Quality indicators
- Portfolio condition to be maintained to industry standards
- Tenant satisfaction to be reviewed by annual survey
Quantity indicators
- Return on investment to be compared with external industry benchmarks and the agreed annual requirement as determined each year
- Management expense ratio to be consistent with external industry benchmarks
- Pay agreed annual dividend to Government
Portfolio condition
The department's Overseas Property Office (OPO) assessed the overall condition of the overseas owned estate in 2005 as good, based on the assessment model described in the Overview section. The condition of the estate continued to improve, reflecting a substantially increased construction program, refurbishments of existing properties and an increased rate of delivery of maintenance programs.
The condition of properties in the estate can be expected to improve further over the next five years as a result of planned refurbishments, updated compliance with relevant Australian and local building codes, and current and proposed major construction projects (see output 4.2).
Tenant satisfaction
The department conducts surveys twice a year to monitor the level of tenant satisfaction with the delivery of property management services in the overseas estate by United Process Solutions (UPS). In general, survey results demonstrated a satisfactory level of performance by UPS. OPO's estate managers ensured that liaison was maintained between tenants and the service provider and that service was delivered to agreed standards (see also output 4.2 quality and quantity information).
Quantity information for output 4.1
Return on investment
The rate of return on investment on the overseas owned estate was 21.32 per cent. This relatively high rate of return reflected a number of specific property revaluations in 2005, and net proceeds from the sale of property as foreshadowed in the department's 2003–04 annual report.
Management expense ratio
The management expense ratio indicates the relationship between costs of management and value of the estate. For 2004–05 the ratio was assessed at 0.67 per cent, which was consistent with external industry benchmarks.
Annual dividend
The department paid to the Government a dividend of $21.986 million from the operations of the overseas owned estate in 2004–05, as agreed between the Minister for Foreign Affairs and the Minister for Finance and Administration. The department also paid $20.675 million to the Government in property divestment proceeds.
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Department of Foreign Affairs and Trade Annual Report 2004–2005
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