Listed landlord Kiwi Income Property Trust has experienced a sharp fall in its half year profit, due to devaluations and the cost of earthquake damage at its properties in Christchurch.
The company made a profit of $1.5 million in the six months to September, compared with a $13.7 million profit in the same period a year earlier.
The profit has been heavily influenced by changes in the value of its property portfolio.
Its value fell 3% to $1.9 billion due to writedowns and selling two properties, while it wrote off $27 million from its quake-damaged PricewaterhouseCoopers Centre, which will be demolished.
Excluding one-off costs and revaluations, the Trust's distributable profit rose 9% to $36 million.
Net rental income rose 7% to $72 million, mainly due to the contribution from its recent acquisition, Lynnmall Shopping Centre in Auckland, and occupancy stood at 98%.
Looking ahead, the Trust says the modest pace of recovery will keep a lid on earnings growth and it's picking a distributable profit of 7 cents a unit.
