Thursday 19th of May 2005

The trust said growth in its underlying earnings was strong with pre-tax profit up 18.5% to $66.47m.

Kiwi Income Property Trust (KIP) said it would pay a final dividend of 4.31 cents per unit which includes a imputation credits of 0.82 cpu, bringing the gross dividend for the year to 8.65 cpu, including imputation credits of 1.63 cpu.

The trust said the level of earning for the year had allowed it to retain 5% of net earnings to assist with ongoing financing requirements.

Chairman of KIPT's management company Kiwi Income Property (KIP) Sean Wareing said the "`outstanding" result was due to extensive leasing activity, strong rental growth, and focused, strategic portfolio expansion and redevelopment.

"The result marks a highly successful year for the Trust which continues to deliver consistently on its objective of maximising income and providing long-term sustainable returns to unit holders," Wareing said in a statement. KIPT's total assets increased by $163 million to $1.26 billion over the March year, while its total interest bearing debt rose to $341 million, representing 27% of total assets.

The increased level of borrowings was primarily due to property acquisitions, the acquisition of a 19.4% stake in rival Capital Properties NZ for $54.4 million and costs associated with its Sylvia Park retail development in Auckland. KIP chief executive Angus McNaughton, said the year's strong result had been achieved following excellent performances from both the retail and office portfolios.

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