Drop in operating profit for AMP NZ Office
AMP NZ Office reported a lower operating profit, cash inflow and portfolio value for the six months to December compared to a year earlier.
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AMP NZ Office has reported a drop in operating profit for the six months to December compared to a year earlier.
For the second half of last year it earned an operating profit of $36 million, down from $37.7 million in the six months to December 2009.
Its equity from $976.4 million to $927.7 million, and its asset base went from $1.35 billion to $1.3 billion. The book value of its property portfolio fell from $1.334 billion to $1.279 billion.
Total cash inflow fell from $34.6 million in the six months to December 2009 to $30.2 million in the same period last year.
Its rental income had fallen from $70.3 million in the period to December 2009 to $68.5 million. It said this was due to selling five rental properties in Chews Lane at Wellington and IAG’s lease expiring on 151 Queen St.
Cash at the end of the six months to December was $2 million, a drop from $9.3 million the same time one year earlier.
Total deferred tax expense at December was $3.2 million compared to $1 million a year earlier.
Distributable profit was down to $31 million, from $32.1 million a year earlier and net tangle assets per security dropped to 93c from 98c a year before.
It signed 35 leases in the in the six months to December, 13 of those to new tenants – three in 21 Queen St.
“It is pleasing to see improving leasing enquiry, and our focus is on converting that enquiry to new leases, improving portfolio occupancy and stabilising rental levels,” chief executive Scott Pritchard said.
“While increasing occupancy through attracting new customers remains a priority, we are also particularly focused on enhancing existing customer relationships and de-risking future expiries through pro-active management.”
Its asset management fees were lower in the six months to December from one year earlier, at $2.5 million compared to $4.4 million.
The amount of bank debt it had drawn down in December was $268 million down from $273 million a year earlier, with an unchanged maximum of $342.5 million.
Its portfolio is now 8% vacant, compared to 9.6% a year previously.
At press time AMP NZ Office shares were trading at 78c.
Jazial Crossley
Thu, 10 Feb 2011
Thu, 10 Feb 2011
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Drop in operating profit for AMP NZ Office
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