Kiwi Income Property Trust back in the black
Kiwi Income Property Trust has delivered its forecast after-tax distributable profit to shareholders at $71.7 million, up 4.9% on the previous year.
Unit holders will receive a full year cash distribution of 7c per unit (currently trading at $1.09c a unit).
The operating profit before tax for the year ending March, 2012 was $81.3m, up $4.9m, or 6.4%, on the previous year.
After accounting for property revaluations, other non-cash adjustments and the settlement of the PricewaterhouseCoopers Centre insurance claim, the trust reported an after-tax profit of $89.2m, compared to an after-tax loss of $26.4m for the prior year.
The value of the portfolio is just over $2 billion.
Retail investments such as Sylvia Park proved a highlight in terms of earnings and value increase (up 5.8% to $500m).
As previously reported, earthquakes took their toll on the portfolio values.
Direct effects included the $26.9m write-off of PricewaterhouseCoopers Centre in Christchurch, offset by a partial restoration of value at Northlands, and the $34.4m write down to The Majestic Centre in Wellington for seismic upgrading.
Overall, the value of the portfolio fell $33.5m (-1.6%) over the year to March 2012 but if the earthquake-affected properties are excluded the balance of the portfolio recorded a 1% increase in value.
Another property troubled by retail competition rather than earthquakes was the Centre Place Shopping Centre in Hamilton, undergoing a $39.9m redevelopment and declining in value by $19.7m to $98.8m.
“The trust continues to make good progress with the development of the ASB Bank head office in Wynyard Quarter, Auckland,” the company said.