INDEPENDENT NEWS

Property Trust Records $50m Revaluation Gain

Published: Wed 21 Apr 2004 09:55 AM
ANNOUNCEMENT TO NZX
For immediate release
20 April 2004
Kiwi Income Property Trust Records $50m Revaluation Gain
Auckland – Kiwi Income Property Trust announced today an upward revaluation of its property assets as at 31 March 2004 of approximately $50 million. The gain comprises around $40 million in respect of its retail portfolio and $10 million for its office portfolio. The revaluations are still subject to final audit.
This significant revaluation gain will increase the Trust’s net asset backing per unit by approximately 7%, from $1.07 to around $1.14.
Chief Executive of the Manager of Kiwi Income Property Trust, Angus McNaughton, said that this result concluded an excellent year for the Trust.
“Underpinning the valuation increases is the successful Northlands Shopping Centre redevelopment, the quality of the Trust’s assets, income growth from both the expanded retail portfolio and new office leases, and a firmer property market. We can also credit the increases to the property management team, who continue to focus on improving the income, quality and diversification of the Trust’s assets that are located throughout New Zealand.”
A significant contributor to the overall revaluation gain was Northlands Shopping Centre. The third and final stage of Northlands opened on 2 April, doubling the Centre in size to 40,700 square metres. The Centre is 99.6% leased and now comprises Farmers and The Warehouse department stores, Pak’N Save and Countdown supermarkets, and 135 specialty stores. The revaluation gain of around $16.5 million is well ahead of the projected gain of $3.6 million outlined in the Investment Statement dated 14 June 2002 for the capital raising to fund the development.
“The redevelopment of Northlands, the refurbishment and expansion of North City Shopping Centre, Porirua, together with the acquisition of Downtown Plaza Shopping Centre in Hamilton have increased the Trust’s weighting in retail assets, one of the best performing sectors of the New Zealand property market,” Mr McNaughton said.
“The Vero Centre contributed significantly towards the $10 million revaluation gain on the office portfolio. This asset is undoubtedly New Zealand’s premier office tower, and this month was also the winner of an EnergyWise Award for energy efficiency. This award is indicative of our approach to the management of that property and the overall portfolio.”
The revaluation gain and the recent acquisition of Unisys House in Wellington for $44.1 million will take the Trust’s total assets to around $1.1 billion.
As outlined in the Trust’s 2003 Annual Report, the total gross distribution for the year ended 31 March 2004 is projected to be between 8.30 and 8.50 cents per unit. The final distribution, revaluation gain and net asset backing will be released with the audited full year result announcement on 20 May 2004. The record date for the 2004 final dividend is set for 11 June 2004, and the payment date will be 25 June 2004.
Ends
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About Kiwi Income Property Trust
Kiwi Income Property Trust’s aim is to maximise returns for its unit holders through the careful acquisition and professional management of its property portfolio. All net income (after tax) is distributed to unit holders in each financial year.
The Trust is listed on the New Zealand Exchange and is ranked 14th by market capitalisation on the NZSX50.
The Trust’s office assets are located in key CBD locations and comprise:
Vero Centre Auckland
National Bank Centre Auckland
HP House Auckland
Vodafone House Auckland
AUT Faculty of Arts Building Auckland
Majestic Centre Wellington
BP House Wellington
PricewaterhouseCoopers Centre Christchurch
The Trust’s retail assets comprise:
Northlands Shopping Centre Christchurch
Centre Place Shopping Centre Hamilton
Downtown Plaza Shopping Centre Hamilton
North City Shopping Centre Porirua
The Plaza Shopping Centre Palmerston North
Kiwi Income Property Trust’s website address is www.kipt.co.nz.

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