18 May 2011

Quake hits property trust profits

1:18 pm on 18 May 2011

February's devastating earthquake in Christchurch has knocked the value of Kiwi Income Property Trust's portfolio.

The country's biggest listed property concern lost $26.4 million in the year to the end of March compared with its restated $8.5 million loss in the previous year.

The value of the trust's office buildings and shopping centres fell by 4% to $2 billion.

Excluding that and other one off changes, its distributable profit rose 11% to $68.8 million, due to higher rental income, while about 97% of its portfolio was tenanted.

It declared a lower full year distribution of 7 cents a unit.

In contrast, Goodman Property Trust enjoyed a stronger profit, thanks to a lower revaluation.

It made a profit of $36.7 million, compared with a restated profit of $2.8 million, because of lower revalutations and other one-off charges.

It's distributable profit rose modestly to $78 million, with an increase in rental income, while its occupacy stood at 97%.

Looking ahead, both property landlords are confident about their prospects, but warn that earnings are reliant on the pace of the economic recovery.