Two of New Zealand's biggest commercial and industrial landlords with assets of more than $4 billion - Kiwi Income Property Trust and Goodman Property Trust - have just reported half-year results down on last year.
Kiwi has assets valued at $2 billion but its net profit after tax more than halved from $61.9 million in the September 30 2013 half-year to $23.8 million in the September 30 2014 half-year.
That was due to interest rate changes and last year's one-off deferred tax benefit, accounts showed. Kiwi's gross rental income rose from $101.5 million last year to $102.3 million.
Goodman, with assets of $2.1 billion, suffered an after-tax profit drop from $65.4 million in the 2013 half-year to $60.2 million in the 2014 half year, again largely the result of interest rate rises which the accounts referred to as "movement in fair value of derivative financial instruments".
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But also like Kiwi, Goodman's net rental income rose from $63.1 million to $66.2 million.
But both businesses were upbeat about the result this morning.
Chris Gudgeon, Kiwi chief executive, said the business had completed a number of developments and he cited continued strong rental growth at Sylvia Park Shopping Centre and cost savings from the internalisation.
Keith Smith, Goodman chairman, said the board was extremely pleased with progress in the six months and a focus on development-led growth as the economy continued to expand was realising the value in the trust's land investments.