AMP NZ Office Trust reports higher revenues but lower surplusFebruary 26, 2003 AMP NZ Office Trust (ANZO) has announced increased income but a reduced surplus and lower unit-holder distribution for the six months to December 31, 2002. ANZO’s executive manager, Robert Lang, said a total of 16,100 square metres of space had been leased during the period, with some market-leading rents and six-year lease terms achieved. The Wellington properties in ANZO’s portfolio are now 100 percent occupied, while the Auckland properties are 92 percent occupied, taking the portfolio occupancy level to a robust 93.8 percent. However, leasing vacant space remained a challenge with an uncertain global economy causing companies to defer their accommodation decisions and instead focus on core operations. “The New Zealand office market is increasingly correlated to the corporate sector and New Zealand’s economy, and many companies are currently under pressure to maintain earnings. Office leases are generally six to nine years in duration, and that can be perceived as a major commitment in the present operating environment.” Mr Lang added that office markets around the world, including Australia, the UK and the US, are experiencing similar dynamics. “ANZO’s assets remain the best in the market and are positioned to capture demand from tenants, as and when the global and domestic economic outlook improves,” Mr Lang said. He predicted ANZO’s performance for the full-year to June 30 would be in line with the interim result. A recovery of distributions to previous levels will largely depend on an improvement in business profitability and the performance of the economy . A unit trust listed on the New Zealand Stock Exchange, ANZO owns seven of New Zealand’s premium office buildings – Auckland’s PricewaterhouseCoopers Tower, ANZ Centre, NZI House and Quay Tower; and Wellington’s HP Tower, 125 The Terrace and No. 1 The Terrace. Total operating revenue for the six months was $29.39 million, an 18.4 percent improvement in comparison to the previous interim period. The increase was largely due to the contribution from the PwC Tower, officially opened in June 2002. Excluding the PwC Tower contribution, operating revenue fell by 7.1 percent. Direct expenses increased by 26.6 percent or $1.33 million to $6.33 million. The net surplus after tax was $16.64 million, representing a 1.0 percent decline in comparison to the previous interim period. Unit-holders will receive an un-imputed distribution of 3.25 cents per unit, a 7.1 percent or 0.25 cent decline. The record date is March 25 and the application (payment) date is March 28. ANZO undertakes full property valuations at its financial year-end, so there is no revaluation to report. ANZO is managed by AMP Henderson Global Investors, New Zealand’s largest property investment manager. Media inquiries: |