Property Portfolio Statistics

Portfolio overview  

It has been another strong year, with the property portfolio maintaining a high capacity utilisation level across all sectors.Specifically, the industrial sector is facing a number of economic issues that may result in variable performance across the sector. However, the office sector is displaying positive growth, with demand exceeding supply and replacement costs in many cases well above current values; and if retail expansion continues in the year ahead, the retail sector will continue to show rental growth.

Total portfolio by sector

As at 31/03/10

 

Total portfolio by region

As at 31/03/10

 

 

Portfolio weighted average lease term (WALT)

The weighted average lease term ended the year at 4.2 years, the slight reduction from last year's 4.7 years being a reflection of the trend mentioned earlier for tenants to be more disposed to renew existing leases on shorter terms reflecting the uncertainty of the current economic situation. The 4.2 years weighted average lease term is a solid result from a risk management perspective especially when recognition is given to the breadth and depth of the portfolio as well as the highly diversified nature of the buildings, tenants and locations. 

Lease expiry

It has been another strong year, with the property portfolio maintaining a high capacity utilisation level. For the third year in a row the portfolio has achieved an occupancy rate in excess of 99%. With only 11% of leases due to expire over the next 12 months, occupancy rates should remain at their current high level. Between 14% and 15% of leases are due to expire in each of the following two years. The property management team is in discussion with tenants whose leases are due to expire over the next 24 months and is focused on ensuring the Trust maintainsa high tenant retention rate. Due to the strong focus on active tenant and building management, the Trust achieved a tenant retention rate of 85% during the year. In real terms this equates to 22 tenants being retained, representing 32,000 sqm of space and $8.3 million of annual rental. Of the space that has been vacated in the portfolio, new tenants have been secured and the ingoing rental is typically higher than that paid by the outgoing tenant.

 

 

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