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Kiwi Income devaluations possible: company

Wednesday 13th August 2008

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Kiwi Income Property Trust will seek an independent valuation of its portfolio and said there's a possibility of reductions in the value of the assets.

The trust typically values its properties annually. This year it will seek an additional review, as at Sept 30, amid declining property values globally. Kiwi Income doesn't expect to reduce its distributions to unit-holders if property values fall, it said.

"Any downward movement in the trust's property values would be reasonably contained, given the quality of the trust's portfolio," Wareing said in a statement. "There is some evidence to suggest that property values around the world are coming under pressure."

Kiwi Income units fell 1.8% to $1.12. They have declined 22% in the past year, lagging behind the NZX 50 Index's 18% drop.

The trust forecast a cash distribution in the year ending March 31, 2009, of 9 cents a unit, representing an 8% yield after tax for domestic investors at current prices, it said.

By Jonathan Underhill

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