Complete annual report 2010-11 - Land - NSW Government

State Property Authority
Notes to and Forming Part of the Financial Statements
For the Year Ended 30 June 2011
2. REVENUE 2011 2010
$'000 $'000
(a) Property Rental Income - Operating Lease Income
Owned Property Income 71,358 66,525
Leased Property Income 290,007 181,756
Less: Amortisation of Lessee Lease Incentives (Note 6(c)) (738) -
360,627 248,281
The net increase in rental income over 2009-10 has resulted mainly from the Authority's program of vesting owned and
leased properties from other government agencies during 2010-11 pursuant to Premier's Memorandum M2008-06 "State
Property Authority and Government Property Principles" (Note 17(b)).
(i) Future Minimum Lease Receipts under Non-Cancellable Operating Leases as Lessor
Receivable within one year 68,349 65,442
Receivable later than 1 year but not later than 5 years 36,740 35,000
Receivable later than 5 years 23,410 22,042
Total Including GST 128,499 122,484
The above represents future minimum lease receipts on the Authority's owned properties. Future minimum lease
receipts as at 30 June 2011 include GST payable of $11.682 million ($11.135m at 30 June 2010).
(b) Property Rental Income - Finance Lease Income 2011 2010
$'000 $'000
Owned Property Income (Note 6(b)) 6,145 5,488
6,145 5,488
Income from finance leases as lessor includes contingent rent of $0.625 million in 2010-11 (nil in 2009-10). Contingent
rent is calculated as the difference between the current lease payments and the minimum lease payments which were
determined at the initial recognition of the finance lease arrangement.
(c) Fees for Services 2011 2010
$'000 $'000
Fees for Services Rendered 2,240 2,777
2,240 2,777
(d) Grants and Contributions 2011 2010
$'000 $'000
State Government - Recurrent Contribution (i) 5,598 5,105
State Government - Capital Contribution (ii) 25,353 13,749
Capital Contributions from Other Government Agencies (iii) 158 -
31,109 18,854
(i) The Authority receives an annual recurrent contribution from the State Government for a range of non-commercial
professional services undertaken which provide a whole-of-government benefit. These services include agency property
portfolio reviews, whole-of-town studies, property policy implementation and coordination work on major capital project
developments.
(ii) The Authority's approved Capital Program is fully funded by the State Government by way an annual capital contribution.
The Program includes major works such as the construction or acquisition of Government Office Buildings and other
asset renewal works included under the Authority's Cyclic Property Refurbishment Program.
(iii) In 2010-11, the Authority received capital contributions from other Government agencies towards minor property
development and refurbishment works on Authority owned properties.
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State Property Authority