AMP NZ Office Trust (ANZO) said its distributable profit rose 11.9 percent to $46.99 million in the nine months to March 31 from a year ago due to higher rental revenues and lower interest costs and asset management fees.New Zealand's largest listed inves
AMP NZ Office Trust (ANZO) said its distributable profit rose 11.9 percent to $46.99 million in the nine months to March 31 from a year ago due to higher rental revenues and lower interest costs and asset management fees.
New Zealand's largest listed investor in prime commercial office property expects its full-year profit to be approximately level with the previous year, and gross distributions to unitholders to be 2 percent higher.
When impairment losses, unrealised changes in valuations of properties and interest rate swaps and deferred tax benefits are included ANZO reported a loss of $17.39m in the nine-month period from a loss of $141.62 in the same period last year.
Unitholders will receive a gross third-quarter distribution of 1.764 cents per unit, consistent with the first and second quarters. The record date is May 7 and payment is on May 14.
Rental revenues in the nine months rose 4.9 percent higher to $104.81m, reflecting positive rent review outcomes, new leases and lease renewals.
Bank interest costs fell 22.3 percent to $4.4m, and management fees fell 15.1 percent. Asset management fees fell to $6.49m from $7.6m last year, though trustee feels rose to $112,000 from $108,000.
ANZO's gearing ratio remained one of the lowest in the Australian and New Zealand listed property sectors, at 21.7 percent as at March 31, chief executive Robert Lang said.
In February, ANZO signalled a new corporate structure and governance model that separates the interests of ANZO and the manager.
As part of the move ANZO's fourth-quarter dividend will be paid before July 1, which is earlier than the usual August to September payment date.
The company also noted that it would be impacted if recommendations of the Tax Working Group were adopted by the Government.
ANZO's 2011 after tax distributable profit would be adversely affected by approximately 8 percent to 10 percent on a worst case scenario if the depreciation allowance on buildings was fully abolished.
"The immediate cash flow impact on ANZO of any proposed land tax is muted as in most cases leases enable the tax to be passed through to businesses.
"However, any introduction of a land tax will inevitably suppress market conditions and this impact is not yet able to be quantified as the tax working group has not provided details around the potential tax levels."
