Kiwi Property delivers strong financial result

NZX RELEASE
21 May 2018
Kiwi Property delivers strong financial result


Kiwi Property today announced a strong result for the year ended 31 March 2018, posting an
after-tax profit
1
of $120.1 million, driven by another record operating result as measured by funds
from operations (FFO)
2
. FFO grew by 8.2% to $111.3 million, reflecting a 5.2% lift in rental income
to $192.1 million, largely due to contributions from prior year completed developments and
strategic acquisitions.
Chair, Mark Ford, said that the result was positive for shareholders and that the Company’s
property portfolio was in excellent shape and positioned well for the future.
“In the 2018 financial year, we continued to grow revenues while improving the quality of our
investment portfolio through the sale of non-core assets, strategic acquisitions and the
commencement of new development projects. We have also improved our conservative
gearing position and executed strongly on capital management initiatives,” said Mr Ford.
A full-year dividend of 6.85 cents per share will be paid to shareholders, in line with guidance and
up from 6.75 cents per share in the prior year.
positioned for growth
“During the year, we successfully raised $157 million (net of issue costs) through a pro-rata
entitlement offer. We were pleased with the support we received from investors as this was an
important step to assist with funding our future investment and development opportunities,” said
Mr Ford.
“In February, we were delighted to give the green light to the previously foreshadowed
$223 million Galleria retail expansion at Sylvia Park, following 11 years of outstanding performance
and growth at the centre. Our vision for Sylvia Park is the creation of a world-class town centre
offering our customers exceptional retail, dining, entertainment and workplace experiences. This
latest retail expansion will consolidate the centre’s position as New Zealand’s favourite shopping
destination,” said Mr Ford.
focused execution
Chief Executive, Chris Gudgeon, said: “We currently have $370 million of developments in
progress that will continue to add significantly to both the income performance and quality of
our property portfolio.”
Sylvia Park continues to be a major focus, with highlights including:
> Our new dining offer, The Grove Dining District, which opened 100% leased in
December 2017.
> The ongoing construction and leasing of our $80 million office tower development,
No.1 Sylvia Park, anchored by insurance giant IAG. Post balance date, 6,740 sqm (five full
floors and a part floor) were leased to banking group, ANZ, taking the building to 90% leased.
> Commencement of construction of our Galleria retail expansion. The project is scheduled for
completion in mid-2020 and will feature approximately 60 new specialty retailers, a flagship
Farmers department store, international mini-majors and additional multi-deck carparking.
“At Northlands in Christchurch, we commenced construction of our vibrant new dining and
entertainment precinct, to be known as Langdons Quarter, in line with our strategy of providing
compelling dining and entertainment experiences that respond to customer demand”, said Mr
Gudgeon.

2
The Company continued its capital recycling programme with the sale of previously identified
non-core properties. The Majestic Centre was sold for $123.2 million in December 2017 and, post
balance date, an agreement to sell North City for $100 million was secured.
“Our balance sheet remains strong with gearing reducing to 29.7% as at 31 March 2018, down
from 34.5% in the prior year. A further highlight was the securing of a corporate credit rating and
the subsequent seven-year retail bond issue that raised $125 million,” said Mr Gudgeon.
strong investment portfolio performance
Kiwi Property’s investment portfolio was 99.6% occupied at year end, above its long-term
average, with a weighted average lease term of 5.3 years. The portfolio value increased to
$3.1 billion and net tangible asset backing increased to $1.40 per share.
Overall, rentals achieved through new leasing and rent reviews delivered growth of 3.5%.
Total retail sales of $1.8 billion were recorded across the retail portfolio, $1.6 billion of these from
our portfolio of seven shopping centres equating to growth of 3.9% (1.3% like-for-like) from last
year with particularly strong performances seen at Sylvia Park, The Plaza and Centre Place –
North. Positive total sales growth was recorded across most categories, with strong growth
delivered in the mini-majors, commercial services and pharmacy and wellbeing categories.
dividends and outlook
“Supportive economic and property market fundamentals, in combination with the robustness of
our property portfolio provides us with confidence the Company will continue to deliver a strong
financial performance,” said Mr Ford.
“We are projecting an increased cash dividend of 6.95 cents per share for the 2019 financial
year, absent material adverse events or unforeseen circumstances.”
“Our key focus in the year ahead will be on progressing our development projects underway at
Sylvia Park and Northlands, while also progressing our town centre vision for our development
land at Drury, South of Auckland,” said Mr Ford.
additional information
Kiwi Property has today also released an Annual Result Presentation, Annual Report, Property
Compendium and Sustainability Report which are available for download on the Company’s
website kp.co.nz/annual-result or from nzx.com.

Notes
1. The reported profit has been prepared in accordance with New Zealand generally accepted accounting
practice (GAAP) and complies with New Zealand Equivalents to International Financial Reporting
Standards. The reported profit information has been extracted from the annual financial statements
which have been the subject of an audit pursuant to the New Zealand Auditing Standards issued by the
External Reporting Board.
2. FFO is an alternative non-GAAP performance measure used by Kiwi Property to assist investors in assessing
the Company’s underlying operating performance and to determine income available for distribution.
FFO is a measure commonly used by real estate entities to describe their underlying and recurring
earnings from operations. FFO does not have a standard meaning prescribed by GAAP and therefore
may not be comparable to information presented by other entities. FFO is calculated by Kiwi Property in
accordance with the Voluntary Best Practice Guidelines issued by the Property Council of Australia (the
Guidelines). During the financial year, the Guidelines amended the method used to derive FFO to include
the amortisation of leasing fees. Kiwi Property has amended its current year FFO calculation to reflect this
change. The reported FFO information has been extracted from the Company's annual financial
statements which have been the subject of an audit pursuant to New Zealand Auditing Standards issued
by the External Reporting Board.
> Ends

3

Contact us for further information
Chris Gudgeon
Chief Executive
chris.gudgeon@kp.co.nz
+64 9 359 4011
Gavin Parker
Chief Operating Officer
gavin.parker@kp.co.nz
+64 9 359 4012

Stuart Tabuteau
Chief Financial Officer
stuart.tabuteau@kp.co.nz
+64 9 359 4025
About us
Kiwi Property (NZX: KPG) is the largest listed property company on the New Zealand Stock
Exchange and is a member of the S&P/NZX 15 Index. We’ve been around for more than 20 years
and we proudly own and manage a $3.1 billion portfolio of real estate, comprising some of New
Zealand’s best shopping centres and prime office buildings. Our 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. S&P
Global Ratings has assigned Kiwi Property a corporate credit rating of BBB (stable) and an issue
credit rating of BBB+ for each of its fixed rate senior secured bonds. Kiwi Property is licensed under
the Real Estate Agents Act 2008. To find out more, visit our website kp.co.nz

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creating
exceptional
experiences
Kiwi Property has been creating exceptional experiences
for New Zealanders for nearly two and a half decades.
As New Zealand has grown, so too have we, keeping in
step with stakeholder demand for exceptional retail
and workplace experiences.
Today, we own a $3.1 billion portfolio including some of
New Zealand’s best known and most loved buildings.
In Auckland these include the iconic Sylvia Park, the
landmark Vero Centre and ASB’s head office building at
Wynyard Quarter, and in the Waikato, The Base,
in a joint venture with Tainui.
Our property assets are more than their physical
presence; they are spaces where New Zealanders can
shop, work, connect, live and grow. By ensuring our
assets remain attractive and in demand, we are able to
provide our investors with a reliable investment in
New Zealand property, targeting superior risk-adjusted
returns over time.
We are creating exciting places to shop and work.
In this Annual Report, we feature many of the
experiences we are shaping for our tenants and
their customers.
Image to be updated

Image to be updated
01

people
We’re passionate about creating a team of exceptional
people who are well cared for and who are empowered to
deliver outstanding outcomes for our stakeholders.
planet
Our sustainability programme has been in place for more
than 15 years and is aimed at creating better environmental
outcomes whilst optimising asset performance.
profit
When you create exceptional experiences, you
create assets that are in demand, resilient and that
perform strongly through market cycles.
We deliver for our stakeholders by taking a
holistic approach to investment management,
focusing on people, planet and profit.
Throughout this report you will read how the activities
Kiwi Property has undertaken during the 2018 financial
year have fulfilled these three elements.
people
profitplanet
kiwi property
annual report 2018
02

contents
kiwi
creating exceptional experiences
for New Zealanders
IFC
property
our destinations
PG 08
group
our strategy and results
PG 26
contents
2018 annual reporting suite
In conjunction with this Annual Report, Kiwi Property has released a
Property Compendium, Sustainability Report and Annual Results
Presentation which form part of our 2018 annual reporting suite.
All documents are available on our website,
kp.co.nz/annual-result
annual meeting
The 2018 annual meeting of
Kiwi Property shareholders will be held at
10.00am on Thursday, 7 June 2018.  
Level 4, Lounge West, South Stand, Eden Park
Gate G, 42 Reimers Avenue, Kingsland, Auckland
feedback
We welcome your questions and value your
feedback about our reporting approach.
Please contact us at info@kp.co.nz
Find us at linkedin.com/company/
kiwi-property-group
03

our shopping centres offer a
compelling retail mix and exceptional
social experiences
The rise of the digital age has brought with it an
increasing need for people to connect more in
real world environments.
In our shopping centres across New Zealand,
we are working tirelessly to deliver exceptional
experiences that bring Kiwis together – through
improved retail services, exciting family, community
and entertainment events, and by delivering
in-demand retailers, exciting pop-up attractions
and outstanding food choices.
By delivering engaging environments for
New Zealanders to shop, we attract high-quality
retailers, stay ahead of the competition, generate
increased foot traffic and produce high-performing
sales environments that ultimately provide better
returns for our investors.
On pages 10-15 and 20-25, read examples of
how our retail strategy is delivering exceptional
new experiences for our shopping centre
customers and retail tenants.
to
toshopshop
exceptional
places
Artist’s impression
kiwi property
annual report 2018
04

05

our office buildings connect people
beyond a simple place to work
As the lines between work and play continue
to blur, businesses are demanding more from
their workplaces than ever before.
Kiwi Property partners with our office tenants
to create contemporary spaces that are fit for
purpose and which focus on productivity,
engagement and connectivity.
Concierge services, resort-style end-of-trip facilities
and electric bike charging stations are just the start.
By delivering engaging workplace environments,
we are meeting the demands of our business
tenants and maintaining high occupancy levels
in our office buildings, thereby providing reliable
returns for our investors.
On pages 16-19, read examples of how our office
strategy is delivering exceptional new experiences
for our office tenants and customers.
totoworkwork
exceptional
places
kiwi property
annual report 2018
06

07

p
pe r
r
o
p
pe
t yt y
r
r
o
kiwi property
annual report 2018
08

Kiwi Property has been part of the New Zealand
landscape since 1993. We’ve developed
best-in-class shopping centres and landmark
office towers, and we increasingly see
ourselves as town centre investors.
But much more than that, we’ve created wonderful spaces that
New Zealanders can simply enjoy.
Each year, our shopping centres attract over 50 million visitors who
spend $1.8 billion on food, entertainment, retail goods and personal
services. Our office buildings provide great workplaces for over
6,000 New Zealanders, and we deliver a broad range of programmes
to support the prosperity and wellbeing of the communities
in which we operate.
Our properties are diverse environments that connect and engage
people through great experiences. They are spaces where
communities come together.
When we create great experiences, we seek to unite our
stakeholders, build brand preference and loyalty, and drive better
outcomes for our shareholders.
Today, we proudly own and manage $3.1 billion in direct
property investments in a portfolio that comprises some
of New Zealand’s best retail and office assets. We also manage
over $370 million of property on behalf of third parties.
Across our portfolio, we have more than $370 million of
development projects underway to deliver even better
environments for our tenants and customers.
In this section of the report you can read more about some of the
activities we have been working on over the past year.
wonderful
spaces
Find out more about our properties
in our Property Compendium which
can be found on our website,
kp.co.nz/annual-result
09

Sylvia Park: Auckland’s
retail powerhouse
Sylvia Park continues to be a great
New Zealand retail success story. Growing
in value by over $285 million since opening
in 2006, the centre was last year named
New Zealand’s favourite shopping centre
to visit in a nationwide survey conducted
by Nielsen
1
.
Since the 2009 financial year, annual retail
sales at the centre have grown by nearly
$200 million to $551 million and our net
income has grown by more than $14 million
to over $41 million per annum. Our retailers
have seen customer numbers grow to more
than 15 million every year.
By bringing the right stores and operators
to Sylvia Park, we have created a highly
productive retail environment.
We are positioning the centre for the future
by constantly evolving our retail mix in
response to consumer preferences,
focusing on high performing stores and
in-demand retailers.
Sylvia Park is currently home to more than
200 retailers. Some of the great names
we have introduced to Sylvia Park in recent
times include New Zealand’s first ever
stores for fashion giants H&M and Zara,
the homewares retailer Adairs, beauty
specialist Kiehls, apparel retailer Seed,
and outstanding food merchants including
PappaRich and a new Malaysian street food
venture, Hawker & Roll.
In the past year, we have added to the
shopper experience with the addition
of The Grove Dining District. The Grove
Dining District provides a contemporary
alfresco dining experience featuring
ten restaurants and a new landscaped
outdoor and entertainment area.
This year we will complete a ~600 space
centrally located multi-storey carpark
adding further amenity to the centre for
our customers.
We are thrilled to have recently
commenced works on our Galleria retail
expansion project. Read more on this
exciting project on page 12. It’s all part of
our commitment to deliver the spaces
where New Zealanders want to be.
“Sylvia Park has been a runaway
success since we first opened its
doors in 2006.”
– Chris Gudgeon, Chief Executive
1. In 2017, Sylvia Park was named New Zealand’s favourite shopping centre to visit in a nationwide Nielsen
survey. The survey was conducted by Nielsen from 20 February to 13 March 2017. Nielsen had a sample size
of 2,507 interviews, with a predicted margin error of +/- 2.0% at the 96% confidence level.
l
l
y
y
s
s
a
a
ii
v
v
kiwi property
annual report 2018
10

$287m
value gain
cagr
+
4.9%
FY07FY08FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18
$414
$835
capital expenditure, value and value gain ($m)
cumulative value gaincumulative book value
net operating income ($m)
(excluding property management fees)
FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18
$27.1
$41.6
specialty sales productivity ($/sqm)
FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18
$7,200
$13,400
moving annual turnover ($m)
FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18
$353
$551
cagr
5.1%
cagr
7.1%
11

we’re taking
sylvia park to
the next level
“Our shoppers have been asking for more retail
brands in one easy location and we are excited to
be able to deliver for them. We expect to bring a
host of new to New Zealand brands to Sylvia Park,
as well as a great mix of local favourites.”
– Ian Passau,
GM Development
Artist’s impression
kiwi property
annual report 2018
12

