us office trust

  1. 2,961 Posts.
    I have been a major fax of LUO since it listed - At 1.25 now 1.40.

    I have it as a core holding for both the Cap gain ( 11.5%) and the income currently over 9%.

    Does anyone else have a view ?

    12 month target ?

    for Mine $1.60 target ( barring further acquisitions ), Plus possible expansion to Europe via offer to another LPT...?

    singas


    info:-Business Description
    Lend Lease US Office Trust (LUO) owns a portfolio of eight commercial office buildings in the United States. As at 30/06/02, LUOs portfolio was valued at US$611 million and was spread across seven cities in a combination of CBD and suburban office markets. Lend lease USOT Management Limited is the Responsible Entity of LUO.

    Company Strategy
    The group has recently announced that it is in negotiations with Morgan Stanley to form a JV with Lend Leases US REI equity advisory business. The details of the JV have not yet been released. LUO posted a net profit of $54.3m for the year to December 2002, up 16% on the pcp. Property income increased by 13% to $99.6m. This growth reflects the addition of an interest in the Wachovia Financial Centre in August 2002, the contribution of significant termination payments [over $3 million] and is after an increase in the provision for doubtful debts. LUOs property portfolio had a net value of $874.9n as at 31/12/02. Occupancy across the portfolio as at that date was 93.5% and the average lease term was 5.7 years. The portfolio included the following investments as at the balance date: Bank One Center Indianapolis (US$128.4m); 10 & 30 South Wacker, Chicago (US$128.1m); SunTrust Center, Orlando (US$102.1m); Promenade II, Atlanta (US$84.1m); Pasadena Towers, Los Angeles (US$72.4m); One Liberty Square, Boston (US$49.4m); Preston Commons, Dallas (US$26.9m); and Sterling Plaza, Dallas (US$19.5m).

 
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