Interest's bite eats into AMP

Last year, AMP NZ Office Trust revalued its portfolio up $21.6 million but yesterday said it had revalued buildings up only $11.75 million, which executive manager Rob Lang attributed to increasing caution due to interest rate rises.

But after taking into account other expenses such as property acquisition and disposal costs, the trust devalued its portfolio by $268,000.

"Interest rates are clearly having a dampening effect on property prices because they are a key component of the valuation process," Lang said, announcing a net surplus after tax and before revaluations of $34.3 million, only marginally up on last year's $34.2 million.

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