13

leven years after we first opened its
doors, New Zealand’s favourite
shopping centre is about to get even
better. We have given the green light
to a $223 million retail expansion at Sylvia Park.
In response to customer demand, our Galleria retail
expansion will add approximately 60 new retailers
and 18,000 sqm of retail space to the centre.
Key features include:
— a new two-level, 8,100 sqm flagship Farmers
department store
— new i
nternational brands and concept stores,
including selected retailers from Sylvia Park’s
current waiting list of specialty tenants
— a new generation, sophisticated dining
precinct delivering quality casual dining and
chef-inspired concepts, and
— a new multi-deck carpark, offering approximately
900 carparks, with direct access to the Galleria,
taking the total number of carparks at the centre
to around 5,000.
Sylvia Park, located 10km south of the Auckland
CBD, is New Zealand’s largest shopping centre and,
on completion of the expansion project, will have
total retail floor space of over 90,000 sqm.
This latest retail expansion will further consolidate
the centre’s position as New Zealand’s favourite
shopping centre and is the latest in a suite of
projects, all contributing to our vision to deliver
a world-class town centre at Sylvia Park.
Since opening New Zealand’s first H&M and
Zara stores in October 2016 we successfully
opened The Grove Dining District in
December 2017, featuring an expanded range
of contemporary dining experiences.
By mid-2018 we will complete construction of
our new 10-level office building, bringing
approximately 1,000 office workers to the site,
and by the end of this year we will complete our
new five-level, ~600 space, central carpark building.
project details
We have executed a fixed price lump sum contract
for the Galleria project with our builder, Naylor Love,
which provides construction cost certainty for our
investors. Works commenced in March of this year
and we look forward to opening the doors to
customers in mid-2020.
The projected value of Sylvia Park on completion
of the Galleria project has been assessed by
independent valuer CBRE at $1.12 billion.
The project is being debt funded from existing
facilities and is expected to provide an initial net
incremental income yield on capital expenditure of
5.7%, growing to 6.2% by year three and an internal
rate of return in excess of 10%.
Further information about Sylvia Park can be
obtained from the centre’s website sylviapark.org.
e
e
people We will create Auckland’s largest
enclosed retail centre, delivering a world-class
shopping experience while continuing to provide
exceptional community programmes including
KiwiFit and KiwiBubs.
planet Sylvia Park has a number of
environmental programmes in place including
rainwater harvesting for grey water, solar panels
for electricity generation and recycling
programmes for waste management.
During construction of the Galleria, wherever
possible, our main contractor will seek to
reuse and recycle construction materials,
minimise waste, and source local materials
and sub-contractors.
profit The Galleria project is expected to
provide an initial net incremental income
yield on capital expenditure of 5.7%, growing
to 6.2% by year three, a developmental
margin of $20 million and an internal rate of
return in excess of 10
%.
kiwi property
annual report 2018
14

Artist’s impressions
15

Tell us about IAG. Who are you and
what do you do in New Zealand?
IAG is the leading general insurance
provider in New Zealand. Insurance
products are sold directly to customers
predominantly under the AMI and State
brands, and through intermediaries
(insurance brokers and authorised
representatives) predominantly under
the NZI and Lumley brands. Personal
lines and commercial products are also
distributed under third party brands by
IAG’s corporate partners, including large
financial institutions (ASB, BNZ, Westpac).
IAG employs about 3,500 staff housed
in 81 locations throughout New Zealand.
What attracted IAG to Sylvia Park as a
destination for your business?
Location, amenity and access:
— the location – the site is accessible,
particularly for staff living in East
and South Auckland
— am
enity – a shopping centre and
gym on site, and
— access to public transport – the site
has its own train station and bus links.
How many employees will you house
at Sylvia Park and what functions will
they perform?
About 350 staff supporting customers
with insurance sales, claims management
and various other support functions, for
example: loss adjusting and motor
vehicle assessing.
How would you describe the
IAG culture?
At IAG we encourage staff to live our
Spirit: Closer, Braver, Faster.
What does workplace flexibility
mean at IAG?
Enabling staff to have more choice in
where, when, with who and how they
will work. Staff may work at our new
hubs like Sylvia Park or from home,
or a mixture of both. This also extends
to flexibility on hours or days of the
week worked. Within our office there
is a choice of work settings, including
normal desks which anyone can use,
collaborative spaces and focus areas.
How have your workplace
environments changed over time?
What has been the biggest driver
of change?
We have been operating in an open
plan environment for some time, with
standard desking and a choice of meeting
rooms. Each person has their own desk.
We are now moving to an environment
where most people will not have a
designated desk but work in zones and
choose their work setting depending
on their work. For example, if working
on a detailed document or presentation
then you may choose to work in a focus
area, or if working on a project you may
choose to sit close to other project
members around one table.
The drivers of change are:
— to m
eet the needs of teams that are
continually changing in size
— th
e increasing need to support project
activities, and
— recognition that for improved
productivity people need more choice
in alternative settings to work in.
It is also very inefficient from a cost
perspective to have designated desks
not being utilised while people are on
leave or in lengthy meetings. Generally,
we can operate allowing for an 80%
desk-to-staff ratio, as long as we have
some settings that support peak times
of use. Technology through use of WiFi
and mobile devices has helped support
this new environment.
“Thanks to the hard work of
our commercial and development
teams, high-quality corporates
ANZ and IAG, together with
the ground floor retailers, will
occupy around 90% of the office
building, providing our investors
with a predictable, long-term
income stream.”
– Michael Holloway, GM Commercial,
Kiwi Property
sylvia park prepares to
welcome its first office tenants
Kiwi Property will soon welcome insurer IAG as an anchor tenant
to its new No.1 Sylvia Park office building, delivering a new home
for IAG’s support team and a long-term rental income stream for
Kiwi Property. We caught up with Tim Griffith, National Property &
Administration Manager, to discuss IAG’s new life at No.1 Sylvia Park.
kiwi property
annual report 2018
16

Tim Griffith, National Property & Administration Manager, IAG
What was your inspiration for your
fit-out? What did you hope to achieve
for the business?
A flexible environment that accommodates
changing numbers of staff and enables staff
choice. We are an insurance company and
at times need to support various events
(weather or earthquake) which the more
flexible workspace will support.
What are you most looking forward
to at Sylvia Park?
Bringing our different teams together,
enabling a mix of experiences from our
many different brands and staff. Staff who
enjoy shopping will be looking forward to
having New Zealand’s largest shopping
experience next to their workspace.
Artist’s impression of No.1 Sylvia Park
people Our office tenants will enjoy
outstanding end-of-trip facilities, bicycle parking
and all the amenity of a shopping centre.
Our office tenants will also enjoy exceptional
public transport access, with Sylvia Park
having its own railway station and bus links.
planet No.1 Sylvia Park has achieved a
5-star Green Star design rating, which means
the building is highly resource efficient.
profit Following ANZ’s full occupation, the
project is expected to yield 7.4% with an
internal rate of return in excess of 9.0%.
17

Financial services corporate Suncorp New Zealand – best known locally
for its Asteron Life and Vero Insurance brands – has been a mainstay tenant
at Kiwi Property’s Vero Centre since it first opened in 2000. A major shift
in business strategy meant an equally major rethink on how it housed
its New Zealand head office, leading to a spectacular upgrade
of its Vero Centre premises.
vero centre –
realising suncorp’s
cut-through vision
Paul Smeaton (CEO) and Catherine Dixon (Executive General Manager, People
Experience), Suncorp and Chris Gudgeon, Chief Executive, Kiwi Property
kiwi property
annual report 2018
18

c
c
atherine Dixon, Suncorp’s
Executive General Manager,
People Experience,
remembers clearly the
hurdles faced by Suncorp New Zealand
in bringing its life and general insurance
businesses together.
“At the beginning, we still very clearly
had a life business and a general
insurance business; our Asteron Life
business was ‘blue’ and our general
insurance business, being Vero
Insurance, was ‘red’,” she recalled.
“The sense of belonging to one brand
had not really come to fruition. We had
pulled everyone together but we didn’t
have a single identity. With our teams still
sitting in areas defined by our market
brands, we weren’t using our space
efficiently, so used our lease renewal
as an opportunity to really look at the
way we work.”
That’s when Suncorp approached
Kiwi Property with a bold vision to bring
their united organisation to life, at the
same time seeking to change the way
many of the Suncorp teams worked
to produce higher collaboration,
productivity and connectivity.
Suncorp’s Vero Centre head office
houses around 800 employees, from
senior management to those in insurance
assessment, support and customer
service. In the company’s previous
environment, teams were assigned
spaces within floors, but Suncorp
wanted even greater workplace flexibility.
“We wanted to be much more fluid in
the way we worked. We recognised that
we needed to work differently to create
greater collaboration...and one of the
ways we could achieve that was by having
consecutive office floors connected by an
internal staircase,” said Ms Dixon.
“The way our people work really does
depend on their role: we have those
who are in our contact centre where they
need a really clear ergonomic work
station that is well set up with good
technology; those who are a little more
fluid, who move around from time to
time, such as team leaders; and those
people who work far more flexibly.
“We also recognised that not everyone
is going to be in the building at the same
time. We have assessors and sales teams
out on the road and a large number
of people who need or want to work
flexibly and need to be well connected by
technology from home.”
Out of this recognition grew a new
workplace mandate: improved
technology, agile working environments,
inter-floor connectivity, and a mix of
formal and informal spaces for people
to meet and collaborate.
“Kiwi Property’s support in achieving this
was absolutely critical. They’ve been a
truly fantastic partner to work with, not
just providing us with decant space so we
could undertake the refurbishment and
cut through the floors while still
operating, but in trusting and helping to
realise our vision, the centrepiece of
which is a very beautiful staircase, which
allows our people to easily connect and
collaborate,” she said.
The staircase, is in itself, an
engineering spectacle; over
140 tonnes of concrete were
removed from four floors,
replaced by 40 tonnes of steel.
"Technology was another huge enabler
of our workplace vision. With over 800
people working in this building, 300 in
different parts of New Zealand and
colleagues in Australia, India and the
Philippines, technology was key to ensuring
a high level of connectivity.
Through this redevelopment we have been
able to take away the ‘red’ and the ‘blue’
and unite under a single Suncorp brand;
our ’go to market’ brands are there, but
you would be hard placed to tell now who
in our office works under which brand.
That’s exactly what we wanted to achieve,”
said Ms Dixon.
The final floor was occupied in April 2018.
While Suncorp is still getting used to
its new environment, Ms Dixon said
the immediate feedback was
overwhelmingly positive.
“There are a lot more conversations going
on within the business, and you see more
people naturally congregating in small
groups to catch up and to deal with issues,
rather than setting up formal meetings,”
said Ms Dixon.
“Kiwi Property’s upgrade to the lobby has
also facilitated our shift to more mobile
working. Our people use it a lot. You would
never go to the lobby without seeing
Suncorp people having a meeting with
internal and external people,” said Ms Dixon
“And our people love all the new facilities,
especially those who cycle to work or go
to the gym.”
How are the staff adapting to an agile
working environment?
"We knew that this was going to be a big
shift for our people, so we had a change
strategy in place to help everyone settle
into our new workplace. We also ran
development programmes for leaders on
how to lead teams who are dispersed or
working in new ways. It’s a new way of
thinking for some," said Ms Dixon.
"It’s fair to say that some took to it like
ducks to water and others are working
their way through it."
What’s next for Suncorp?
“There is always a danger that, once things
are in place, everyone relaxes and nothing
happens after that. We have to be proactive
and check how it is going. We have a team
of people – our floor champions – plus our
real estate and HR people, who are
continuing to work with teams to ensure
they feel supported in their environment
and empowered to continuously improve
our workspace culture."
Suncorp have also installed a new
system, Serraview, to help employees
locate both people and available
workstations. It will also allow them to
monitor utilisation, and improve the
effectiveness of the workspace over time.
Paul Smeaton,
Suncorp New Zealand CEO
As founding tenants, Suncorp
New Zealand has enjoyed a long and
proud association with Kiwi Property
and the Vero Centre.
Two years ago, Suncorp New Zealand
embarked on a journey to create an
inspiring new workplace so our people
could thrive.
Our new home is a transformative
space that provides our people with
different options, depending on how
they choose to work. I was thrilled to
share our official opening of it last
month with Ngāti Whātua Ōrākei, the
mana whenua of Tāmaki Makaurau,
who brought to life for us their rich
history and connection with the area.
I look forward to the next stage of our
journey in the Vero Centre.
19

Is it possible that the modern lifestyle destination will drop the
four-letter word M.A.L.L. as it reinvents itself as a mixed-use
offering featuring food, hospitality, entertainment and other
experiential asset-growth segments?
Looking across New Zealand and the world, it is clear our
shopping centres, malls, retail precincts – whatever you want
to call them – are no longer single-purpose shopping malls,
they are mixed-use spaces offering so much more than
product-focused retail.
Changing customer needs and behaviours bring new
opportunities to our lifestyle destinations through food,
hospitality and entertainment. The ever-changing demands
of consumers is one of the biggest concerns our clients
have as they seek to tailor buildings, spaces and experiences
fit for the modern lifestyle. Those consumer behaviours are
constantly evolving. Reacting and responding to global
trends and individual needs, consumers now demand a
highly customised lifestyle. As people seek more ways to
connect in real time and extend their social experiences,
food is a big component of this.
As advisors to the retail industry, we are witnessing
a number of important changes in the sector:
The shopping centre is now a food and
hospitality destination.
Vegan and vegetarian options are growing fast
and millennials are demanding quality and choice –
fast food is no longer the go-to food.
Fresh food markets are continuing to grow in
New Zealand and overseas.
Entertainment will continue to grow as food and
hospitality increases.
The evening economy is growing and will
continue to do so.
Home delivery for food will evolve and include more
choices in beverages and desserts.
Food tenancies will grow sales by focusing on home,
office and venue deliveries.
Shopping centres will be defined by their food and
hospitality credibility.
Hospitality groups are now replacing Mum and Pop
fast food operators.
Fast food operators are elevating their offer to
introduce table service.
Quick service operators will offer table service and
alcohol as part of their strive to elevate service and
maximise average spend.
Beautiful spaces are now the norm, not the exception.
“Reacting and responding to global trends
and individual needs, consumers now
demand a highly customised lifestyle.”
– Francis Loughran, Founder and Managing
Director of Future Food
navigating the new
food frontier
At Kiwi Property, we’ve been actively addressing the surge in demand for food experiences, reflected
by the recent delivery of our dining lanes, The Brickworks and The Grove Dining District, at LynnMall and
Sylvia Park. It’s also reflected in our remixing efforts across our retail portfolio and in developments,
such as the new Langdons Quarter contemporary food precinct at Northlands and the sophisticated
casual dining experience within the Galleria retail project at Sylvia Park.
We asked our independent food advisor, Francis Loughran, Founder and Managing Director of Future
Food, why he believes food is reshaping the shopping centre environment. He had this to say:
Food is fast becoming the new retail frontier as people across the
world seek dining experiences to add to their social calendars.
kiwi property
annual report 2018
20

people Kiwi Property has increased dining
and entertainment options for New Zealand
shoppers in step with customer demand.
Examples include our new outdoor dining lanes,
The Grove Dining District at Sylvia Park and
The Brickworks at LynnMall and our
development of the new Northlands’ food
precinct, Langdons Quarter.
planet With an increased food offer comes
the potential for increased waste to landfill.
Examples of initiatives we have in place across
our portfolio to divert waste from landfill include:
— turning coffee grounds waste to compost,
which is used by community gardens for
growing fresh fruit and vegetables
— waste sorting to ensure that, where possible,
items are recycled, and
— encouraging our retailers to use paper rather
than plastic straws.
profit In FY18, one-third of all new lease
deals across our shopping centre portfolio
were to food tenants. Half of these were new
to the portfolio.
21

