KIWI Income Property Trust has booked a net profit after tax of $NZ59.2 million for the year to March 31, 2007 – up 3.7% over the previous year.
In addition to this profit, the trust recorded a net revaluation gain of $NZ219.8 million.
During the period, the Trust’s total assets increased by $NZ481.6 million to $NZ1.93 billion, with secured bank debt up by $NZ250.0 million to $NZ486.0 million, representing 25.2% of total assets.
KIPT’s chairman Sean Wareing said sound market fundamentals across both the retail and office sectors, combined with the continued strong interest from off-shore investors for both direct and indirect investment underpinned a very buoyant property market for the year.
KIPT’s chief executive Angus McNaughton said leasing activity, high portfolio occupancy levels, positive rent reviews, and the benefits of portfolio expansion and redevelopment, all contributed to the strong result and record revaluation gain. “The revaluation gain reflected the significant demand for investment grade assets internationally, portfolio rental growth, and again, the quality of the trust’s portfolio. The $NZ219.8 million revaluation gain was equally spread between the retail and office portfolios, and compares with a gain for the same period last year of $NZ103.2 million.
“The increase in the value of the trust’s assets endorses the trust’s investment strategy which focuses on maintaining a stable, well-diversified portfolio of premium shopping centres and office buildings with strong income and superior long-term growth potential.” McNaughton said.
Looking ahead, Wareing said despite a higher interest rate environment, property sector fundamentals are expected to remain resilient.
“There is demand for quality space in both the retail and office markets, underpinning solid rental growth in the trust’s portfolio.
“While the continued demand by both offshore and NZ investors for quality assets will make it increasingly challenging to acquire new assets, continuing the trust’s strategy of adding value to the portfolio through tenancy remixes, refurbishments, and the development of assets where they cannot be purchased will remain an important part of our asset management strategy,” he concluded.
KIPT announced a final gross dividend of 4.85 cents per unit, which includes imputation credits of 0.85 cents per unit. This brings the gross dividend for the year to 9.60 cents per unit, an increase of 5.5% over the previous year.
Australian Property Journal
