COVID-19 Business update

NZX RELEASE
6 April 2020
COVID-19 Business update


In light of the ongoing disruption caused by the COVID-19 pandemic, Kiwi Property has
provided the following business update:

During this time of unprecedented challenge, Kiwi Property is focused on ensuring the
wellbeing of its people, tenants and customers, and protecting the long-term value of the
company for investors.

Financial position
As announced last week, the business successfully extended $361 million of bank debt
facilities on three and five year terms, increasing the weighted average term of all debt
facilities to 3.9 years. Kiwi Property now has no bank debt maturities until the 2023 financial
year, $303 million in undrawn credit and a healthy overall gearing position of 29.2%.

Property portfolio
Kiwi Property has a diversified property portfolio, comprised of mixed-use, office, retail and
other use types. The company’s assets are heavily weighted to the golden triangle, which is
home to 50% of New Zealand’s population, with 71% of assets located in Auckland and a
further 8% in Hamilton. Kiwi Property has maintained high occupancy of 99.4% and a
weighted average lease expiry of 5.1 years
1
.

Cost-savings programme
Kiwi Property has implemented a comprehensive cost savings programme to reduce
expenses and help offset any decline in income resulting from measures to control the
pandemic. Effective immediately, non-essential capital expenditure projects have been put
on hold until there is greater clarity about the future trading environment. All operating
expenditure has been reviewed and discretionary spend will be stopped where possible.
The Board of Directors, Chief Executive Officer and Executive Team have agreed to a 20
percent reduction in pay, while in parallel, employee salary increases have also been
frozen. These measures will be reviewed on an ongoing basis as the COVID-19 situation
evolves.

FY20 performance guidance & final dividend
While Kiwi Property’s operating performance was in-line with expectations prior to COVID-19,
it is clear the pandemic will have a material impact on the company’s forward-looking
performance and rental receipts. It is too early to quantify the impact of the ongoing period
of disruption on future income, asset values and cash flows. Kiwi Property will continue to
closely monitor the developing situation and update the market as appropriate.

2
Given the inherent uncertainty surrounding COVID-19’s duration, the Board has adopted a
prudent approach to capital management and made the difficult decision not to proceed
with the final dividend for the year ended 31 March 2020.

> Ends

NOTES:
1. Source: Kiwi Property interim report 2020.


Contact us for further information
Clive Mackenzie
Chief Executive Officer

clive.mackenzie@kp.co.nz
Mark Ford
Chair

mvford@bigpond.net.au

Campbell Hodgetts
Communications Lead
campbell.hodgetts@kp.co.nz
0275634985

About us
Kiwi Property (NZX: KPG) is one of the largest listed property companies on the New Zealand
Stock Exchange and is a member of the S&P/NZX 20 Index. We’ve been around for over 25
years and we proudly own and manage a significant portfolio of real estate assets, comprising
some of New Zealand’s best mixed-use, retail and 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
benchmarks and tradeable indices 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