Kermadec Property Fund says it is well positioned to take advantage of a turnaround in the leasing market.
The Auckland-based commercial property investor lost $2.6 million in the year to March, compared with a loss of $11.9 million in 2009.
Once revaluations and sales are excluded, the fund made a distributable profit of $3.4 million - down 34% on the previous year.
Properties in Cook and Nelson streets in Auckland were sold during the year and used to repay debt.
It has sold another three properties worth $11 million since then, and once those sales are finalised, the fund's gearing ratio will be have fallen from 41% to 29%.
Managing director Mark Francis says the sales have left the fund in a good position, but more could be on the cards.
Shares in Kermadec Property Fund were unchanged at 48 cents on Monday.