egolinews.com

Commonwealth Property Office Fund (CPA) manager, Colonial First State Property Limited, announced a 4.8% upgrade to the fund’s distribution guidance for FY10. The fund said the upgrade has been driven primarily as a consequence of the underlying portfolio performing better than forecast.

The primary reason for the upgrade was combined with savings in interest costs associated with the termination of interest rate swaps and the delay in settlement of the acquisition of 58 Mounts Bay Road, Perth, from May 2010 to June 2010.

Colonial First said the distribution guidance for FY10 has increased from 5.3c per unit to 5.55c per unit.

This, the company said, equates to 2.90 cents per unit for the six months ending 30 June 2010.

Head of Property for Colonial First State Global Asset Management, Darren Steinberg, said CPA’s guidance upgrade is the result of the fund’s active asset and capital management strategies, coupled with improving conditions in Australia’s office markets.

As at 1120 AEST, Commonwealth Property Office Fund shares were up 0.5c to 93.5c.

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