Kiwi Property Annual Meeting presentation and address

NZX RELEASE
29 June 2020
Kiwi Property Annual Meeting presentation and
address


Kiwi Property has provided the NZX with a copy of the presentation and addresses to be made by
the Chair of the Board and Chief Executive Officer at the Company’s virtual annual meeting of
shareholders to be held today.

Ends


Contact us for further information
Clive Mackenzie
Chief Executive Officer
clive.mackenzie@kp.co.nz
Campbell Hodgetts
Communications Lead
campbell.hodgetts@kp.co.nz
+64 27 563 4985
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
proudly own and manage a significant real estate portfolio, 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 an issuer 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 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

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KIWI PROPERTY
2020 ANNUAL MEETING
29 June 2020

2020 ANNUAL MEETING
AGENDA
Chair’s address
Chief Executive Officer’s address
Questions
Formal business
Unless otherwise stated, all information provided in this presentation is for the year ended and/or
as at 31 March 2020. For further information, refer to our website kp.co.nz or NZX.com

3
HOW TO ASK A WRITTEN QUESTION
2.Click “Text Question”, select the item of business from the drop-down
menu and type your question in the space provided
3.Once you have typed your question, click “Submit Question”
1.Click the “Ask a Question” button at either the top or bottom of the
page

CHAIR’S ADDRESS
4

5
COVID-19
“The world has
been changed
by COVID-19.
We’re ready to
face the future
with an
unwavering
commitment to
our shareholders”

6
COVID-19
“Our response to
COVID-19 has
been shaped by
one key idea:
put people first”

7
DRIVING COST CONTROL
1.
Non-essential
expenditure
suspended
2.
20% Board
and Executive
Team pay
reduction
3.
Salaries and
recruitment
frozen

8
WE’RE COMMITTED TO SUSTAINABILITY
•New ESG
Committee
established
•#1 NZ Company
on CDP’s 2019
climate action list
•50% reduction in
CO
2
emissions vs.
2012 baseline

9
OUR MIXED-USE OPPORTUNITIES
Sylvia Park,Auckland
35hectares
The Base,Hamilton(JV with Tainui Group Holdings)
7 hectares
LynnMall,Auckland
Drury,Auckland
51hectares
30hectares

CHIEF EXECUTIVE
OFFICER’S ADDRESS
10

11
NAVIGATING COVID-19
Stabilise
Diversify
Grow
•Cost control
•Capital management
•Strong tenants
•Mixed-use
•Portfolio diversification
•Targeted development

12
PRUDENT CAPITAL MANAGEMENT
•$361 million of
bank debt
facilities extended
•No bank debt
maturities until
FY23
•$291 million in
available
undrawn credit

13
•Sharing a fair
proportion of the
COVID-19
financial impact
•Measures include
rental abatements
and deferrals
•Expected to
impact FFO
1
by
$20 million or 8%
of FY20 gross rent
PROMOTING STRONG TENANTS

14
DIVERSIFYING OUR PORTFOLIO
•Strategic focus on
reducing pure
retail exposure
•Build-to-rent has
strong potential in
constrained
housing market
•Sylvia Park tower
2 in design with
15,000 sqm of
office space

15
SYLVIA PARK GALLERIA
•19,000 sqm of
shopping
featuring ~60
retailers
•Progressive
opening from Q4
2020 due to
lockdown delay
•Continued
commitment from
key tenants
despite COVID-19

16
SYLVIA PARK SOUTH CARPARK
•Completed May
2020
•Features 900
carparks and six
EV charging
stations
•Now 5,000 total
carparks at Sylvia
Park – the most of
any NZ shopping
centre

17
TARGETED DEVELOPMENT AT DRURY
•Area forecast to
be home to
60,000 residents
•Government
planning $2.4b
infrastructure
investment
•Private plan
change
expected to be
notified August
2020

FINANCIAL
RESULTS
18

19
SOLID OPERATING RESULT
$
186.8m
Net rental income
+$6.1m +3.4
%
$
113.6m
Funds from operations (FFO
1
)
+$6.7m +6.3
%
$
129.7m
Operating profit before tax
$5.2m +4.2
%
-
$
186.7m
Net loss after tax
-$324.8m -235.2
%
Net rental income increased across all asset
classes.
Solid growth in FFO
1
, one of our key measures
of underlying operating performance.
A net loss after tax was recorded after the
uncertainty arising from COVID-19 caused our
property portfolio to be devalued.

20
SOUND BALANCE SHEET
The fair value of our portfolio decreased by
8.5% after accounting for capital expenditure
and acquisitions during the year.
Year end gearing has increased although
remains within our target range.
$
3.1b
Property assets
-$0.1b -2.9
%
32.0
%
Gearing
FY19: 31.0
%
$
1.26
Net asset backing per
share
FY19: $1.43

21
4.35
%
Weighted average cost of debt
FY19: 4.80
%
3.9 years
Weighted average term to debt
maturity
FY19: 3.2 years
BBB
+
Issue rating
2
(fixed-rate bonds)
BBB(stable)
Issuer credit rating
2
ACTIVE CAPITAL MANAGEMENT
We completed a $194 million (net of issues
costs) equity raise in November 2019, to
reduce gearing and provide financial
flexibility.
$361 million of bank debt facilities were
refinanced during 2020.

22
4.0
%
Total rental growth
FY19:4.0
%
99.5
%
Occupancy
FY19:99.3
%
4.9years
Weighted average lease
expiry
FY19:5.2 years
STRONG PORTFOLIO PERFORMANCE
We have maintained a strong portfolio
through proactive asset management, with
solid rental growth across the mixed-use and
office asset classes.

