Kiwi Income Property Trust boosts FY profit

By NZPA

Wednesday 19th May 2004

Kiwi Income Property Trust today posted a 9.7% rise in net profit after tax (npat) to $49.1 million for the year ended March.

A final dividend of 3.821 cents per share will be paid on June 25.

The trust said the major boost to its income came from a growth in its leasing across its retail portfolio, and a reduction in interest costs.

"Overall, leasing across the Trust's retail and office portfolio was very strong and income streams will be enhanced by initiatives undertaken during the past year. The office portfolio will also be further diversified by the acquisition of Unisys House in Wellington's CBD and government precinct, " Angus McNaughton chief executive of the manager of the trust said.

Total assets grew $187 million to $1.099 billion, up from $912 million the previous year, while investors' funds stood at $746 million, a rise of $80 million compared with $666 million the previous year.

"The trust has benefited from the continuing buoyancy of the retail sector, and it has capitalised on the positive operating environment to enhance the quality of its assets across the board. Thus, it is well placed to deliver long-term stable returns from its lease commitments." said Jim Syme chairman of the trust's manager.

On April 27, after the trust's balance date, the trust raised $50 million through a placement to fund the acquisition of Unisys House in Wellington.

Also after balance date, the conditional purchase of NGC House for $19 million was announced. NGC House is adjacent to Unisys House.

Kiwi Income's shares were trading down 1 cent at $1.06 at 11.30 this morning, having traded between $1.00 and $1.13 over the past 12 months.

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