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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childcare centre