AMP Office Trust forecast to report fall in profits

Dick Smith is a tenant of 21 Queen St. Photo / Dean Purcell

Three NZX-listed landlords report results this month.

The biggest, AMP NZ Office Trust, is first off the block, announcing an interim result tomorrow.

Forsyth Barr analyst Jeremy Simpson is not optimistic, predicting distributable profit will be down on the previous corresponding period because of lower revenues and higher interest rate costs. He is looking out for good news on new tenants.

Investors have already been alerted that they will get news on new leases in the Auckland 21 Queen St block, largely empty except for Dick Smith and CB Richard Ellis, although the Serious Fraud Office has signed a lease.

Simpson wants to hear of more tenants.

"Updates on recent leasing and tenant retention will be the key areas of interest," he said.

He forecast the trust to make revenue of $50 million (previously $52.5 million), operating profit of $45.3 million ($47.7 million) and pre-abnormal reported profit of $29.4 million ($32.1 million).

Property For Industry reports its full-year result on February 21, forecast to produce revenue of $32.2 million (previously $30.3 million), operating profit of $28.8 million ($27.5 million) and reported profit of $17.5 million ($15.9 million).

Simpson said he expected steady growth in distributable profit and stable valuations.

Listed medical landlord Vital Healthcare Property Trust is due to announce its interim result on February 24, an outcome Simpson says will be a solid result from its core portfolio. He is also expecting an update on Vital's big Australian acquisition, after it announced late last year a deal to purchase hospitals, surgical and psychiatric facilities across the Tasman in a move almost doubling the size of the business from a $300 million portfolio to more than $500 million.

Simpson forecast Vital to declare revenue of $12.8 million (previously $12 million), operating earnings to remain the same at $10.5 million and reported profit to remain stable at $6 million.