Positive office market conditions lift AMP NZ Office Trust’s earnings per unit 9.6 percentMay 3, 2005 New Zealand’s largest listed investor in commercial office property, AMP NZ Office Trust (ANZO), continues to enjoy favourable office market trading conditions, reporting higher earnings per unit and investor returns for the nine months to March 31, 2005. ANZO’s earnings per unit for the nine months were 5.80 cents per unit, showing a 9.6 percent increase on 2004. ANZO executive manager Robert Lang said earnings per unit were a key measure of performance, in the context of the three new acquisitions and changes to ANZO’s capital structure which have taken place during the past year. He said high portfolio occupancy, ongoing tenant demand and rising market rentals had contributed to the result. ANZO’s total rental revenue for the nine months was $65.3 million (2004: $46.7 million), a 34.1 percent increase. On a like-for-like basis (excluding the effect of the three new acquisitions), the increase was 4.6 percent. The surplus after direct expenses was 33.9 percent higher at $47.4 million. Mr Lang said the like-for-like increase of 5.6 percent highlighted the growth from ANZO’s existing assets. The net surplus of $25.6 million was down 2.6 percent on 2004, primarily as a result of additional interest and one-off capital raising costs. The third-quarter distribution to ANZO’s unit-holders has increased to 1.85 cents per unit, which is 2.8 percent higher than the second quarter distribution or 5.7 percent higher than in 2004. Mr Lang said ANZO remains on track for a distribution for the full-year ending June 2005 of 7.3 cents per unit, a 4.3 percent increase on 2004. The record date is May 18 and payment will be made on May 25. Mr Lang said ANZO’s portfolio occupancy remained steady at 96 percent, and the weighted average lease term (WALT) was strong at 6.4 years. ANZO’s record year for leasing has continued, with 29,000 sqm of space leased during the nine months (compared with 31,300 sqm for the full-year in 2004, which was itself a record). Key successes included establishing direct relationships with former sub-tenants as head leases expired in some of ANZO’s Wellington properties. Significantly, the high tenant retention rate of 90% indicates that ANZO’s portfolio of properties remain in demand. There have also been 12 rent reviews during the nine months, resulting in an average increase of 14.5 percent, reflecting a positive supply and demand environment. He also noted that ANZO’s manager, AMP Multiplex Management Limited, had recently announced the appointment of two independent directors, former BT Funds Management NZ Limited chief executive Craig Stobo (who has become chairman) and former Ernst & Young real estate partner Graeme Horsley. About ANZOA unit trust listed on the New Zealand Exchange, ANZO invests predominantly in prime and A-Grade CBD office properties in major New Zealand cities and currently owns 10 New Zealand office buildings with a total value of more than $760 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 and Pastoral House. Media enquiries: |