Kiwi Income Property Trust cuts NZ$51 mln from property value

Kiwi Income Property Trust cuts NZ$51 mln from property value
Kiwi Income Property Trust has reported a net reduction of NZ$51 million in the value of its portfolio of prime office and retail assets for the six months ending 30 September 2008. This cuts the value of the portfolio by 2.5% to NZ$2.033 billion. The cut in the value was "testimony to the Trust's defensive qualities," said Chairman of the Manager of the Trust, Kiwi Income Properties Limited, Sean Wareing. "The Trust remains well positioned to continue to perform strongly in the more challenging environment we face with uncertainties in global financial markets. The Trust has a diversified high quality property investment portfolio with over 850 tenants and enjoys the benefits of a 99% occupancy level and prospects for rental growth. Furthermore we do not expect this movement in portfolio value adversely to affect distributions to Unit Holders," Wareing said. "We must remain cautious in the current economic environment, but on the basis that there will not be any further major deterioration in economic conditions we are projecting a cash distribution for the year ending 31 March 2009 of 9.0 cents per unit, representing an after tax yield of around 7.5% for domestic investors at current unit prices," he said. The valuations were determined by independent valuers, are subject to audit, and will be confirmed in the Trust's interim result for the six months to 30 September 2008.

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