23
POSITIVE RETAIL SALES
Sales per square metre, and specialty GOC
improved during the year.
Sales data shown is for the twelve months
ended 29 Feb 2020.
For the twelve months
ended 29 Feb 2020*
All centres
(incl. large format
centres)
Shopping centres
(excl. large format centres)
Total sales
(billion)
$
2.01
(Mar-19: $1.95)
$
1.80
(Mar-19: $1.75)
Total sales growth
+2.8
%
+2.5
%
Like-for-like sales
growth
+1.6
%
+1.4
%
*During the year we changed the basis of our sales reporting to align with the Australian Council of
Shopping Centres guidelines and methodology adopted by our peers. Under these guidelines sales are
now reported inclusive of GST. For comparative purposes we have restated our Mar-19 data on this basis.

24
FY21 PRIORITIES
1.
Stabilise the
Company
2.
Diversify
our portfolio
3.
Drive business
growth

25
DIVIDEND REINSTATEMENT
•Following the move to Alert Level 1 and increased clarity around the country’s
trading environment:
•We intend to pay an interim dividend for the year ending 31 March 2021
3
.
•The target payout will be 90%-100% of underlying cash flows (adjusted funds
from operations
1
).

QUESTIONS

27
FORMAL
BUSINESS

28
HOW TO VOTE
2.Enter your Shareholder Number (SRN/HIN) or Proxy Number
and click “Submit Details and Vote”
3.Fill out your voting card for each item of business
4.Click “Submit Vote” or “Submit Partial Vote”
1.Click the “Get a Voting Card” button at either the top or
bottom of the page

29
RESOLUTIONS 1, 2 AND 3:
RE-ELECTION / ELECTION OF DIRECTORS
Explanatory information:
•In accordance with the Company’s constitution and the NZX Listing Rules, Mark
Ford, Richard Didsbury and Simon Shakesheff will retire at this meeting, however
Mark and Richard offer themselves for re-election and Simon offers himself for
election.
•The board has determined that Mark Ford, Richard Didsbury and Simon
Shakesheff will be independent directors for the purposes of the NZX Listing Rules,
if re-elected / elected.
•The Notice of Meeting contains information on what it means to be an
independent director for the purposes of the NZX Listing Rules.

30
RESOLUTION 1:
RE-ELECTION OF DIRECTOR
Mark Ford
ACA, FACD (DIP), NSWIT DIP (COMM)
Date of first appointment
May 2011
*
Date last re-elected
July 2017
Board committees
•Member of the Audit and Risk Committee
•Member of the Remuneration and Nominations Committee
•Member of the Environmental, Social and Governance Committee
*The date Mark Ford was appointed to the board of the predecessor entity to Kiwi Property Group Limited.

31
RESOLUTION 2:
RE-ELECTION OF DIRECTOR
Richard Didsbury
BE
Date of first appointment
July 1992
*
Date last re-elected
July 2017
Board committees
•Member of the Remuneration and Nominations Committee
*The date Richard Didsbury was appointed to the board of the predecessor entity to Kiwi Property Group Limited.

32
RESOLUTION 3:
ELECTION OF DIRECTOR
Simon Shakesheff
MCom
Date of first appointment
November 2019
Board committees
•Member of the Audit and Risk Committee
•Member of the Environmental, Social and Governance Committee

33
RESOLUTIONS 1, 2 AND 3:
RE-ELECTION / ELECTION OF DIRECTORS
The board
*
recommends that you vote in favour
of the re-election of Mark Ford and Richard Didsbury
and the election of Simon Shakesheff
Rationale:
•The board is committed to ensuring that it possesses the appropriate mix of skills,
knowledge, experience and diversity to discharge its role and responsibilities.
•The board supports the re-election of Mark Ford and Richard Didsbury and the
election of Simon Shakesheff as it considers they have the expertise to contribute
to the overall skill set required by the board.
*The board, other than Mark Ford, Richard Didsbury and Simon Shakesheff each in respect of their own positions, recommends you vote in favour of the resolutions.

34
That Mark Ford be re-elected
as a director of the Company
34
RESOLUTION 1

35
That Richard Didsbury be re-elected
as a director of the Company
35
RESOLUTION 2

36
That Simon Shakesheff be elected
as a director of the Company
36
RESOLUTION 3

37
RESOLUTION 4:
AUDITOR’S REMUNERATION
Resolution sought:
•The resolution sought is to authorise the directors to fix the remuneration of the
auditor pursuant to Section 207(S)(a) of the Companies Act 1993.
The board recommends that you vote in favour of this
resolution

38
That the directors be authorised to fix the
auditor’s remuneration
38
RESOLUTION 4

39
PROXY VOTING RESULTS
Resolution 1: That Mark Ford be re-elected as a director of the Company
Proxy votes
lodged
ForAgainstDiscretionary
886,483,045867,948,15797.91%6,244,8240.70%12,290,0641.39%
Resolution 2: That Richard Didsbury be re-elected as a director of the Company
Proxy votes
lodged
ForAgainstDiscretionary
886,481,671846,959,85595.54%27,136,1223.06%12,385,6941.40%
Resolution 3: That Simon Shakesheff be elected as a director of the Company
Proxy votes
lodged
ForAgainstDiscretionary
886,430,695871,384,13998.30%2,600,8640. 29%12,445,6921.40%
Resolution 4: That the directors be authorised to fix the auditor’s remuneration
Proxy votes
lodged
ForAgainstDiscretionary
886,530,444873,073,47898.48%1,032,9900.12%12,423,9761.40%

40
THANK YOU

41
NOTES
1.Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) are non-GAAP
performance measures used by Kiwi Property to assist investors in assessing the Company’s
underlying operating performance. FFO and AFFO are measures commonly used by real estate
entities to describe their underlying and recurring earnings from operations. FFO and AFFO do not
have a standard meaning prescribed by GAAP and therefore may not be comparable to
information presented by other entities. FFO and AFFO are calculated by Kiwi Property in
accordance with the Voluntary Best Practice Guidelines issued by the Property Council of
Australia.
2.The ratings have been assigned by S&P Global Ratings. 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 the Company’s securities. The
credit ratings referred to in this document are current as at the date of this document and may
be subject to suspension, revision or withdrawal at any time by S&P Global Ratings.
3.Payment of the dividend is subject to the absence of material adverse effects or other unforeseen
circumstances, including further COVID-19 related lockdowns.

