The Financial Report (Accounts) for year end 30 June 2010 for the Pacific First Mortgage Fund (Fund) have now been completed. The Fund’s auditors, KPMG, have reviewed the Accounts and have verified that the Accounts have been prepared in accordance with applicable accounting standards. As required the Accounts have now been lodged with ASIC.
As at 30 June 2010 the gross assets of the Fund were $413.15 million (a decrease of $107.91 million from 30 June 2009). As at this same date the net assets of the Fund were $382.47 million (a decrease of $43.77 million from 30 June 2009). The net assets attributable to each unit was $0.43 (a decrease of $0.04 from 30 June 2009).
Whilst the Fund recorded further impairments on gross mortgage assets during the year of $44.50 million, the Fund recovered $108.85 million which enabled the CBA facility to be reduced by $61.8 million to $30 million at 30 June 2010. This significant reduction in the Funds finance facility also enabled Balmain Trilogy to negotiate and renew the facility for a further 2 years and to allow repayment of capital to unitholders, with the first payment of 4c per unit being returned in October 2010.
The reduced value of the gross mortgage assets has been affected by the further diminution in value of several unimproved/undeveloped assets that continue to be affected by adverse market conditions, while other assets in the portfolio continue to perform inline with our original projections. The valuations of all assets have undergone a due process with values being obtained from independent valuation firms and then verified by the Fund’s Auditors. We will continue to actively work on enhancing the value of unimproved/undeveloped assets where permitted and continue to manage completed assets to ensure the maximum value is returned to the Fund.
No units were redeemed and no distributions were made during the year ending 30 June 2010. A copy of the Consolidated Annual Financial Report will be distributed to all Unitholders via the mail. In addition it can be downloaded by clicking on the following link.