Highlights

  • Net rental income reached NZD 102.0m, increasing 7.0% compared to prior period.
  • Conditional sales of Drury land total NZD 115m, with proceeds expected in FY27–FY29.
  • Interim dividend rose 3.7% to 2.80 cents per share, aligning with AFFO payout guidance.

Kiwi Property (NZX:KPG) released interim results for the six months ended 30 September 2025 (HY26). Net rental income increased 7.0% to NZD 102.0m. Operating profit before tax rose 11.5% to NZD 62.9m. Adjusted funds from operations (AFFO) increased 7.2% to NZD 51.9m.

Net profit after tax was NZD 9.8m, down 77.3%, due to an unrealised fair value loss of NZD 30.3m during the period. Net tangible assets per share decreased 2.2% from FY25 to NZD 1.12. Interim dividend was 2.80 cents per share, up 3.7% from the previous year.

As at 30 September 2025, the total Kiwi Property portfolio was valued at NZD 3.3bn, reflecting a fair value movement of -0.9% since 31 March 2025.

Strategic Progress

Kiwi Property has made progress across its four FY26 strategic priorities:

Balance Sheet Management - The Mackersy Large Format Retail Fund was established, seeded with Sylvia Park Lifestyle, expected to release at least NZD 53m in capital. Pro forma impact reduces gearing to 37.5%, from 38.5% at March 2025.

Rental Growth - Total rental growth, including new leases and rent reviews, was 3.5%. Office new leasing spreads were 3.4%, supported by the ASB North Wharf lease extension to 2040. Mixed-use new leasing spreads were 3.2%. Resido, the build-to-rent development at Sylvia Park, was 99% leased. Vero Centre occupancy increased to 94.3%.

Cost Control - Employment and administrative expenses decreased 5% year-on-year, excluding one-off costs. Bank debt facilities were increased by NZD 135m, used to refinance KPG040 green bond series. Weighted average interest rate decreased from 5.30% to 4.89%.

Drury Large Format Retail Land Sales - Conditional sales to Costco, Rebel Sport/Briscoes, and Harvey Norman resulted in approximately 77% of large-format retail land at Drury being conditionally sold. Proceeds are expected in FY27–FY29.

Mixed-Use Portfolio Performance

Sales across the mixed-use portfolio increased 0.2%, and foot traffic rose 1.1% in the 12 months to 30 September 2025. Second-half sales grew 1.0%. Upcoming opening of IKEA near Sylvia Park is expected to impact future consumer activity.

Fund Management and Developments

Mackersy Property’s convertible loan will convert to equity, giving Kiwi Property a 50% shareholding. The Mackersy LFR Fund may fund smaller-scale developments, including a new pedestrian plaza, an Asian supermarket at Sylvia Park, and further development of Level One at The Base.

Dividend Guidance

Full-year FY26 dividend guidance remains 5.60 cents per share, within the target payout range of 90–100% of year-end AFFO. A second-quarter cash dividend of 1.40 cents per share will be paid on 19 December 2025, bringing the interim dividend to 2.80 cents per share.

Share Price Snapshot

KPG was trading NZD 1.08 per share as of 24 November 2025.