42
DISCLAIMER
Kiwi Property Group Limited has prepared this document. By accepting this document and to the maximum extent permitted by law, you acknowledge and agree to the following matters.
No liability
Kiwi Property Group Limited, its advisers, affiliates, related bodies corporate, directors, officers, partners, employees andagents (together ‘Kiwi Property’) expressly exclude and disclaim any and all liability which may arise from this document, any information
provided in connection with this document, any errors in or omissions from this document, from relying on or using this documentor otherwise in connection with this document.
No representation
Kiwi Property makes no representation or warranty, express or implied, as to the accuracy, completeness, reliability or sufficiency of the information in this document or the reasonableness of the assumptions in this document. All images (including any
dimensions) are for illustrative purposes only and are subject to change at any time and from time to time without notice.
Not advice
This document does not constitute advice of any kind whatsoever (including but without limitation investment, financial, tax,accounting or legal advice) and must not be relied upon as such. This document is intended to provide general information only and
does not take into account your objectives, situation or needs. You should assess whether the information in this document isappropriate for you and consider talking to a professional adviser or consultant.
Not an offer
This document is for information purposes only and is not an invitation or offer of financial products for subscription, purchase or sale in any jurisdiction. This document is not a prospectus or product disclosure statement or other offering document under New
Zealand law or any other law. This document does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States and will not be lodged with the U.S Securities Exchange Commission.
Past performance
Past performance information given in this document is given for illustrative purposes only and should not be relied upon as (and is not) an indication or guarantee of future performance.
Future performance
This document contains certain "forward-looking statements" such as indications of, and guidance on, future earnings and financial position and performance. Forward-looking statements can generally be identified by the use of forward-looking words such as,
'expect', 'anticipate', 'likely', 'intend', 'could', 'may', 'predict', 'plan', 'propose', 'will', 'believe', 'forecast', 'estimate', 'target', 'outlook', 'guidance' and other similar expressions. The forward-looking statements contained in this document are not guarantees or
predictions of future performance and involve known and unknown risks and uncertainties and other factors, many of which are beyond the control of Kiwi Property, and may involve significant elements of subjective judgement and assumptions as to future
events which may or may not be correct. There is no assurance or guarantee that actual outcomes will not materially differ from these forward-looking statements. A number of important factors could cause actual results or performance to differ materially from
the forward-looking statements. Investors should consider the forward-looking statements contained in this document in light of this information. The forward-looking statements are based on information available to Kiwi Property as at the date of this document.
Investment risk
An investment in the financial products of Kiwi Property Group Limited is subject to investment and other known and unknown risk s, some of which are beyond the control of Kiwi Property Group Limited. Kiwi Property Group Limited does not guarantee its
performance or the performance of any of its financial products unless and to the extent explicitly stated in a prospectus orproduct disclosure statement or other offering document.
No duty to update
Statements made in this document are made only as the date of this document unless another date is specified. Except as requiredby law or regulation (including the NZX Listing Rules), Kiwi Property undertakes no obligation to provide any additional or
updated information or revise or reaffirm the information in this document whether as a result of new information, future events, results or otherwise. Kiwi Property Group Limited reserves the right to change any or all of the information in this document at any time
and from time to time without notice.
Caution regarding sales information
Any sales information included in this document has been obtained from third parties or, where such information has not been provided by third parties, estimated by Kiwi Property based on information available to it. The sales information has not been
independently verified. The sales information included in this document will not be complete where third parties have not provided complete sales information and Kiwi Property has not estimated sales information. You are cautioned that this document should
not be relied upon as a representation, warranty or undertaking in relation to the currency, accuracy, reliability or completeness of the sales information contained in this document.
Copyright
The copyright of this document and the information contained in it is vested in Kiwi Property Group Limited. This document should not be copied, reproduced or redistributed without the prior written consent of Kiwi Property Group Limited.
Real Estate Agents Act 2008
Kiwi Property Group Limited is licensed under the Real Estate Agents Act 2008.

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NZX RELEASE
29 June 2020
Kiwi Property 2020 Annual Meeting address


ADDRESS FROM THE CHAIR

WELCOME (SLIDE 1)

Good morning ladies and gentlemen, and a warm welcome to the 2020 Kiwi Property annual
meeting of shareholders. My name is Mark Ford. I am an independent director, Chair of the
Board and Chair of today’s meeting. I am pleased to advise there is a quorum present and I
declare this annual meeting of shareholders open.

Today’s meeting is being conducted virtually, a first for Kiwi Property, but one of many
adjustments the Company has made in response to COVID-19. When we issued the notice of
meeting a number of weeks ago, we didn’t know New Zealand would be back at level one.
While it would have been great to meet with you directly, changing the format of the
meeting at the last minute would have created a number of logistical challenges. Of course,
our preference is to meet face-to face, so we’ll be looking to return to a hybrid or physical
meeting next year, when I’m looking forward to being there in person.

