Kiwi Income to review its fees

KIPL has also elected to waive the management fee associated with the trust's current 19.9% investment in Capital Properties.

"We have received very positive feedback from our unit holders regarding the overall performance of the trust. However, unit holders have also indicated that they would like to see better alignment between management fees and unit holder interests given the scale of the trust," Kiwi chief executive Angus McNaughton said.

He says the review should be completed by the end of March.

"In the meantime, until the review has been undertaken, we have decided to waive the fees due to Kiwi on the Capital Properties holding. We believe this will be positively received by investors in light of the stake being regarded as an investment rather than an asset directly managed by Kiwi," he said.

McNaughton says because of the trust's performance "we anticipate a strong positive revaluation" of its portfolio. Thie revaluation will be released to the market when finalised in February.

"Kiwi Income Property Trust's portfolio expansion and redevelopment during the year, along with strong leasing activity and positive rent reviews, supported an earnings upgrade in November 2004, which has also been positively received by investors. It is also pleasing to note that both the retail and office portfolios have reached record occupancy levels being 98.9% and 99.7% respectively as at 31 December 2004."

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