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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