Investa Office Fund said it expects 3 per cent growth in funds from operations for the 2015 financial year, subject to market conditions, at its annual general meeting today
The Australian office owner and manager said they were anticipating 3 per cent growth in funds from operations to 27.3 cents per unit with a corresponding growth in distributions to 19.1 cents per unit, subject to market conditions, in fiscal 2015.
"We are well placed for the year ahead with a weighted average lease expiry of five years and only 7 per cent of the portfolio expiring in fiscal 2015," assistant fund manager Alex Abell said.
The company expects some continued improvement in underlying tenant demand, particularly in Sydney and Melbourne. But Brisbane and Perth remain subdued markets.
Investa said its balance sheet is in good shape with a long maturity profile and strong credit metrics, but that it "expects to see further downward pressure on margins due to continued competition in the lending markets and anticipates interest rates to remain low for the foreseeable future".