The portfolio of AMP NZ Office Trust declined 4.3 per cent to $1.33 billion in the past six months, which would be visible in its financial results due by the end of December. The decline is led by lower effective market rents and weaker rental growth expectations.

Firm’s Chief Executive Robert Lang de said that the low realization is unlikely to impact unit-holders as the distribution surged 2 per cent on a gross basis for the full fiscal.

He further said that the economic fundamentals of the firm are very strong and capable of easily withstanding such temporary jerks.

The firm can boast of having the lowest gearing ratio in the listed property sectors of New Zealand and Australia.

The gearing ratio was projected about 21.8 percent at the end of December against the loan covenant ratio of 40 percent. The trust hopes net tangible assets (NTA) per unit to decrease about 92c per unit as at December 31 as compared to 97cpu at June 30.

Mr. Lang said, "There is a clear sense that tenants are looking to capture cheap rents and incentives while they last. While vacancy rates have increased in line with expectations, recent significant leasing in the Auckland market have improved the near-term supply risks."