Property investor ANZO reports profit fall

The country's largest listed office property investor, AMP NZ Office Trust (Anzo), today reported a net profit of $25.6 million for the nine months ended March, down 2.6 per cent on the same period the previous year.

Anzo said in a statement the fall was mainly the result of additional interest and one-off capital raising costs.

Anzo's total rental revenue for the nine months was $65.3 million, up 34.1 per cent on the $46.7 million posted the year-earlier period.

On a like-for-like basis, excluding acquisitions made during the period, Anzo's rental revenue was up 4.6 per cent.

Anzo's portfolio occupancy remained steady at 96 per cent.

Annual rent reviews during the period resulted in an average increase if 14.5 per cent.

Anzo increased its third quarter distribution to unitholders to 1.85c per unit, up 5.7 per cent on the year earlier.

Anzo executive director Robert Lang said the trust was on track for a distribution for the full year ending June 2005 of 7.3c per unit, a 4.3 per cent increase on 2004.

Earnings per unit were 5.8c per unit, up 9.6 per cent on the previous year.

Mr Lang said earnings per unit were a key measure of performance, in the context of new acquisitions and changes to Anzo's capital structure which have taken place during the past year.

In December Anzo raised has raised $30.7 million through a placement to local and international investors. Anzo placed 34.5 million units at 89c.

Anzo owns 10 office buildings with a total value of more than $760 million.

Units in the trust last traded yesterday at 90c, having ranged between 81c and 96c over the past 12 months.

- NZPA