Trust portfolio rises by $60m

Strong fundamentals have bumped Kiwi Income Property Trust's portfolio value up $60 million to $1.2 billion, its chief executive says.

Angus McNaughton said net asset backing per unit for the Australian-managed trust had lifted 9c to $1.23 - however, yesterday, the units were trading around $1.13.

McNaughton attributed the increase to strong tenant demand, high rates of property occupancies and the nature of Kiwi's portfolio.

The gain came from across the balance of the office and retail portfolios and compared with a gain for the same period last year of $50 million.

Firming capitalisation rates in Kiwi's retail portfolio led to gains in value at its Northlands shopping centre in Christchurch, Centre Place in Hamilton and North City at Porirua. Vero Centre and Vodafone House in Auckland were also strong performers.