Business

Office portfolio down in value - property investor

12:48 pm on 17 December 2009

AMP New Zealand Office Trust says the value of its portfolio has decreased on lower rental growth and rising available office space due to the economic downturn.

The property investor says its portfolio of 15 office buildings is worth $1.33 billion, a decrease of 4% since June.

However, ihe company stresses its debt gearing ratio remains low. It is forecast to be below 22% by the end of the year compared with the loan covenant ratio of 40%.

The change will not affect its payout to unitholders, and the company says it's on track to lift the full year gross payout by 2%.