29 Oct 2010

AMP NZ Office Trust profit falls

1:55 pm on 29 October 2010

Property investor AMP New Zealand Office Trust has reported a lower quarterly profit.

Excluding unrealised charges, including the forthcoming effect of the removal of depreciation allowances by the government, the Trust's underlying profit fell 6% to $15.1 million.

Last week, disgruntled investors approved changes to the way the company would be managed after unhappiness about the trust's performance and returns.

The trust's chief executive, Scott Pritchard says the property market remains tough, although leasing inquiries have risen, and it secured three new customers for its 21 Queen Street site.

Including one-off items, the trust made $6.5 million in the three months to September, a decrease of 56% on the same period a year ago.

Rental income slipped 2% to $34 million after selling apartment units in Wellington, and losing IAG as a client late last year.

Occupancy rose slightly to just under 91%, and the average lease is more than four years.