Kermadec profits down

Kermadec Property Fund has reported a distributable profit of $3.5 million in the year ending March 31, compared to $5.1 million last year.

The Auckland-based property company said the results were due to increase leasing incentives, higher bank margins, swap closeout costs, and the impact of asset sales.

Kermadec's net rental income was $9.2 million, $1.4 million less than in 2009. Its net loss after tax was $2.62 million, compared to a $11.9 million loss last year.

The company said its rental income was affected by asset sales and lower occupancy, while its smaller loss was due to re-evaluation of properties and a gain on interest rate swaps.