This article is from the Australian Property Journal archive
GALILEO Japan Trust has delivered an improved loss result of $A0.86 million for the full year, which is better than $A6.97 million loss in FY10.
No distribution will be paid until restrictions in both the Forum and UBS loan facilities are paid.
GJT’s total liabilities to total assets (which are both substantially ¥ denominated) was 87.3% as at 30 June 2011 versus 83.7% as at 30 June 2010.
GJT chief operating officer Peter Murphy said until the full repayment of the Eurobonds issued to Forum and the loan facility with UBS, the Japanese TK business will not pay any distributions.
“The directors recognise that the absence of distributions until the repayment of these facilities is disappointing. However, we believe the best prospect of maximising the value of unitholders’ current investment is through continued active asset management by GJKK, an orderly sale of assets and the potential wind-up of GJT,” he added.
Meanwhile the trust’s portfolio occupancy improved 390 basis points to 99.5%. Murphy said average vacancy in the Tokyo office market has improved, decreasing by 33 basis points to 8.8%, similarly unemployment has reduced 30 basis points during the period to 4.7%.
Net property income was 3.4% lower than pcp largely resulting from re-leasing office space at average rents significantly below previous passing rent and an increase in rent free concessions provided to new and existing office tenants.
“While office market conditions are not expected to recover rapidly, there are signs that both vacancy and market rent movements have begun to stabilize,” he added.
Australian Property Journal
