KEY POINTS:
Property investor and developer Kiwi Income Property Trust cited rent from its Sylvia Park shopping centre in Auckland as one of the factors which helped it to push up half-year net earnings almost 9 per cent.
The trust yesterday declared a $29.7 million after-tax profit in the six months to September, up from $29 million the year before.
Excluding realised gains, this was an increase of 8.7 per cent over the period last year, the company said. Its rental income rose by 7 per cent to $47.5 million after strong rent reviews, an active leasing period and Sylvia Park's contribution.
Kiwi's accounts showed it spent $337 million on Sylvia Park, buying the land and developing it. Costs in September last year stood at $149.3 million.
Angus McNaughton, chief executive of the trust's manager, said the first two stages of the Mt Wellington shopping centre traded well. The centre is projected to bring in $6.2 million rent between next June and March. McNaughton said when the third and fourth stages were finished next year, the centre would meet its full potential.
Sean Waring, chairman of the trust's manager, said the trust's outlook was positive and property sector fundamentals were expected to remain resilient, underpinned by solid rental and leasing deals across the trust's retail and office portfolios.
"The office portfolio will continue to benefit from low vacancy levels and solid demand for office space. Any softening of retail sales will be buffered by the high occupancy levels at the trust's retail centres and the rental increases built into the majority of the trust's retail specialty leases," Waring said.
The manager's fees rose considerably, from $3.4 million total fees in the September 2005 half-year to $5.1 million in the latest half-year. McNaughton said the increase was partly because the value of Kiwi's total portfolio had increased and partly due to a $1.1 million performance fee for the half-year.
Kiwi unitholders will get a gross interim dividend of 4.75c on December 15.
