Indicating the results of the upcoming Government budget, the National Property Trust has signaled that if the budget is altered, the cash distributions will decline by 5.3%.

Government, in the budget removed “depreciation deductions for buildings” and this change will be made functional from April 1 next year.

The trust in all has assets of $191.2 million by March 31 and it recorded a 2.1% elevation in the annual net distributable earnings by then. Following the tax of $13.23m, an unaudited net loss was recorded due to the negative property revaluations, the loss on sale of the properties and on interest rate because of debt reduction.

According to the trust, the Government also announced a decrease in the portfolio Investment entities rate of about 30% to 28%. It has been predicted y the trust that the market of property rental will continue to witness a bad time.

Trust stated that these two "alterations will affect property trusts in New Zealand. It specifically highlighted the disturbance the changes will create in the National Property Trust with a 5.3% slicing in cash distributions of the trust.

The new distribution scheme of manager of Trust restricts the cash distribution to about 90% of earnings. Final dividend distribution of 1.125 cents per unit is scheduled on July 2 with 18 June as record date.