The Rubicon America Trust has signed six leases were executed during the June 2006 quarter.
The new leases cover a total of 25,421 sq ft, including four new leases totalling 8,366 sq ft, one renewal for 4,498 sqm and an expansion totalling 25,421 sq ft.
As at June 21, 2006, the trust’s portfolio was valued at $US1.27 billion diversified across 33 properties with a net lettable area 6,290,784 sq ft.
The occupancy rate stands at 98.2%.
Rubicon’s managing director Dr Gordon Fell said the quality of the trust’s cash flows with 84.0% of income from US Government tenants provides a solid platform for the trust.
“When combined with our prudent approach to risk management there is a strong degree of confidence in the trust’s ability to maintain and grow cash flows and deliver attractive distributions to investors.”
“We are confident that the defensive characteristics of an investment in RAT will be increasingly appreciated by investors in times of volatile market conditions,” Dr Fell added.
Meanwhile, the trust has entered into long term fixed rate debt arrangements whereby 87% of RAT’s borrowings are fixed at 5.6% per annum for a period of 7.6 years.
Exposure to adverse movements in foreign currency has been limited as RAT has implemented long term foreign currency hedging arrangements. RAT currently has in place hedging arrangements covering 100% of its expected income over the next 5.5 years at an average rate of $US0.6835. RAT’s exposure to equity capital movements due to fluctuations in foreign currency has also been partially hedged.
By Adam Parsons
