Sylvia Park mall owner Kiwi Income Property Trust has described its operating performance as “solid” despite reporting an after tax loss of $12.4 million in the year to March.The trust's distributable profit was flat at $61.1 million, inching
Sylvia Park mall owner Kiwi Income Property Trust has described its operating performance as “solid” despite reporting an after tax loss of $12.4 million in the year to March.
The trust's distributable profit was flat at $61.1 million, inching up 0.2% on the previous financial year.
Net rental income was unchanged at $133.7 million despite the sale of two assets in the first half of the year and operating profit before tax was up 5.0% to $73.4 million.
The reported after-tax loss was driven by an unrealised reduction in the book value of the trust’s portfolio, which dropped by 3.9% ($74.7 million) to $1.85 billion due to a softening in capitalisation rates and market rentals.
Unit holders will receive a final cash distribution of 3.75c per unit, bringing the full-year total to 7.5c per unit.
This represents a payout ratio of around 99% of operating earnings with the value of the trust’s distribution reserve increasing to $11.6 million.
The manager of the trust intends to retain these funds in reserve until such time as a more consolidated economic recovery becomes established and global financial markets exhibit less volatility.
Sean Wareing, chairman of the manager of the trust, said the result was a “solid” underlying operating performance in “challenging” market conditions.
