UPDATED - Listed Sylvia Park mall owner Kiwi Income Property Trust has reported a loss of $118.4 million after tax for the six months to September.However its distributable profit up $3.1 million or 10.4% from the same time last year to $33 million.
UPDATED - Listed Sylvia Park mall owner Kiwi Income Property Trust has reported a loss of $118.4 million after tax for the six months to September.
However its distributable profit up $3.1 million or 10.4% from the same time last year to $33 million.
The trust has $578 million of debt up from $571 million in March. It recently renewed $302.5 million of banking facilities and secured Beca Corporate Holdings to move into 14,000sq m at one of Auckland Regional Council’s old office spaces at 21 Pitt St in Auckland on a nine year lease.
“As part of the lease agreement with Beca, the trust will accelerate planned upgrade works to the base building and building services as space is vacated by Auckland Regional Council,” the trust said this morning.
It has the development of a new $126.2 million head office for ASB bank at Wynyard Quarter on Auckland’s waterfront to look forward to and the likelihood of expanding Sylvia Park from 148,000sq m to 250,000sq m depending on appeals to its approved plan change.
The company’s net operating income improved slightly by 1.5% to $68.2 million boosted by Syliva Park rental income up $1 million. The trust’s total gross rental income was $94 million for the six month period.
Its recently expanded Palmerston North Mall The Plaza, where it added extra space in a major redevelopment, improved its rental income by $3.3 million.
The inability to depreciate its buildings under new tax rules meant a $143.9 million blow to its balance sheet, something that has impacted all listed property companies.
“The increase in the deferred tax liability represents the forfeiture of all future tax deductions. This is an unintended consequence of the legislative change as the liability will not crystallise even if an asset was sold,” Kiwi Income Property Trust said in its results presentation.
“The International Accounting Standards Board has recently issued an exposure draft which contains provisions which would have the effect of reversing the requirement to provide deferred tax on items which will not crystallise. Should this exposure draft be approved, as proposed, the one-off adjustment will reverse.”
The occupancy of its retail properties was 98.6% overall while its office buildings were 94.9% tenanted.
It will issue interim cash distribution of 3.5 cents a unit to its shareholders.
Kiwi Income Property Trust has $1.86 billion worth of properties in its portfolio including Auckland's Vero Centre and the Wellington Majestic Centre, and total assets of $1.99 billion.
Its shares were trading at $1.04 each at press time.
