KEY POINTS:
Falling property values have pushed New Zealand's largest listed real estate entity into the red, with Kiwi Income Property Trust announcing a $31.3 million after-tax loss.
Buildings owned by the huge shopping centre and office block owner were devalued by $52 million, resulting in the loss for the half year to September 30.
The Trust today revised its projected cash distribution for the full year to 8 cents 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 $8.3m gain made in the trust's investment in Capital Properties New Zealand Ltd will not be distributed.
The trust is paying an interim distribution of 4.60 cents per unit, comprising 4 cents in cash and 0.60 cents in imputation credits on December 15.
The trust said its distributable profit of $28.8m for the half year to September 30 was in line with the distributable profit for the same period last year.
The $52m 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 $2.05bn, with bank debt of $598m, 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