We’re excited that HOYTS has agreed to provide an
outstanding cinema offer to Northlands’ moviegoers for
another 15 years – tell us about your exciting new fit-out.
It is a cinema experience unlike anything else available in
Christchurch. We have taken cinema-going to the next level!
HOYTS Northlands is now a fully-licensed cinema featuring
HOYTS powered recliners. Every standard seat in the entire
complex is a recliner, so guests can put their feet up, kick back
and relax to enjoy their movie.
What do you think will excite your audiences the
most about your new fit-out?
We started our design phase with our “EXPERIENCE MORE”
brand promise in mind, so have approached the site with
comfort and guest experience at the heart of our offer. Our
powered recliners are built with more room to relax and more
comfort overall, so our guests will love heading to the movies.
We have had fantastic feedback from our other recliner sites
with guests sharing their love for the new experience, “The new
seats are awesome! So comfortable and the best way to watch
a movie. Nice work HOYTS!” There really is no better way to
experience a movie at the cinema.
Are Kiwi moviegoers any different to global audiences?
Kiwis, like all cinemagoers around the world, love a great movie.
What makes New Zealand such a wonderful market is the love
and support for local product. We often see Kiwi movies outdo
the Hollywood blockbusters at the box office – that is HUGE!
It’s great to see Kiwi moviegoers get behind local talent.
It’s actually a very rare thing in many markets.
What’s the biggest change to occur in cinemas
over the past 20 years?
There have been so many changes but they’ve all led to industry
improvements. Digital cinema changed the way movies could
be viewed and allowed for more cinemas to have access to
great films. The whole entertainment experience at the cinema
has changed, particularly at HOYTS where we have opted to
move on from the traditional upright cinema seats and a typical
food and beverage option that’s just a soft drink and popcorn.
Instead, we’ve stuck to our mission to innovate, create and
challenge the normal cinema experience by putting in powered
recliner seats more comfortable than anything you can imagine
as well as adding in a fully licensed bar with food offering.
The cinema has become a complete entertainment experience.
What’s driving that change?
Technology has played a huge part in this. The cinema
experience we only dreamed of a few years ago is now a reality
thanks to innovations in the technology space. It’s a very
exciting time to be in this industry.
Thinking about the entire cinema experience, what is always
a sure-fire hit with moviegoers?
Great movies and great experiences. While we can’t control
what movies get made, we can make sure our guests have an
outstanding experience when they visit us. This is why we are
refurbishing our network of cinemas and continually challenging
ourselves to create the best experience possible; this includes
our customer service as well as our physical cinema space.
food and film:
northlands receives an
entertainment makeover
Currently under construction are our 13 new food tenancies, including two new external
restaurants, along with a contemporary refurbishment from cinema operator HOYTS.
HOYTS has just unveiled a dazzling refurbishment. We asked Tyrone Dodds,
General Manager Property and Development for HOYTS, what Northlands moviegoers
can look forward to at the new-look HOYTS.
Northlands shoppers are in for a treat with the creation of Langdons Quarter,
a vibrant new dining and entertainment precinct.
“As more Kiwis seek spaces to socialise and
interact in their daily lives, we are increasing our
food and entertainment offers across our portfolio.”
– Greg Tolley, Development Manager, Kiwi Property
kiwi property
annual report 2018
22

people Northlands’ shoppers will now be
able to experience a first-class cinema offer,
combined with a modernised food offer and
outdoor dining options.
planet As part of our redevelopment, we
will also be investing $6.8 million in seismic
strengthening activities as we seek higher asset
performance in a seismically active region.
profit The Langdons Quarter dining
precinct is due to open to our customers
in November 2018, with 62% of the food offer
and dining tenancies committed.
The newly refurbished HOYTS Northlands
opened its doors to customers in May 2018.
We are targeting a 6.0% initial yield on
non-seismic project cost, and a target
10-year internal rate of return of 8.0%.
What has been the inspiration for your fit-out?
Our guests are always our inspiration; how can we
make it a more enjoyable experience – give them
more room, more comfort.
What’s the best night to visit HOYTS
Northlands and why?
That actually isn’t an easy answer! The experience
is going to be fantastic any day or night of the
week, so it truly does come down to what the
guest prefers. What we typically see is that our
teen market likes the weekend nights, families
enjoy the day time as they entertain their children,
parents/carers with babies enjoy the weekdays
with our Prams at the Pix sessions, our retired or
shift-working audience tends to visit during
weekdays and of course an opening night of
a big blockbuster movie is always popular for
those who want to see it before anyone else.
We always aim to provide our audiences with
a diversity of content, so any day of the week
is a good day to visit us.
What movie are you most looking forward
to this year?
There are some outstanding movies coming
out this year. I am really looking forward to
Deadpool 2 which opened on 17 May just after
the completion of the HOYTS Northlands
makeover. My kids and I are also looking
forward to Incredibles 2 on 14 June.
Tyrone Dodds, General Manager Property and Development for HOYTS
23

fresh, tasty and vibrant:
hawker & roll debuts
at sylvia park
Having wowed New Zealanders with the Malaysian flavours of
his acclaimed Madam Woo restaurants, Josh Emett is inspiring Sylvia Park
shoppers with his new casual eatery, Hawker & Roll.
In another superb collaboration with business partner and CEO, Fleur Caulton, Hawker & Roll
is taking diners by storm with its fresh, tasty and vibrant Malaysian street food-style fare.
We caught up with Josh to talk about food, business and his new Sylvia Park venture.
Josh Emett and Fleur Caulton, Hawker & Roll
kiwi property
annual report 2018
24

You’ve partnered with Fleur Caulton to
create the Mayfare Group. What is it
that brought you together and keeps
you together?
Both Fleur and I are passionate about
good food, good cuisine, and excellent
service. We both grew up surrounded
by food and in restaurants, so it’s a space
that we both feel very comfortable in and
committed to. It’s also wonderful working
together with Fleur because she’s a
passionate Kiwi and firmly believes in
supporting New Zealand industry
whenever possible.
Madam Woo has been a runaway
success in New Zealand; what led you
to create Hawker & Roll?
Madam Woo is recognised as one of the
best restaurants in New Zealand, with the
flagship location in Queenstown recently
making the Cuisine Good Food Awards
Short List for 2017. Fleur and I were eager
to adapt the much-loved menu into a
format that can reach a broader audience.
What attracted you to Sylvia Park?
When considering a location for our
first Hawker & Roll, we wanted it to be
Auckland, and Sylvia Park felt like a
natural fit because of the new restaurant
precinct, The Grove Dining District,
which opened in December 2017.
With renovations underway, Sylvia Park
is set to become New Zealand’s leading
destination for international retail brands,
which is exactly the backdrop we wanted
for Hawker & Roll.
What can diners expect at
Hawker & Roll?
Guests who dine at Hawker & Roll are
welcomed with an energetic and lively
atmosphere, surrounded by Asian-inspired
décor that creates the perfect backdrop
for a relaxed meet up with friends or
family. Hawker & Roll offers more options
and flavours of the hawker roll currently
available at Madam Woo. The menu also
includes a variety of healthy sides and
add-ons, as well as a selection of grab
and go options for those in a rush.
What excites you most about food?
The hawker roll is a crowd favourite;
people started raving about it from the
moment we opened our doors. But we
didn’t want to stop there: the hospitality
industry is all about being innovative, so
we thought, we have this well-loved dish,
how can we make it even better? That’s
the most exciting thing about food to me:
how we can always build on what’s been
done before.
How do you keep your menus fresh
and exciting? From where or from
whom do you draw your inspiration?
Travel. Each year we take a group of staff
from Madam Woo to Malaysia so they can
constantly feel re-inspired by the cuisine.
It’s amazing how getting out of your
comfort zone and trying different flavours
and food combinations can inspire you in
the kitchen.
If you could have a long lunch in one
of your restaurants with anyone at all,
who would it be?
Roger Federer, he is the man. He has
eaten at restaurants I have run before but
I have always left him in peace.
What’s the biggest business
challenge you’ve faced? What did
you learn from it?
Learning how to balance work and
home life. It took me a good few years
to figure out that you can’t have one
without the other.
What ingredient are you never without
in your own kitchen?
Eggs – a key ingredient in so many things
from savoury to sweet. There are always
avocados as well.
What’s next for the Mayfare Group?
With this new fast-casual format, the idea
is to have the Sylvia Park location be the
first of many. We’re really excited about
opening our second Hawker & Roll in
Queenstown very soon. Aside from that
we always have our heads down and
focused on all our businesses to make
sure they are running like clockwork.
“Delivering exciting new
experiences and great operators
is what makes Kiwi Property so
successful – we’re listening to
our customers and delivering.”
– Aubrey Cheng, Manager Retail
Leasing, Kiwi Property
25

g
up
r
o
g
u p
r
o
kiwi property
annual report 2018
26

we are
kiwi property
long-term
total returns
>9%
per annum
our vision
to deliver New Zealand’s best retail and workplace experiences
our investment strategy
we invest in a diversified portfolio of retail
and office assets that are expected to
outperform by consistently attracting high
levels of tenant demand
our goals
our strategy enablers
our values
our people-oriented culture is proudly built on
excellence, leadership and doing what’s right
our objective
to provide investors with a reliable investment
in New Zealand property through the
ownership and active management of a
diversified high-quality portfolio
pre-tax funds from operations
per share growth
>2%
per annum
we add value
we acquire, develop and
divest property assets to
optimise value
we maintain a strong
balance sheet
we focus on maintaining a
strong financial position with
conservative gearing
we are active managers
we seek to optimise asset
performance through intensive
asset management
we leadwe have a passion
for excellence
we do
what’s right
we’re people-
people
27
results

our core portfolio
we focus on the growth and enhancement
of a core investment property portfolio
we have a strong bias to Auckland
we favour Auckland given its superior prospects for economic,
population and employment growth
we have a strong retail bias
we target
— prominent regional shopping centres
— large format retail centres
that are in
— the ’golden triangle’, predominantly Auckland (in particular
locations favoured by the Auckland Unitary Plan) and the Waikato
— regions outside of Auckland with positive growth prospects
our office portfolio
we target
—prime-grade assets in Auckland
— assets in Wellington that attract
long-term leases to the Crown
third party management
we also manage properties for third parties and joint owners to diversify
our revenue streams and leverage our management platform
kiwi property
annual report 2018
28

office
buildings
shopping
centres
large format
centres
$1.9b
6 properties in
Auckland
$301m
1
3 properties in
Wellington
$262m
2 properties in
Hamilton
$207m
1 property in
Palmerston North
$240m
1 property in
Christchurch
1. On 11 April 2018, Kiwi Property entered into an unconditional agreement for the sale of North City.
The asset is recorded at its net sale price and settlement is expected to occur no later than July 2018.
in addition to our core portfolio, we hold other
properties and development land with a combined
value of over $140 million
29
results

This annual report is dated 18 May 2018
and is signed on behalf of the board by:
MARK FORD
CHAIR
MARY JANE DALY
CHAIR OF THE AUDIT
AND RISK COMMITTEE
K E Y DATE S
7 June 2018
annual meeting of shareholders
19 June 2018
KPG030 (2024 maturity) bond interest payment
21 June 2018
FY18 final dividend payment
20 August 2018
KPG010 (2021 maturity) bond interest payment
7 September 2018
KPG020 (2023 maturity) bond interest payment
19 November 2018
FY19 interim result announcement
19 December 2018
FY19 interim dividend payment
KPG030 (2024 maturity) bond interest payment
kiwi property
annual report 2018
30

contents
results
PG 32
financials
delivering on strategy
PG 62
five-year summary
PG 64
financial statements
PG 67
notes to financials
PG 73
corporate governance
PG 101
other investor
information
remuner
ation report
PG 118
other shareholder information
PG 124
directory
PG 131
31
results

letter from the chair
Mark Ford, Chair
kiwi property
annual report 2018
32
chair’s report

target
long-term
total returns
>9%
per annum
pre-tax funds from operations
per share growth
>2%
per annum
achieved
long-term
total returns
9.3%
2017: 9.7% per annum
pre-tax funds from operations
per share growth
-
2.5%
2017: 12.5% per annum
disciplined
investment strategy
Dear shareholders
Welcome to our 2018 annual report.
I am pleased to report that Kiwi Property has again delivered a positive result for shareholders
and that our property portfolio is in excellent shape and positioned well for the future. It is a
direct result of the disciplined and consistent implementation of our investment strategy over
many years that puts us in our current position of strength. Property is a long-dated asset class
and successful property companies focus on the long term.
As always, we remain focused on our objective of providing investors with a reliable investment
in property. We continued to meet our shareholder goals by delivering long-term total returns
of 9.3% per annum, in excess of our 9% target. Due to an increased number of shares on issue
following the equity raise in July 2017 and the sale of a non-core asset, we were below our
target pre-tax funds from operations per share growth of greater than 2%, achieving -2.5% per
annum for the latest financial year, compared with +12.5% per annum for the prior year.
Undertaking this equity raise in July 2017 was an important step to assist us with funding our
future investment and development opportunities. We were pleased with the support we
received from you, our investors, raising net proceeds of $157 million.
In February, we were delighted to give the green light to the previously foreshadowed
$223 million Galleria retail expansion of Sylvia Park, following 11 years of outstanding
performance and growth at the centre. The proceeds from the equity raise are being
applied to funding this development. Our vision for Sylvia Park is the creation of a
world-class town centre, offering our customers exceptional retail, dining, entertainment
and workplace experiences. This latest retail expansion will consolidate the centre’s
position as New Zealand’s favourite shopping destination.
You can read more about our projects at Sylvia Park, together with
a full update on the financial and operating highlights for the year,
in the report from our Chief Executive, Chris Gudgeon,
commencing on page 38.
33
results

people, planet and profit
Your board has maintained a steadfast commitment to environmental, social
and governance matters, which we refer to as our focus on ‘people, planet and profit’
(turn to page 02 to read more).
This year, we are releasing our 2018 Sustainability Report alongside our Annual Report.
Like many companies, our sustainability programme began with a focus on implementing
environmental initiatives that would reduce operating costs and allow us to tread more lightly
on this planet. Today, more than 15 years later, we are increasingly focused on engagement that
brings us closer to our communities, builds better social experiences and rewards, produces a
strong corporate culture and ensures our investments are enduring. I encourage you to read
our Sustainability Report which you can download from our website.

