Auckland's Sylvia Park helped lift the projected payout. Photo/ Kenny Rodger
Auckland's Sylvia Park helped lift the projected payout. Photo/ Kenny Rodger
KEY POINTS:
Kiwi Income Property Trust posted an 80 per cent rise in first-half profit to $43.6 million and forecast an increase in payout to shareholders.
Adjusting for new accounting rules and non-cash items, profit for the six months ended September was little changed at $29.3 million.
The trust forecastan annual dividend of 9c per share, up 7.9 per cent, subject to a continuation of "reasonable economic conditions", chairman Sean Wareing said.
Strong rent reviews, good demand in the buoyant office sector and a positive outlook for Auckland's Sylvia Park shopping centre were behind the increase in payout.
The company was getting good rental gains from its Auckland Vero building.
"There is a shortage of high-quality office and retail space which continues to drive demand and rentals. The trust remains well positioned to take advantage of these favourable market conditions," Wareing said.
Net rental income rose by 29 per cent to $60.6 million, and total assets rose by $37 million to $2 billion.
Total gross return for the year ended October 31 was 14.4 per cent.
The property investor had secured bank debt of $532 million at the end of the period, or a ratio of debt to total assets of 26.9 per cent.
Shares closed up 2c at $1. 39.
Kiwi income
Six months to September 30:
After tax profit of $43.6m, up 79.7 per cent
Projected annual dividend of 9c per share, up 7.9 per cent
