AMP NZ Office Trust reports higher revenues and 7.69 percent increase in dividend distributionFebruary 19, 2004 AMP NZ Office Trust (ANZO) has reported higher revenues for the six months to December 31, 2003, resulting in an improved net surplus and the return of dividend distributions to their previous levels. 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 eight New Zealand office buildings with a total value of more than $600 million – Auckland’s PricewaterhouseCoopers Tower, ANZ Centre, IAG House and Quay Tower; and Wellington’s HP Tower, 125 The Terrace, No. 1 and 3 The Terrace and Pastoral House. Executive manager Robert Lang said better economic and office market conditions had flowed through into renewed tenant demand and higher rentals. ANZO’s rental revenues for the period were $25.56 million, a 3.57 percent increase in comparison to the previous corresponding period. There has been a change in the Auckland City Council’s rates collection policy which means that all building owners, rather than tenants as was previously the case, are now invoiced directly for municipal rates and this is reflected in ANZO’s financial statements for the first time. This change in policy was the main contributor to a 43.6 percent increase in total direct operating expenses to $9.09 million. Excluding this effect and tenant-related energy consumption costs, total direct property expenses increased by $0.44 million or 7.56 percent. ANZO’s net surplus for the period is $17.29 million, 3.92 percent higher than the previous period. ANZO’s investors will receive a dividend distribution of 3.50 cents per unit, a 7.69 percent increase. ANZO has already stated, in December last year, that the dividend for the full-year to June will be 7 cpu. The acquisition of Pastoral House and a portfolio revaluation in late 2003 have lifted ANZO’s gross portfolio value to $602.05 million. Net tangible asset backing is now 90 cents per unit. Mr Lang said ANZO’s asset managers had made strong progress on forward risk management, securing more than 12,500 sqm in new leases during the six months, including several that were scheduled to expire in the next two to three years. However, the expiry of some significant leases in Auckland meant the portfolio occupancy rate remained steady at 95.1 percent. The weighted average lease term was 6.89 years, down slightly from 7.1 in June 2003. “ANZO’s WALT and occupancy levels are among the highest of our peer group in the New Zealand listed property sector, and are an indicator of the security of our cashflows and future investment performance.” ANZO announced two significant investments during the period – the $27 million refurbishment of Wellington’s No. 1 The Terrace with construction of a low-rise annex on an adjoining site, and the $23.95 million purchase of Pastoral House for refurbishment to A-grade standard. In addition, a series of initiatives to enhance performance was announced in December 2003, including:
The record date for the interim distribution is March 26, 2004, with payment taking place on March 30. Units purchased from investors through the buy-back programme will not be eligible for this distribution. The first quarterly distribution will take place in late April, after the close of the March quarter, and will be half of the 3.5 cents which remains outstanding to bring the full-year distribution to 7 cents per unit. Media enquiries: |