AOF Increasing occupancy and rent collections

22 October 2020

The Australian Unity Office Fund portfolio is weathering the COVID storm with reduced vacancy and higher rent collections over the past quarter.

James Freeman, AOF’s Fund Manager said: “The AOF portfolio continues to demonstrate resilience and perform well in a challenging environment due to COVID-19. Leasing transactions executed in the first quarter of FY21 have
driven an increase in occupancy to 95.0% by NLA and further reduced FY21 expiries to 3.2%.”

Key highlights for Q1 FY21 include:

  • Distribution guidance of 15.0 cpu for FY21 is reconfirmed, representing a yield of 7.2%
  • Leasing of approximately 11,200 sqm in the quarter (representing over 10% of portfolio NLA), increasing occupancy at 30 September 2020 to 95.0% (93.7% at 30 June 2020) and reducing remaining FY21 expiries to 3.2% (4.3% at 30 June 2020).
  • $4 million valuation increase at 5 Eden Park Drive, Macquarie Park driven by the CPSA lease restructure. This represents a 6.1% increase in value compared to the 30 June 2020 valuation.
  • Rental collection, including payment of arrears, of 97% of the full rent roll in the quarter. Excluding payment of arrears, rent collections were 93% during the quarter (92% for the quarter to 30 June 2020).
  • Distribution Reinvestment Plan active for the September quarterly distribution with approximately 22% of unitholders by value participating, raising approximately $1.3million, strengthening AOF’s capital base.

James Freeman said, “We continue to believe that our portfolio construction and weighting to metro markets and smaller CBDs will position our assets to outperform as businesses reassess their cost bases and employees seek to work closer to home.”

“We are pleased to reconfirm our FY21 distribution guidance of 15.0 cents per unit”.