I would like to start today’s meeting by introducing my colleagues on the Board.

> Mary Jane Daly – Mary Jane was appointed to our Board in September 2014. She is an
Auckland-based professional director with a strong background in banking and finance.
Mary Jane also serves as the Chair of our Audit and Risk Committee.
> Richard Didsbury – Richard was one of the founders of Kiwi Property and brings extensive
property and business expertise to the Board. Richard will be standing for re-election at
today’s meeting.
> Jane Freeman – Jane was appointed to our Board in August 2014. She is an Auckland-
based professional director who has extensive retail experience in the field of customer-
driven technology. Jane also serves as Chair of our Remuneration and Nominations
Committee.
> Mark Powell – Mark is an Auckland-based professional director, following a successful
career as an executive leader in retail, wholesale and logistics in New Zealand and
overseas. Mark joined our Board in October 2017.
> Simon Shakesheff – Simon is an Australian-based professional director and joined our
Board in November 2019. He brings a wealth of property and finance experience to the
role and will be standing for election today. We are focused on ensuring smooth and
effective director succession. Simon’s appointment is an important step in this process, as
we continue to add a complimentary mix of skills and experience to the Board.
> Mike Steur – Mike is an experienced company director with over 30 years’ experience in
the property sector. Mike will be retiring from the Board today after 10 years of service,
having made a significant contribution to the Company.

In accordance with the NZX Listing Rules, the Board has determined that all directors are
independent. The Notice of Meeting also contains further information on director
independence.

Joining us today is Clive Mackenzie, our Chief Executive Officer, and Gavin Parker, our GM
Funds Management and Capital Markets.

2
I extend a warm welcome to the team from our Registrar, Link Market Services. They will help
conduct the voting on the formal business later in the meeting and also act as scrutineer.
Finally, I’d like to welcome Jonathon Skilton from PwC, our Group’s auditor.

AGENDA (SLIDE 2)

Moving to today’s agenda.

I will start with a brief address and then invite Clive to provide an update on the Company’s
response to COVID-19 and the financial results for the year ended 31 March 2020.

At the conclusion of these presentations, we will open up to any questions you may have
about the Company.

We will then move to the formal business for today, being resolutions to:
> Re-elect me to the Board
> Re-elect Richard Didsbury to the Board
> Elect Simon Shakesheff to the Board; and
> Authorise the Board to fix the auditor’s remuneration

HOW TO ASK A QUESTION (SLIDE 3)

Although we are conducting today’s annual meeting virtually, as always, there will be plenty
of opportunity to put your questions to the Board and management, as well the ability to vote
on the formal resolutions, which I’ll outline later in proceedings.

You may submit a question at any time by clicking on the ‘Ask a Question’ box at the top or
bottom of the online portal, as shown here. We will be answering general questions at the
conclusion of the Chair and CEO’s addresses and then specific questions relating to each of
the resolutions before voting on each of them.

As this is a shareholders’ meeting, only shareholders or appointed proxies can ask a question,
so you will be prompted to input your Shareholder or Proxy number before completing the
process.

If there’s a technical issue at some point today and I’m disconnected from the call, Mary
Jane Daly will take over as meeting Chair in my place. Jane Freeman will act as meeting
Chair in the unlikely event Mary Jane is also disconnected.

CHAIR’S ADDRESS (SLIDE 4)

Kiwi Property delivered a solid operating result for the financial year to 31 March 2020 or FY20.
Clive will share details of this performance shortly.

Since the close of the financial year however, the world has been transformed by COVID-19.
With that in mind, it only seems fitting that my remarks today focus on Kiwi Property’s response to
the pandemic.

COVID-19 (SLIDE 5)

In the 26 years since Kiwi Property was founded, we have witnessed significant changes within
our sector and across New Zealand as a whole. We’ve experienced highs and lows, including
the global financial crisis and the Canterbury earthquakes.

3
That resilience has again been tested over recent months, this time by COVID-19, which has
caused unprecedented disruption. While New Zealand has made great strides dealing with the
virus, the measures taken to stop its spread have had a pronounced economic impact.

This isn’t the first time the Company has faced adversity and it is unlikely to be the last. As before,
we will face this situation head on. With many predicting that COVID-19 will accelerate the rate
of change in the commercial property sector, the future will bring with it both challenges and
opportunities. Kiwi Property will be ready for both, with an unwavering commitment to delivering
for our shareholders and other stakeholders.

COVID-19 (SLIDE 6)

Our business is part of a large and interdependent ecosystem that includes consumers, office
workers, retailers, tenants, customers and suppliers, to name a few. Although we are a property
company, it’s people who bring our assets to life. The COVID-19 pandemic has placed many of
those people under immense pressure and threatened their health, their livelihoods and their
future.

During this challenging period, we have a responsibility to act as a partner rather than a
landlord, supporting others to come through the pandemic in good physical and financial
health, ready for life in a post-COVID world.

This view helped shape the Company’s immediate response to the pandemic, which was, and
is, to put people first.

Kiwi Property has delivered on this in a number of ways, including supporting tenants by sharing a
fair proportion of the financial burden caused by the pandemic. These measures carry a cost, as
Clive will outline shortly, but the short-term financial impact is far outweighed by the long-term
value of a strong tenant ecosystem. Supporting our stakeholders during the COVID-19 pandemic
is the right thing to do and it’s also important to the Company’s ongoing financial performance.

DRIVING COST CONTROL (SLIDE 7)

To help offset the additional costs incurred as a result of the pandemic and the financial
headwinds set to follow, we have implemented a number of cost saving measures.

