Kiwi Property Group Limited Analysis

Overview

Kiwi Property (NZX: KPG) is the largest listed property company on the New Zealand Stock Exchange and is a member of the NZX15 Index.

Kiwi Property was formed more than 20 years ago and now proudly owns and manages a $3.0 billion portfolio of real estate, comprising some of New Zealand's best shopping centres and prime office buildings. The company's objective is to provide investors with a reliable investment in New Zealand property by targeting superior risk-adjusted returns over time through the ownership and active management of a diversified, high-quality portfolio. Kiwi Property is licensed under the Real Estate Agents Act 2008.

History

Kiwi Property was founded in 1992 and listed on the NZX in December 1993 as Kiwi Income Property Trust
In December 2013, Kiwi Income Property Trust internalised its management and, in December 2014, moved from a trust to a company structure, changing its name to Kiwi Property and its NZX Code from KIP to KPG.

To find out more, visit kp.co.nz

Performance

The following information was extracted from Kiwi Property Group Limited's full year, released on 27 May 2024:

Net rental income: $184.9m (-9.2%)
Operating profit before tax: $108.2m (-16.5%)
Net loss after tax: $2.1m (+99.1%)
Adjusted funds from operations: $99.8m (-14.3%)
Net tangible assets per share: $1.17 (-5.1%)
Full-year dividend: 5.70 cps (No change)

Kiwi Property released its annual results for the year ended 31 March 2024 (FY24) today, announcing a solid underlying operational performance and progress on key aspects of its mixed-use strategy.

Financial performance

Kiwi Property recorded net rental income of $184.9 million in FY24, down 9.2% on the year before, due to the sale of non-core assets such as Northlands and Westgate Lifestyle in recent periods. Operating profit before tax was similarly affected, declining 16.5% to $108.2 million, while adjusted funds from operations (AFFO) decreased 14.3% to $99.8 million. When viewed on a like-for-like [1] basis to enable a more accurate comparison of Kiwi Property’s underlying performance, net rental income rose 5.8% in FY24, demonstrating the company’s ability to grow revenue from its remaining assets.

Kiwi Property continued to drive leasing spreads in FY24 despite the challenging economic conditions, with total rental movement up 4.4% and new leases rising 5.3%. Leasing spreads on new office leases rose 18.7%, underpinned by success at Vero Centre over recent months.

In any given GDT Event the GDT website may display a range of results other than price, as explained:

' – ' means that the product was not offered.
‘n.s.’ (not sold) means that no product was sold.
‘n.p.’ (not published) means that product was sold at the starting price, and therefore GDT cannot publish the winning price. For an explanation of this rule, see question 9 in the "Common questions" page under "About GDT" at www.globaldairytrade.info
'n.a.' for the Average Winning Price means that no prices were available for that contract period (for the reasons above), and therefore no average price was applicable.

For clarification where GDT publishes ' – ' or ‘n.s.’ (not sold) NZX results will also display a '-' or 'n.s'.

Where the GDT website displays ‘n.p.’ (not published), NZX will display the starting price. Note that the NZX results page will not differentiate between prices that are equal to starting price or those that have exceeded starting prices.

'n.a.' for the Average Winning Price as displayed on the GDT website are not displayed on this results page.

Note that N/A in the table below means there has been no change between current and previous price.