Kiwi Income bounces back with $89.2m profit

Kiwi Income's shopping centre portfolio had sales growth of 8.4 per cent to $1.43 billion for the year. Photo / NZH

Kiwi Income Property Trust says it returned to profit in the year to March after reporting a bottom line loss in the previous year.

After taking into account property revaluations, other non-cash adjustments and the settlement of the PricewaterhouseCoopers Centre insurance claim, the trust reported an after tax profit of $89.2m, compared with an after tax loss of $26.4m for the previous year.

The trust said its operating profit before tax before tax came to $81.3 million, up $4.9 million or 6.4 per cent on the previous year's.

Distributable income after tax was $71.7m, up 4.2 per cent on the previous year's.

Unit holders will receive a full year cash distribution of 7.00 cents per unit, which was in line with the trust's guidance.

Mark Ford, chairman of trust's manager, said the highlight of the year was the positive sales performance of Kiwi Income's shopping centre portfolio, with sales growth of 8.4 per cent to $1.43 billion for the year.

This flowed through to a positive revaluation result for our retail portfolio, highlighted by Sylvia Park Shopping Centre which increased in value by 5.8 per cent to $500m.

The trust continued to make progress with the development of the ASB Bank head office in Wynyard Quarter in Auckland.

During the past year, Kiwi Income had to make "defensive" investments in earthquake strengthening at The Majestic Centre in Wellington and Northlands Shopping Centre in Christchurch, and in the repositioning of Centre Place Shopping Centre in Hamilton.

Kiwi Income said it had agreed to a $69.3 million insurance settlement for the PricewaterhouseCoopers Centre in Christchurch, which was damaged in the February 2011 earthquake.

Kiwi Income's units last traded at $1.09, unchanged from Tuesday's closing level.