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

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news