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

 

Interim Announcement To NZSE/ASX


Interim Announcement To NZSE/ASX

Kiwi Income Properties Limited, the manager of Kiwi Income Property Trust, announced today a tax paid profit for the six months to 30 September 2002 of $22.1 million, representing an increase of 4.2% over the same period last year. This is a strong result as the profit for the same period last year included income from two non-strategic assets that were later sold.

The Trust will pay a gross interim dividend of 1.765 cents per unit, comprising 1.477 cents per unit in cash and imputation credits of 0.288 cents per unit. Together with the special interim dividend that was paid on 31 July 2002, the total gross dividends for the six months to 30 September 2002 will be 4.635 cents per unit (including imputation credits of 0.598 cents per unit).

The 4.635 cents per unit compares with a gross dividend of 5.460 cents over the same period last year. However it should be noted that an additional 54.6 million units are participating in this current dividend that were not eligible last year. These were Class B units that converted to ordinary units in December 2001.

As at 30 September 2002, the Trust had total assets of $875 million, largely unchanged from its 31 March 2002 position of $880 million. Debt has decreased from $257 million as at 31 March 2002 to $195 million at 30 September 2002.

The fall in the debt ratio from 29.3% to 22.4% was brought about by the rights issue, which raised $69.4 million for the Northlands development, and $10.3m received from the unconditional sale of Alcatel House on Auckland’s Viaduct Harbour in September 2002 (book value $10.25m). The reduction in debt results in the Trust having a more flexible capital structure to manage the redevelopment of Northlands.

Management has had significant success with leasing over the past six months with high occupancy levels across the portfolio. This achievement has been supported by a strongly performing New Zealand economy and the strategy of focusing on well located quality assets.

Retail Portfolio

The Trusts’ retail portfolio continues to perform solidly. Annual sales increased by 7.5% with specialty sales up 6.5% on the previous year. While net rental income was down 1.7% to $14.9 million, as a result of tenancy remixes being completed at The Plaza and Centre Place, the outlook remains very positive.

Occupancy levels in the retail centres stood at 99.0% by 30 September, illustrating the strong demand from tenants for space in quality retail assets.

Northlands was the strongest performing centre in the retail portfolio with annual specialty sales growth of 11.9%. The $90.9 million development of the Centre commenced in October 2002. Northlands is located to the north of Christchurch on a major arterial route, in one of the fastest growing areas of the city. Once completed in 2004, Northlands will be the largest enclosed shopping centre in New Zealand. The lettable area of the Centre will almost double in size, from 20,785 square metres to 40,700 square metres. Trading will continue throughout the phased, eighteen month development period. The main construction contract is currently being finalised.

Five major retail tenants will be the anchors for the centre, being Farmers, Pak ‘N Save, The Warehouse, Hoyts Cinemas and Countdown Supermarket. Fifty specialty stores, in addition to the seventy currently on the site, will complete the Centre. Leasing of the specialty stores has been progressing in line with Management targets.

The first half of the 2003 financial year continued a very sound commercial leasing market in the major regions. Real rental growth was evident in Christchurch and Wellington, while Auckland enjoyed buoyant commercial property investment conditions.

Commercial Portfolio

The Trust’s income from the commercial portfolio was $20.7 million, representing an increase of 1% over the same period last year. On a “like for like” basis, the actual increase in commercial property income is 6.1%.

As at September 2002, the Royal & SunAlliance Centre in Auckland was 100% leased when two New Zealand owned businesses signed up for the last remaining space. The Majestic Centre, Wellington, was also 100% leased for the first time since the building was constructed in 1991. IBM has leased two floors and INL one floor.

With the exception of half the top floor of the PricewaterhouseCoopers building in Christchurch, and around 2,000 square metres of space in Auckland’s National Bank Centre (50% owned by the Trust), all of the Trust’s commercial property is now leased. The vacancy rate for the commercial portfolio is now only 1.1%, compared with 4.5% at 31 March 2002.

General

The Trust also completed a full listing on the Australian Stock Exchange during the period. The Trust previously maintained a Foreign Exempt Listing.

In summary, Management’s concentration on leasing over the past six months has paid dividends with minimal vacancy now existing across the portfolio. This leasing activity, supported by a robust New Zealand economy, places the Trust in a strong position going forward.

Over the next six months Management will continue its active leasing strategy together with exploring value adding opportunities, both across the existing asset base and the wider market.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics New Zealand: COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy

Gross domestic product (GDP) fell by 12.2 percent in the June 2020 quarter, the largest quarterly fall recorded since the current series began in 1987, as the COVID-19 restrictions in place through the quarter impacted economic activity, Stats NZ said ... More>>

ALSO:

Climate: Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate

A group of scientists and experts produced the first comprehensive global-scale analysis of terrestrial areas essential for biodiversity and climate resilience, totaling 50.4% of the Earth's land. The report was published in Science Advances ... More>>

ALSO:

MPI: Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea

The Ministry for Primary Industries (MPI) has launched an independent review of the assurances it receives for the safe transport of livestock by sea. MPI Director-General Ray Smith says Mike Heron QC has been appointed to lead the review, which is expected ... More>>

ALSO:


Computers: New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand

COVID-19 had large impacts on demand for PCs as businesses prepared for lockdowns by purchasing notebooks to mobilise their workforce. In the second quarter of 2020, New Zealand's Traditional PC market experienced a 39.7% year-on-year (YoY) growth ... More>>

ALSO:

Mediaworks: Reaches Agreement To Sell TV Operations To Discovery, Inc.

New Zealand’s largest independent commercial broadcaster MediaWorks and the global leader of real-life entertainment Discovery Inc. (“Discovery”) are pleased to announce they have reached a binding agreement regarding the sale of MediaWorks’ ... More>>

ALSO:

Ministry of Health: Public Transport Distancing Requirements Relaxed

Physical distancing requirements on public transport have been reviewed by the Ministry of Health to determine whether they are still required at Alert Level 2 (or below). The Ministry’s assessment is that mandatory face covering and individuals tracking ... More>>

ALSO:

NZHIA: New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs

A new report says a fully enabled hemp industry could generate $2 billion in income for New Zealand by 2030, while also creating thousands of new jobs. Written by industry strategist Dr Nick Marsh, the report has prompted calls from the New Zealand Hemp ... More>>

ALSO:

Stats NZ: One In 14 Employed People Report High Risk Of Losing Jobs

About one in 14 workers say they expect to lose their job or business by mid-2021, Stats NZ said today. A survey of employed people in the June 2020 quarter showed 7 percent felt there was a high or almost certain chance of losing their job or business ... More>>

ASB Quarterly Economic Forecast: NZ Economy Doing Better Than Expected, But Challenges Remain

August lockdown estimated to have shaved 8% off NZ’s weekly GDP, and 0.5% off annual GDP Economy now expected to shrink 5% (year-on-year) by end of 2020 Unemployment rate now expected to peak at 7.2% The latest ASB Quarterly Economic Forecast is less ... More>>

ALSO:

SAFE: Live Export Ship Carrying 5,800 New Zealand Cows Goes Missing In East China Sea

Livestock carrier Gulf Livestock 1 sent a distress signal at 4:45am NZT yesterday in the East China Sea. The area is affected by Typhoon Maysak. At 4pm a patrol plane spotted a lifeboat - with no people in it - and a man in lifejacket nearby. The ship ... More>>

ALSO:

FMA: Kiwisaver Fees Don't Match Performance

The Financial Markets Authority (FMA) today published an independent report into the passive and active investment management styles [i] used by KiwiSaver providers. The FMA commissioned MyFiduciary to test the extent that KiwiSaver providers were ... More>>