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- Real estate investment trust Australian Unity Office Fund (AOF) has reported robust rent collection rates during the COVID-19 relief period
- To date, tenants representing approximately 11 per cent of the REIT’s gross income enquired about rental relief
- After recent external property valuations, AOF’s full portfolio value has been reduced by approximately $34.6 million
- The REIT intends to elaborate on these developments when it releases its full year results on August 24
- AOF shares are steady today, trading for just over $2 each
Real estate investment trust Australian Unity Office Fund (AOF) has reported robust rent collection rates during the COVID-19 relief period.
During the period, rent collections at the company’s properties averaged at approximately 92 per cent of the invoiced amount from April to June 2020.
While this is encouraging, AOF and its tenants have not gone untouched by the impacts of the COVID-19 pandemic. To date, tenants representing approximately 11 per cent of the REIT’s gross income have enquired about rental relief.
The rent relief period is currently six months long. AOF has stated that the REIT is continuing to actively work with its tenants who have been adversely impacted by the coronavirus.
In other news, the REIT’s full portfolio of properties was externally valued, as at June 30, 2020. The combined impact of these individual valuations is likely to reduce the portfolio’s value by approximately 4.9 per cent.
This represents a reduction of approximately 21 cents per unit, or an overall decrease of roughly $34.6 million. AOF attributed this decrease in valuations to lower forecast growth rates, increased forecast incentives, and increased downtime assumptions from the valuers.
Much of this was driven by current market uncertainty during the COVID-19 health crisis, and the Mandatory Code of Conduct for SME Commercial Leasing Principles.
The company intends to provide more details about these developments when it releases its full-year results on August 24, 2020. This will include further elaboration on the individual property valuations and updates relating to the COVID-19 pandemic.
AOF shares are steady today, trading for $2.04 per share at 10:28 am AEST.
