KEY POINTS:
Market commentators have welcomed the appointment of a new chief executive for Kiwi Income Properties despite the loss of its experienced chief.
Yesterday the firm announced chief executive Angus McNaughton would step down after 14 years with the firm to move to another role within its parent company, Commonwealth Bank of Australia. McNaughton, who has headed up the management company of the Kiwi Income Property Trust for six years, will leave in August to join CBA's Colonial First State Global Asset Management in Singapore.
He will be replaced by Chris Gudgeon, who is at present the general manager at Auckland International Airport.
ABN Amro Craigs head of research Mark Lister said he did not consider the change to be a negative for the company.
"It's a change yes. But it's quite positive as by the sounds of it he is leaving for the right reasons rather than going somewhere different which could suggest there are problems with the trust."
Lister said Gudgeon was very well known to the market and had worked for Kiwi in the past. "He is highly regarded. He has always been focused on earnings growth and is quite a conservative leader, just what shareholders are looking for."
The Kiwi Income Property Trust owns a range of office, retail and industrial property including Auckland's Vero Centre and Sylvia Park shopping mall.
Lister said the trust had the potential to face problems in the light of the economic slowdown and its retail exposure but it had held up well due to high-quality assets.
James O'Leary, head of property and alternative investments for Colonial First State Global Asset Management, said Kiwi Income would stay focused on providing long-term sustainable returns through acquisitions, management and ongoing development of its office, retail and industrial property assets. The property trust closed down 1c to $1.25 yesterday.
