Investa Office Fund Ltd says that business confidence is weak and investment in property has been delayed due to political uncertainty, describing demand for prime office space as below average and demand for secondary office space as “the worst on record” as it posted a lift in net profit.
The company delivered a 56 per cent gain in full-year statutory net profit to $158.7 million for the year, which included a $60 million of asset revaluation. Operating earnings were up 7 per cent to $137.5 million.
The group undertook $440 million in acquisitions over the year, including prime addresses 66 St Georges Terrace in Perth and 567 Collins St in Melbourne, and said it was on track to offload European assets.
Investa said it focused on debt management and de-risking over the year, with $400 million of debt refinanced.
The company forecast moderate growth of 6 per cent in the year ahead, in declaring a distribution per unit of 17.75 cents.