Key among these is the introduction of a comprehensive cost savings programme, including the
suspension of all non-essential capital projects and operating expenditure. The Board and
Executive team have taken a temporary 20 percent pay cut, while employee salaries have
been frozen and recruitment put on hold for the rest of the year.

Ensuring strict financial discipline will be a cornerstone of our business response to COVID-19 and
the economic downturn it has caused.

WE’RE COMMITTED TO SUSTAINABILITY (SLIDE 8)

Our commitment to putting people first and a strong desire to make a positive contribution to
New Zealand, has underpinned the establishment of a new Board environmental, social and
governance, or ESG, committee, which is chaired by Mark Powell.

This move reflects the growing importance of ESG to our stakeholders and will enable Directors to
focus on the issues and opportunities arising from matters such as climate change and corporate
social responsibility.

4
The establishment of the ESG committee is the natural evolution of Kiwi Property’s sustainability
programme, first put in place 17 years ago. We have a strongly held belief that in order for the
Company to do well, so too must the communities in which we operate.

I am particularly proud that as of 2020 we have successfully halved our CO
2
emissions,
compared to our 2012 baseline. It’s milestones such as these, which led to Kiwi Property topping
the rankings of New Zealand companies on the Carbon Disclosure Project’s Climate list.

OUR MIXED-USE OPPORTUNITIES (SLIDE 9)
Looking ahead to FY21, we continue to regard mixed-use community creation as the core of
our business. Our strategy of intensifying our large, transport-oriented landholdings with a
range of complementary asset types remains as relevant today as it did when I discussed it
with you at last year’s annual meeting.

These mixed-use communities will be thriving destinations with outstanding transport
infrastructure, where people work, shop, connect, live and play. By extension they could
feature a range of uses, including retail, office, build-to-rent residential, medical, logistics,
dining, entertainment or even hotel.

By diversifying our portfolio, we will reduce our pure retail exposure, expand our income
streams and promote smoother returns through the property cycle.

Naturally, our focus is always on investment returns so it is important that such developments
are market-led and possess strong investment qualities.

As you can see from this slide, our mixed-use portfolio includes a number of significant assets
with the necessary size, location or zoning to support further intensification.

This portfolio includes existing assets:

> Sylvia Park, including Sylvia Park Lifestyle. During the year we acquired two further
strategic sites, giving us a total of 12ha of land adjacent to our existing holding, providing
access to both sides of the railway line and creating significant opportunities for future
expansion.
> LynnMall, and
> The Base, which we hold in joint venture with Tainui Group Holdings.

When ultimately developed, our Drury assets will also be classified as mixed-use.

Common to all our mixed-use sites is their proximity to train stations, bus routes or motorway
interchanges which we know from experience helps to better attract customers, visitors and
employees.

I’ll now hand over to Clive for his address.

CHIEF EXECUTIVE OFFICER’S ADDRESS (SLIDE 10)

Thanks Mark and good morning everyone. It is great to be presenting here today at my
second annual meeting for Kiwi Property, albeit under quite different circumstances than
when we met together last year.

New Zealand has experienced a remarkable series of events in the space of just a few short
months. COVID-19 and the associated lockdown have had a significant impact on businesses
across the country and Kiwi Property is no exception. As a nation, we now face the threat of
a recession and the issues that will bring.

5
While some may find that daunting, over recent weeks, I have consistently been reminded of
the strength of our company and the spirit of the people within it. We are in uncharted
territory and it’s reasonable to expect there will be challenges ahead, however I believe we
have the strategy and the team to navigate the downturn and capitalise on the
opportunities to come.

I’m going to start my presentation today with a look at how COVID-19 has affected our
business, the way we’ve responded and our plans for the future. After that, I’ll provide an
overview of our FY20 results.

NAVIGATING COVID-19 (SLIDE 11)

For Kiwi Property to be successful in today’s operating environment, the Company must be
focused in its approach, yet sufficiently agile to respond to changes in the market.

To guide the organisation over the coming months we will focus on three key areas:

Firstly, we will stabilise the business in the wake of COVID-19, by embedding strict cost discipline,
strengthening the balance sheet and ensuring the resilience of our tenant portfolio.

Secondly, we will diversify our portfolio, by expanding our asset mix and creating mixed-use
communities at our significant landholdings.

Finally, we will grow the business through targeted development.

Let’s take a look at each of these areas now.

PRUDENT CAPITAL MANAGEMENT (SLIDE 12)

You’ve already heard from Mark about the steps we’ve taken to control costs. In parallel, we
have fortified the Company’s capital position and balance sheet by successfully extending our
bank debt facilities.

Kiwi Property extended $361 million of bank debt facilities in March 2020 and has no bank debt
maturing until FY23. At year-end, we had $291 million in available undrawn credit.

Our gearing ratio sits at 32%, up slightly on FY19 but within our target range.

This banking headroom and proactive approach to capital management will help Kiwi Property
withstand the financial impact of COVID-19 and just as importantly, position it to capitalise on the
anticipated medium term opportunities.

PROMOTING STRONG TENANTS (SLIDE 13)

One of the most important steps we’ve taken to stabilise our business is supporting key tenants
through COVID-19.

Many of our tenants were unable to trade during the lockdowns at Alert Levels 3 and 4,
placing them under significant financial pressure. We are working with these businesses to
share a fair proportion of the financial impact caused by the lockdown, with a primary focus
on assisting our SME and retail tenants.

The rent relief measures include a combination of rental abatements and deferrals for the first
quarter of FY21. The impact on funds from operations is expected to be approximately $20
million - or $14 million on an after tax basis. That is the equivalent of around 8% of last year’s
gross rental income.

