A non-cash write-down of Auckland International Airport's investment property portfolio marred an otherwise strong financial result for the six months ended December.
The company reported earnings before interest, tax, depreciation and amortisation of $138.7 million in the period, up 2.5% on the previous corresponding period.
However, when the new accounting rules were applied to recognise the valuation of the company's investments directing in the income statement, total ebitda fell by $32.6 million, or 25.2%.
Auckland Airport wrote down its investment property by $41.8 million because of the current trend of softening land values. The company did not rule out further devaluations.
Operating revenue rose nearly 7% to $184 million. An interim dividend of 3.75c a share was declared, down 2c from last year.
Chairman Tony Frankham said recent months had seen dramatic contractions and volatility in global financial and credit markets, resulting in a global economic downturn.
"The fortunes of New Zealand are inherently tied to growth in its key markets for export sales and tourism.
"The directors consider that maintaining a strong balance sheet position is important," he said.
Total borrowings at balance date increased by $4.2 million to $1.05 billion.
Total assets fell $20.2 million to $3.1 billion and shareholders' equity fell $49.6 million to $1.8 billion.
Mr Frankham said the company's full-year profit was expected to be at the lower end of the previous guidance.
The long-term outlook for the company remained positive, reflecting international passenger number projections that were expected to increase over the longer term.
New Zealand retained enduring popularity as one of the world's leading tourism destinations, he said.
