also acknowledged that raising $508 million through a share placement had helped it meet its $1.4 billion debt burden.
At the same time, Macquarie Leisure Trust Group (MLE) said that its focus on low price point, mass market appeal ventures had seen it deliver strong results in tough market conditions.
The trust said revenue for the period rose to $187.6 million, up 18.9%, while its underlying earnings jumped to $28.2 million in the six months to 31 December, up 11% from the prior corresponding period.
However, MLE reported a net profit of just $500,000.
The group, which has a stake in Dreamworld and Whitewaterworld on the Gold Coast as well as d’Albora Marinas and Main Event said that aggressive marketing would be the key to maintaining strong results over the second half of the year.
Macquarie Leisure was not without its concerns, with writedowns of 11.9 million, or 2.3% of its total assets.
At the close Tuesday, Macquarie Countrywide was up 2c to 23c. Macquarie Leisure rose 4c to 99c, while Macquarie Office Trust climbed 1c to 17c.
