Business Description:
The Investa Office Fund (IOF,formerly ING Office Fund) has been formed by the stapling of the units in two Australian registered schemes, Armstrong Jones Office Fund and Prime Credit Property Trust. The principal activity of the Trusts is investment in real estate. IOF owns an internationally diversified portfolio of office properties, many leased to government and blue chip tenants.

Strategy Analysis:
IOF's main focus is exiting offshore markets and reinvesting in Australia. Most offshore assets have sold and the trust is currently considering acquiring stakes in two high quality properties, the Deutsche Bank building in Sydney and the Telstra Headquarters in Melbourne. IOF is also very focused on leasing up vacant and soon-to-expire space such. This will be difficult in Europe and will require major incentives to attract tenants, which is preferable to having empty space. IOF generally looks to invest in CBD office buildings and intends divesting non-core suburban offices. It has switched its strategy from increasing diversification by investing in overseas markets to now selling foreign assets and focusing on Australia. Investa Office Fund reported NPAT of $143.9m for the year ended 30 June 2011. Operating income for FY11 decreased by 10.3% to $135.6m (FY2010: $151.2m) mainly due to: a reduction in income from the property portfolio as a result of asset sales during the year; and capital transaction costs incurred during FY11, partially offset by a reduction in finance costs. Revenues from ordinary activities were $199.6m, down 5.8% from last year. Basic and Diluted EPS was 5.3 cents compared to 1.6 cents last year. Net operating cash flow was $169.9m compared to $102.0m last year. The final dividend declared was 0.975 cents, taking the full year dividend to 3.9 cents, in line with 3.9 cents last year.