AUG augusta capital limited

Ann: ADDRESS: AUG: Annual Meeting 2012 - Chairman

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    • Release Date: 10/08/12 17:55
    • Summary: ADDRESS: AUG: Annual Meeting 2012 - Chairman's Address
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    AUG
    10/08/2012 15:55
    ADDRESS
    
    REL: 1555 HRS Augusta Capital Limited
    
    ADDRESS: AUG: Annual Meeting 2012 - Chairman's Address
    
    Chairman's Review
    
    The 2012 financial year has been a good one for Augusta Capital Limited.
    We have achieved significantly against our goals with stability in our
    distributable earnings, further sales of non core property assets and
    successfully concluding an internalisation of the Management Contract and the
    purchase of the Funds Management business of Augusta Funds Management
    Limited.
    
    Externally the financial climate in the US and more particularly in Europe
    has struggled to address its fundamental economic difficulties and we have
    seen a modest slowdown in New Zealand's major trading partners' economies.
    There remains considerable doubt that a solution is close - in fact many
    commentators are suggesting the resolution may take a decade to remedy. Thus
    far the European and US Governments seem to be doing what they have to in
    order to muddle through.
    
    In New Zealand we have been experiencing modest growth but some reasonable
    activity in the commercial property market that supports current values in
    the Augusta portfolio.
    There is also strong demand for quality property syndication offerings and
    Mark Francis will comment on the market and on our recent successes.
    
    The strategy of internalisation and the acquisition of the funds management
    business has been successful and we see the opportunities for further income
    diversification under our new model as being a feature of our Company in the
    future. Mark will also talk to you about the portfolio and clearly one of the
    major achievements over the last year has been the successful completion of
    the Countdown Supermarket development. The demand for leased space has been
    assisted by our refurbishment work at Brookfields House and overall interest
    in Auckland CBD office accommodation at the mid-range price level is steady.
    
    The year ahead will be more of the same for Augusta - maintenance of
    distributable income with expectations of enhanced income over time from our
    Funds Management business and from higher occupancy within our directly owned
    portfolio.
    
    FY2012 Results
    
    The loss attributable to shareholders for the 2012 year was $0.65 million
    after $2.0 million was paid to internalise the management contract and a
    revaluation decline in the Company's property portfolio of $1.38 million.
    The extensive work undertaken on the Countdown Supermarket landlord works is,
    in our view, yet to be reflected in the valuation of that property.
    
    Distributable profit was only marginally down from $3.8 million in 2011 to
    $3.7 million this year following the sale of $8.52 million of non core
    assets.
    
    Overall your Board considers this to be a very satisfactory result.
    
    Once again we have bee well served by our management team who have executed
    the transition from external managers to employees very well. The change
    process has meant a high level of involvement from the Board and our
    employees - an effort that I would like to acknowledge.
    
    -ENDS-
    End CA:00225835 For:AUG    Type:ADDRESS    Time:2012-08-10 15:55:17
    				
 
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