The Sustainability Report is available on our website,
kp.co.nz/annual-result
As always, we are committed to ensuring the Company adheres to best practice corporate
governance principles and high levels of ethical standards. During the year, we adopted all
of the NZX’s best practice recommendations encompassed in the new NZX Corporate
Governance Code. You can read more about our corporate governance practices
commencing on page 101.
Your board has also continued to focus on the health, safety and wellbeing of our people, as
well as the gender and ethnic diversity of our people to ensure we are well placed to serve
our customers and the communities in which we operate. You can read more about our
people initiatives commencing on page 46.
leadership change
Last July our Chief Executive, Chris Gudgeon, signalled his intention to retire from
the position in September 2018, after ten years in the role.
We have conducted interviews of domestic and international candidates in our search for a new
Chief Executive to replace Chris. We have been impressed by the high calibre of candidates
and look forward to providing you with an update on our selection in the near future.
We are grateful to Chris for his contribution to Kiwi Property over his ten-year tenure and look
forward to making the most of his talents in his remaining time with the business.
board changes
We said goodbye this year to Joanna Perry, who had served as an independent director for
close to 11 years and we welcomed in her place Mark Powell. Mark is well known in
New Zealand and brings with him extensive experience in strategy setting and execution,
cultural and digital transformation, property development, mergers and acquisitions and
joint venture management in publicly listed companies.
Following Joanna’s retirement, Mary Jane Daly was appointed Chair of the Audit and Risk
Committee, and Mark Powell was appointed as a Member of the Audit and Risk Committee.
The change in both the board and leadership team is an opportunity to inject fresh ideas into
our business, while maintaining a clear focus on our investment objectives and the execution
of our business strategy.
kiwi property
annual report 2018
34
chair’s report

FY18 cash dividend
6.85 cents
per share
projected FY19 cash dividend
6.95 cents
per share
MARK FORD
CHAIR
dividends
I am pleased to confirm a full-year cash dividend of 6.85 cents per share, up from 6.75 cents
in the prior year and in line with guidance.
Our dividend policy is to pay out up to 100% of funds from operations (FFO)
1
, our measure of
underlying earnings. To provide flexibility, we retain income to smooth dividends through
times when earnings are affected in the short term by planned investment or development
activity. Our target payout ratio is typically between 85% and 95% of FFO.
We are committed to delivering sustainable and attractive returns to our shareholders.
For some investors, Adjusted Funds From Operations (AFFO)
1
represents an important
measure of dividend sustainability. The use of dividend policies based on AFFO is an
increasing trend with New Zealand property entities and is common amongst
Australian property entities.
In light of this, it is the board’s intention to transition to a dividend policy based on AFFO, over
time. Over the next few years, the board will be looking to balance the competing priorities
of maintaining and gradually increasing cash dividends, while at the same time seeking to
grow AFFO to cover those dividends.
We are pleased to advise that for the 2019 financial year, we are projecting an
increased cash dividend of 6.95 cents per share, absent material adverse events or
unforeseen circumstances.
outlook
Supportive economic and property market fundamentals, in combination with the
robustness of our property portfolio provides us with confidence the Company will continue
to deliver a strong financial performance.
conclusion
Thank you to my board colleagues and our people for their continued enthusiasm and
dedication to delivering exceptional outcomes.
I would also like to thank our investors for your continued support of Kiwi Property. I look
forward to being able to share more details on our 2018 annual result at the annual meeting
of shareholders, which will be held in Auckland on Thursday, 7 June 2018. Details of the
meeting can be found on page 03 of this report.
1. Funds from operations (FFO) and adjusted funds from operations (AFFO) are non-GAAP financial information and are common investor metrics for property entities.
The Company calculates FFO and AFFO in accordance with the Voluntary Best Practice Guidelines issued by the Property Council of Australia. For further information
on FFO and AFFO refer to page 65.
35
results

the board
MARY JANE DALY
CHAIR OF THE AUDIT AND RISK COMMITTEE
DATE APPOINTED: SEPTEMBER 2014
DATE LAST RE-ELECTED: JULY 2016
BCOM, MBA
Financially savvy
Risk manager
Strategically agile
Skier
RICHARD DIDSBURY
MEMBER OF THE REMUNERATION AND
NOMINATIONS COMMITTEE
DATE APPOINTED: JULY 1992
DATE LAST RE-ELECTED: JULY 2017
BE
Entrepreneur
Winemaker
Property developer
Arts patron
MARK FORD
CHAIR OF THE BOARD
MEMBER OF THE AUDIT AND RISK COMMITTEE AND
REMUNERATION AND NOMINATIONS COMMITTEE
DATE APPOINTED: MAY 2011
DATE LAST RE-ELECTED: JULY 2017
ACA, FACD (DIP), NSWIT DIP (COMM.)
Property and development savvy
Deal doer
Street wise
Collector of funky t-shirts
kiwi property
annual report 2018
36
the board

JANE FREEMAN
CHAIR OF THE REMUNERATION AND
NOMINATIONS COMMITTEE
DATE APPOINTED: AUGUST 2014
DATE LAST RE-ELECTED: JULY 2016
BCOM
Strategist
Coach and mentor
Leader
Fitness enthusiast
MIKE STEUR
MEMBER OF THE AUDIT AND RISK COMMITTEE AND
REMUNERATION AND NOMINATIONS COMMITTEE
DATE APPOINTED: JANUARY 2010
DATE LAST RE-ELECTED: JULY 2015
DIP VAL, FRICS, FPINZ, FAPI, MAICD
Extensive property experience
Connected
Forward looking
Boatie
MARK POWELL
MEMBER OF THE AUDIT AND RISK COMMITTEE
DATE APPOINTED: OCTOBER 2017
BSC, MSC, MBA, BTHEOL, MA
Retail leader
Problem solver
Rugby fanatic
Theologian
Comprehensive profiles of our directors can be found
on our website, kp.co.nz/about-us/our-people
37
results

chief executive's review
chief executive’s review
Chris Gudgeon, Chief Executive
kiwi property
annual report 2018
38

positioned
for growth
In the 2018 financial year, we continued to grow revenues while improving the quality
of our investment portfolio through the sale of non-core assets, strategic acquisitions and
the commencement of new development projects.
We have maintained our conservative gearing, executed strongly on capital
management initiatives and made ourselves more attractive to investors by
securing a corporate credit rating.
We increasingly see ourselves as mixed-use or town centre investors, creating diverse,
engaging environments that connect New Zealanders – exceptional places for
exceptional people. A strong focus on customer experience inspires our
management priorities and investment activities.
Over the next few pages I share with you our highlights of the 2018 financial year.
achieved strong financial result
Net profit after tax
1
was $120.1 million, which is down on the prior year result of
$143.0 million, due to lower revaluation gains on our property portfolio this year and the
absence of fair value gains on interest rate derivatives experienced in the prior year.
Importantly however we delivered a strong underlying operating result, as measured by our
funds from operations (FFO)
2
. FFO again grew to a record result of $111.3 million (up 8.2%)
predominantly reflecting growth of 5.2% in rental income to $192.1 million, driven largely by
contributions from completed developments and strategic acquisitions.
Our property portfolio value increased to $3.1 billion, with net tangible assets increasing to
$1.40 per share, up from $1.39 in the prior year.
As outlined by the Chair, we are pleased to confirm a full-year cash dividend to shareholders of
6.85 cents per share, in line with guidance and up from 6.75 cents per share in the prior year.
This strong result reflects the benefit of our ongoing portfolio enhancement and is
underpinned by the focused execution of our investment strategy.
1. The reported profit has been prepared in accordance with New Zealand generally accepted accounting practice (GAAP) and complies with New Zealand Equivalents to
International Financial Reporting Standards. The reported profit information has been extracted from the annual financial statements which have been the subject of an
audit pursuant to the New Zealand Auditing Standards issued by the External Reporting Board.
2. FFO is an alternative non-GAAP performance measure used by Kiwi Property to assist investors in assessing the Company’s underlying operating performance and to
determine income available for distribution. FFO is a measure commonly used by real estate entities to describe their underlying and recurring earnings from operations.
FFO does not have a standard meaning prescribed by GAAP and therefore may not be comparable to information presented by other entities. FFO is calculated by
Kiwi Property in accordance with the Voluntary Best Practice Guidelines issued by the Property Council of Australia (the Guidelines). During the 2018 financial year, the
Guidelines amended the method used to derive FFO to include the amortisation of leasing fees. Kiwi Property has amended its current year FFO calculation to reflect this
change. The reported FFO information has been extracted from the Company’s annual financial statements which have been the subject of an audit pursuant to
New Zealand Auditing Standards issued by the External Reporting Board.
Kiwi Property is in excellent shape, with a high-quality portfolio of retail
centres and office buildings, a robust balance sheet and an exceptional team
of professionals committed to executing a clear investment strategy.
Our Chief Financial Officer, Stuart Tabuteau, provides more in-depth
details of our financial result on page 62.
39
results

outlook for New Zealand
shopping centres is robust
The outlook for New Zealand’s retail
sector remains robust.
Compared to global benchmarks, the
New Zealand shopping centre sector is
relatively undersupplied, with the amount
of retail floorspace per person being one
quarter that of the United States and half
that of Australia. Particularly in Auckland,
the growth in retail floorspace has not
kept pace with demand, which has been
fuelled by population growth, creating
opportunities for strong centres to
expand and take market share.
Further underpinning the outlook for
retail sales growth more generally is the
prospect of continuing economic
growth. The latest New Zealand Institute
of Economic Research (NZIER)
Consensus Forecast projects solid
growth in GDP for the next few years,
citing increased expectations for
household and Government spending
and a rebound in consumer confidence
that is expected to flow through to solid
growth in household spending.
NZIER’s GDP growth forecast for the
year to March 2019 is 3.1%, growing
to 3.3% in 2020 before moderating to
2.
9% by 2021.
Within Kiwi Property’s shopping centres,
demand for space from domestic and
international retailers is strong, as
evidenced by our high 99.6% portfolio
occupancy rate. This is because at
Kiwi Property we focus on delivering
the right mix of in-demand retailers and
customer experiences – an approach
which delivers positive results for our
specialty store operators who have
witnessed sales productivity improve
7.1% in the past 12 months from
$9,900 per square metre to $10,600
per square metre.
After more than a decade of competition
from online sales, we can now say with
confidence that the retail sector has
room for both online sales and bricks
and mortar retail, with the latter’s ability
to connect people socially becoming
an increasingly important differentiator.
As online retailers become more
sophisticated, their need for an
omni-channel presence to capture
both online and instore sales has
evolved and we are now witnessing
more online retailers dovetail their
online presence with physical stores.
This is a positive outcome for retail
property owners, who will have even
greater choice when selecting the right
tenant mix for their centres.
The natural coexistence of bricks and
mortar retail and online retail is borne
out with research from global property
research firm MSCI, who produced
an interesting piece recently on retail
property returns in the United States.
MSCI’s research
1
indicates that total
returns from retail property have not
been materially impacted from the
growth in online when compared against
returns from other property classes.
The firm’s data tracked returns over a
16-year period – during which time online
sales grew at 15% per annum from 1% to
9% of total sales.
1. MSCI Research Insights, February 2018.
chief executive’s review
our strategic objective
to provide investors
with a reliable investment
in New Zealand property
through the ownership
and active management
of a diversified
high-quality portfolio
FY18 highlights
profit after tax
$120.1m
2017: $143.0m
funds from operations
$111.3m
2017: $102.8m
funds from operations
per share
7. 8 4 c p s
2017: 7.95 cps
net tangible assets
$1.40 per share
2017: $1.39 per share
kiwi property
annual report 2018
40

3. Further information about S&P Global Ratings’ credit rating scale is available at www.standardandpoors.com.
A rating is not a recommendation by any rating organisation to buy, sell, or hold Kiwi Property securities.
The rating is current as at the date of this Annual Report and may be subject to suspension, revision or
withdrawal at any time by S&P Global Ratings.
maintain a strong
balance sheet
we focus on maintaining
a strong financial position
with conservative gearing
FY18 highlights
gearing 29.7%
corporate credit rating
BBB (stable)
weighted cost of debt
4.99%
FY19 balance sheet focus
We will:
Focus on further diversifying
our sources of debt facilities
and extending the weighted term
of our overall debt facilities.
add value through
our investment
decisions
we add value through
the strategic acquisition,
divestment and development
of property assets
FY18 investment highlights
increased our weighting
to our preferred sector
sector diversification
by portfolio value
retail
68%
office
27%
other
5%
robust capital management
We continued to maintain a strong
and conservative balance sheet and
stayed active in our capital
management programme.
We were delighted to secure a credit
rating during the year, with the Company
being assigned a corporate credit rating
of BBB (stable) from S&P Global Ratings
3

and an issue credit rating of BBB+ in
respect of the Company’s fixed-rate
senior secured bonds.
During the year, we undertook the
following capital management activities:
— raised $161 million of new equity
through a fully underwritten
pro-rata entitlement offer, providing
a net $157 million to reduce bank
debt before being applied to
value-enhancing projects
— further diversified our sources of
debt through the addition of China
Construction Bank and HSBC to
our pool of lenders, and
— ra
ised $125 million through the
issue of seven-year fixed-rate
senior secured bonds.
At year end:
— ou
r gearing ratio reduced to 29.7%,
down from 34.5% in the prior year, due
to the repayment of bank debt from
the proceeds of the entitlement offer
and the sale of The Majestic Centre,
together with the positive valuation
gains on our property portfolio
— we m
aintained a healthy 3.6-year
weighted average term to maturity
on our debt facilities, and
— we m
aintained a low weighted
average cost of debt of 4.99%.
creating value for the future
development of property assets
We currently have $370 million of
developments in progress that will
continue to add significantly to both
the income performance and quality
of our property portfolio.
In our office portfolio, we delivered
refurbished premises for the insurer
Suncorp New Zealand and law firm,
Russell McVeagh, at our landmark
Auckland office tower, Vero Centre.
The retention of both these tenants on
long leases of 12 years has provided
income security for the Company and the
refurbishments have transformed the
working environments for these tenants.
Read more about Suncorp’s stunning
new fit out on page 18 of this report.
In December 2017, we delivered a
$9 million dining precinct at Sylvia Park,
known as ‘The Grove Dining District’.
Created to respond to current consumer
demand for food and entertainment, the
project opened with ten eateries offering
a vibrant array of food, including Josh
Emmett and Fleur Caulton’s Hawker &
Roll, along with Birdie’s Bar and Deli,
Cleaver & Co, The Little District, Mexico,
Better Burger, Garrison’s Public
House, Casablanca, Wagamama and
The Coffee Club.
The project opened 100% leased and
will deliver an initial yield of 7.8% growing
to 8.2% over the following two years,
with a projected 10-year internal rate of
return of 10%.
Read more about Josh Emmett and
Fleur Caulton’s Hawker & Roll venture
on page 24 of this report.
The Grove Dining District followed the
successful opening of H&M and Zara in
2016, and was the next in a series of
projects being delivered at Sylvia Park,
all designed to bring to life our vision to
create a world-class town centre.
In addition to the dining precinct we
undertook the following development
activity at Sylvia Park during the year:
—Progressed construction and leasing of
our office building referred to as
‘No.1 Sylvia Park’. With completion of
this project expected by July this year,
we are delighted that the building is
now 90% leased. The building is
anchored by insurance giant IAG and,
post balance-date we leased 6,740 sqm,
or five whole floors and a part floor to
banking group, ANZ. Both of these
high-quality tenants have committed to
nine-year leases. Attracting tenants of
such high calibre to the building is
testament to the truly unique and
high-quality office solution and working
environment the building offers.
Further testament to the building’s
quality was confirmation that it has
achieved a 5-star Green Star design
rating, meaning the building is
highly efficient from a resource
usage perspective.
sector diversification
41
results

