TAX NEWS - June 2010

AMP NZ Office Trust Announces Tax Adjustment Due To Budget Changes

AMP NZ Office Trust Ltd. (APT.NZ), or ANZO, Friday announced a tax adjustment due to changes in depreciation rules announced in the government's budget in May.

The Wellington-based trust said its deferred tax on revaluation gains recorded in its balance sheet will increase between NZ$115 million and NZ$120 million as at June 30. As a result, its International Financial Reporting Standards or IFRS net tangible assets are now expected to be approximately NZ 0.74 cents a unit as at June 30, compared with the NZ 0.86 per unit as stated in a previous market announcement last month.

However, the company said it is not required to pay deferred tax on revaluation gains under current New Zealand tax law and therefore its adjusted IFRS net tangible assets will still be NZ 0.91 per unit as stated previously.

Chief financial officer Amish Vallabh said the change does not affect ANZO's distributions, gearing ratios or interest cover.