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

 


Kiwi Income 1H pretax earnings fall 16% on drop in rents

Kiwi Income first-half pretax earnings fall 16% on drop in rental income

Nov. 14 (BusinessDesk) - Kiwi Income Property Trust, owner of Auckland’s Sylvia Park Shopping Centre, reported a 16 percent decline in pretax operating earnings in the first half as rental income fell, interest costs rose and it paid a performance fee to its manager.

Operating earnings fell to $34.7 million in the six months ended Sept. 30, from $41.2 million a year earlier. Net rental income declined to $68 million from $72 million. Net profit in the period was $26.6 million from $1.5 million a year earlier, when it took charges for property revaluations and impairments.

Kiwi Income is managed by Kiwi Income Properties, a unit of Australia’s Colonial First State Property. In the first half the manager reaped a $1.4 million “total return performance fee” because the trust’s performance exceeded a 10 percent hurdle. At the same time, the net interest expense rose by $1.3 million.

Units of Kiwi Income fell 0.9 percent to $1.165 on the NZX today and have gained 18 percent this year. It is rated a ‘hold’ based on the consensus of six recommendations compiled by Reuters.

During the period the trust sold Beca House in Auckland for $55 million and received insurance proceeds for the quake damaged PricewaterhouseCoopers Centre in Christchurch, using the proceeds of both to repay some $100 million of bank debt and reducing its bank debt gearing ratio to 32.3 percent.

“Whilst positive from a balance sheet perspective, the absence of rental income from Beca House and the PwC Centre has contributed to a lower operating result,” the trust said.

Mark Ford, chairman of the management company, said the outlook “is governed by the current moderate pace of economic recovery in New Zealand and we continue to see the need to remain cautious.”

Subject to a continuation of reasonable economic conditions, the projected year-end distribution to unit holders was affirmed at 6.6 cents a unit.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news