chief executive’s review
FY19 focus
We will:
Continue to progress
our developments at
Sylvia Park – bringing to
life our vision to create a
world-class town centre.
Open Langdons Quarter
at Northlands to customers
in November 2018.
Progress structure
planning process for our
Drury land with
Auckland Council.
Settle the sale of North City.
geographic diversification
by portfolio value
Auckland
66%
Wellington
10%
Hamilton
9%
Christchurch
8%
Palmerston North
7%
geographic diversification
The cost of the project remains on
budget at $80 million. ANZ will
progressively take occupation
between June and December 2019.
Following ANZ’s full occupation, the
project is expected to yield 7.4% with
a projected 10-year internal rate of
return in excess of 9%.
Read more about IAG’s move to No. 1
Sylvia Park on page 16 of this report.
— Progressed construction of a new
$36 million multi-deck carpark.
This project is on-budget and on-time
to complete in November 2018,
delivering ~600 additional parking
spaces for our customers.
— As noted by the Chair, we were
delighted to announce that we were
proceeding with our retail Galleria
expansion, bringing approximately
60 new specialty retailers, a two-
storey Farmers department store,
international mini-majors and a
further multi-deck carpark adding
~900 car spaces. Construction
commenced in March this year
and we look forward to opening the
doors to customers in mid-2020.
The project is expected to provide
an initial yield of 5.7%, growing to
6.2% by year three, and an internal
rate of return in excess of 10%.
Read more about the history and success
of Sylvia Park and our Galleria
development plans on pages 10 to 17.
The other major project we commenced
during the year was construction of a
vibrant new dining and entertainment
precinct, to be known as Langdons
Quarter, at Northlands in Christchurch.
Again, this development is directly in line
with our strategy of providing compelling
food and dining experiences that
respond to customer demand.
The project features a new dining
precinct beneath a newly refurbished
HOYTS cinema offer, together with
seismic strengthening works in that area.
The total cost of our development is
$18.8 million (which includes $6.8 million
of seismic strengthening works) and is
expected to provide a 6% yield on cost
(excluding strengthening costs) in the first
full year post completion. Construction
commenced in January 2018 and is due
to complete in November 2018.
Read more about why food is important
on page 20 and about our makeover at
Northlands on page 22.
Looking to the longer-term horizon, we
have progressed our town centre
planning for our 51-hectare landholding in
Drury, south of Auckland, which we aim to
develop over a 20-year timeframe to
coincide with predicted population
growth, household formation and
employment growth in South Auckland.
In conjunction with key infrastructure
providers and neighbouring landowners
and developers, we are participating in
the Auckland Council-led structure plan
for the broader Drury/Opaheke precinct.
This is a pre-cursor to securing a town
centre zoning that will enable us to
construct or facilitate retail, commercial
and residential development on the land.
transaction activity
Our asset recycling programme of
previously identified non-core assets
progressed well during the year. The sale
of The Majestic Centre settled in
December 2017 for $123.2 million and,
post balance-date, we secured the sale of
North City for $100 million. Settlement is
scheduled to occur no later than July 2018.
These sales enable us to pay down debt
to provide us with further funding
capacity to focus on value-added
investment opportunities in line with our
core investment strategy.
Kiwi Property assumed management of
The Majestic Centre on behalf of its new
owner in December 2017 but will no
longer manage North City on settlement
of the sale.
During the year we acquired a 3.2 hectare
property adjacent to Sylvia Park for
$27.1 million. When combined with our
existing adjacent landholdings at Sylvia
Park, this acquisition has enabled us to
consolidate a strategic 7.7-hectare
landholding adjacent to Sylvia Park.
We have no immediate plans to redevelop
the land; however, given our world-class
town centre vision for Sylvia Park and
Mt Wellington’s status as a Metropolitan
Centre, it makes good sense for us as a
long-term investor to increase our
landholdings in this strategic location.

kiwi property
annual report 2018
42

intensive asset management
We are active managers of our property
investments, which means we employ
dedicated teams to ensure our shopping
centres provide the right tenancy mix and
attractions for our customers, and that
our office buildings remain in high
demand from business tenants.
Kiwi Property is now enjoying the benefits
of both a stable economy and a sound
delivery platform. Continuing demand for
quality retail and office property, especially
in Auckland, is keeping occupancy high.
Economic growth is supporting demand
and ongoing rental growth, with improving
operating revenues. Investor demand for
high quality assets continues to lift
property values.
retail portfolio – creating
exceptional places to shop
To deliver on our strategy to create
exceptional places to shop, we have
continued to focus on improving our
retail offer and responding to customer
preferences by continuing to refine
our tenancy mix and by creating
exceptional experiences.
This has included re-weighting our retail
mix into categories experiencing higher
customer demand such as food catering
and retail services. We are also focusing
on a wide range of initiatives to enhance
the retail experience for our customers
and retailers, in a continuously changing
retail landscape.
The improvement in many of our key
metrics during the year reflects this focus.
key metrics
Retail income was up 5.8% (3.1%
like-for-like) on the prior year due to
full-year contributions from Westgate
Lifestyle, The Base and the Zara and H&M
developments at Sylvia Park, offset by
reduced income at Northlands as a result
of development impacted tenancies and
vacancies. Further, our income is
underpinned by the predominance of
fixed and CPI-related rent reviews. Rent
reviews completed in the current year
resulted in an uplift over prior passing
rents of 3.4%.
Our retail portfolio was 99.7% occupied at
31 March 2018, above our long-term
average occupancy of 99%, with a
weighted average lease term of 3.8 years.
retail sales
Total retail sales grew by 3.4% to
$1.8 billion during the year. Our portfolio
of seven shopping centres recorded total
sales of $1.6 billion, an increase of 3.9%,
while attracting more than 50 million
shopper visitors.
Particularly strong performances were
seen at Sylvia Park, where sales grew by
9.0%, and The Plaza, up by 5.1%. We were
pleased to see consistent like-for-like
growth of between 2.6% and 3.3% across
the majority of our shopping centre
portfolio and an overall 7.1% increase in
sales productivity for specialty retailers
to $10,600 per square metre. Consistent
with this, our specialty gross occupancy
cost (GOC) was 12.1%, down from 12.4%
a year earlier, indicating improved
affordability of rents and greater scope
for future rental growth.
Against the trend, sales at North City in
Porirua declined by 3.9% on a like-for-like
basis, but this was expected given the
elevated levels of trading experienced
during 2017 when other Wellington retail
centres were disrupted by the November
2016 Kaikōura earthquake. Like-for-like
sales at Northlands were also 1.5% lower
but again, this was not unexpected given
the redevelopment works currently
underway and the opening of new
supermarkets within its trading catchment.
experiences
This year we have continued our roll-out
of high-speed WiFi in each of our centres.
Our customers are able to access this
free of charge and the rich data we are
gathering from this is enabling us to gain
insights into customer behaviour,
including dwell times, foot traffic and the
way customers move around our centres.
Our focus in FY19 is to build a strong
data platform to leverage this information
to further enhance our customer
experiences, provide insights to our
retailers, and improve the way we
manage the centres.
4. Post balance date, the Company entered into an agreement for the sale of North City.
The sale is due to settle no later than July 2018.
intensive asset
management
we seek to optimise asset
performance through
intensive asset
management
our retail portfolio
4
9 retail centres
$2.1 billion value
355,000 sqm
net lettable area
964 tenants
$136.5 million
net operating income
FY18 retail portfolio
highlights
99.7% occupancy
3.8 years WA LT
+3.3% uplift on prior passing
rental from new leasing and
rent reviews
$1.8 billion retail sales
>50 million visitors a year
FY19 retail
portfolio focus
We will:
Use the customer data
we are collecting to further
connect with our customers.
Continue the leasing
programme for our Galleria
development at Sylvia Park.
Finalise our leasing deals at
Langdons Quarter.
43
results

chief executive’s review
our office portfolio
4 office buildings
$831 million value
96,000 sqm
net lettable area
59 tenants
$50.3 million
net operating income
FY18 office portfolio
highlights
99.3% occupancy
10.1 years WA LT
+4.4% uplift on prior passing
rental from new leasing and
rent reviews
FY19 office
portfolio focus
We will:
Focus on leasing up vacant
and expiring space in the
Vero Centre.
Roll-out a pilot of a tenant
internet portal within the
Vero Centre.
Welcome our first office
tenants to No.1 Sylvia Park.
We completed over 2,000 retail activations
in our centres. Activations are ‘pop up’
retail activities that allow retailers to
showcase products and brands that create
added attractions for shoppers while
garnering further income streams
for our investors.
We have continued to improve digital
wayfinding for easier parking and
have partnered with Be. Accessible to
provide an accessibility rating for each
of our centres.
office portfolio – creating
exceptional workplaces
Our office portfolio is in good shape,
due in part to recently completed
developments and the securing of long
lease terms at key assets, including
ASB North Wharf, The Aurora Centre and
44 The Terrace. Occupancy sits at 99.3%,
with a long weighted average lease term
of 10.1 years, providing long-term security
of income for our shareholders.
Office rental income was up 3.3%
(0.9% like-for-like) on the prior year,
with contributions from completed
developments at The Aurora Centre
and 44 The Terrace, offset by the
disposal of The Majestic Centre and
reduced income at the Vero Centre
largely due to a surrender payment
received in the prior year.
Our office assets provided a revaluation
gain of $54.3 million, benefiting not only
from macro-economic factors such as
positive office market fundamentals and
investor sentiment, but also property-
specific factors such as seismic resilience,
strong tenant covenants, long WALT and
limited deferred maintenance. The total
value of the portfolio is now $831 million.
The Vero Centre alone has contributed
$123 million in value gains over the past
five years, and when combined with
ASB North Wharf, our Auckland assets
have contributed $172 million.
Leasing activity was largely limited to that
within our premier Auckland office tower,
Vero Centre. New leases and rent reviews
completed have provided an uplift of
4.4% over prior passing rentals.
At Vero Centre, we have been successful
in retaining all key tenants on new
long-term leases and have facilitated
their requirement for office space
efficiency.
Good examples of this are
key anchor tenants Russell McVeagh
and Suncorp who have completed new,
inspiring and contemporary fit-outs.
A key focus for us in the year ahead
will be leasing 5,600 sqm of space, or
14% of the building, that has either
become vacant as a result of those
tenants reducing their space
requirements, or is space due to expire
in FY19. Subsequent to balance date,
we have completed leasing deals over
1,100 sqm of this vacant space with a
weighted average lease term of eight
years. With strong enquiry from tenants
we are confident in our ability to achieve
100% occupancy in the short term.
We also look forward to the completion
of No.1 Sylvia Park and welcoming our
first ever office tenants at Sylvia Park.
We continue to sharpen our emphasis
on our customers – our tenants and their
people – within our office buildings as we
position Kiwi Property as the provider of
choice for exceptional workplaces.
In each of our office buildings we have,
or are introducing, first-class end-of-trip
facilities, bookable visitor carparks,
carpark sharing options, concierge
services and more food and beverage
choices. An exciting initiative to be rolled
out over the next year is a tenant portal,
which will connect our tenants within a
building and provide online services,
including carpark booking and coffee
ordering, as well as building maintenance
services. These are designed to save our
customers time, money or both.
kiwi property
annual report 2018
44

treading more lightly on our planet
We are proud of our leadership position in
sustainability. We consider it an important
part of our value proposition.
Our corporate social responsibility
programme, which we bring together under
our ‘sustainability’ banner, has been in
operation for more than 15 years. Like many
companies, we began with a focus on
implementing environmental initiatives,
helping us to tread more lightly on the
planet while reducing operating costs.
Today, we are increasingly focused on
engagement that brings us closer to
our communities, builds better social
be
haviours and rewards, produces a
strong corporate culture and ensures our
investments are enduring.
Our sustainability programme was rewarded
again in the current year with a number of
successes and firsts.
Read more about our current year
sustainability highlights commencing
on page 50.
For the first time this year, we are releasing
our standalone Sustainability Report
alongside our Annual Report. If you want
to read more about our sustainability
programme, you can view this report on
our website kp.co.nz/sustainability.
fostering a high-performing culture
We see people and culture as a key enabler
to the delivery of our strategy. We have
been working diligently to build a highly
engaged, diverse and inclusive workforce.
A key focus over the past year has been
the preparation for moving into our new
corporate home at the Vero Centre, which
we did in April of this year. Due to growth in
our teams, our Auckland corporate teams
had been spread out over three floors in
two locations for the past few years. We are
excited to have brought everyone together
again under one roof and on one floor.
appointment of GM Retail
Subsequent to year end, we were pleased to
announce the appointment of Linda Trainer
to the role of GM Retail. Linda brings over
20 years’ experience in property, retail,
management and marketing. She has
overall responsibility for developing,
championing and delivering the retail
portfolio’s strategic objectives and goals,
and leading the retail team to optimise
profitability and investment performance.
Read more about the activities we have
been doing with our people on page 46.
reflections on the past decade
As noted by the Chair, I will be finishing my
tenure with Kiwi Property this September.
I have thoroughly enjoyed working with
Kiwi Property; it is a Company built on the
strength of its people and the outstanding
platform of knowledge and expertise
contained within it. I extend a very warm
thank you to the board and the entire
management team for their considered
counsel, indefatigable approach to creating
an exceptional company culture, and their
determination to deliver outstanding results
for all stakeholders.
On page 56, I reflect more on my time
at Kiwi Property.
the year ahead
Kiwi Property has performed well in FY18,
and we look forward to delivering positive
results in the year ahead.
Our key focus for the year ahead will be
on progressing our development projects
underway at Sylvia Park and Northlands
while also progressing our long-term town
centre vision for Drury.
We will continue to optimise the
performance of our portfolio by seeking
ways to improve our tenant and customer
experiences, ensuring our assets remain
resilient and in demand.
Once again, I thank you for your support of
Kiwi Property, and for the support given to
me during my time here.
CHRIS GUDGEON
CHIEF EXECUTIVE
45
results

