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Kip Lowers Forecast Annual Distribution

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, Nov 12 NZPA - Kiwi Income Property 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.

After non-cash adjustments totalling $60m, including a $52m pre-tax unrealised loss on the revaluation of its property portfolio, the trust posted an after tax loss of $31.3m in the half-year.

The $52m reduction in the value of the property portfolio to $2.033 billion represents 2.5 percent of the portfolio.

As at September 30 the trust's total assets stood at $2.05b, with bank debt of $598m, representing 29.2 percent 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.

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