Retail sales update and US investor presentation

NZX AND MEDIA RELEASE

28 February 2012

Kiwi Income Property Trust releases retail sales update and US investor presentation

Kiwi Income Properties Limited, as Manager of Kiwi Income Property Trust, today released its headline retail sales statistics to 31 December 2011 for its portfolio of New Zealand shopping centres. It also released a presentation that it will provide this week in the United States as part of an investor roadshow.

Chris Gudgeon, Chief Executive of Kiwi Income Properties Limited, said: “The Trust’s shopping centre assets have posted a strong result for the 12 months to 31 December 2011, reflecting the quality of the portfolio and the benefit of our intensive asset management approach.”

Portfolio retail sales grew 8.8% for the year to 31 December 2011, driven by strong performances at Sylvia Park Shopping Centre (+7.0%) and LynnMall Shopping Centre (+5.3%) in Auckland, as well as The Plaza in Palmerston North (+7.5%) and North City in Porirua (+4.2%).

In Christchurch, Northlands Shopping Centre continued to trade strongly, with sales growing 24.5% in the year to 31 December 2011 due to earthquake damage to retail space elsewhere in the city. Conversely, the competition-affected Centre Place Shopping Centre in Hamilton, currently undergoing redevelopment, posted negative growth with sales declining 21.4%.

The Christmas trading period was particularly strong for the Trust’s portfolio of six shopping centres with December 2011 sales for the portfolio up 10.0%. Standout performers were Sylvia Park, LynnMall and Northlands, which recorded December sales increases of 10.1%, 10.5% and 15.2% respectively compared to the same month in the prior year.

“Looking ahead, our research indicates that sales growth over 2012 is projected to be 3-4% and over the medium term should continue to grow in line with the general economy at about 4% pa,” Mr Gudgeon said.

ENDS

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