Australian Unity Office Fund continues to work with its tenants who are adversely impacted by COVID-19.
To date, tenants representing approximately 11% of AOF's gross income, have enquired about rental relief under the Code (noting that the rent relief period is currently six months).
Rent collections across AOF's portfolio have remained robust through the COVID-19 rent relief period, averaging 92% of the invoiced amount from April 2020 to June 2020.
The Fund has obtained updated valuations for all of its assets as at 30 June 2020. Combined, these valuations are expected to result in a decrease in portfolio value of approximately $34.6 million (~21 cents per unit), or approximately -4.9%, over the preceding book value.
Australian Unity noted that the decrease in valuations were principally driven by lower forecast growth rates, increased forecast incentives and increased downtime assumptions adopted by the valuers given current market uncertainty and the impact of the Mandatory Code of Conduct for SME Commercial Leasing Principles during COVID-19 (the Code).
AOF previously announced a positive valuation increase of approximately $16.3 million (~10 cents per unit) in relation to 2-10 Valentine Ave on 17 April 2020.
The weighted average capitalisation rate for the portfolio is broadly in line with 31 December 2019.
FY20 results are expected to be announced on 24 August 2020
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