KEY POINTS:
Kiwi Income Property Trust yesterday revised its projected cash distribution for the full year to 8c per unit.
"This is lower than previously forecast due to the decision to cease distributing the gain from the trust's investment in capital properties, at this stage," said chairman Sean Wareing.
A $8.3 million gain made in the trust's investment in Capital Properties New Zealand will not be distributed.
The trust is paying an interim distribution of 4.6c per unit, comprising 4c in cash and 0.6c in imputation credits on December 15.
The trust said its distributable profit of $28.8 million for the half year to September 30 was in line with the distributable profit for the same period last year.
After non-cash adjustments totalling $60 million, including a $52 million pre-tax unrealised loss on the revaluation of its property portfolio, the trust posted an after tax loss of $31.3 million in the half year.
The $52 million reduction in the value of the property portfolio to $2.033 billion represents 2.5 per cent of the portfolio.
As at September 30 the trust's total assets stood at $2.05 billion, with bank debt of $598 million, representing 29.2 per cent of total assets.
"We do anticipate a continuation of the current softening trend in property values," the trust said.
It expected such movement to be reasonably contained.
- NZPA
