SLPF St Laurence Property & Finance Limited Convertible notes

Chairman's report

St Laurence announces $32.9 million net surplus after tax

Active property investor St Laurence Property & Finance (SLPF) today announced a net surplus after tax of $32.9 million for the year to 31 March 2007.

The result includes unrealised revaluation gains of $26.7 million, which is an average of 9.5% across the investment property portfolio. Over the year, SLPF’s investment property portfolio increased from $244.5 million to $306.0 million through a combination of acquisition and valuation growth.

Total assets increased from $381.0 million to $432.8 million in the 2007 financial year. Approximately $47.9 million of that increase was derived from SLPF’s recent successful takeover offer for parcels in the St John Balanced Property Fund, of which SLPF now holds a 58.6% stake.

SLPF’s net surplus after tax of $32.9 million compares to the $31.1 million net surplus after tax recorded for the year ended 31 March 2006. SLPF chairman Kevin Podmore says last year’s result included several one-off items which boosted revenue and profit. “St Laurence Property & Finance has performed exceptionally well with 2007 earnings more evenly spread across its property investment, property development and other investment activities.”

In addition to the gains on the company’s investment property portfolio, SLPF enjoyed a $7.4 million uplift in the value of its property development joint ventures. It also sold a number of investment properties throughout the year for a total consideration of $32.5 million.

“The commercial property sector is very healthy and there is strong investment demand, both locally and internationally. Increased valuations have allowed SLPF to book significant unrealised gains on its investment properties as well as realise some gains through property sales,” Mr. Podmore says.

“Our core focus for the year ahead is to continue to develop and add value to our existing inventory of properties. We have several development projects underway in Auckland including a significant joint venture development adjacent to the former quarry in Mt Wellington. In Wellington we continue to progress projects such as the development of the Central Park site in Porirua and the redevelopment of the former Deloitte House in Thorndon, Wellington.”

Holding a strong mix of office, industrial and other commercial property, SLPF’s investment property portfolio’s weighted average lease term increased from 3.47 years to 3.58 years at 31 March 2007. “Tenancy demand for quality commercial and industrial property space continues to increase,” Mr. Podmore says; “We expect this to continue into 2008.”

In April 2007, SLPF also successfully raised $21.9 million (net of issue costs) via a 1 for 5 rights issue, with 89% or 19.3 million of the 21.7 million new Mandatory Convertible Property Notes (MCNs) taken up by the existing shareholder and note holders. “This is a positive result and further consolidates our view that our investors are confident in our strategy and direction,” Mr. Podmore says.

Post rights issue, SLPF’s Net Tangible Asset backing for its MCNs sits at $1.47. “We are pleased with the new underlying NTA backing and anticipate that the underlying discount to current market price will decrease as the date approaches when the MCNs convert to ordinary shares on a 1 for 1 basis in December 2008.”

Mr. Podmore adds, “The 2008 period is expected to be year of further value growth for SLPF, as we continue to develop and add value to our existing property investments. We look forward to keeping our shareholders updated as we continue to build a solid platform for future growth.”