strategic objectivesoutcomes this yearour future focus
we’re
people-
people
To create a workplace of
the future with new ways
of working
With a move to new corporate offices
in the Vero Centre in April 2018, we
have moved to activity-based work
practices, empowering our team to
work where and how they choose,
with maximum flexibility and minimum
constraints, to optimise collaboration,
productivity, wellbeing and space.
We will monitor the success of
our new workplace through
employee engagement and
productivity measures, and fine
tune where possible to ensure
our workplace of the future
remains fit for purpose.
We have embraced digital ways of
working with the use of apps for
internal communication, employee
carparking, pay and leave self-service,
performance and development and
remote system security access.
We will continue to leverage
technology and digitisation
of the workplace to increase
productivity, reduce occupancy
costs per employee and increase
our sustainable practices.
Our objective is to create a workplace that attracts, engages, develops and retains
the best people in the property industry, and for our team to be empowered,
inspired and free to be and do their best together, for our customers and investors.
– Kylie Eagle, Head of People and Culture
Kiwi Property has been evolving its people and culture strategy since we were
established. Here are some of our achievements for 2018, and an overview of
what we will be focused on in the year ahead.
creating a
strong culture
kiwi property
annual report 2018
46
chief executive’s review

strategic objectivesoutcomes this yearour future focus
we lead
Build leadership capability
at all levels of the
organisation as an enabler
of our strategic objectives
and our culture
In 2017 we launched ‘Elevate’,
the Kiwi Property Leadership
Development programme built
on developing leaders who are:
—real and adaptable
—coaches and connectors, and
— discoverers and visionaries.
87% of our people leaders
participated in leadership training
during the 2018 financial year.
Our leadership development
focus will continue to develop
how our leaders think and
learn, rather than what to think
and do.
We will work on measuring
our progress in this area by
undertaking an organisational
employee survey and
comparing our leadership
style profile against our
starting profile.
we have a
passion for
excellence
To attract, develop and
retain talent
We provide potential for development
via experience, exposure and education.
— 70% of development via
experience, day-to-day tasks,
challenges and practice.
— 20
% of development via
exposure to others, work situations
and collaboration.
— 10
% of development via education
and structured learning.
Attracting, developing and
retaining the best talent in the
industry is critical to building
a sustainable and high
performance organisation.
We are working towards
ensuring our talent is engaged
and career growth occurs
through individual learning and
development plans and a
coordinated approach to talent
management.
To support and build a future pipeline
of talent, we have committed to
supporting the education, promotion
and enablement of careers in the
property industry for Māori and
Pasifika students.
During the 2018 financial year, in
conjunction with Keystone Trust, we
designed a scholarship programme
for Māori and Pasifika students
undertaking tertiary study in property.
We look forward to being able
to name the first recipient of
the Kiwi Property Māori and
Pasifika scholarship in 2018.
CHRISTIE ZHAO
COMMERCIAL PROPERTY
MANAGER
47
results

strategic objectivesoutcomes this yearour future focus
we do
what’s
right
Create a culture of
inclusion, diversity, health
and safety, wellbeing and
giving back
cultural awareness
We continued to grow employee
awareness of New Zealand’s cultural
diversity through education and
celebrations of Diwali, Chinese
New Year and Matariki.
We have started the investment
to understand what makes
workplaces inclusive.
Our goal is to broaden and embed
diversity and inclusion into our ways
of working.
wellbeing
In the 2018 year there were 208
occurrences of employee
participation in at least one wellbeing
programme. For example, 45 of our
people took part in the Auckland
Marathon in November 2017.
We will continue our focus
on wellbeing.
diversity
During 2017, new diversity objectives
were put in place to continue focused
work on developing a workforce that is
a more reflective representation of the
communities and customers we serve.
The new objectives focused on
sourcing and attracting a broader
candidate talent pool and identifying
alternative recruitment channels in
order to attract and source a greater
representation of Māori, Pacific
Peoples, Asian and female candidates.
We are proud of our achievements
during 2018. At 31 March 2017,
the representation of women in
the leadership team was 17%.
At 31 March 2018, this increased to
25% and, post the reporting period,
increased further to 36%.
Of the 28 new recruits to Kiwi Property
during FY18, the ethnicity profiles of
these team members are moving us
closer to our objective of better
reflecting the communities we serve.
This can be seen in the table aside where
we compare the ethnicity profile of new
team members joining the business in
FY18 to New Zealand’s ethnicity profile
from the 2013 census.
We will continue our focus to
increase the proportion of women
and Māori, Pasifika and Asian
ethnicities in senior leadership roles.
chief executive’s review
Kiwi Property
recruits FY18
New Zealand
profile 2013
census
European89%74%
Māori22%15%
Asian15%11%
Pacific Peoples4%7%
Middle Eastern,
Latin American,
African
4%1%
The statistics add to greater than 100%
as some employees identify with more
than one ethnic group.
kiwi property
annual report 2018
48

69%
of our people leaders
are women
87%
of our people leaders
participated in leadership
training in FY18
208
wellbeing courses
or activities were
undertaken in FY18
providing the opportunity to inject
fresh ideas into the business
212
health and safety related
courses were
undertaken in FY18
16%
rolling annual
employee turnover
our people
highlights
across our workforceacross our workforce
1
new director
3
1

new leadership
team members
1. The role of Manager Shopping Centres, held by Shelley Jenkin, was elevated to a Leadership Team position on 23 April 2018. Linda Trainer was appointed to the role of
GM Retail on 6 April 2018 and commenced with Kiwi Property on 23 April 2018. Rebecca Oliphant was appointed to the role of Strategy Manager and commenced with
Kiwi Property on 28 August 2017.
49
results

categorycurrent year initiativesoutcomes
waste — continued to roll out the recent
learnings from our Sylvia Park
waste trials across the balance
of the retail portfolio
— we have reduced waste by a further 4.3% over the year – equivalent to
diverting waste from over 221 jumbo bins
—since our 2012 base measurement year, we have diverted
310 tonnes of waste from landfill, the equivalent of filling
507 jumbo bins
water — continued to implement
operational refinements to
achieve further efficiencies
— over the year, we have saved enough water to fill over 101 domestic
swimming pools
—since our 2012 base measurement year, we have reduced
water consumption by 23 million litres, enough water to fill
over 467 domestic swimming pools
energy — maintained our continuous
improvement approach to
reduce energy consumption
— upgraded a further 15% of
common area lighting to LEDs
— energy usage has reduced 7.9% over the year. This represents enough
energy to power over 199 houses for a year
—since our 2012 base measurement year, we have saved
enough energy to power 448 houses for a year
LED replacement project
— si
nce 2016, we have replaced over 9,700 fluorescent lights
with energy efficient LEDs. 80% of the portfolio’s common
area lighting has now been upgraded
— expected to save over 3,300,000 kWh per annum (enough to power
300 homes for a year)
— LED lights typically last 25 times longer than fluorescent
lights. As a result, this programme is expected to negate the need for
almost 300,000 fluorescent lamps over the life of
the LEDs installed
— LE
Ds also do not contain mercury, which means the programme will
prevent the need to dispose of almost 9kg of mercury
Our aim is to tread lightly on the planet; in doing so, we can create efficiencies
across our portfolio while building asset and business resilience.
– Jason Happy, National Facilities Manager
Our sustainability programme has now been in place for over 15 years.
Here is a summary of some of our sustainability achievements
for 2018. For more in-depth information you are invited to
read our 2018 Sustainability Report. This is available on
our website, kp.co.nz/sustainability.
building business
resilience
chief executive’s review
kiwi property
annual report 2018
50

categorycurrent year initiativesoutcomes
carbon — targeted achieving the highest
rating of NZX-listed entities in
the Carbon Disclosure Project
— submitted carbon footprint to
CDP for certification
— achieved A- rating in the carbon disclosure project
− for the third consecutive year, retained highest CDP rating of any
New Zealand listed entity
— retained our FSTE4Good rating
− one of only five New Zealand entities included in this index
— retained the highest level of carbon certification, ‘Carbon Managed’
− our carbon footprint has reduced by 40% over our 2012 base year
NABERSNZ — continued our programme to
obtain 4-5 star NABERSNZ
ratings for all office buildings
owned or managed by
Kiwi Property by FY20
— 4 star – “excellent”
— 5 st
ar – “market leading”
— 6 st
ar – (top rating)
“aspirational”
— to date ratings have been obtained for:
− ASB North Wharf 4.5-star
− 44 T
he Terrace 4.5-star (2017)
− Th
e Aurora Centre 5.5-star. This is an exceptional outcome given this
was a refurbishment, reflecting investment over time and careful
design specifications for the refurbishment.
solar
— de
rived more energy for
base building needs from
natural resources
— Ki
wi Property is set to become New Zealand’s largest commercial user
of solar power after signing a non-binding Memorandum of
Understanding in 2017 with Meridian Energy to install solar arrays at four
shopping centres (in addition to the existing solar array at Sylvia Park)
seismic
resilience
— continued our commitment
to people safety and asset
endurance by continuing
our seismic strengthening
works programme
— in recent years we have spent over $137 million upgrading our assets to
be more resilient in the event of seismic activity
— du
ring the current year, works were undertaken at LynnMall, The Plaza,
North City and Northlands
tenant
engagement
— delivered a retailer awards
programme encouraging
sustainable shop fitouts
— Kiwi Property sponsored the 2017 New Zealand Retail Interiors
Association’s first sustainability award. This award used Environmentally
Sustainable Design (ESD) criteria developed by Kiwi Property (using a
specialist consultant) to assess entrants’ submissions.
− Th
e inaugural award was won by Lush’s Queen Street store.
2degrees’ Queen Street store was awarded a highly commended.
− Th
e awards evening was well attended, raising both the profile of
sustainability in the retail fit out industry and Kiwi Property as a
leader in sustainability.
51
results

leading trends
Electric vehicles (EV) are one of the major sustainability trends in supporting New Zealand to be a low carbon economy. We are
seeking to support these early users, understand how this substantial change will impact on our assets, then ready our assets
accordingly.
categorycurrent year initiativesoutcomes
electric
vehicles
— expanded our range of free
EV chargers for our customers
— In late 2017, we concluded another agreement with Tesla to add four
super chargers at our shopping centre in Palmerston North, The Plaza.
This installation forms part of Tesla’s ambition to have a super charger
highway between Auckland and Wellington.
— Th
ere are now 26 free electric car charging stations across
five of our shopping centres, including eight Tesla super
charger stations and 18 charging stations provided in
partnership with Meridian Energy.
— Us
age of our EV stations has risen dramatically over the year
(see chart below). Typically, we are now seeing in excess of
900 uses across the portfolio a month with a total plug in time
of over 1,100 hours per month.
—Th
e typical stay time for an EV is just over 1 hour and 10 minutes,
which is around 10 minutes longer than the average customer stay.
May 17 Jun 17

Jul 17Aug 17Sep 17Oct 17 Nov 17 Dec 17 Jan 18Feb 18
77
929
ev usage across sylvia park, lynnmall,
the plaza and northlands (by month)
chief executive’s review
EV charging at Northlands in
partnership with Meridian Energy
kiwi property
annual report 2018
52

ESG riskswhat we are doing
our people — Failing to ensure we continue
to recruit and retain the
best people.
— We are focused on creating a great working environment for our
people, supporting our employment proposition.
— We firmly believe that a diverse team, coupled with a safe and healthy
work environment, flexible working arrangements and a positive team
culture, will enable innovation, creativity and better business outcomes
to flourish.
our
communities
— Not remaining a valued part
of the communities in which
we operate.
— Our assets play an important role in the prosperity of local
communities, providing places of economic activity and focal places to
work, shop and socialise.
— We h
ave numerous community and tenant programmes to support
the prosperity of our tenants and businesses and aid local communities
to flourish.
our buildings
— Fa
iling to ensure our buildings
continue to thrive in future
operating environments.
— We b
uild and enhance our properties to meet current and expected
future operating environments, as determined by regulation,
infrastructure and climatic demands, thereby building resilience.
our
environment
— Fa
iling to ensure our
environmental performance
meets regulatory requirements
and operational efficiency
demands.
— We a
ctively work to reduce our environmental footprint and resource
use through continuously refining our operations and by deploying new
economically sustainable technology and practices.
our tenants
— Fa
iling to ensure our buildings
remain attractive to work, shop
and socialise in.
— We s
trive to continuously provide our tenants safe, healthy, accessible
and desirable buildings that support their business growth in a
sustainable manner.
— We a
lso strive to continuously provide our customers with sustainable,
community focused, safe, healthy and accessible buildings to shop and
socialise in.
our Environmental, Social and Governance (ESG) proposition and risks
Sustainability is an integral part of our value proposition, supporting our profitability, resilience and longevity. As well as
adding value to both ourselves and our tenants, our sustainability programme builds resilience by addressing the material
environmental, social and governance (ESG) factors for our business. Our key ESG risks are noted below, along with a
brief summary of steps we are taking to mitigate those risks (further details of our risk management practices and policies
can be found on page 112.
To address all of the above in an integrated manner, we have an overarching sustainability strategy. A cross-divisional committee,
including senior managers, is charged with implementing, monitoring and managing this strategy, ensuring sustainability is woven
into our business practices.
Each year, we report our performance against our ESG targets through disclosures made in our Annual Report, our Sustainability
Report and our Greenhouse Gas Inventory Document, all of which can be found on our website kp.co.nz/sustainability.
53
results

contributing to
stronger communities
Our success is linked to the success of the local communities
in which we operate. Accordingly, we consider it vital that we
play an active role in supporting New Zealanders to prosper.
chief executive’s review
employment
Kiwi Property has long been a supporter of New Zealand’s
charitable Keystone Trust, which has been giving students a
hand-up into property related tertiary studies for 20 years.
In 2015, we welcomed Keystone scholarship recipient
James Petherick to our commercial team on a part-time basis
as part of Keystone’s scholarship programme. Since then,
James has rotated through the facilities management team and
is currently working with the retail property team.
Here we talk to James about his experiences with the Keystone
Trust and Kiwi Property.
James, you’re obviously settling in well to the property
sector. What attracted you to the industry in the first place?
I was half way through my final year of high school, when I
booked an appointment with the school’s careers advisor, where
at this stage I still had no idea which career I wanted to pursue.
He suggested I explore the property industry as his daughter
had done so and found it to be an enjoyable and rewarding
career choice. I then spent a few weeks at the Dilworth Trust
Board shadowing the Head of Property, where I learnt that there
is much more to the property industry than residential real estate
agents. It was then I knew this was the industry I wanted to be in.
How did you hear about the Keystone scholarship programme?
Again it was my careers advisor who told me about Keystone; it was
a scholarship that provided much more than financial assistance,
including the tools needed to be successful in the industry.
How much of a difference has the scholarship made?
It is cliché, but I am not sure where I would be without the
Keystone scholarship. They provided me with a buddy in my first
year of university which really helped me to find my feet in the
new environment, which was completely different to school.
The numerous networking events provided by Keystone have
allowed me to meet the leaders in the property industry and
also helped me get my job here at Kiwi Property.
What has surprised you most about your working life?
The amount of interaction between people; everyone seems
to be regularly out of their desks, and at meetings with
tenants, contractors, or fellow colleagues, or away at one of
our properties.
How would you describe the culture at Kiwi Property?
The culture at Kiwi Property is second to none. The employees
really are ’people-people’. When I first started I was a little shy but
everyone was so welcoming which made me feel at ease.
Everyone always says ‘hi’ and shows genuine interest in how I am
doing which makes me feel appreciated and valued within the
organisation. It is the people that I work alongside that really
make coming to work that little bit more enjoyable.
What are some of the projects you’ve been able to work on?
Do you have a favourite?
I have been involved with the development of Westgate Lifestyle,
The Majestic Centre seismic strengthening project, the Vero
Centre lobby refurbishment and many more. However, if I had to
choose a favourite it would be the lobby refurbishment at the Vero
Centre. I was tasked with selling all the old lobby furniture to Vero
Centre tenants, with all proceeds given to charity.
Do you have a view yet on where you would like your career
to take you?
Not yet. With the rotations I have done through the different
teams at Kiwi Property it has meant that my shortlist of possible
career choices continues to grow. I definitely want to pursue the
property side of my degree and hope my career can tackle
some of the key property issues New Zealand faces.
Thinking about your time at Kiwi Property, what skills have
you acquired along the way?
I have acquired time-management skills as I have had to balance
my part-time work with Kiwi Property on top of my full-time
university studies and my other activities. Furthermore, I have
gained a lot of confidence and self-belief – if I truly put my mind to
something, anything is possible.
We do this by not only creating vibrant places to shop and work, but also by creating a strong
corporate culture, operating ethically and with high levels of governance, supporting
employment and education in our industry, and by giving back to our communities through
volunteering, sponsorship and helping community groups to flourish.
kiwi property
annual report 2018
54

