AMP NZ Office Trust Continues to Deliver a Strong ResultFebruary 16, 2001 There were no surprises in the AMP NZ Office Trust’s interim result covering the six-month period to 31 December released today. The Trust reaped the rewards of 100% occupancy and prime CBD assets. The demand for quality office accommodation, high rates of occupancy and strong cash flow from market-leading rents combined to generate for the Trust a pleasing net surplus of $16.86 million, representing a 3% increase over the previous year’s interim result. The result has enabled the declaration of an un-imputed interim Unit holder distribution of 3.50 cents per unit, which is consistent with the Trust’s policy of distributing substantially all of its available net surplus to Unit holders. The Trust is a listed property investment. It owns New Zealand’s top CBD office portfolio, which comprises the ANZ Centre, NZI House, Quay Tower, and the PWC Tower under construction in Auckland, in Wellington the Trust owns 125 The Terrace, the IBM Centre/ Wellington Parkroyal Hotel and the Treasury Building. “The demand for top quality CBD office space maintained the portfolio occupancy rate at 100% and is the best indicator of the strong market position of the portfolio in a challenging market. “Diversified, sustainable and regular cash flows are important in any kind of property investment and the best way to achieve this is through quality prime CBD office buildings. The strategies developed and implemented during the interim period have focused on active asset management, optimising occupancy levels, cash flows and profitability,” said ANZO executive manager, Robert Lang. There was no recorded movement in the value of the portfolio over the period as the Trust is scheduled to undertake full property re-valuations at its financial year-end date of 30 June. Net asset backing on a fully diluted basis has been maintained at 87.8 cents per unit. Highlights for the period included the achievement of the unconditional status of the sale of the Wellington Parkroyal. The settlement of the sale moved a significant step closer with the subdivision resource consent approved by Wellington City Council. The tenant pre-commitment in the PricewaterhouseCoopers Tower now exceeds 54.5%, and with construction on schedule this represents another major achievement for the Trust. Leasing for the state-of-the art PWC Tower is gaining a momentum of its own and the Trust is confident of announcing further leasing successes in the very near future. Looking forward, Mr Lang said: “It is our perception that the CBD office market’s prospects are healthier now than they were six months ago as a result of a stronger than anticipated economic turn-around. While this is export sector focused its increasing diffusion through the domestic economy augers well for property over the coming year. “The Trust’s high occupancy rate and high quality office properties ensure that it is well positioned to benefit from the anticipated improvement in market conditions.” For more information contact: |