Opio equity up 25c a unit

Press, 7 October 1987, Page 37

Opio equity up 25c a unit

Unitholders’ equity in Opio Forestry Fund increased 25c a unit during the year ended March 31, mainly because of the

gain in the Forest Valuation of $347,389, said Mr B. D. Small!, general manager of The Perpetual Trustees Estate and

Agency Company of New Zealand, Ltd.

The accounts show that the equity is now 107 c a 100 c unit. Mr Smaill said that the low point in land valuation appears to have been reached, as the land itself has been valued at $195,000-$13,000 below the 1986 valuation, while the value of house and farm buildings increased by $lO,OOO — giving a net decrease of $3OOO in the land and buildings valuation. The revaluation of forest has added $661,571 to the fund, since its inception in 1081, but revaluation of land and buildings takes away $478,210, leaving reserves of $183,301. Accumulated losses are $92,094, leaving $1,341,267 as unitholders equity. Total income during the year (interest and rent), fell from $56,807 to $42,000, and total ex-

penses from $55,208 to $45,108 — $12,000 below budget. To the deficit of $3lOB was added $25,000 in amortisation of preliminary expenses, making the total deficit $28,108.

In his ' statement of operations Mr Smaill said that 6 per cent of the blanking occurred in an area of the 1985 plantings exposed to the north-west winds. A very good survival rate has been achieved.

The farm block — leased under the supervision of Elders Pastoral, Ltd, of Invercargill •— and those forest areas available for grazing, will provide for about 2900 stock units

The Forest Auditors’ report said that the forest is in good health and well managed, and 'that the valuation has been carried out using accepted methodology.