Dorchester Property Trust trading above budget
Dorchester says it now expects the trust will report about a $450,000 profit before depreciation and tax through to March 31, up from the $385,000 forecast in last June's prospectus.
Units in the trust were one of four securities issued to Dorchester Pacific's debenture holders in exchange for the 50 cents in the dollar they were still owed as part of a rescue deal , the alternative to which was for Dorchester Pacific to go into receivership.
The trust will pay about 4.25 cents per unit, or $1.4 million less legal costs, from the previously announced sale of the trust's Frankton Arms apartments in Queenstown on April 15. The sale for $2.3 million, compared with the $2.2 million value at which it was transferred to the trust, involved an upfront payment on March 16 with the remaining $900,000 to be paid on March 1 next year.
Dorchester is asking investors to approve an amendment to the trust's deed to allow it to negotiate deferred payment terms with potential buyers of the three remaining properties.
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