Kiwi Income distributable profit rises 12.6%, quake dents property value
May 18 (BusinessDesk) – Kiwi Income Property Trust, the owner of Auckland’s Sylvia Park shopping mall, reported a 12.6% increase in full-year distributable profit, reflecting growth in rental income.
Distributable profit, the preferred earnings measure of property trusts, rose to $68.8 million in the 12 months ended March 31, from $61.1 million a year earlier, the trust said in a statement. Its net result was a wider loss of $26.4 million from a loss of $8.5 million a year earlier, reflecting an $82.4 million reduction in the value of its property portfolio.
Kiwi Income, which has resisted an industry trend toward internalising its management contract, said it has outperformed the NZX Property Gross Index over the past three and five years. In the latest 12 months, net rental income rose 3.1% to $137.8 million.
The value of its portfolio fell to $1.98 billion, mainly reflecting the impact of the Feb. 22 earthquake of its Northlands Shopping Centre and PricewaterhouseCoopers Centre in Christchurch.
The trust will pay a final cash distribution of 3.5 cents a unit, making 7 cents for the year. It forecast distributable profit for the year ending March 2012 would also be 7 cents a unit.
The manager of the trust, Kiwi Income Properties Ltd., was paid fees of about $10.4 million in the latest year, up 7.4% from the 2010 level. The gain in fees was amplified by a rebate in the previous period because the yield of the completed Sylvia Park was below 7.5% for the two years post completion in 2007, the accounts say.
The trust’s units were unchanged at $1.055 and have gained 10% in the past year. The units are rated ‘hold’ based on the consensus of five recommendations compiled by Reuters.