Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Kiwi Income Property Trust - $43.36 Million Profit

Announcement
To NZSE/ASX


Kiwi Income Property Trust Announces $43.36 Million Profit - And Launches Rights Issue For Expansion Of Northlands

2002 was a very significant year in which Kiwi Income Property Trust started strongly and stayed strong throughout the year. That was the message from Kiwi Income Property Trust Chairman Jim Syme who announced a net profit after taxation for the Trust of $43.36 million for the year to 31 March 2002, up 22.5% over the last financial year. This significantly increased profit results primarily from the Trust’s acquisition of the Royal & SunAlliance Centre.

Net unrealised revaluation gains based on independent valuation advice were $1.72 million.

The Trust also concurrently announced a pro-rata one for six rights issue at 82 cents per unit, which will raise $69.4 million net (fully underwritten by J B Were (NZ) Limited) for the planned major redevelopment of Northlands Shopping Centre in Christchurch. All unit holders and converting note holders shall be entitled to participate in the rights issue.

Buoyed by retail sales and a positive commercial environment for most of the year, the Trust announced a final dividend to unit holders of 4.53 cents per unit, to be paid on 31 July 2002. The dividend has imputation credits attached of 0.1587 cents per unit, bringing the final gross dividend to 4.6887 cents per unit. This brings the total dividend paid for the year to 9.99 cents per unit which, with imputation credits attached of 0.1587 cents per unit, is equivalent to a return to unit holders of 10.1487 cents per unit before tax (10.45 cents for the year ended 31 March 2001). Mr Syme noted that the Class B units had converted to ordinary units in December 2001, and were participating in the dividend for the first time.

“It’s a pleasing result, in no small part due to the strong sales in the Trust’s retail assets which were up by 9.4% overall,” said Mr Syme. “The agricultural sector boomed, boosting confidence in the provincial economy and ultimately confidence in the property and retail market overall in New Zealand. One year on from acquisition, the Trust’s Royal & SunAlliance Centre also contributed well to the result. It was 95.1% leased at year-end, compared with 88.9% as at March 2001.”

The last time the Trust raised new capital through a pro-rata issue to unit holders was in 1996. Since that time, the Trust has continued to grow and expand its portfolio through a mix of bank debt and property sales. This financing strategy is on-going, says Mr Syme, “But the scale and timing of the Northlands development means that the Trust needs to raise a significant amount of new capital with certainty to meet the development timeframe.”

The Northlands Shopping Centre redevelopment is expected to be completed in early 2004.

The Trust also announced the payment of a special interim dividend of 2.56 cents with imputation credits attached of 0.31 cents, bringing the total gross dividend to 2.87 cents per unit. This dividend will be for the period from April 1st 2002 until the allotment date of the new units. The payment of the special dividend is to minimise the dilutionary effect of the issue of new units during the period and to ensure unit holders are not disadvantaged as a result of the timing of the issue. The special dividend will also be paid on 31 July 2002.


Ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Tornado Aftermath: More Storms Forecast For New Plymouth

Up to 30 homes were damaged Monday night when a tornado roared through a New Plymouth suburb last night , cutting power lines, tearing off roofs, and toppling trees. More>>

ALSO:

Government Investment Rejig: Sustainable Food & Fibre Futures Launched

Growing New Zealand’s food and fibre sectors sustainably and supporting a thriving economy are the hallmarks of a new investment programme announced today by Agriculture Minister Damien O’Connor. More>>

Dump Levy Options: Waste Work Programme Announced

Associate Environment Minister Eugenie Sage has announced a programme of work to take action on New Zealand’s long-neglected waste problems. More>>

ALSO:

Real Estate: Foreign Buyers Ban Passes Third Reading

The Bill to put in place the Government’s policy of banning overseas buyers of existing homes has passed its third and final reading in the House. More>>

ALSO:

Nine Merger: Fairfax Slashes Value Of NZ Business

Fairfax Media Group more than halved the value of its Kiwi assets, attaching just A$40 million to mastheads that were once the core of a billion dollar investment. More>>

Collecting Scalpers: Commerce Commission To Sue Viagogo

The Commission will claim that Viagogo made false or misleading representations: • that it was an “official” seller, when it was not • that tickets were limited or about to sell out • that consumers were “guaranteed” to receive valid tickets for their event • about the price of tickets... More>>

ALSO: