Kermadec Property Fund has returned to profit, making $4.85 million in the year to the end of March, compared to a loss of $2.62 million in the previous year.
Once revaluations and tax charges are excluded, the commercial and industrial property fund made a distributable profit of $3.84 million, 13% more than a year earlier, as it cut costs.
The fund sold four properties during the year and has sold another two since, which caused rental income to fall by more than a quarter to $6.7 million.
Its occupancy rate fell from 94% to 91% during the year, as seven leases expired and one tenant failed.
But the fund says the property market continues to show a gradual recovery, with the Auckland market in particular showing firmer values and increased demand.