Kermadec Property Fund has signalled slow trading conditions for the rest of the financial year despite announcing a boost to its distributable income for the six months to September 30.The company's preliminary half year results offered up a net rental i
Kermadec Property Fund has signalled slow trading conditions for the rest of the financial year despite announcing a boost to its distributable income for the six months to September 30.
The company’s preliminary half year results offered up a net rental income of $3.91 million, down from $4.96 million for the prior corresponding period.
Part of the drop of income was attributed to the divestment of $18.1 millino of investment property which cut out $900,000 of net rental income.
The balance of the decrease was attributed to increased leasing incentives and ower occupancy levels. In September this year, occupancy was 86% compared to 93% for September in 2009.
Distributable income increased to $2.55 million for the period ahead of last year’s preliminary result of $2.21 million.
The improvement was primarily due to a $1.4 million reduction in interest costs as a result of $14 million in debt reduction since March, 2009.
Two large leases expired in June and July this year which contributed to a lower occupancy rate. Cash flow was also impacted by the failure of a tenant in March, which has yet to be replaced.
