About Us  |   Advertise  |   Contact Us  |   Terms & Conditions  |   RSS Feeds Other Sites:   sharetrader.co.nz  |   stockguru.co.nz
 
sharemarket
NZX 50 Index 3092.36 9.90
S&P/ASX 200 4532.70 0.00
Dow Jones Industrials 10320.10 50.60

AMP NZ Office's Stobo says proposed tax changes would erode earnings

Thursday 4th February 2010

Text too small?

Reforms proposed by the Tax Working Group, including removal of building depreciation and the introduction of a land tax, could slash earnings at AMP NZ Office Trust as much as 10% next year, said chairman Craig Stobo.

Earnings in 2011 “would be reduced by approximately 8-10% in a worst-case scenario,” where the depreciation allowance was fully abolished, he said. Older investors, who favour the steady returns from listed property trusts, would be particularly hard hit and the moves will dent New Zealand’s ability to attract capital from overseas investors, he said.

Distributable profit, the preferred measure of earnings among property trusts, rose 18.5% to $32.1 million in the six months ended Dec. 31. The net loss widened to $27.8 million from $4.97 million as the trust recognized a $63 million decline in the value of its property portfolio, partly offset by a gain in the value of interest rate swaps.

Shares of APT were unchanged at 73 cents on the NZX today and have slipped 5% since the Tax Working Group report was released on Jan. 20. In the past month, the NZSE Property Group Index has fallen 3.5%, making it the third-worst sector on the exchange, ahead of telecommunications and mining.

The property investor said its gearing ratio stood at 21.7% at Dec. 31, compared with a loan covenant ratio of 40%. Its interest cover ration for the 12 months through Dec. 31 was 3.13 times, versus a covenant requirement of 2 times. Portfolio occupancy was little changed at 89.9% in the first quarter.

Businesswire.co.nz

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.
Bookmark and Share   Printable version
Related News

AMP NZ Office annual earnings rise
AMP Office appoints temporary CEO
Corporatisation harder than thought, says ANZO
Daily ShareChat: AMP Office Trust
Sweeping changes to governance and management fees at AMP NZ Office Trust
Daily ShareChat: AMP Office Trust
Daily ShareChat: AMP NZ Office Trust
AMP NZ Office portfolio value falls by 4.3%, trust sees signs of demand pickup
Daily ShareChat: AMP NZ Office Trust
AMP NZ Office Trust front foots management fees criticism at AGM

Get quotes for AMP NZ Office Trust Ordinary Units (APT)
NZX Annoucements for APT
26 Aug 2010 OFFICE: APT: AMP NZ Office Trust confirms move to Auckland for the Trust
9 Aug 2010 OFFICE: APT: AMP NZ Office Trust welcomes new Chief Executive
5 Aug 2010 SSH: APT: SSH - (Blair Cooper)
5 Aug 2010 SSH: APT: SSH - Accident Compensation Corporation ("ACC")
3 Aug 2010 FLLYR: APT: ANZO full-year distributable profit up 2.5 percent
15 Jul 2010 RELINT: APT: Ongoing Disclosure Notice (Amish Vallabh)
15 Jul 2010 RELINT: APT: Ongoing Disclosure Notice (Peter Walkinshaw)
24 Jun 2010 OFFICE: APT: ANZO appoints acting CEO until new CEO appointee in place
23 Jun 2010 RELINT: APT: Ongoing Disclosure Notice (Robert Lang)
21 Jun 2010 RELINT: APT: Ongoing Disclosure Notice (Graeme John Horsley)
21 Jun 2010 RELINT: APT: Ongoing Disclosure Notice (Graeme John Horsley)
17 Jun 2010 SSH: APT: SSH (Accident Compensation Corporation)
11 Jun 2010 FORECAST: APT: ANZO advises of change to deferred tax and NZ IFRS NTA
2 Jun 2010 ASSET: APT: ANZO confirms settlement of Chews Lane retail units
1 Jun 2010 SSH: APT: SSH Notice - AMP Office Trust
25 May 2010 FORECAST: APT: ANZO announces outcome of full-year portfolio revaluation
25 May 2010 FORECAST: APT: AMP NZ Office Trust unitholder vote deferred
24 May 2010 SSH: APT: SSH Notice (Blair Cooper)
23 Apr 2010 QUARTER: APT: ANZO third-quarter result in line with expectations
14 Apr 2010 ASSET: APT: ANZO completes $11.7m sale of Wellington retail units
12 Apr 2010 ASSET: APT: AMP NZ Office Trust announces major lease transaction
6 Apr 2010 SSH: APT: SSH (Accident Compensation Corporation)
22 Mar 2010 INTERIM: APT: APT - Interim Report
26 Feb 2010 ASSET: APT: AMP NZ Office Trust to sell Wellington CBD retail units
26 Feb 2010 GENERAL: APT: AMP NZ Office Trust proposes key strategic changes
9 Feb 2010 ADDRESS: APT: Interim Result Presentation
4 Feb 2010 HALFYR: APT: Amended NZX Appendix 1
4 Feb 2010 HALFYR: APT: Half Year Results Announcement
1 Feb 2010 SSH: APT: SSH (Haumi Company Limited)
29 Jan 2010 SSH: APT: SSH (AMP Capital Investors (New Zealand) Limited)
 
AMP NZ Office Trust Ordinary Units

Current quote:
APT $0.74 +1
Quotes delayed 20 minutes
Price when article published: $0.73

Previous News
Sharemarket News By Email
AM Update (daily) - View sample
News Alerts - View sample
After the Bell (daily) - View sample

More info - RSS feeds - Unsubscribe/Update

Stock Quote
Exchange:
Stock Code:
Don't know the stock code? Search by keyword:
Keyword:
At a Glance
NZX 50 Index 3092.36 9.90
S&P/ASX 200 4532.70 0.00
Dow Jones Industrials 10320.10 50.60
Comment & Analysis

The change in tone in global financial markets and websites in the past two weeks has been sudden and alarming and I must comment on the change. As reluctant as I am to be swayed too much by emotion it seems the recent appearance of the “Hindenburg Omen‘   has the major American markets quite mesmerised and [...]
Wayne Lochore  More »

Wayne Lochore
  forex centre
cfd centre
options centre
NZX 15 Index
AIA 2.04 -0.01
APT 0.75 0.01
CEN 5.66 0.01
FBU 7.70 0.02
FPH 2.99 0.00
GMT 0.94 0.01
IFT 1.68 0.00
KIP 0.97 0.01
NPX 3.20 0.00
NZO 1.21 0.01
RYM 2.06 0.00
SKC 2.95 0.00
SKT 5.10 0.03
TEL 2.05 0.02
VCT 2.08 0.00

More market prices »

NZX Announcements

© Copyright 2010 Tarawera Publishing Limited. All Rights Reserved.