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The rent relief package is a significant cost, but Kiwi Property will only be successful if our
tenants have the financial strength to bounce back from lockdown. By supporting them in
the short term, we mitigate the risk of vacancies, maintain strong visitor numbers and
encourage collective long-term success. Assisting our tenants isn’t just the right thing to do; it’s
also the smart thing.

It is worth noting that the rent relief costs will be partially offset by the reintroduction of
depreciation on commercial buildings, enacted by the Government when the pandemic first
hit. The measure is expected to increase Kiwi Property’s after tax earnings by approximately
$4.5 million in FY21 alone.

DIVERSIFYING OUR PORTFOLIO (SLIDE 14)

The next priority area for the business is diversification.

We have spoken at length about our mixed-use strategy and as Mark noted, we continue to
believe this is an area of competitive advantage. We are focused on expanding the breadth of
asset types in our portfolio, reducing pure retail as a proportion of our mix and investigating
opportunities to increase our exposure to new asset classes such as build to rent apartments.

More than half of Aucklanders are already renting and it’s taking longer for people to save for a
house deposit. COVID-19 is likely to compound these trends, reinforcing build-to-rent’s
attractiveness as an asset class in New Zealand.

In parallel, we continue to see significant opportunities in office, especially suburban hub and
spoke offices, such as ANZ Raranga, As a result, we are continuing planning of a second
commercial building at Sylvia Park, which currently includes approximately 15,000 square meters
of office space and potentially, a 140-room hotel.

Sylvia Park Tower 2 is an exciting opportunity but we will only begin construction where tenant
demand and market conditions warrant. Given the high degree of uncertainty in the market, it’s
vital we’re highly disciplined about the opportunities we pursue. That means being smart with our
capital, making strategic investments and only going after opportunities as market conditions
support them.

SYLVIA PARK GALLERIA (SLIDE 15)

Diversification isn’t just about expanding into new asset classes, it’s also about expanding our
approach to our existing ones.

In retail, we have an integral role enabling our tenants to respond to the changing landscape.
That could include working with a retailer to create a flagship store that underpins their omni-
channel strategy, while for another, it could mean providing the infrastructure to enable last mile
fulfilment and delivery.

Much has been said over recent weeks about the impact of COVID-19 on the retail sector. Some
stores will struggle in the short to medium term, while others will adapt. Reassuringly, since retailers
resumed physical trading on May 14, the number of visitors to our shopping centres is up 1% on
the same period last year. Some centres including Sylvia Park and the Plaza in Palmerston North
are doing particularly well, delivering strong double-digit growth. Some of that foot traffic may be
due to pent up demand, but it’s encouraging nonetheless.

While there is uncertainty about the way retail and consumer spending habits will evolve, we
continue to believe that our key mixed-use assets, with strong positions in their catchments will
remain resilient. Which is one of the reasons we are looking forward to the opening of the new

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galleria level at Sylvia Park. The development will provide an additional 19,000 square metres of
new retail space, anchored by a flagship Farmers department store, with approximately 60 new
retailers.

Due to the construction halt that took place under the Level 4 lockdown the galleria level will now
open progressively from the fourth quarter of this year, rather than from the third quarter as
previously intended. We continue to have strong commitment from our key tenants and are
currently working through details relating to the timings for specific store openings.

SYLVIA PARK SOUTH CARPARK (SLIDE 16)

At Sylvia Park, the new South Carpark opened in May and features 900 parking spaces. This takes
the total number of car parks on site to 5,000, the most of any shopping centre in the country.
With unparalleled access via train, bus or car, getting to Sylvia Park has never been easier.

TARGETED DEVELOPMENT AT DRURY (SLIDE 17)

Our third post-COVID-19 priority area is growing the business, enabled by digital, analytics and
targeted development.

We see significant potential to leverage data and analytics in a range of areas, including
optimising our retail asset mix, helping retailers make better-informed decisions about store
locations and providing a seamless experience to our consumers.

We intend to make strategic investment in this rapidly developing area, with a view to better
understanding and supporting our customers and consumers.

On the development front, we are making strong progress at Drury, where we are advancing
plans to develop our 51-hectare landholding into a master-planned mixed-use community.
Working alongside a consortium of property companies, we intend to create a thriving transport-
oriented town centre, catering to approximately 60,000 people who are expected to one day
call the area home. Drury will be an attractive place to live, work and play south of Auckland, as
the city’s geographic boundaries continue to expand.

The Government has announced plans to invest $2.4 billion to build new infrastructure at Drury
and just over a week ago, included Drury in its list of fast-tracked infrastructure projects, including
upgrades to State Highway 1, the electrification of rail from Papakura to Pukekohe and the
construction of 3 new rail platforms.

We have submitted a private plan change application to Council to help accelerate the original
development schedule. This is expected to be notified for public consultation within the next few
weeks. If the plan change is successful, construction could be permitted on our site at Drury as
early as FY23, pending favourable market conditions.

FINANCIAL RESULTS (SLIDE 18)

Moving now to our financial results.

SOLID OPERATING RESULT (SLIDE 19)

Kiwi Property delivered a solid operating result in FY20.

Net rental income was $186.8 million, up $6.1 million or 3.4% on the year prior.

Our office portfolio performed particularly well, delivering growth of 7.3%, while net income from
our mixed-use assets rose 5.0%.

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Funds from Operations or FFO, a key measure of underlying operating performance, increased
6.3% to $113.6 million, underpinned by a company-wide commitment to continuous
improvement.

These figures contributed to a pre-tax operating profit for Kiwi Property of $129.7 million, up 4.2%
on the previous year, a positive outcome given the high degree of volatility in the market late in
the financial year.

