KEY HIGHLIGHTS OF THE PAST YEAR (TO 30 JUNE 2007)

 

2007 has produced a number of significant developments and highlights for the Rabinov Property Trust:

 

      • Significant growth in total non-current assets, NTA and property income;
      • Strategic relationship formed with ANZ acquiring a 50% stake in the Manager;
      • Gross revaluation before the straight lining of rental income adjustment of $10.46 million on the portfolio; and
      • Property upgrades and lease renewal.

 

FINANCIAL RESULTS

Total non-current assets of the Trust at year end were up $18.7 million to $254.3 million, an increase of 8% on last year. This is anticipated to further increase in the 2008 year as a result of the acquisition of the Bridgestone property and on completion of the Hydro Electric property (refer to Property Portfolio below).

 

The Trust reported an increase in the Diluted Net Tangible Assets (NTA) per unit to $1.50 as at 30 June 2007. This represents an increase of 15.4% on the previous year’s Diluted NTA of $1.30.

 

The property rental income increased by 37% to $22.6 million.

 

The total distribution for the year is 11 cents per unit and is 100% tax advantaged.

 

TRUST STRUCTURE

Earlier this year existing unitholders approved a change to the Trust’s name and structure following ANZ’s acquisition of a 50% stake in the Manager of the Trust. As a result of this transaction:

 

      • The Trust was renamed ‘ANZ Rabinov Property Trust’;
      • ANZ Specialist Asset Management Limited (ANZ SAM) was appointed the Trust's Responsible Entity; and
      • ANZ Rabinov Property Management Limited (ARPML) was contracted by ANZ SAM to manage the Trust on a day to day basis, under the Management Agreement.

 

PROPERTY PORTFOLIO

At 30 June 2007, the Trust held 17 properties diversified across industrial, office and retail sectors with high quality tenants. The notable changes to the portfolio during the year are as follows:

 

      • At 30 June 2007, the Manager obtained independent valuations on the six largest properties (by value) in the portfolio.  As a result, revaluation gains of approximately $10.46 million have been recognised in the 2007 results.
      • $1 million redevelopment at Futuris, Campbellfield, Victoria - Upgrades and extensions have been made on the property to improve traffic management (this additional capital expenditure will be rentalised).

 

Subsequent to 30 June 2007, the Trust has announced further portfolio activity:

 

      • Acquisition of Bridgestone property in Derrimut, Victoria - The Trust settled the Bridgestone property on 15 August 2007 for $16.9 million. Bridgestone Australia Limited has in place a 12.5-year lease arrangement (ending 31 December 2018).
      • The Trust has contracted to acquire a yet to be constructed property in Cambridge, Tasmania for $34.7 million. Construction is expected to be completed in April 2008 where Hydro Electric Corporation, a government business enterprise owned by the State of Tasmania, will be the tenant under a 16 year lease.
      • A small parcel of land adjacent to the existing GE properties in Richmond, Victoria has been contracted for approximately $1.07 million (including estimated acquisition costs).
      • Vodafone, being the current tenant in 2 Raw Square, Strathfield, NSW, has renewed its lease for a period of 7 years (with a 3 year option) commencing on 30 April 2008 with bi-annual fixed rental increases of 10%.
      • Commonwealth of Australia (‘Centrelink’), being the current tenant in 5 Langford Drive, Elizabeth, SA has renewed its lease for a period of 3 years commencing on 21 July 2007.

 

OTHER KEY HIGHLIGHTS OF THE PAST YEAR

The performance of the Trust was again recognised in the 2006 BDO Australian Listed Property Trust Survey. The Trust placed 9th against 48 Australian LPTs in the survey, which ranks LPTs on financial and investment criteria.