I.A.C. writes-off more real estate deals

Press, 23 February 1977, Page 22

I.A.C. writes-off more real estate deals

NZPA Sydney. lAC (Holdings') Ltd. has, made further real estate; loans write-offs and pro-' visions of sAust 12.6 M, and! excluded $13.6M more in interest on loans, because of | defaults by property de-; velopers. The cumulative effect of| the write-offs, provisions, I and exclusions over the past, three years is SS6M. The company has a loan portfolio of slightly more! than SIOOM. whcih is not; earning interest, making almost one third of the; $347M in real estate loans! not accruing interest. The write-offs, provisions, I land interest exclusions arei expected to continue - fori ’some years yet.

I The group’s operating loss! for the year was $443,000, but, through utilising taxeffect accounting a tax benefit of $1,471,000 and a $36,000 over-provision for tax in prior years the net result was a profit of $1,046,000, “The 1976 provisions result from a major review programme, and they are not intended as a dramatic once and for all write down of values,” the managing director (Mr G. Moreno) said. At December 31 the real estate provision for doubtful debts was $18.5M, the: write-offs totalled $9.3M during the three years, and 1 total interest “non-accrued” ’ for tire three years was! $28.3 M.