There were two key highlights for PMG and our funds in the first quarter of the 2021 financial year. The first: the successful close of the PMG Direct Office Fund Offer and the subsequent acquisition of the Vodafone Innov8 building in Christchurch. The second: the resolution of 99 per cent of rent relief requests received from tenants during lockdown.
As lockdown occurred, we revised our budgets, provisioning for tenant rent relief. Across our funds, we assumed the support required would be equivalent to one month’s income in total. As of 1 June 2020, across all our funds we are sitting at considerably less than forecast. Our funds are currently ahead of our revised April budgets. Compared to the wider market, this is very different to several commercial property landlords, and we are encouraged by this result.
Having strong relationships with tenants, and proactively seeking out tailored solutions with them, helped achieve this result. We have also had several tenants extend their lease terms with us.
While we do not know what’s ahead, it is possible we could see some short-term pain for tenants over the coming months. We will continue monitoring events and, wherever possible, support them where appropriate, balancing the needs of all stakeholders.
Despite the environment, we are seeing activity on the leasing front and across our funds. In the last quarter alone, we were able to settle $88.65 million of property, delivering on our promises to the vendors of these properties. This underlines our focus on long-term value investing and the importance of long-term relationships with all our stakeholders.
The last three months have been unprecedented for us all. I am very pleased to say that our funds, and their ability to continue to provide regular and reliable returns to investors, remain strong. I could not be prouder of my team who have worked tirelessly and genuinely in the best interests of investors and tenants over the last few months. They have been a large part of our success through this period. To my team: you all stepped up when it mattered. I’m humbled by the truly committed professionals you are. Thank you.
Looking ahead, our focus is on ensuring our funds remain resilient and robust. As always, if you have any questions, my door is always open.
Chief Executive Officer
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