One of the largest corporate landlords, AMP NZ Office Trust, has bumped down the value of its properties by $10.2 million due to problems in its industry.
Citing rising interest rates and the lack of office block sales, ANZO downgraded the value of its holdings from $403.4 million to $393.6 million,
even though it said its buildings were 99.1 per cent tenanted.
The revaluation helped turn gross income in the year to June 30 of $67.9 million into a net after tax surplus of only $20.9 million, which was still up from the $7.45 million net surplus reported last year.
But in announcing the result yesterday, ANZO said this would not change the payout to its unit holders, who will receive 7.1 cents per unit for the full year.
Unit holders got an interim distribution of 3.5 cents in March and will get another 3.6 cents on September 21, ANZO said, taking the total distribution up to the 7.1 cents for the year.
ANZO's bottom line profit of $20.9 million was up by $13.5 million on the previous year, it said, and the revaluations were only a paper loss.
Net office rental increased by a modest 0.9 per cent to $38.3 million.
Indirect expenses increased by 6.1 per cent to $9.4 million largely as a result of a $1.6 million capital expenditure charge on the sale of the Parkroyal. The operating result before revaluation and tax was $31.1 million.
ANZO, which has almost finished its $170 million PricewaterhouseCoopers centre on Auckland's waterfront, said that tower was 68 per cent leased.
It is due to be opened in May next year and projected to increase ANZO's property holdings to $567 million.
