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Kiwi Income Property Trust

By Dan Stratful (AFA)

Thursday 5th July 2012

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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


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