5 Feb 2009

AMP office trust full-year dividend to rise

1:33 pm on 5 February 2009

Commercial landlord AMP NZ Office Trust says it is on track to pay investors a higher distribution for the full year, bucking the trend of delaying dividends.

The trust says its interim distribution for the three months to December will be 1.8 cents per unit, which should increase the full year distribution by 4%.

The company says its distributable profit, or operating profit after tax, rose 1.8% to $27.1 million for the six months to December.

AMP NZ Office Trust chief executive Rob Lang said increases in rents for some of its properties have driven the rise in earnings. The trust's properties are 98% occupied.

Mr Lang says the trust will revalue its properties in March, and is expecting a reduction in value.

The trust recorded an after tax net loss of $4.9 million due to an unrealised $40 million loss on its interest rate swaps, which does not affect the profit available for distribution to investors.