Trust Records $65m Increase In Portfolio Value

NZX & MEDIA RELEASE

9 April 2008

Kiwi Income Property Trust Records $65m Increase In Portfolio Value

Kiwi Income Property Trust today reported a net gain of approximately $65 million in the value of its portfolio of prime office and retail assets for the financial year ended 31 March 2008.

The gain increases the value of the Trust's total portfolio to $2.1 billion and increases the undiluted net asset backing per unit by approximately 9 cents (before adjusting for deferred tax).

The annual valuations were determined by independent valuers, are subject to audit, and will be confirmed in the Trust's financial result for the year to 31 March 2008.

Chief Executive of the Manager of the Trust, Angus McNaughton, said "the $65 million gain was underpinned by strong rental growth and solid demand for space across the Trust's portfolio of office buildings and retail shopping centres. The weighted average cap rate increased marginally from 6.9% last year to 7.0% this year, with the portfolio under rented by an average of 6%.

"The Trust's flagship office asset, the Vero Centre in Auckland's central business district, enjoyed very strong rental growth and supported the overall revaluation of the office portfolio. The Vero Centre is now attracting rents near $600 per square metre, and has been valued at $335 million, providing a revaluation gain of $32 million. The building's cap rate firmed marginally from 6.75% to 6.70%," Mr McNaughton said.

"The most significant contributor to the increase in value of the retail portfolio was Sylvia Park Shopping Centre in Auckland which was valued at $471 million, providing a revaluation gain of $19 million, with the cap rate remaining at 6.0%," he said.

"Sylvia Park continues to perform strongly and was the first shopping centre in New Zealand to post annual sales of more than $300 million. This was achieved during the 12 months to January 2008 when half of the 200 retailers at the Centre had been trading for less than a year. The most recently available retail sales figures for the Centre show that comparable specialty sales for February 2008 were 34% higher than the same month the previous year."

Mr McNaughton said "the net gain in value across the Trust's portfolio reflects the strength of its prime office and retail assets. Despite a slowing domestic economy, the outlook for the Trust remains positive with solid demand for premium-quality office and retail space providing continued rental growth."

As previously stated, the Trust has upgraded its cash distribution projection to 9.00 cents per unit for the full year ending 31 March 2008, an increase of 7.9% over the previous year. The Trust will release its Annual Result in May 2008.

ENDS

For further information please contact: Angus McNaughton Chief Executive Kiwi Income Properties Limited

DDI: +64 9 359 4011 Mob: +64 21 946 157

About Kiwi Income Property Trust Kiwi Income Property Trust's objective is to optimise 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 within the top 15 on the NZX 50 Index, and is a member of the NZX 10 Index.

The total value of the Trust's assets is $2.1 billion, as at 31 March 2008. Assets include:

Key Office Assets Vero Centre Auckland National Bank Centre Auckland 21 Pitt Street Auckland Majestic Centre Wellington Unisys House Wellington BP House Wellington Vector Building Wellington PricewaterhouseCoopers Centre Christchurch

Key Retail Assets Sylvia Park Shopping Centre Auckland 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

Julian Nixon Communications & Investor Relations Manager

ENDS

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