ENDS

v2 Report - Additional Information Supplement SLPF St Laurence Property & Finance Limited Convertible notes	IPOs and Investment Opportunities
Press releases St Laurence experiences solid revaluation growth across portfolio Active property investment vehicle St Laurence Property & Finance (SLPF) recorded a significant uplift in property valuations of more than 9.5% in the year to 31 March 2007. Valuation increases resulted in unrealised revaluation gains of $26.7 million in the year to 31 March 2007. SLPF¡¦s investment property portfolio increased from $244.5 million to $306.0 million during the period through a combination of acquisition and valuation growth. SLPF chairman Kevin Podmore says the continued increase in asset values is a reflection of strong demand for property assets in the commercial and industrial space. Prices have been driven higher by further local and international demand for New Zealand property overall, combined with robust underlying economic conditions. Of the 26 properties in SLPF¡¦s portfolio, 12 properties showed valuation gains of more than 10%. Six of these properties demonstrated gains of more than 15%. SLPF¡¦s North Harbour property at 13 William Pickering Drive rose in value by 23.5%, from $6.7 million to $8.3 million, with several other Auckland properties recording increases of more than 10%. Other significant performers included: „_ SLPF¡¦s Repco property in Mt Wellington, Auckland which rose 15.5% to $22.4 million during the period; „_ Cain Park in Penrose, Auckland which experienced a 14.1% lift in value from $9.1 million to $10.3 million; „_ Eagle Technology House in Victoria Street, Wellington which rose in value by 11.5% from $19.2 million to $21.4 million; and „_ The former Deloittes building in Molesworth Street, Thorndon, which experienced a 11.7% rise in value to $15.4 million. Mr Podmore says increasing demand for industrial space is creating a number of development opportunities for SLPF in its existing property portfolio. ¡§We are actively pursuing these development opportunities and expect demand for future developments to continue as space in prominent locations becomes increasingly scarce. Plans are currently underway for SLPF to design-build more than half the vacant development land to the rear of the Repco distribution centre in Mt Wellington, Auckland. This is expected to further increase the value of the property in the future. Other design-build opportunities within the portfolio include the Central Park industrial complex in Porirua, Wellington where a commitment has been recently secured to design and build a new warehouse and distribution centre for national furniture retailer Harvey Norman. This is the first in what we hope to be a number of design-build developments on a site which is ideally located for companies looking to centralise their distribution and warehousing operations ¡§St Laurence Property & Finance¡¦s primary focus in 2008 is to continue to progress with the value-add opportunities already identified within the investment property portfolio. As well as this, we will continue to focus on our strategic property development assets, including our joint venture developments,¡¨ Mr Podmore says. ENDS For further information, please contact: Paul Chapman Phone 04 903 4830 General Manager Mobile 0212 732 263 St Laurence Property & Finance or Helen Mexted Phone 04 903 4854 DDI GM Funding & Corporate Services 0212 88 7772 Mobile St Laurence Limited BACKGROUND St Laurence Property & Finance (SLPF) is an active property investor with a diversified portfolio of property related investments and operating activities and is part of the St Laurence group. It has in excess of $430 million of property based assets, including investment properties, property developments and property operating activities. Valuation increases had a positive impact on St Laurence Property & Finance full year results to 31 March 2007 outlined below. St Laurence Property & Finance Limited - Financial Highlights 2007 Consolidated $000s 2006 Consolidated $000¡¦s Operating revenue 48,383 48,397 Operating surplus after tax 6,215 5,369 Unrealised change in value of investment properties 26,664 25,717 Net surplus for the year 32,879 31,086 Properties held for investment 306,025 244,452 Total assets 432,812 381,004 Total liabilities 268,715 275,469 Equity 164,097 105,535 St Laurence Property & Finance leases 100% of Central Park Active property investor St Laurence Property & Finance (SLPF) is pleased to announce that its Central Park industrial shed facility in Porirua, Wellington is now 100% leased. This is the first time the Central Park has been declared fully tenanted since Mitsubishi Motors exited a significant portion of its business from the industrial park in 1998. The industrial complex comprises more than 12.3 hectares of land in total, including a 50,000 square metre shed plus 4 hectares of development land. St Laurence Property & Finance general manager Paul Chapman says the result is a reflection of the high demand for industrial space in the area. “Demand for commercial space is pushing land prices up and this is one of the key reasons businesses are getting in quick and securing space. In saying that, there are still some excellent leasing opportunities available in the land surrounding the wider Central Park shed facility, and it is still a relatively cost effective alternative for businesses looking for a convenient location for their distribution or warehouse facilities.” Central Park has attracted a range of distribution and warehouse businesses with many tenants looking for a landlord to design-build their new premises. “We are fortunate at SLPF to be fully integrated. This means we are both landowners and value-add developers, and can provide an end-to-end service for our tenants. This creates long-term growth partnerships, and means we are able to grow as our clients’ businesses grow.” Central Park has been earmarked by St Laurence for development ever since it was purchased in 2005 when SLPF exercised an option to purchase the site. While the existing building is now fully leased, there is still an opportunity to develop the further 4 hectares of land at the park. SLPF has been in discussions with number of interested parties looking to expand their operations. “We will be looking to attract a similar range of industrial, warehouse and logistics companies that want design-build options that are in keeping with the zoning of the site,” Mr Chapman says. Central Park comprises a number of tenants including AF Logistics, Online Security Services and Mitsubishi Motors. Mitsubishi Motors’ operates its new and used parts division out of Central Park. Online Security Services offers a range of secure paper-based and electronic business information management solutions to its customers and recently signed a three-year lease at Central Park. Meanwhile, AF