Summary 

Property Valuation Methodology

A full independent valuation of a property is carried out at least once every three years. Independent valuations are prepared using both the capitalisation of net income method and the discounting of future net cash flows to their present value. Capital expenditure since valuation includes purchases of sundry properties (and associated expenses such as stamp duty, legal fees etc) and capital expenditure in respect of completed projects which has taken place since or was not included in the latest valuation of the properties. It's the Trust's policy to revalue approximately 50% of its portfolio every year.

Valuations to 30 June 2010

Following the revaluation of the majority of the portfolio, there is no longer a need for a general decrement adjustment against the portfolio which was made at 30 June 2009 for $13.3 million across the Australian and New Zealand portfolio.

 

During the year ended 30 June 2010, AET made revaluation decrements totalling $6.9 million in relation to Australian and New Zealand development sites and Australian closed centres.

Based on all of the revaluation adjustments during the year, removal of general decrement adjustment and other adjustments, the Trust recorded a revaluation decrement of $0.8 million for the year.

Sector

The childcare sector has received additional funding from the federal budget in the form of an increase in the Childcare Benefit and ability to claim the Childcare Tax Rebate as a direct payment. These changes came into effect as at 1 July 2007 and this support from the federal government should see childcare demand increases which are expected to translate into a greater demand for new centres and new childcare places.

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AET Green Canopy

 

 

childcare centre