Kiwi Income raised to ‘buy’ at Craigs on ‘earnings accretive’ plan to take management inhouse

Tue, 12 Nov 2013

Nov. 12 (BusinessDesk) – Kiwi Income Property Trust was raised to ‘buy’ by brokerage Craigs Investment Partners on expectations its plans to internalise management will lift earnings and dividends, while reducing costs. Commonwealth Bank of Australia has agreed to cede management control of KIP for about $70.6 million in a transaction that has to be ratified by unitholders at a special meeting on Dec. 12. The deal is expected to be tax deductible for KIP, reducing the effective payment to about $50 million. “We view this as strongly positive...

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