Kiwi Property Group Ltd’s after-tax profit rose by less than 1% in the September half-year on pretax profit down by just under 4%.
Chair Mark Ford said: “Over the past several years, we have been actively rebalancing the composition of our property portfolio in favour of greater exposure to Auckland, the nation’s economic powerhouse. The sale of non-core assets to achieve this strategy has predictably resulted in lower rental revenue in the short term, but has placed us in an even stronger position to pursue growth opportunities for long-term benefit.”
Chief executive Clive Mackenzie added: “The portfolio is strongly positioned, with our rebalancing programme almost complete. Our portfolio is valued at $3 billion and our portfolio weighting to our preferred market of Auckland now sits at 69%.”
The company has $140 million of projects nearing completion and a further $245 million underway.
Mr Ford said: “We increasingly see the importance of developing & owning complementary mixed-use communities, such as those we are bringing to life at Sylvia Park & Drury. Large land holdings, zoned appropriately, can accommodate a variety of commercial property uses.”
Mr Mackenzie said: “For the balance of the 2019 financial year, we will be focused on completing & advancing development projects underway at Sylvia Park & Northlands, and progressing zoning outcomes for our Drury landholdings.”
The fall in funds from operations largely reflected reduced income after the sale of the Majestic Centre in Wellington & North City mall in Porirua.
- Net profit after tax up 0.9% to $48.3 million ($47.9 million)
- Income down 4.4% to $118.7 million ($124.1 million)
- Pretax profit down 3.9% to $59.2 million ($61.7 million)
- Funds from operations (non-GAAP measure) $52.3 million ($54.2 million)
- Gearing 29.4% (29.7% in March)
- Basic & diluted earnings/share down 4% to 3.39c (3.53c)
- Interim dividend up 1.5% to 3.475c/share
- Projected cash dividend for year 6.95c/share (6.85c)
- Investment portfolio down 0.4% to $3.04 billion ($3.05 billion)
- Occupancy 99.3%
- Retail occupancy 99.9%
- Retail weighted average lease term 3.8 years
- Total retail sales for 12 months up 2.4% (up 2.7% same store) to $1.7 billion
- Increase in passing rents 3.8%
- Office occupancy 97.6%
- Office weighted average lease term 10.0 years
Attribution: Company release & interim report.