Kiwi Property portfolio value rises to $3.2 billion

NZX RELEASE
2 April 2019
Kiwi Property portfolio value rises to $3.2 billion


Kiwi Property today reported a net fair value gain of approximately $47 million (+1.5%) in
respect of its portfolio of mixed-use, retail and office assets for the year ended 31 March 2019,
with the total property portfolio value lifting to $3.2 billion.
Chief Executive Officer, Clive Mackenzie, said: “Our property portfolio has benefited from a
strong investment market with robust international capital inflows contributing to a firming in
the weighted average investment portfolio capitalisation rate.”
“This year we have made an important change to our asset classifications, recognising the
evolution of our strategy which increases our focus on intensifying some of our holdings to
create mixed-use communities,” said Mr Mackenzie.
As a result, Kiwi Property’s investment portfolio now has three asset class classifications: mixed-
use, retail and office.
Mixed-use portfolio
“Our mixed-use portfolio includes those assets that are strategically located in centres of
higher population growth, close to town centres or key transport linkages and have existing or
longer-term potential to develop a variety of uses on site including retail, commercial,
entertainment, hotel, residential or civic uses,” said Mr Mackenzie.
Kiwi Property’s evolution to focus on these assets is borne out in this year’s valuation result
where mixed-use assets have performed better than traditional retail centres.
Our mixed-use portfolio, comprising Sylvia Park (including Sylvia Park Lifestyle), LynnMall and
The Base, has grown in fair value by $20 million or 1.3%. Our mixed-use assets are collectively
valued at $1.53 billion ― 48% of Kiwi Property’s overall holdings ― and provide a weighted
average capitalisation rate of 5.71%, in line with March 2018.
Retail portfolio
Our retail portfolio has decreased in fair value by $28 million, or 4.5%, primarily as a result of
softening capitalisation rates for this asset class together with, in some instances, an increase
in seismic related expenditure. With a total value of $598 million ― less than 20% of Kiwi
Property’s overall holdings ― our retail portfolio has a weighted average capitalisation rate of
7.53%, 23 basis points higher than last year.
Office portfolio
Our office portfolio performed very strongly over FY19 with fair value growth of $53 million or
6.3%. Growth was positive across both Auckland (+6.5%) and Wellington (+5.6%) assets, driven
by not only strong market sentiment and demand for this asset class but also the quality of
the buildings in Kiwi Property’s portfolio. Our office portfolio, at a total value of $893 million,
comprises 28% of Kiwi Property’s overall holdings. The portfolio weighted average
capitalisation rate has firmed 31 basis points since March 2018 to 5.45%.

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Overall portfolio
The revaluation result has firmed our investment portfolio capitalisation rate by 12 basis points,
from 6.11% to 5.99% and will increase our net tangible asset backing from $1.40 per share to
approximately $1.43 per share.
The March 2019 property valuations were determined by independent valuers and will be
confirmed in the Company’s audited financial results for the year ended 31 March 2019, to
be announced on 20 May 2019.
A summary of valuations follows:

> Ends
Contact us for further information
Clive Mackenzie
Chief Executive Officer
clive.mackenzie@kp.co.nz
+64 9 359 4011
Stuart Tabuteau
Chief Financial Officer
stuart.tabuteau@kp.co.nz
+64 9 359 4025
$m %
Sy lv ia Park5.38% 5.38% - 955 3 0.4%
Sy lv ia Park Lifesty le6.25% 6.25% - 77 3 3.9%
LynnMall6.25% 6.38% -13284 1 0.4%
The Base6.25% 6.13% 13 218 13 6.3%
Mixed-use portfolio5.72% 5.71% 1 1,534 20 1.3%
Westgate Lifestyle6.38% 6.38% - 90 -0-0.1%
Centre Place North8.75% 10.25% -15054 -7-11.5%
The Plaza7.00% 7.38% -37207 -6-2.9%
North City
1
8.38%
Northlands7.13% 7.50% -38247 -15-5.7%
Retail portfolio7.31% 7.53% -23598 -28-4.5%
Vero Centre5.50% 5.13% 38 450 22 5.0%
ASB North Wharf 5.63% 5.38% 25 230 20 9.6%
The Aurora Centre6.38% 6.13% 25 160 7 4.8%
44 The Terrace6.63% 6.50% 13 54 4 7.9%
Office portfolio5.76% 5.45% 31 893 53 6.3%
INVESTMENT PORTFOLIO6.11% 5.99% 12 3,024 45 1.5%
Other properties183 2 1.0%
TOTAL PORTFOLIO3,207 47 1.5%
No t e 1 On 9 July 2018, Kiwi Property settled the sale of North City, Porirua. The capitalisation rate shown as at
March 2018 is the equivalent rate based on the asset's gross sale price.
Property / Portfolio
Capitalisation rate
Value
Mar-19
$m
Fair value movement
Mar-18
%
Mar-19
%
Variance
bps

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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 25 years and we
proudly own and manage a $3.2 billion portfolio of real estate, comprising some of New
Zealand’s best mixed-use, retail and prime office buildings. Our objective is to provide
investors with a reliable investment in New Zealand property 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 the highest rated New Zealand
company within CDP (Carbon Disclosure Project) and is a member of FTSE4 Good, a series of
benchmark and tradable indexes for ESG (Environmental, Social and Governance) investors.
Kiwi Property is licensed under the Real Estate Agents Act 2008. To find out more, visit our
website kp.co.nz