Annual net proft at Kiwi Income Property Trust fell 7.8 percent to more than $101.3 million because of the near $74.5 million cost of buying its management contract.
Distributable profit rose 24.7 percent to $76.3 million due to rental income rising nearly 10 percent, lower management costs and the benefits of development activity.
The chief executive of the trust's manager, Chris Gudgeon, said the addition of newly developed space helped lift rental income.
These included the addition of the new ASB North Wharf building in Auckland, the completed redevelopment of the Centre Place shopping centre in Hamilton and the reinstatement of 11 stores in the quake-hit Northlands shopping centre in Christchurch.
The trust's distribution for the year fell to 6.4 cents per unit from 6.6 cents last year, in line with forecast.
The trust is in the process of changing to a company structure, bringing its management in house. The manager says it expects to put a proposal to investors in December with the expectation the change will happen when Kiwi's 120 million dollars of convertible notes mature.
Chairman Mark Ford said he has taken the internalisation process as an opportunity to review the trust's strategic goals but the existing objective has serviced investors well for the past two decades.
He says he remains committed to providing investors with a secure and reliable investment in New Zealand property with a goal to deliver returns greater than 9 percent a year.