Oc­cu­pancy rate trou­bling

South Waikato News - - PROPERTY -

Listed real es­tate in­vestor Ar­gosy Prop­erty Trust de­liv­ered a half-year re­sult be­low an­a­lysts’ ex­pec­ta­tions, af­ter its va­cancy rates rose to the high­est lev­els the com­pany had seen since 2004.

Ar­gosy has been go­ing through sig­nif­i­cant changes, hav­ing re­cently in­ter­nalised its man­age­ment con­tract and with a process un­der way to change its trust struc­ture to an in­cor­po­rated com­pany.

For the six months to Septem­ber, it de­liv­ered an af­ter- tax loss of $ 19.97 mil­lion, down from an af­ter-tax profit of $6m a year ear­lier.

Ar­gosy ap­pears to be hav­ing trou­ble keep­ing its 77 build­ings ten­anted near ca­pac­ity with oc­cu­pancy across its di­ver­si­fied port­fo­lio sink­ing to 93.9 per cent in the six months to Septem­ber, from 96.8 per cent in March. Gold­man Sachs an­a­lyst Buffy Gill said this was be­low the av­er­age oc­cu­pancy lev­els seen in the prop­erty sec­tor.

Ar­gosy is one of only three prop­erty com­pa­nies on the New Zealand Stock Ex­change pay­ing out 100 per cent of its dis­tributable earn­ings to share­hold­ers, along with ri­vals Kiwi In­come Prop­erty Trust and Prop­erty For In­dus­try.

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