Unfortunately, while the Company delivered a robust operating performance in FY20, the inherent
uncertainty caused by COVID-19 prompted valuers to soften their assumptions resulting in an
8.5%, or $290 million, decrease in the valuation of our property portfolio, as at 31 March 2020.

The negative revaluation of our investment assets caused a drag on the Company’s full year
financial performance, turning an otherwise healthy operating result into a loss after tax of $186.7
million.

SOUND BALANCE SHEET (SLIDE 20)

Despite the asset devaluation, our balance sheet remains in a solid position.

Our property portfolio is now valued at $3.1 billion and continues to feature some of the
country’s leading real estate assets. Despite the impact of COVID-19, our office portfolio grew
$15m in value last year, highlighting the importance of our diversification programme.

Our net asset backing per share declined to $1.26 in FY20, down from $1.43 the year prior.

ACTIVE CAPITAL MANAGEMENT (SLIDE 21)

We have always been active managers of our capital. We completed a $193.7 million equity
raise in November 2019 (net of issue costs), which reduced gearing and provided further
financial flexibility.

In FY20 our weighted average cost of debt decreased from 4.8% to 4.35% and following our
debt extensions the weighted average term of our debt facilities increased from 3.2 years to
3.9 years.

Our credit rating remains solid, with Kiwi Property retaining a BBB issuer credit rating and BBB+
issue rating from S&P Global.

STRONG PORTFOLIO PERFORMANCE (SLIDE 22)

We continue to drive the performance of our property portfolio through active leasing and
positive rental outcomes.

Kiwi Property’s leasing team completed 698 rental agreements during the year, resulting in a
4% lift over prior passing rentals. New leases and renewals were particularly strong, with our
mixed-use and office portfolios the standout, increasing 11.9% and 10% respectively.

These figures reflect the strong tenant demand for our leading mixed-use and office assets,
which has enabled us to grow rents over recent periods.

At year-end, portfolio occupancy remained strong at 99.5%, while our weighted average
lease expiry sat at 4.9 years, down marginally on FY19.

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POSITIVE RETAIL SALES (SLIDE 23)

A note on the retail sales information shown here - because of COVID-19, we were unable to
collect sales data for the month of March 2020 and have therefore shown annual statistics for
the year ended 29 February 2020.

Across the portfolio, we generated $2 billion in retail sales in FY20, up 2.8% on last year. Across
our traditional shopping centres and excluding large format centres, sales were $1.8 billion,
representing growth of 2.5%.

Specialty sales rose to $13,200 per square metre, up from $12,800 the year before, helping to
reduce gross occupancy costs, which will provide a useful buffer for tenants under pressure in
the new operating environment.

In particular, we saw good growth in several discretionary spend categories, with department
stores and discount department stores a highlight up 11.9%, fuelled by a strong opening from
Kmart Sylvia Park.

FY21 PRIORITIES (SLIDE 24)

That concludes my review of FY20.

As we look ahead to FY21, New Zealand is facing a period of significant uncertainty. The full
impact of COVID-19 on the country, the economy and Kiwi Property remains to be seen.

We are firmly focused on navigating the financial headwinds the coming months are
expected to bring. We will do this by stabilising the business, diversifying our assets and
positioning the Company for growth.

We will be pragmatic in our approach, working alongside our tenants through the downturn,
pursuing targeted development opportunities and strictly controlling costs. With our diversified
property portfolio, commitment to cost discipline and banking headroom, we will navigate
the financial impacts of COVID-19 and strive to capitalise on the opportunities that follow.

Thank you.

And with that, I’ll now hand back to Mark.

DIVIDEND REINSTATEMENT (SLIDE 25)

Thank you Clive.

As you say, New Zealand is facing an unprecedented situation. The Board, management and all
of the Kiwi Property team are committed to delivering for our stakeholders through this difficult
time, including supporting our tenants, enhancing our communities and creating value for our
shareholders.

As you know, in April 2020, the Board made the difficult decision not to proceed with the final
dividend for FY20. This was not a move we made lightly, and I know many of you will have been
disappointed. While Kiwi Property’s operating performance was in line with expectations prior to
COVID-19, given the inherent uncertainty caused by the pandemic, we believed – and continue
to believe - that not proceeding with the final dividend was the prudent decision to protect the
Company’s balance sheet.

Last Monday we announced that, in light of New Zealand’s return to Alert Level 1 and the
increased clarity we now have around the country’s trading environment, we intend to pay an

10
interim dividend for the year ending 31 March 2021, subject to the absence of material adverse
effects or other unforeseen circumstances.

Following feedback from our shareholders, we are targeting a pay out 90%-100% of the
Company’s underlying cashflows, commonly referred to as adjusted funds from operations or
AFFO.

With sales, pedestrian counts and valuations all yet to normalise, we’re not in a position to provide
guidance on the dividend amount, however we will share further details once there is more
stability around these and other critical factors affecting our business performance.

QUESTIONS (SLIDE 26)

Ladies and gentlemen, that concludes our overview of the Company’s activities for FY20.
Before we move to the formal business of the day, we would be happy to answer questions.

We ask that you limit your questions at this time to the Company’s activities. You will have an
opportunity to ask questions relating to the formal business shortly.

Again, as this is a shareholders’ meeting, only shareholders or appointed proxies can ask a
question or vote. If you wish to ask a written question you can do so, after being validated
using your Shareholder or Proxy number, by clicking the “Ask a Question” box at the top or
bottom of the online portal.

Are there any comments or questions from shareholders?

FORMAL BUSINESS (SLIDE 27)

Thank you. We will now move to consider the formal resolutions of the meeting.
Voting on each resolution will be by poll. On a poll, each person voting at the virtual meeting
and each shareholder who has cast a vote directed by proxy has one vote for each share
held.

