Office property investor AMP NZ Office Trust doubled its quarterly profit to $13.9 million, as it benefited from rises in rental income in Auckland and Wellington.
First quarter net operating profit after tax rose 54.4 per cent, including contributions from recent acquisitions, up 14.1 per cent to $28.9m.
The trust also benefited from a 23 per cent fall in interest expenses, due to lower average debt levels and the conversion of the interest-bearing mandatory convertible notes into ordinary units, ANZO chief executive Robert Lang said.
The trust's gearing stands at 22.4 per cent.
Twenty-three rent reviews during the quarter, covering 16,140 sqm of office space, delivered an average increase of 32.0 per cent, Mr Lang said. A further 53,487 sqm is subject to rent review during the financial year, totalling 35 per cent of ANZO's portfolio during the year. Next year, 30 per cent of the portfolio is due for rent review.
"This means ANZO has about three years of solid revenue growth, and if growth in market rentals continues, under-renting will continue to be a feature of the portfolio for four to five years," he said.
The trust's portfolio was 12.5 per cent under-rented at the end of June.
Units in ANZO, which will distribute a dividend of 1.787c per unit plus a 0.2c per unit tax credit, were down a cent at $1.33.
ANZO is managed by AMP Multiplex Management Limited, and owns 14 office buildings in Auckland and Wellington with a total gross value of $1.4 billion.
- NZPA
