Precinct Properties New Zealand, formerly known as AMP NZ Office, said annual earnings rose 9.4 percent as its Auckland rentals continued to strengthen and Wellington occupancy remained static.
Operating profit, which excludes some non-cash items and is used as the basis of dividend policy, increased to $63.8 million, or 6.10 cents per share, in the 12 months ended June 30, from $58.3 million, or 5.85 cents, a year earlier, the Auckland-based company said in a statement. That was in line with Forsyth Barr's forecast profit of $63.8 million. Gross rental income rose 12 percent to $165.4 million.
"We are very pleased that the portfolio is close to being fully let, with continuing leasing success in Auckland and Wellington," chief executive Scott Pritchard said. "The previous 12 months have seen continued progress as the business was further positioned to execute on a strategy of improving portfolio quality, increased its weighting to Auckland and delivering a long term improved earnings outlook."
Precinct has been expanding its Auckland holdings, including entering into a development agreement for a commercial office at the new Wynyard Quarter.
Auckland vacancy in city office buildings is at a 20-year low, falling to 1.4 percent from 5.8 percent a year earlier, as New Zealand's biggest city has benefited from strong population growth, translating to rental demand for businesses, Precinct said. Its Wellington portfolio was 98 percent occupied.
