Babcock & Brown Japan Property Trust (BJT) has revalued its property investments, resulting in a 1% decrease in its portfolio value to 166 billion yen ($1.6 billion). However, the company said its net tangible assets per unit as at 30 June 2008 increased by 16% from a year ago.
BJT said five of the six revalued properties, accounting for 10% of the portfolio, declined in value by 9%.
One of the six properties subject to a revaluation, a Tokyo office property located in Takadanobaba, experienced an increase in value of 6%.
Following the revaluations, the company reported unaudited net tangible asset per unit of $1.40, an increase of 19c per unit over the 2008 financial year and a 3c increase from $1.37 as at 31 December 2007.
BJT also said its gearing, net of surplus cash, would increase slightly from 56% to 56.5% as a result of the revaluations.
Managing director Eric Lucas said the result reflected the fact that the Japanese property market continued generally to perform well.
“BJT’s interest cover remains at comfortable levels to service the current gearing,” he said.
“NTA per unit remains considerably higher than the current unit price.”
At 1111 AEST, shares in Babcock & Brown Japan Property Trust were up 4.5c to 73c.