Kermadec Result Ahead Of Prospectus Forecasts

KERMADEC RESULT AHEAD OF PROSPECTUS FORECASTS – FOUR MONTHS TO 31/03/07 $7.977m ($4.606m) +73%, DIV 2.61 CPS

Kermadec Property Fund Limited (KPF) today reported an un-audited Net Profit after Taxation for the 4 month period to 31 March 2007 of $7.977 million. This result was significantly ahead of the forecast $4.606 million as disclosed in the Prospectus & Investment Statement of 7 November 2006, and includes the previously announced property revaluation gain of $8.892 million compared with the forecast revaluation gain of $3.562 million.

Net Operating Profit before Property Revaluation and Taxation for the period was $1.563 million compared with the prospectus forecast of $1.559 million.

KPF’s net tangible asset backing (NTA) per share under NZ IFRS will increase to $1.12, with adjusted NTA (excluding deferred tax on revaluation gains) increasing to $1.16 versus the prospectus forecast of $1.06.

Chairman Peter Wilson said this was a sound result and was enhanced by a 5.3% uplift in the portfolio value during the 4 month period since listing. The earnings performance was also pleasing over what was a start-up period for the Company.

The Company intends to pay a dividend of 2.61 cents per share on or about 18 May 2007 with the record date being 11 May 2007. This dividend is as forecast in the prospectus.

Managing Director Mark Francis said the Company had been shown a number of potential acquisition opportunities since listing in December last year. Some of these opportunities met KPF’s stated investment criteria and would be considered by the Board in the first quarter of the 2008 financial year providing the Company with additional growth potential. Mark Francis said that KPF’s strategy was to prudently grow the Company while maintaining a dividend yield at the higher end of sector returns.

KPF’s strategy remains consistent with that outlined in the Prospectus and Investment Statement of 7 November 2006.

-ENDS-

About Kermadec Property Fund Limited (KPF)

Kermadec Property Fund is New Zealand’s newest listed investor in commercial property. A public company, listed on the NZSX, KPF’s initial portfolio of properties provides diversified exposure to the office, industrial and car park sectors, strongly focused on the Auckland market and individual industrial properties in Hamilton and Palmerston North.

Kermadec Property Fund is managed by Augusta Funds Management Limited.

Kermadec Property Fund’s website address is www.kermadecproperty.co.nz

See also… Preliminary Announcement for the 4 Months Ended 31 March 2007
Kermadec Property Fund LIMITED
http://img.scoop.co.nz/media/pdfs/0704/KPF_31.3.07_Income_Statement.pdf

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