Annual Report 2005-2006

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Your location: Performance > Outcome 4 > Output 4.1 > Quality and quantity information

OUTPUT 4.1: Property management

Output 4.1: Quality and quantity information

Quality indicators

Quantity indicators

Portfolio condition

The condition of the overseas owned estate continued to improve, maintaining the trend since 2002 and reflecting the Overseas Property Office's major new construction, refurbishments and maintenance programs. The department assessed the overall condition of the estate in 2006 as good against the industry-based assessment model we use.

The condition of properties in the estate can be expected to improve further in 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 foreshadowed in the department's forward property program (see output 4.2 for more information).

Tenant satisfaction

OPO conducts surveys each year to measure tenant satisfaction with the delivery of property management services in the overseas estate by United Group Services (UGS) (see output 4.2 for more information). The department ensured the service provider maintained close liaison with tenants and delivered services to agreed standards (see also quality and quantity information under output 4.2). OPO assessed the performance of UGS as good throughout the year.

Quantity information for output 4.1

Return on investment

The rate of return on investment on the overseas owned estate was 3.88 per cent, reflecting the high level of capital expenditure currently being undertaken by OPO in response to the Government's program of construction and property acquisitions in the overseas property estate.

Management expense ratio

The management expense ratio indicates the relationship between costs of management and value of the estate. For 2005–06 the ratio was assessed at 0.89 per cent, which was consistent with external industry benchmarks.

Annual dividend

The department paid to the Government a dividend of $76.973 million from the operations of the overseas owned estate in 2005–06, as agreed between the Minister for Foreign Affairs and the Minister for Finance and Administration. The department also paid $2.758 million to the Government in property divestment proceeds.

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