ANZO "on track" for distribution increase

ANO

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AMP NZ Office Trust (ANZO) reported a net loss of $4.97 million for the six months to the end of December but saw an increase in distributable profit.

Chief executive Robert Lang said the loss was unrealised and did not affect the profit available for distribution to investors.

Operating profit before current tax rose 5.5 percent from the previous interim period to $30.07m, while operating profit after current tax -- ANZO's distributable profit -- showed a 1.8 percent increase to $27.09m.

Rentals for the six months were 11.2 percent higher than the previous interim period, at $65.48m.

ANZO investors would receive a net second-quarter distribution of 1.824 cents per unit plus imputation credits of 0.273 cents per unit, Lang said.

ANZO's total gross distribution for the interim period was 4.3 percent higher than 2008 on a gross basis, or 1.4 percent net.

Expectations remained that the gross full-year distribution, funded from operating earnings, would be 4 percent higher than the previous year.

Portfolio occupancy for the listed investor in commercial office property, which owns 15 New Zealand office buildings with a total gross value of more than $1.5 billion, was steady at an attractive 98.2 percent, Mr Lang said.

The portfolio weighted average lease term remained a favourable 4.9 years, unchanged since June 2008.

As measured by area, only 1 percent of ANZO's portfolio remained subject to a lease expiry event this financial year, down from 6.5 percent at June 2008.

More than 26 percent of ANZO's net lettable area was leased by the Crown.

Lang said a full revaluation of ANZO's portfolio as at March 31, 2009 was under way.

Some other New Zealand listed property vehicles had revalued their portfolios, resulting in reductions in value, and the trend was expected to be similar for ANZO.

- NZPA