Kermadec Property Fund has reported a 34% fall in the earnings, in its yearly report, compared with that in the previous year. But the Group has asset sales under contract.

The reduction in the earnings is the fallout of higher borrowing costs which were observed in the last 6 six months of the year hitting 8.5%.

The overlooked losses, during the year, amount to $11.9 million including the $4.9 million coming in from the revaluations of property portfolio.

The total assets now amount to $120.1 million in contrast with the $134.5 million, last year. Its net rental income has reduced from $10.6 million, in the previous year, to $9.2 million. The officials explained that the reduction in the rental income is has resulted from the reduction in occupancies and sale of buildings.

Chris Francis, Director of Augusta Funds Management said that they have managed to attain 8 new leases with an annualized increased fee of $0.9m.

"However the company also faced six lease expiries/surrenders, and one tenant failure during the year which on an annualized basis represented $1.0 million of rental income", he added.

It sold two buildings for $14.7 million. The fund utilized the money via the repayment of bank debt.