Support our sponsors:

NZX 50 Index	4611.96	2.40
S&P/ASX 200	5191.20	0.00
Dow Jones Industrials	14839.80	21.00

Twitter

Facebook

RSS

Kiwi Income Property Trust

By Dan Stratful (AFA)

Thursday 5th July 2012

Text too small?

Kiwi Income Property Trust (NZX: KIP ) reported distributable income after tax of $72 million in the year to 31 March 2012 (FY12), up 4.2% on FY11 and investors received a full year cash distribution of 7 cents per unit (after tax).

The Sylvia Park Shopping Centre was also revalued in FY12 resulting in a 5.8% increase in value to $500 million however KIP's office portfolio saw a $3.6 million fall in net rental income, due to income lost from the PWC Centre in Christchurch and a generally subdued office market.

KIP finished FY12 with a net tangible asset backing of (NTA) $1.09 so the units are trading at a slight discount to NTA.

Lower distributions are expected in FY13 at around 6.6c per unit (after tax) and KIP will progress the construction of the ASB North Wharf in Auckland for ASB Bank's July 2013 lease commencement while also progressing the redevelopment of Centre Place.

Despite lower distributions forecast for FY13, KIP can be held in long term income portfolios due to the reliability of its distributions.

The NZX Property Gross Index has outperformed the NZX 50 Gross Index over the 10 years to May 2012 providing a total return of 230% compared to The NZX 50's 175%.

About Kiwi Income Property Trust:
Kiwi Income Property Trust (NZX: KIP ) is New Zealand's largest listed property trust with a property portfolio consisting of both retail and office property. Key retail shopping centres include Slyvia Park and Lynmall (Auckland), The Plaza (Palmerston North) and North City (Porirua) with key office properties including Vero Centre (Auckland), National Bank Centre (Auckland), The Majestic Centre (Wellington) and 44 The Terrace (Wellington). KIP is a Portfolio Investment Entity (PIE) with a property portfolio valued at close to $2 billion.

Status: HOLD

KIP's shares today traded at $1.075

Disclaimer
In accordance with the Financial Advisers Act 2008 ("the Act") Sharechat is "Class Advice" and any advice or recommendations contained on this webpage is not "Personalised Advice" as defined by the Act. This means Sharechat does not take into account an investor's particular financial position, financial needs, financial goals, risk profile or asset allocation. Investor's who require "Personalised Advice" should contact an Authorised Financial Adviser (AFA).

Daily ShareChat articles report how the main experts in the market might view a certain share and we provide this commentary as a useful resource for investors. Content on this site does not in any way constitute a recommendation to buy, hold or sell any particular share. Investors should always seek professional advice before making any investment decisions.

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.