Free market boosts Aurora trading

Press, 7 August 1985, Page 35

Free market boosts Aurora trading

PA Wellington Wellington-based property company, Aurora Group, Ltd, has lifted its operating profit to $2,608,061 for the 15 months to June 30. This was more than double last year’s comparative figure of $1,246,164 for 12 months. The addition of extraordinaries of $189,872 ($513,007) and of unrealised increases in property values of $7,887,778 ($4,258,239) brings a total surplus, including unrealised gains, of $10,685,711 ($6,017,410 for 12 months). Aurora has adopted the standard accounting for property investment companies recently released by the Society of Accountants. It has also followed the new Stock Exchange requirement of setting out operating profit, followed by extraordinaries, followed by unrealised gains. All properties owned by Aurora except those in the course of redevelopment have been valued as at June 30 by independent valuers. Properties in the course of redevelopment will be revalued on completion. Aurora is paying a second interim dividend of 2c a share (8 per cent) tax-free,

with books closing on August 6, followed by a final dividend of 1c a share (4 per cent) tax-free, to be paid on October 7, with books closing on October 1, making a total of 5c a share for the 15 months. No turnover is given. There was a tax credit of $84,950 (tax payment of $lll,OBO for the previous 12 month period). Aurora said the return to a free market position after some 28 months of arbitrary and anomalous controls was reflected in the improved operating profit. Rental levels for office space and car parking in

the prime central business district of Wellington continued to grow at a satisfactory rate, with corresponding increases in the value of such properties. Demand for both the leasing of space and investment in the type of property owned by the company remained firm. Directors considered that the company held one of the finest real estate portfolios in the country. It was intended that it would continue to be expanded in the area of prime commercial office buildings in Wellington where the prospects for growth were well above average.