Highlights

  • Kiwi Property Group Limited improved occupancy, rental growth, and operating profit during FY26.
  • Strategic asset sales and Capital recycling initiatives significantly strengthened the company’s Balance Sheet.
  • Major long-term projects including Sylvia Park and Drury continued progressing despite challenging market conditions.

Overview

Kiwi Property Group Limited (NZX:KPG) delivered a solid FY26 operating performance driven by higher rental income, stronger occupancy, disciplined cost management, and ongoing progress across major development projects. Net rental income rose 4.3% while adjusted funds from operations increased 8.0%, supported by positive leasing momentum and improving tenant Demand. The company also strengthened its balance sheet through strategic asset sales, including The Plaza in Palmerston North and the planned sale of ASB North Wharf. Portfolio occupancy improved to 99.0%, highlighting resilience across its premium retail and mixed-use Assets.

Although softer office valuations and lower land valuations at Drury reduced net profit after tax, management remains focused on disciplined capital allocation, portfolio enhancement, and Long-term Growth opportunities. Kiwi Property also reaffirmed its commitment to Dividend growth and strategic Investment across key development projects.

How Is Kiwi Property Improving Financial Strength and Portfolio Quality?

Kiwi Property continued strengthening its financial position during FY26 through disciplined capital recycling and operational improvements. The sale of non-core assets helped reduce gearing and improve balance-sheet flexibility, while stronger leasing activity supported rental growth across the portfolio. Occupancy levels increased significantly during the year, particularly at key office assets, reflecting improved tenant demand and leasing momentum. Management also maintained tight control over operating costs, helping offset broader economic pressures and supporting Earnings resilience. Following these improvements, S&P removed the negative outlook from Kiwi Property’s Credit rating, reinforcing investor confidence in the company’s financial stability and long-term strategy.

Why Are Sylvia Park and Drury Important to Kiwi Property’s Long-Term Growth?

Sylvia Park and Drury remain central to Kiwi Property Group Limited’s long-term growth strategy. At Sylvia Park, new retail enhancements, improved pedestrian connectivity, and additional hospitality offerings are designed to increase customer traffic and strengthen the centre’s position as a major retail destination. Meanwhile, the Drury development project continued progressing through staged land sales and infrastructure works, with several large-format retail agreements secured during FY26. Management believes these projects will support future earnings growth, improve asset quality, and unlock long-term value over time. The company also remains focused on maintaining financial discipline while selectively investing in high-quality growth opportunities.