communities
community experiences
Our shopping centres touch the lives of millions of customers every year.
We know that, as local gathering places, our centres have an important role
to play in strengthening their communities. Our centre management teams
d
e
velop initiatives to support their local communities. As a result, we
support more than 50 grassroots initiatives that promote the provision of
local employment, wellbeing and social engagement. Some great
examples include:
—KiwiFit – a safe, all-weather community exercise group
—Ki
wiBubs – a free club created to help Kiwi parents find support, practical
advice and friendship
—free childcare for 0-5 year olds for two hours per day at selected centres
—Ch
ristmas gift wrapping – with all donations going to local
charities, and
—supporting grass root sports through the ’Match Hero’ programme at
selected centres.
volunteering
Our volunteering programme provides each of our employees one day of
paid leave each year to participate in volunteering.
Over the year to 31 March 2018, our people provided 65 days of community
service. Some of the causes our team contributed to this year included:
—fundr
aising for breast cancer awareness
—tr
ack maintenance, tree planting and path construction for Cue Haven
Community & Management Trusts, a restoration of former farm land to
a native nature reserve
—pa
inting, gardening and meal preparation for The Lifewise Trust, an
Auckland-based community social development organisation, who
develop new ways to solve challenging social issues. They work with
families, older people, people with disabilities, and people at risk of
homelessness, to turn people’s lives around
—fo
od and toy donations for the Auckland City Mission Christmas
Appeal, and
—tree releasing (freeing trees from overgrown grass) for Waiheke
Resources Trust, which works towards sustainability for Waiheke Island.
Are there challenges in undertaking
full-time study and working in a corporate
environment like Kiwi Property? How have
you worked through those challenges?
At times, it can be a bit of a balancing act –
especially during exam time – but I am a
person who likes being busy. At first it was
also challenging working on particular tasks
by myself without supervision because I was
so used to being watched like a hawk at
boarding school.
James is now in his final year at the
University of Auckland studying a Bachelor
of Property and Bachelor of Commerce
conjoint, majoring in Accounting and
Marketing. As well as being named
Property Student of the Year in 2017, he
placed third in the Australasian Real Estate
Case Competition hosted by the University
of Sydney, and also competed in the
Cornell International Real Estate
Competition hosted by Cornell University
(held in New York).
Top: Students from
Blockhouse Bay School
who won $2,000 from
Kiwi Property through
’The Big Hoot’ competition.
Bottom: Our team
clearing tracks for Cue
Haven Community &
Management Trusts.
James Petherick, Kiwi Property
55
results

What first attracted you to Kiwi Property?
Definitely the people. Over a long time Kiwi Property has established a great reputation for good people
doing good things in the property sector – being leaders and being unafraid to take a calculated risk.
The perfect place to work if you are passionate about property.
What are you most proud of in your time at Kiwi Property?
I am very proud to have been part of a team of people that has grown Kiwi Property from a $2.1 billion
business in 2008 into a $3.1 billion business today – with a high-quality portfolio of core property assets
that include some of the very best commercial property in New Zealand. Whether it’s our iconic
Auckland office assets, our Wellington government office precinct or our leading portfolio of shopping
centres – our properties are some of the most recognised and envied in the country. Sylvia Park is
New Zealand’s favourite shopping centre and well on track to becoming a truly world-class town centre.
Other highlights for me have been the development of ASB North Wharf, our investment in LynnMall,
the creation of our Wellington government office precinct (44 and 56 The Terrace), our joint venture with
Tainui at The Base and the acquisition of our landholdings in Drury, South Auckland.
What’s the greatest challenge Kiwi Property has overcome during your time?
At Kiwi Property we negotiated the challenges of the global financial crisis in 2008 reasonably well,
but then faced a whole set of new challenges with the Canterbury earthquakes in 2011. Thankfully, the
PwC Centre in Armagh Street and our Northlands shopping centre performed well from a life safety
perspective but it was an extremely difficult time for our staff and tenants.
reflections on the
past ten years
In a decade of service, our Chief Executive Chris Gudgeon has overseen the internalisation,
corporatisation, rebranding and growth of Kiwi Property. Chris will retire from the business
in September 2018. Here he reflects on his ten years with Kiwi Property.
chief executive’s review
kiwi property
annual report 2018
56

Together with all Cantabrians, we faced the initial
trauma and dislocation from the quake followed by
years of battling through the red zoning, demolition,
insurance claims and repairs to a point where
thankfully the re-build phase is the main focus.
The quakes have been a sharp reminder that we
live in a seismically-active country and have led us
to revisit the seismic resilience of all our buildings.
In the case of Kiwi Property, this has required us to
spend over $137 million on earthquake strengthening
nationwide – which has been tough on our
shareholders but the right thing to do from
a safety perspective.
How would you describe the Kiwi Property culture?
When we separated from our previous parent,
Commonwealth Bank of Australia, we took the
opportunity to come up with our own set of values
uniting around the idea of ‘Exceptional People,
Exceptional Places’ – all trying our best to be the
best in the property sector and, in a way that
looks after people – be they staff, customers or
other stakeholders.
What has internalisation done for the Company?
Internalising management made a lot of sense for
Kiwi Property.
To start with, it reduced the cost of management by
circa $8 million per annum when we internalised in
2014. Given our growth since 2014, the cost saving to
shareholders would be even more today.
Secondly it focuses us exclusively on shareholder
returns – which is made real for staff through our short
and long-term incentive schemes.
And finally, it has given us greater freedom to express
ourselves more creatively through our culture, our
brand and our vision.
What have you enjoyed most about the role of
Chief Executive?
Working with our talented team to take Kiwi Property
forward has been a real privilege. Kiwi Property as a
company is in a very strong position with great assets
and a balance sheet that enables it to capitalise on
some great opportunities going forward.
What’s next for you?
After ten very enjoyable years at Kiwi Property it is
time to move on and I am looking forward to a change.
I am really excited about doing something different –
and working out what that might be is a big part of
the excitement.
2008
a decade of growth
2018
$3.1b
1,023
$2 .1b
850
$925m
$1.8b
Auckland
50%
Wellington
19%
Christchurch
16%
Hamilton
9%
Palmerston North
6%
retail
55%
office
42%
other
3%
retail
68%
office
27%
other
5%
Auckland
66%
Wellington
10%
Christchurch
8%
Hamilton
9%
Palmerston North
7%
total assets
geographic
diversification
sector
diversification
number
of tenants
retail
portfolio sales
total assets under
management have increased
the geographic weighting
of the portfolio has moved
to our preferred regions
of Auckland and the
’golden triangle’
the sector weighting of
the portfolio has moved
toward our retail bias
$870m$1.9b
market capitalisation
57
results

our leadership team
KYLIE EAGLE
HEAD OF PEOPLE
AND CULTURE
BCS, GRADUATE DIPLOMA
IN BUSINESS
People strategist
Connector
Communicator
Novice surfer
JASON HAPPY
NATIONAL FACILITIES
MANAGER
BE, MSC
(FACILITIES
AND ENVIRONMENT
MANAGEMENT)
Saver of planets
Innovator
Practical
Paddler
leadership team
CHRIS GUDGEON
CHIEF EXECUTIVE
BE (CIVIL), MBA, FRICS
Leader
Innovator
Problem solver
Sailor
AUBREY CHENG
MANAGER RETAIL LEASING
BCOM, BPROP
Salesman
Relationship builder
Curator
Epicurean
GAVIN PARKER
CHIEF OPERATING OFFICER
BCOM,
GRADUATE DIPLOMA
IN BUSINESS, CA
Strategist
Implementer
Precisionist
Fisherman
DAVID GREENWOOD
MANAGER PORTFOLIO
ANALYSIS
BCOM (FINANCE),
BPROP, MPINZ
Analyst
Spreadsheeter
Valuer
Streak runner
kiwi property
annual report 2018
58

1. On 23 April 2018, the role of Manager Shopping Centres was elevated to a Leadership Team position.
2. Linda was appointed to the role of GM Retail on 6 April 2018 and commenced with Kiwi Property on 23 April 2018.
Comprehensive profiles of our leadership team
can be found on our website, kp.co.nz/about-us/
leadership-team
MICHAEL HOLLOWAY
GM COMMERCIAL
BSC (UK), MSC (UK), FRICS
Office visionary
Connector
Numbers geek
Martial artist
SHELLEY JENKIN
1
MANAGER SHOPPING
CENTRES
BPROP
Retail strategist
Partnership builder
CX champion
Intrepid walker
TREVOR WAIREPO
GENERAL COUNSEL AND
COMPANY SECRETARY
LLB, BA, MBA
Legal eagle
Mitigator
Straightshooter
Son’s golf caddy
STUART TABUTEAU
CHIEF FINANCIAL OFFICER
BCOM, BA, CA
Treasurer
Collaborator
Finance leader
Cyclist
REBECCA OLIPHANT
STRATEGY MANAGER
BA, BCOM (HONS)
Strategist
Innovator
Deal doer
Shopper
NATASHA LOULANTING
MANAGER PROJECTS
AND ANALYTICS
Analyst
Organiser
Precisionist
Sun-loving bookworm
LINDA TRAINER
2
GM RETAIL

DIP BUS
Retail innovator
Enabler
Collaborator
Outdoor junkie
IAN PASSAU
GM DEVELOPMENT
MBA (TECHMGT), BE
(CIVIL), NZCE (CIVIL)
Builder
Civil engineer
Visionary
Fisherman
59

financialsfinancials

kiwi property
annual report 2018
62
delivering on strategy
delivering on strategy
2018 saw continued revenue growth while improving the quality of our investment portfolio through developments, strategic acquisitions
and the sale of non-core assets, resulting in funds from operations growth of over 8%.
2018
$000
2017
$000
Property revenue249,263238,136
Less direct property expenses(57,168)(55,599)
Net rental income192,095182,537
Property management and other income2,0271,692
Interest and finance charges(42,645)(43,236)
Employment and administration expenses(20,567)(17,987)
Straight-lining of fixed rental increases(2,100)(2,079)
Amortisation of tenant incentives and leasing fees7,8736,774
Current tax expense(25,414)(24,869)
Funds from operations111,269102,832
Net fair value gain on investment properties26,52841,037
Net fair value gain/(loss) on interest rate derivatives(2,390)9,732
Loss on disposal of investment properties(7,069)(1,345)
Litigation settlement expenses–(770)
Straight-lining of fixed rental increases2,1002,079
Amortisation of tenant incentives and leasing fees(7,873)(6,774)
Deferred tax expense(2,463)(3,794)
Profit after income tax120,102142,997
rental income growth
Rental income growth was driven by full-year contributions from prior year acquisitions of Westgate Lifestyle and The Base,
combined with completed developments at Sylvia Park, The Aurora Centre and 44 The Terrace. This was partially offset by the
disposal of a non-core asset The Majestic Centre. The balance of the portfolio was underpinned by like-for-like rental income
growth at Sylvia Park (4.7%), The Plaza (+3.6%), North City (+4.9%) and ASB North Wharf (+4.3%).
net rental income
$192.1m
+5.2% 2017: $182.5 million
rental income growth ($m)
ACQUISITIONS
DEVELOPMENTS
DISPOSALS
STATIC PORTFOLIO
14
12
10
8
6
4
2
–

63
ffinancials
funds from operations
The strong rental income performance resulted in funds
from operations (FFO) growth of 8% to $111.3 million. On a per
share basis, FFO was down 1.4% due to additional shares on
issue following the $157 million (net of issue costs) equity raise
to fund our growth initiatives.
after-tax profit
After-tax profit was 16% lower than the prior year as a result
of lower revaluation gains on our property portfolio relative to
the prior year as the quantum of capitalisation rate firming
stabilises, and the absence of fair value gains on interest rate
derivatives experienced in the prior year.
$111.3m
+8.2% 2017: $102.8 million
profit after tax
$1 2 0.1m
-16.0% 2017: $143.0 million
pre-tax FFO per share
9.63 cents
-2.5% 2017: 9.87 cents
gross dividend per share
8.74 cents
+0.8% 2017: 8.67 cents
cash dividend per share
6.85 cents
+1.5% 2017: 6.75 cents
shareholder returns
Pre-tax FFO per share reduced by 2.5% as a result of the additional shares on issue after the equity raise. Gross dividends increased
by 1% and shareholders will receive a final dividend of 3.425 cents per share, taking the full-year cash dividend to 6.85 cents, up 1.5%
on the prior year.
strong balance sheet
Our balance sheet remains strong, evidenced by the increase in total assets and net tangible asset backing and the decrease in
gearing to 29.7%. During the year, we delivered on a number of important capital management initiatives. We successfully
raised $157 million (net of issue costs) through a pro-rata entitlement offer, issued our third seven-year retail bond raising
$125 million at a competitive coupon of 4.33% per annum, and further diversified our bank debt funding, adding two new
lenders, China Construction Bank and HSBC.
total assets
$3 .1b
+3% 2017: $3.0 billion
S&P Global Ratings credit rating
BBB
+
fixed-rate bonds
shareholders’ funds
$2.0b
+10% 2017: $1.8 billion
net tangible assets per share
$1.40
+1.4 cents 2017: $1.39
gearing ratio
2 9.7 %
-480bps 2017: 34.5%
cost of debt
4.99%
+38bps 2017: 4.61%
7. 8 4 cps
-1.4% 2017: 7.95 cps
funds from operations

kiwi property
annual report 2018
64
five-year summary
five-year summary
financial performance
FOR THE YEAR ENDED 31 MARCH
2018
$m
2017
$m
2016
$m
2015
$m
2014
$m
Income
Property revenue and management income251.0239.6208.6 206.3
208.2
Other income0.30.36.5 0.4
5.4
Insurance income– – – –
49.4
Net fair value gain on investment properties26.541.0175.9 58.3
8.5
Net fair value gain on interest rate derivatives– 9.7 – –
29.1
Total income277.8290.6391.0 265.0
300.6
Expenses
Direct property expenses(57.2)(55.6)(51.6)(50.5)(59.5)
Interest and finance charges(42.6)(43.2)(33.5)(52.6)(56.9)
Manager’s fees– – – – (8.1)
Employment and administration expenses(20.5)(18.0)(16.2)(15.1)(6.2)
Net fair value loss on interest rate derivatives(2.4) – (17.6)(13.1) –
Termination of management arrangements– – – (2.1)(74.5)
Other expenses(7.1)(2.1)(0.4)(7.2)(4.8)
Total expenses(129.8)(118.9)(119.3)(140.6)(210.0)
Profit before income tax148.0171.7271.7124.490.6
Income tax benefit/(expense)(27.9)(28.7)(20.9)(9.2) 10.7
Profit after income tax
1
120.1143.0250.8115.2101.3
funds from operations
FOR THE YEAR ENDED 31 MARCH
2018
$m
2017
$m
2016
$m
2015
$m
2014
$m
Profit after income tax120.1 143.0 250.8 115.2 101.3
Adjusted for:
Net fair value gain on investment properties(26.5)(41.0)(175.9)(58.3)(8.5)
Loss on disposal of investment properties7.11.3 – 0.8 3.3
Net fair value loss/(gain) on interest rate derivatives2.4(9.7)17.6 13.1 (29.1)
Termination of management arrangements– – – 2.1 74.5
Insurance adjustment/(income)– – – 5.1 (49.4)
Litigation settlement expenses/(income)– 0.8 (5.9) 1.3 (3.5)
Straight-lining of fixed rental increases(2.1)(2.1)(2.3)(4.1)(2.7)
Amortisation of tenant incentives and leasing fees7.86.76.45.65.3
Deferred tax expense/(benefit)2.53.8 0.4 4.0(10.5)
Funds from operations
2
111.3 102.8 91.1 84.8 80.7