Logistics recently increased the space it leases at Central Park to meet demand for its transport and logistics business. AF Logistics stores and distributes products for a huge range of companies around the lower North Island. It also has bases in Tawa, Gracefield, Palmerston North and Hastings. The company has almost doubled its leasing area to 11,800 square metres. Logistics Manager Jeff Hazlewood says Porirua City has proven to be a great base for the company’s warehouse and distribution centre, particularly given its proximity to the Port of Wellington where it is working to create a central hub for imported products. ENDS For further information please contact: Paul Chapman Phone 04 903 4830 General Manager Mobile 0212 732 263 St Laurence Property & Finance Or Helen Mexted Phone 04 903 4854 GM Funding & Corporate Services 0212 88 7772 Mobile St Laurence Limited BACKGROUND St Laurence Property & Finance (SLPF) is an active property investor with a diversified portfolio of property related investments and operating activities and is part of the St Laurence group. It has in excess of $430 million of property based assets, including investment properties, property developments and property operating activities. The company recently announced a net surplus after tax of $32.9 million for the year to 31 March 2007. The result includes unrealised revaluation gains of $26.7 million, which is an average of 9.5% across the investment property portfolio. Over the year, SLPF’s investment property portfolio increased from $244.5 million to $306.0 million through a combination of acquisition and valuation growth. St Laurence appoints new General Manager Active property investor St Laurence Property & Finance (SLPF) is pleased to announce that it has appointed Paul Chapman as the company’s new General Manager. Following Mr Chapman’s appointment, SLPF has also announced that Kevin Podmore, currently executive chairman for SLPF will assume the role of chairman. Paul Chapman’s previous roles at St Laurence include chief financial officer and chief executive officer of St Laurence Mortgages (now St Laurence Limited). He has been with the company for six years. SLPF chairman Kevin Podmore says: “I am delighted to announce Paul as St Laurence Property & Finance’s new General Manager. He already has an excellent track record with the company and will add an extensive amount of experience and expertise to the SLPF portfolio.” Mr Chapman will be responsible for managing SLPF’s portfolio and will oversee the identification of new property acquisitions, divestments and ongoing property developments. END For further information please contact: Paul Chapman Phone 04 903 4830 General Manager Mobile 0212 732 263 St Laurence Property & Finance or Helen Mexted Phone 04 903 4854 GM Funding & Corporate Services Mobile 0212 88 7772 St Laurence Limited BACKGROUND St Laurence Property & Finance (“SLPF”) is an active property investor with a diversified portfolio of property related investments and operating activities and is part of the St Laurence group. It has in excess of $340 million of property based assets, including investment properties, property developments and property operating activities.
Chairman's report St Laurence announces $32.9 million net surplus after tax Active property investor St Laurence Property & Finance (SLPF) today announced a net surplus after tax of $32.9 million for the year to 31 March 2007. The result includes unrealised revaluation gains of $26.7 million, which is an average of 9.5% across the investment property portfolio. Over the year, SLPF’s investment property portfolio increased from $244.5 million to $306.0 million through a combination of acquisition and valuation growth. Total assets increased from $381.0 million to $432.8 million in the 2007 financial year. Approximately $47.9 million of that increase was derived from SLPF’s recent successful takeover offer for parcels in the St John Balanced Property Fund, of which SLPF now holds a 58.6% stake. SLPF’s net surplus after tax of $32.9 million compares to the $31.1 million net surplus after tax recorded for the year ended 31 March 2006. SLPF chairman Kevin Podmore says last year’s result included several one-off items which boosted revenue and profit. “St Laurence Property & Finance has performed exceptionally well with 2007 earnings more evenly spread across its property investment, property development and other investment activities.” In addition to the gains on the company’s investment property portfolio, SLPF enjoyed a $7.4 million uplift in the value of its property development joint ventures. It also sold a number of investment properties throughout the year for a total consideration of $32.5 million. “The commercial property sector is very healthy and there is strong investment demand, both locally and internationally. Increased valuations have allowed SLPF to book significant unrealised gains on its investment properties as well as realise some gains through property sales,” Mr. Podmore says. “Our core focus for the year ahead is to continue to develop and add value to our existing inventory of properties. We have several development projects underway in Auckland including a significant joint venture development adjacent to the former quarry in Mt Wellington. In Wellington we continue to progress projects such as the development of the Central Park site in Porirua and the redevelopment of the former Deloitte House in Thorndon, Wellington.” Holding a strong mix of office, industrial and other commercial property, SLPF’s investment property portfolio’s weighted average lease term increased from 3.47 years to 3.58 years at 31 March 2007. “Tenancy demand for quality commercial and industrial property space continues to increase,” Mr. Podmore says; “We expect this to continue into 2008.” In April 2007, SLPF also successfully raised $21.9 million (net of issue costs) via a 1 for 5 rights issue, with 89% or 19.3 million of the 21.7 million new Mandatory Convertible Property Notes (MCNs) taken up by the existing shareholder and note holders. “This is a positive result and further consolidates our view that our investors are confident in our strategy and direction,” Mr. Podmore says. Post rights issue, SLPF’s Net Tangible Asset backing for its MCNs sits at $1.47. “We are pleased with the new underlying NTA backing and anticipate that the underlying discount to current market price will decrease as the date approaches when the MCNs convert to ordinary shares on a 1 for 1 basis in December 2008.” Mr. Podmore adds, “The 2008 period is expected to be year of further value growth for SLPF, as we continue to develop and add value to our existing property investments. We look forward to keeping our shareholders updated as we continue to build a solid platform for future growth.” ENDS
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