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Kiwi Income Property Trust records $60M revaluation gain

Media release

Tuesday 15th March 2005

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Kiwi Income Property Trust has announced its property assets have recorded a total revaluation gain of approximately $60 million.

The gain is balanced across the office and retail portfolios, and compares with a gain for the same period last year of $50 million.

The revaluation gain will increase the value of the Trust's total portfolio (including acquisitions and capital expenditure) to $1.2 billion, and lift net asset backing per unit by 9 cents to approximately $1.23.

Valuations of the Trust's assets are conducted by independent valuers and are carried out every twelve months. The revaluations are subject to final audit.

Chief executive of the Manager of the Trust, Angus McNaughton, said the revaluation gain reflected both the sound state of the property market and the superior quality of the Trust's portfolio.

"Overall, property market fundamentals remain very solid, with firm demand levels and high occupancy rates. The increase in the value of the Trust's assets is also an endorsement of its investment strategy which focuses on maintaining a stable, well-diversified portfolio of premium assets with strong income and superior long-term growth potential", said McNaughton.

Northlands, Centre Place, and North City shopping centres provided the bulk of the rise in value within the retail portfolio. Both Northlands and North City continue to benefit from recent redevelopments. A firming of capitalisation rates, and continued rental growth also provided a boost to the retail portfolio valuations. The occupancy level across the retail portfolio has increased to a record high of 99.7%.

The stand out performers amongst the Trust's office assets were the Vero Centre, Vodafone House, Majestic Centre, and the recently acquired Unisys House. Both Vodafone House and the Majestic Centre have benefited from substantial leasing activity, with the occupancy level across the office portfolio also increasing to an all time high of 99.1%. Rental growth and firming capitalisation rates also enhanced the value of the office portfolio.

As stated in the Trust's Interim Report of 30 September 2004, the Trust is projecting a gross dividend of between 8.6 and 8.7 cents per unit for the year to 31 March 2005, an upward revision of its projected dividend in the Annual Report of 2004. The final result is expected to be released in mid May this year.

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