65
ffinancials
dividends
FOR THE YEAR ENDED 31 MARCH
2018
$m
2017
$m
2016
$m
2015
$m
2014
$m
Funds from operations111.3 102.8 91.1 84.8 80.7
Less amount retained(14.1)(15.5)(7.2)(14.5)(16.0)
Cash dividend97.2 87.3 83.9 70.3 64.7
Payout ratio87%85%92%83%80%
cpscpscpscpscps
Cash dividend 6.85 6.75 6.60 6.50 6.40
Imputation credits 1.89 1.92 1.62 0.44 –
Gross dividend 8.74 8.67 8.22 6.94 6.40
financial position
AS AT 31 MARCH
2018
$m
2017
$m
2016
$m
2015
$m
2014
$m
Assets
Investment properties 3,052.0 2,969.4 2,669.9 2,275.8 2,130.2
Cash and cash equivalents 10.7 9.8 6.2 6.2 9.2
Other assets 22.8 20.7 22.3 13.6 96.4
Total assets 3,085.5 2,999.9 2,698.4 2,295.6 2,235.8
Liabilities
Interest bearing liabilities 913.5 1,030.4 814.2 766.4 786.5
Mandatory convertible notes – – – – 119.7
Deferred tax liabilities 95.8 93.4 92.3 90.1 93.5
Other liabilities 82.1 70.0 75.1 56.5 47.6
Total liabilities 1,091.4 1,193.8 981.6 913.0 1,047.3
Equity
Share capital 1,432.9 1,272.6 1,241.1 1,079.1 934.5
Share-based payments reserve 0.4 0.5 0.2 – –
Retained earnings 560.8 533.0 475.5 303.5 254.0
Total equity 1,994.1 1,806.1 1,716.8 1,382.6 1,188.5
Total equity and liabilities 3,085.5 2,999.9 2,698.4 2,295.6 2,235.8
Gearing ratio29.7%34.5%30.3%33.5%35.2%
Net tangible assets per security$1.40$1.39$1.34$1.21$1.17
1. The reported profit has been prepared in accordance with New Zealand generally accepted accounting practice and complies with New Zealand Equivalents to International
Financial Reporting Standards. The reported profit information has been extracted from the annual financial statements which have been the subject of an audit pursuant to
New Zealand Auditing Standards issued by the External Reporting Board.

2.
FFO is an alternative non-GAAP performance measure used by Kiwi Property to assist investors in assessing the Company’s underlying operating performance and to determine
income available for distribution. FFO is a measure commonly used by real estate entities to describe their underlying and recurring earnings from operations. FFO does not have a
standard meaning prescribed by GAAP and therefore may not be comparable to information presented by other entities. FFO is calculated by Kiwi Property in accordance with the
Voluntary Best Practice Guidelines issued by the Property Council of Australia (the Guidelines). During the 2018 financial year, the Guidelines amended the method used to derive
FFO to include the amortisation of leasing fees. Kiwi Property has amended its current year FFO calculation to reflect this change.

kiwi property
annual report 2018
66
five-year summary
property metrics
AS AT 31 MARCH
20182017201620152014
Number of core properties1314141212
Net lettable area (sqm) 451,230 474,381 374,739 364,713 373,277
Occupancy rate99.6%98.8%98.7%98.4%97.8%
Weighted average lease term (years) 5.3 5.6 5.1 4.5 4.7
Weighted average capitalisation rate6.11%6.40%6.61%6.92%7.19%
interpretation
The following commentary is provided to assist with the
interpretation of the five-year summary:
2018
— Acquired 30.6 hectares of land at Drury in South Auckland
for $32.7 million.
— Acquired property adjacent to Sylvia Park, Auckland
for $27.1 million.
— 1 for 11 entitlement offer completed, raising $157 million
(net of costs).
— Th
e Majestic Centre, Wellington, was sold.
— A $1
25 million bond issue was completed (2024 expiry).
2017
— Acquired a 50% interest in The Base in Hamilton for
$192.5 million.
— Centre Place – South, Hamilton, was sold.
— Concluded developments at Westgate Lifestyle, Auckland,
44 The Terrace and The Aurora Centre, Wellington.
— Completed development of H&M and Zara at
Sylvia Park, Auckland.
— A $1
25 million bond issue was completed (2023 expiry).
2016
— 1 for 9 entitlement offer completed, raising $148.1 million
(net of costs).
— We
stgate Lifestyle, Auckland was acquired.
2015
— Kiwi Income Property Trust was converted to a company
and rebranded as Kiwi Property.
— Final 50% interest in 205 Queen Street, Auckland,
was sold.
—Sylvia Park Lifestyle, Auckland, was acquired.
— A $125 million bond issue was completed (2021 expiry).
— $120 million of mandatory convertible notes were
converted to shares.
— Re
furbishment works at The Aurora Centre, Wellington,
commenced.
2014
— The management of Kiwi Income Property Trust was
internalised. A termination payment of $72.5 million
($52.5 million after tax) was made to the former manager.
This payment was tax deductible, therefore reducing the
tax payable in 2014 and 2015.
— Following internalisation, all employees were employed
directly by the Trust.
— The development of our iconic Auckland office building,
ASB North Wharf, was completed, together with the
redevelopment of Centre Place in Hamilton.
— Final insurance proceeds for Northlands’ seismic damage
were received.
— 50
% of 205 Queen Street, Auckland, was sold.
five-year summary (continued)

67
ffinancials
consolidated statement
of comprehensive income
PG 68
consolidated statement
of changes in equity
PG 69
consolidated statement
of financial position
PG 70
consolidated statement
of cash flows
PG 71
notes to the consolidated
financial statements
PG 73
independent
auditor’s report
PG 97
financial statements

kiwi property
annual report 2018
68
financial statements
Note
2018
$000
2017
$000
Income
Property revenue2.1 249,263 238,136
Property management income 1,742 1,506
Interest and other income 285 186
Net fair value gain on interest rate derivatives3.4.2– 9,732
Net fair value gain on investment properties3.2 26,528 41,037
Total income 277,818 290,597
Expenses
Direct property expenses (57,168) (55,599)
Interest and finance charges2.2 (42,645) (43,236)
Employment and administration expenses2.2 (20,567) (17,987)
Net fair value loss on interest rate derivatives3.4.2 (2,390)–
Loss on disposal of investment properties (7,069) (1,345)
Litigation settlement expenses– (770)
Total expenses (129,839) (118,937)
Profit before income tax 147,979 171,660
Income tax expense2.3 (27,877) (28,663)
Profit and total comprehensive income after income tax attributable to shareholders 120,102 142,997
Basic and diluted earnings per share (cents)3.6.3 8.66 11.10
consolidated statement
of comprehensive income
FOR THE YEAR ENDED 31 MARCH 2018
The consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

69
ffinancials
Note
Share
capital
$000
Share-based
payments
reserve
$000
Retained
earnings
$000
Total
equity
$000
Balance at 1 April 2016 1,241,129 168 475,468 1,716,765
Profit after income tax–– 142,997 142,997
Dividends paid3.6.2–– (85,533) (85,533)
Dividends reinvested3.6.1 31,922 –– 31,922
Long-term incentive plan3.6.4 (429) 197 114 (118)
Balance at 31 March 2017 1,272,622 365 533,046 1,806,033
Balance at 1 April 2017 1,272,622 365 533,046 1,806,033
Profit after income tax–– 120,102 120,102
Dividends paid3.6.2–– (92,404) (92,404)
Dividends reinvested3.6.1 3,842 –– 3,842
Shares issued – entitlement offer3.6.1 156,950 –– 156,950
Long-term incentive plan3.6.4 (478) 36 33 (409)
Balance at 31 March 2018 1,432,936 401 560,777 1,994,114
consolidated statement
of changes in equity
FOR THE YEAR ENDED 31 MARCH 2018
The consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

kiwi property
annual report 2018
70
financial statements
consolidated statement
of financial position
AS AT 31 MARCH 2018
Note
2018
$000
2017
$000
Current assets
Cash and cash equivalents 10,697 9,772
Trade and other receivables3.1 14,261 12,883
24,958 22,655
Non-current assets
Investment properties3.2 3,051,964 2,969,365
Property, plant and equipment 3,764 1,218
Interest rate derivatives3.4.2 658 2,428
Deferred tax assets3.3 4,114 4,208
3,060,500 2,977,219
Total assets 3,085,458 2,999,874
Current liabilities
Trade and other payables3.5 57,430 45,464
Income tax payable 9,290 7,163
Interest rate derivatives3.4.2 627 198
67,347 52,825
Non-current liabilities
Interest bearing liabilities3.4.1 913,502 1,030,358
Interest rate derivatives3.4.2 14,725 17,258
Deferred tax liabilities3.3 95,770 93,400
1,023,997 1,141,016
Total liabilities 1,091,344 1,193,841
Equity
Share capital3.6.1 1,432,936 1,272,622
Share-based payments reserve 401 365
Retained earnings 560,777 533,046
Total equity 1,994,114 1,806,033
Total equity and liabilities 3,085,458 2,999,874
For and on behalf of the board, who authorised these financial statements for issue on 18 May 2018.
The consolidated statement of financial position should be read in conjunction with the accompanying notes.
MARK FORD
CHAIR
MARY JANE DALY
CHAIR OF THE AUDIT AND
RISK COMMITTEE

71
ffinancials
consolidated statement
of cash flows
FOR THE YEAR ENDED 31 MARCH 2018
Note
2018
$000
2017
$000
Cash flows from operating activities
Property revenue 247,835 236,122
Property management income 1,727 1,384
Interest and other income 285 186
Direct property expenses (58,290) (56,672)
Interest and finance charges (42,054) (42,823)
Employment and administration expenses (18,149) (14,935)
Income tax expense (23,287) (24,105)
Goods and Services Tax received 151 1,757
Net cash flows from operating activities 108,218 100,914
Cash flows from investing activities
Proceeds from disposal of investment properties 122,083 46,141
Acquisition of investment properties (59,828) (213,944)
Expenditure on investment properties (108,877) (91,228)
Interest and finance charges capitalised to investment properties (3,755) (2,626)
Acquisition of property, plant and equipment (3,035) (857)
Net litigation settlement income – 3,530
Proceeds from other investment activities – 28
Net cash flows used in investing activities (53,412) (258,956)
Cash flows from financing activities
Proceeds from issue of shares 156,950 –
Own shares acquired for long-term incentive plan (633) (429)
Proceeds from/(repayment of) bank loans (242,500) 92,000
Proceeds from fixed rate bonds 123,555 123,585
Settlement of interest rate derivatives (2,724) –
Dividends paid (88,529) (53,497)
Net cash flows from/(used in) financing activities (53,881) 161,659
Net increase in cash and cash equivalents 925 3,617
Cash and cash equivalents at the beginning of the year 9,772 6,155
Cash and cash equivalents at the end of the year 10,697 9,772
The consolidated statement of cash flows should be read in conjunction with the accompanying notes.

kiwi property
annual report 2018
72
financial statements
2018
$000
2017
$000
Reconciliation of profit after income tax
to net cash flows from operating activities
Profit after income tax 120,102 142,997
Items classified as investing or financing activities:
Movements in working capital items relating to investing and financing activities (2,925) 907
Non-cash items:
Net fair value loss/(gain) on interest rate derivatives 2,390 (9,732)
Net fair value gain on investment properties (26,528) (41,037)
Movement in deferred tax assets 94 2,725
Movement in deferred tax liabilities 2,370 1,070
Movements in working capital items:
Trade and other receivables (1,378) 1,742
Income tax payable 2,127 764
Trade and other payables 11,966 1,478
Net cash flows from operating activities 108,218 100,914
consolidated statement
of cash flows (continued)
FOR THE YEAR ENDED 31 MARCH 2018
The consolidated statement of cash flows should be read in conjunction with the accompanying notes.

73
notes
notes to the consolidated
financial statements
FOR THE YEAR ENDED 31 MARCH 2018
1. general information
1.1
repor
ting entity
PG 74
1.2 basis of preparation PG 74
1.3
significant changes during the y
ear
PG 74
1.4 group structure PG 74
1.5
new st
andards, amendments
and interpret
ations


PG 74
1.6 key judgements and estimates PG 75
1.7
accounting policies PG 75
2.
profit and lo
ss information
2.1
proper
ty revenue
PG 76
2
.2
expense
s
PG 77
2
.3
tax e
xpense
PG 78
3
.
financial position inf
ormation
3.1
trade and other
receivables PG 80
3.2
investment properties PG 80
3.3
deferred tax PG 85
3.4
funding PG 85
3.5
trade and other payables PG 87
3.6
equity PG 88
4.
financial risk management
4.1 interest rate risk PG 91
4.2
credit risk PG 92
4.3

liquidity risk PG 92
5. other information
5.1
segment information PG 93
5.2

related party transactions PG 94
5.3

key management personnel PG 95
5.4

commitments PG 95
5.5

subsequent events PG 96