AMP NZ Office Trust reports 11.3 percent higher net surplus, new Auckland leasesOctober 13, 2005 New Zealand’s largest listed investor in premium commercial office property, AMP NZ Office Trust (ANZO), has reported a solid gain in net surplus for the first quarter of its 2006 financial year*. Mr Lang said the net surplus for the three months to September 30, 2005, was $8.32 million, an 11.3 percent increase on the previous year. Key drivers of the increase were the higher rental contributions from two Wellington properties ANZO acquired over the past year – Mobil on the Park, the State Insurance Tower, as well as the commencement of the Ministry of Agriculture and Forestry lease in the newly-refurbished Pastoral House. Rents received from PricewaterhouseCoopers Tower, IAG House, ANZ Centre and Quay Tower were also up strongly as a result of favourable rent reviews and higher occupancy. Mr Lang added that ANZO’s direct property expenses had been held to an increase of just 0.1 percent. Earnings per unit for the quarter (before unrealised development margin) were 1.79 cents, 2.9 percent higher than the previous comparable period. Unit-holders will receive a first-quarter distribution of 1.85 cents per unit, a 2.8 percent increase and higher than previously projected. The record date is 28 October 2005 and the payment date is 4 November 2005. Following the successful completion of the unit purchase plan in September and the acquisition of Mayfair House ANZO’s balance sheet remains in a strong position to fund further growth and take advantage of market opportunities. ANZO’s gearing ratio at the close of the September quarter was 30.6 percent, which will increase to 33.4 percent as a result of the settlement tomorrow of the Mayfair House acquisition. This is comfortably below the self-imposed 40 percent limit and 50 percent limit contained in the trust deed. Mr Lang also announced two new lease transactions in Quay Tower. One of these will see a new tenant taking up the majority of the space which is due to be vacated by existing tenant Air New Zealand in 2007. Financial services company AMP will move into three of the airline’s five levels in Quay Tower and will also take naming rights for the building. From next month until Air New Zealand’s move in February 2007, AMP will lease two levels in ANZO’s ANZ Centre. “One of the major benefits of ANZO’s portfolio size is that we can provide flexible solutions that genuinely meet a tenant’s needs – and this was the case for AMP,” said Mr Lang. “The expiry date of AMP’s existing lease didn’t suit the start of their Quay Tower lease, which can be a costly situation for businesses. However, ANZO has been able to provide high-quality CBD office accommodation and a seamless transition.” Also in Quay Tower, QBE Insurance has taken a nine-year new lease on its existing space on levels six, nine and 11. “ANZO’s proactive forward lease expiry management has meant that of the total of 9185 sqm which was due to become available in Quay Tower in 2007, almost 6600 sqm has now been accounted for,” said Mr Lang. As a result of these leases, the weighted average lease term for the building has increased from 4.0 to 4.8 years. Further operational highlights of the quarter included:
The outlook for the remainder of the financial year remains positive with strong interest in being shown on the remaining vacant space. *Note: the first quarter result is unaudited. ANZO is managed by AMP Multiplex Management Limited. About ANZOANZO is New Zealand’s largest listed investor in premium and A-grade commercial office property. A unit trust listed on the New Zealand Exchange, ANZO currently owns 11 New Zealand office buildings with a total gross value of more than $879.1 million – Auckland’s PricewaterhouseCoopers Tower, ANZ Centre, IAG House and Quay Tower; and Wellington’s State Insurance Tower, Mobil on the Park, HP Tower, 125 The Terrace, No. 1 and 3 The Terrace, Pastoral House and Mayfair House. Media enquiries: |