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Kiwi Property reported a $54.2 million profit, an increase of 47.5 percent, which included an $11.8m fair value uplift in the value of its properties.
Goodman Property Trust reported a $176m after-tax profit, which included valuation gains of $140m, although that was down slightly on last year, as the value of its properties did not increase at the same rate as last year.
Kiwi Property chief executive Clive Mackenzie said rent relief provided to tenants had resulted in a 5.3 percent reduction in net rental income for the period, but expected that to be offset somewhat in the full year result by the reintroduced depreciation allowances for commercial buildings.
“While operating profit fell for the period, it’s important to consider the result within the context of the lockdowns that took place in the first half,” MacKenzie said.
“Looking ahead, we’re focused on delivering a solid performance through the remainder of the 2021 financial year, capitalising on our diversified property portfolio and the successful opening of Sylvia Park Level 1.”
The $277m Sylvia Park expansion opened in October, however, Kiwi Property was looking to reduce its overall exposure to the retail sector and wanted to sell The Plaza property in Palmerston North.
Total assets were now worth $3.2 billion and the company board decided to pay an interim dividend of 2.2 cents per share.
Meanwhile, Goodman Trust chief executive John Dakin was pleased with the resilience of the business.
“Occupancy has been maintained at almost 100 percent, year-to-date rental cashflows are consistent with our expectations and development enquiry remains strong,” Dakin said.
The value of Goodman Trust’s portfolio, which comprises mainly warehousing and logistics properties, rose nearly 9 percent to $3.3b as it acquired two new properties and revenue for the period increased by just under 4 percent to $87.3m.
Goodman Trust also provided $2.2m for rent relief.
Following the result, the board increased its full year earnings guidance by 0.1 cent to 6.3 cents per unit.
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