Landlord's profit improves

Profit at Kiwi Income Property Trust has risen sharply after it received an insurance payment and proceeds from a sale.

The property landlord made a profit of $26.6 million in the half-year to the end of September, compared to $1.5 million the same time last year.

Kiwi Income Property Trust said the sale of an Auckland property for $55 million in April and an insurance payment for the PwC Centre in Christchurch, had reduced bank debt.

But revenue fell 3% to $99 million for the period due to a reduced portfolio.

The trust said rental income had fallen $4 million to $68 million, after the closure of 14 shops in Christchurch for earthquake strengthening and increases in insurance costs.

It will pay an interim dividend of 3.3 cents per share next month.

Kiwi Income Property Trust owns about a dozen retail and office premises throughout the country.

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