AMP NZ Office Trust reports higher net surplus and $21.6 million gain in net asset valuesAugust 20, 2003 AMP NZ Office Trust (ANZO) has reported a higher net surplus and gains in asset values in the full-year to 30 June 2003. ANZO is a unit trust listed on the New Zealand Exchange, which invests predominantly in prime CBD office properties in major New Zealand cities. It owns seven of New Zealand’s premium office buildings – Auckland’s PricewaterhouseCoopers Tower, ANZ Centre, IAG House and Quay Tower; and Wellington’s HP Tower, 125 The Terrace and No. 1 The Terrace. Executive manager Robert Lang said ANZO’s assets had responded to strong investor demand for high-quality properties, with a 3.86 percent lift in values. ANZO had achieved record leasing levels, extending the portfolio Weighted Average Lease Term (WALT) from 6.07 to 7.11 years. Costs had also been successfully managed. ANZO’s financial statements include the first full-year’s revenue and expenses associated with the PricewaterhouseCoopers Tower. Total operating revenue including the PwC Tower was $59.85 million, an increase of 22.3%. Excluding the PwC Tower contribution, total operating revenue slipped by 3.6%. Portfolio direct expenses including the PwC Tower were $12.54 million or $1.19 million higher than in 2002. Excluding the PwC Tower, direct expenses for the core portfolio showed a reduction of 2.10% as a result of ANZO’s continued focus on cost containment and operational efficiencies. During the year, ANZO changed its accounting policy regarding gains and losses on revaluation to bring it more into line with current international accounting standards. An unrealised revaluation gain was brought to account in deriving the net surplus for the period. ANZO’s net surplus before revaluations rose by 10.84% to $34.27 million. A gain in asset values of $21.60 million took the net surplus after revaluations to $55.87 million, an 80.72% increase in comparison to the previous year. The gross value of ANZO’s portfolio improved during the year from $555.9 million to $577.35 million. Net tangible asset backing increased from $0.855 to $0.898 cents per unit. Mr Lang said ANZO’s investors will receive a final dividend distribution of 3.48 cents per unit, bringing the full-year distribution to 6.73 cpu. The record date is 19 September, 2003 and the application (payment) date is 26 September, 2003. While lower than the previous year, the distribution is higher than forecast reflecting leasing success, better performance in rent reviews and cost savings in the second half of the year. Forty-two new leases and lease renewals were concluded during the year, equating to more than 36,000 sqm or 20% of the portfolio area. This figure is the largest total in ANZO’s history and includes some leases that were due to expire in the coming year or further into the future. One of the agreements was to The Treasury, ANZO’s largest single tenant by income, which has signed a new 12-year lease on its current location at No. 1 The Terrace. Mr Lang said The Treasury’s existing lease was due to expire in mid-2005, and its continued and early re-commitment to the property was an outcome of ANZO’s active management strategy. Portfolio occupancy was maintained at 95 percent, with the vacancy at year-end limited to three of ANZO’s Auckland properties. Over-renting has continued to diminish and is currently 8 percent, down from 11 percent in 2002. Mr Lang noted that another highlight of the year was the Rider Hunt/Property Council award for the PwC Tower, which was named New Zealand’s top commercial office building for 2003. ANZO is managed by AMP Henderson Global Investors, New Zealand’s largest property investment manager with $1.3 billion of property under management. Media enquiries: |