Property Trust records $60m revaluation gain

NZX & MEDIA RELEASE
15 March 2005

Kiwi Income property Trust records $60m revaluation gain

Kiwi Income Property Trust today announced its property assets have recorded a total revaluation gain of approximately $60 million. The gain is balanced across the office and retail portfolios, and compares with a gain for the same period last year of $50 million.

The revaluation gain will increase the value of the Trust's total portfolio (including acquisitions and capital expenditure) to $1.2 billion, and lift net asset backing per unit by 9 cents to approximately $1.23.

Valuations of the Trust's assets are conducted by independent valuers and are carried out every twelve months. The revaluations are subject to final audit.

Chief Executive of the Manager of the Trust, Angus McNaughton, said the revaluation gain reflected both the sound state of the property market and the superior quality of the Trust's portfolio.

"Overall, property market fundamentals remain very solid, with firm demand levels and high occupancy rates. The increase in the value of the Trust’s assets is also an endorsement of its investment strategy which focuses on maintaining a stable, well-diversified portfolio of premium assets with strong income and superior long-term growth potential", said Mr McNaughton.

Northlands, Centre Place, and North City shopping centres provided the bulk of the rise in value within the retail portfolio. Both Northlands and North City continue to benefit from recent redevelopments. A firming of capitalisation rates, and continued rental growth also provided a boost to the retail portfolio valuations. The occupancy level across the retail portfolio has increased to a record high of 99.7%.

The stand out performers amongst the Trust's office assets were the Vero Centre, Vodafone House, Majestic Centre, and the recently acquired Unisys House. Both Vodafone House and the Majestic Centre have benefited from substantial leasing activity, with the occupancy level across the office portfolio also increasing to an all time high of 99.1%. Rental growth and firming capitalisation rates also enhanced the value of the office portfolio.

As stated in the Trust's Interim Report of 30 September 2004, the Trust is projecting a gross dividend of between 8.60 and 8.70 cents per unit for the year to 31 March 2005, an upward revision of its projected dividend in the Annual Report of 2004. The final result is expected to be released in mid May this year.

ENDS

About Kiwi Income Property Trust

Kiwi Income Property Trust's objective is to maximise returns for its unit holders through the careful acquisition, development and professional management of its property portfolio. The Trust is listed on the New Zealand Stock Exchange and is ranked 15th by market capitalisation on the NZSX50.

The property portfolio comprises 20 properties with a combined value of $1.2bn.

The Trust's key office assets are located in CBD locations and comprise:
Vero Centre Auckland
National Bank Centre Auckland
Vodafone House Auckland
AUT Faculty of Arts Building Auckland
Majestic Centre Wellington
Unisys House Wellington
BP House Wellington
NGC Building Wellington
PricewaterhouseCoopers Centre Christchurch

The Trust's key retail assets comprise:
Northlands Shopping Centre Christchurch
Centre Place Shopping Centre Hamilton
Downtown Plaza Shopping Centre Hamilton
North City Shopping Centre Porirua
The Plaza Shopping Centre Palmerston North

Kiwi Income Property Trust's website address is www.kipt.co.nz

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