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 2011
Independent valuations as at 30 June 2011 were
conducted by numerous valuers. The valuation methodologies used
were capitalisation and direct comparison approaches and were
consistent with the requirements of relevant Accounting Standards
and property valuation guidelines.
Based on the revaluation of 80 properties this
financial year, the Trust has revalued 100% of its portfolio since
30 June 2009. As a result, the fair value of the operating
investment property portfolio as at 30 June 2011 is entirely based
on the most recent independent valuation.
Valuations on the 51 Australian properties
decreased by $0.3 million or 1% on the previous external
valuations. The 44 Australian freehold operating properties
values increased by $0.1 million or 0.1% from the previous
valuations. Valuations for the 7 leasehold properties decreased by
$0.4 million or 12.4%. A further decrement of $0.3 million
was made to a closed leasehold property.
Valuations of the 29 New Zealand properties
decreased by $1.6 million or 7%, however this was largely due to
unfavourable exchange rate movements from the date of the previous
valuation. In New Zealand Dollars the valuations of the New Zealand
properties decreased by NZD$0.3 million or 1%.
Net revaluation decrement also includes a
decrement due to straight line rental adjustments of $0.6 million
with a corresponding increase in Straight Rental Asset.
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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