A rising debt burden has nudged down the bottom-line profit of the country's largest listed office trust, but its rental income has risen sharply.
Wednesday, May 4th 2005, 7:52AM
by The Landlord
AMP NZ Office Trust's loans from the Bank of NZ rose from $196 million last year to $253 million, mainly to fund portfolio growth and expansion.
That means the trust is paying $9.8 million in interest costs, compared with $4.3 million last year.
The trust's net surplus is down 2.6 per cent, from $26.3 million last year to $25.6 million in its preliminary nine-month result out yesterday.
But the expanded portfolio meant rental income shot ahead from $46.7 million last year to $65.3 million in the latest period.
Trust executive manager Rob Lang attributed the bottom-line drop to the cost of paying more in interest, due to rising borrowings to fund three new buildings and purchase $62 million worth of units in a buyback last year
