AMP Office Trust hands in a good surplus report

Friday 21st May 2004

Prime CBD office property investor, AMP Office Trust, has reported a 2.95% gain in net surplus for the nine months to March 31, this year.

This brought the figure to $26.3 million, executive manager Robert Lang said.

As well, rental income for the same period increased 3.26%to $36.5 million, due to higher occupancy rates and rentals.

The company had significantly improved its interest rate exposure with about 80% of its borrowings hedged with forward swaps for an average term of 5.4 years, compared with its previous position of about 60% hedged for 1.8 years.

"AMP Office Trust has entered into several swap agreements before the recent increase in interest rates and is now locked into some advantageous long-term, low rates," Lang said.

This reduced its exposure to interest rate and earnings volatility.

Activity during the March quarter included completing a $62 million buy-back of units from investors.

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