Conversion price for 2005 Mandatory Convertible

Conversion price for the 2005 Mandatory Convertible Notes

The 8% Mandatory Convertible Notes (MCNs) issued in 2005 will convert into ordinary KIP Units (Units) on 30 June 2010.

In accordance with the terms contained in the Investment Statement and Prospectus dated 31 May 2005 (Offer Document), we can confirm that the conversion price1 is $0.8760.

This means that for every one MCN held (2005, 8% series only (NZSX code KIPGB)), MCN Holders will receive 1.1416 Units2. Units are traded on the NZSX under the code KIP.

The MCNs were issued to provide part of the funding for the successful development of New Zealand’s largest shopping centre and the Trust’s flagship retail asset, Sylvia Park.

1 In accordance with the Offer Document, the conversion price was calculated as the lower of a 2% discount to the average of the daily volume weighted average price (VWAP) of the Units for the 20 business days (being 18 May 2010 to 15 June 2010 inclusive) prior to the conversion announcement date (being 16 June 2010) or $1.23 per Unit. In accordance with the conversion adjustment provisions, an adjustment to the conversion price was necessary because a record date (4 June 2010) for a distribution in respect of Units occurred during the conversion pricing period. As required, the value of the cash distribution was deducted from each of the daily VWAPs during the period 18 May 2010 to 4 June 2010 inclusive. This adjustment ensured that the conversion price calculation excluded any cash distributions not attributable to MCN holders upon conversion of the MCNs into Units on the conversion date. For further details regarding the conversion mechanism, see the Offer Document.

2 In accordance with the Offer Document, fractions of Units on conversion of the MCNs will be disregarded.

In accordance with the Offer Document, the remaining key dates associated with this event are outlined below: Event Explanation Date Cessation of trading The date on which the MCNs (NZSX Code: KIPGB) will cease to trade to facilitate the conversion into Units (NZSX Code: KIP) 5.00pm, 24 June 2010 Conversion record date The date on which the MCNs register closes to determine the holder who is entitled to receive Units upon conversion 5.00pm, 29 June 2010 Conversion date The date set for cancellation of the MCNs in exchange for new Units 5.00pm, 30 June 2010 Allotment date The date set for allotment of Units to former MCNs holders and issuance of Security Holding Notices On or about 1 July 2010

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 property portfolio is $1.85 billion. Assets include:

Key retail assets
Sylvia Park Shopping Centre Auckland
Centre Place Shopping Centre Hamilton
The Plaza Shopping Centre Palmerston North
North City Shopping Centre Porirua Northlands
Shopping Centre Christchurch <

B>Key office assets
Vero Centre Auckland
National Bank Centre Auckland
21 Pitt Street Auckland
Majestic Centre Wellington
Unisys House Wellington
44 The Terrace Wellington
50 The Terrace Wellington
PricewaterhouseCoopers Centre Christchurch

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

ENDS

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