This article is from the Australian Property Journal archive
COMMONWEALTH Property Office Fund has upgraded its distribution guidance for FY10, on the back of improving conditions in the office markets.
CPA yesterday announced a 4.8% upgrade to the distribution guidance.
As a result, the distribution guidance for FY10 has increased from 5.3 cents per unit to 5.55 cents per unit. This equates to 2.90 cents per unit for the six months ending June 30 2010 (2.65 cents per unit having already been paid for the six months ended December 31 2009).
CPA fund manager Charles Moore said the upgrade has been driven primarily by the underlying portfolio performing better than forecast and savings in interest costs associated with the termination of interest rate swaps and the delay in settlement of the acquisition of 58 Mounts Bay Road, Perth, from May to June.
“The guidance assumes there is no unforeseen material deterioration in existing economic conditions between the timing of this announcement and the financial year end,” he added.
Colonial First State Global Asset Management head of property Darren Steinberg said the guidance upgrade is the result of active asset and capital management strategies, coupled with improving conditions in Australia’s office markets.
Australian Property Journal