I will put each resolution to the meeting and provide an opportunity for you to ask questions in
relation to that resolution. I ask that you keep the questions strictly to the resolution.

In respect of proxies received, if as the Chair of the meeting I have been appointed to act as
proxy, and am not directed how to vote in respect of a resolution, I will vote in favour of the
resolution except resolution 1 where I will abstain.

HOW TO VOTE (SLIDE 28)

To vote, you will need to click “Get Voting Card” within the online meeting platform.
You will be asked to enter your Shareholder or Proxy Number to validate. Please then mark
your voting card in the way you wish to vote by clicking “FOR”, “AGAINST” or "ABSTAIN" on the
voting card.

Once you have made your selection please click “Submit Vote” on the bottom of the card to
lodge your vote.

Voting will remain open until five minutes after the conclusion of the meeting and the results
of the vote will be announced via the NZX.

As resolution 1 involves me, I am going to hand over to Mary Jane Daly to Chair this part of the
meeting.

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RESOLUTIONS 1, 2 AND 3: RE-ELECTION / ELECTION OF DIRECTORS

Thank you Mark and good morning.

Moving to resolutions 1, 2 and 3, all of which are ordinary resolutions.

In accordance with the Company’s constitution and the NZX Listing Rules, Mark Ford, Richard
Didsbury and Simon Shakesheff will retire at this meeting, however Mark and Richard offer
themselves for re-election and Simon offers himself for election.

The Board has determined that if Mark Ford or Richard Didsbury are re-elected or Simon
Shakesheff is elected, they will each be independent directors for the purposes of the NZX
Listing Rules.

I will now ask Mark, Richard and Simon to each provide a brief bio and comments supporting
their re-election.

RESOLUTION 1: RE-ELECTION OF DIRECTOR (SLIDE 30)

Thank you Mary Jane.

I am a professional director based in Australia with extensive property industry experience. I
am a non-executive director for Dexus Property Group and non-executive director for the
manager for China Commercial Trust and Prime Property Fund Asia GP Pte.

In addition to chairing Kiwi Property’s Board, I am a member of the Company’s Audit and Risk
Committee, Environmental, Social and Governance Committee and Remuneration and
Nominations Committee.

I will now pass you over to Richard.

RESOLUTION 2: RE-ELECTION OF DIRECTOR (SLIDE 31)

Thank you Mark and good morning

I was a joint founder of the Company in 1992 and am the current Chair of the Auckland City
Mission Redevelopment Committee and Northern Expressway Group. I was previously a director of
Auckland International Airport, SkyCity Entertainment Group and Hobsonville Land Company. I
am a member of Kiwi Property’s Remuneration and Nominations Committee.
I will now pass you over to Simon.

RESOLUTION 3: ELECTION OF DIRECTOR (SLIDE 32)

My name is Simon Shakesheff. I was appointed to your board in November 2019, and am
standing for election today.

I bring to Kiwi over 30 years of experience within the listed real estate sector; including 25
years as an analyst and corporate advisor, and most recently, five and a half years on the
executive committee of Australia’s largest diversified real estate group.

My background has given me expertise in finance, capital markets, and M&A activity, and
an understanding of the requirements of institutional investors, both in New Zealand and
overseas. With your support, I’d like to bring this focus to the Kiwi Property Group.

In addition to Kiwi Property, I’m a non-executive director of Cbus Property, Assembly funds
management, and SGCH, a not for profit community housing provider.

12

Thank you for your support and I’ll now hand over to Mary Jane.

RESOLUTIONS 1, 2 AND 3: RE-ELECTION / ELECTION OF DIRECTORS (SLIDE 33)

The Board is committed to ensuring it possesses the appropriate mix of skills, knowledge,
experience and diversity to discharge its role and responsibilities.

The Board supports the re-election of Mark and Richard and the election of Simon as it considers
these candidates have the expertise to contribute to the overall skill set required by the Board.
The Board, other than Mark, Richard and Simon each in respect of their own positions,
recommends you vote in favour of the resolutions.

RESOLUTION 1: MARK FORD RE-ELECTION (SLIDE 34)

I will now read Resolution 1.

That Mark Ford be re-elected as a director of the Company.

Are there any comments or questions from shareholders on this resolution?

Thank you.

For this resolution to be passed, it must be approved by a simple majority of votes of those
shareholders or appointed proxies entitled to vote and voting on the resolution. I will now put
the motion. Please now select either “FOR”, “AGAINST” or "ABSTAIN" for Resolution 1 on the
voting card.

I’ll now hand back to Mark.

RESOLUTION 2: RICHARD DIDSBURY RE-ELECTION (SLIDE 35)

Thanks MJ. I will now read Resolution 2.

That Richard Didsbury be re-elected as a director of the Company.

Are there any comments or questions from shareholders on this resolution?
Thank you.

For this resolution to be passed, it must be approved by a simple majority of votes of those
shareholders or appointed proxies entitled to vote and voting on the resolution. I will now put
the motion. Please now select either “FOR”, “AGAINST” or "ABSTAIN" for Resolution 2 on the
voting card.

RESOLUTION 3: SIMON SHAKESHEFF ELECTION (SLIDE 36)

I will now read Resolution 3.

That Simon Shakesheff be elected as a director of the Company.

Are there any comments or questions from shareholders on this resolution?
Thank you.

For this resolution to be passed, it must be approved by a simple majority of votes of those
shareholders or appointed proxies entitled to vote and voting on the resolution. I will now put

13
the motion. Please now select either “FOR”, “AGAINST” or "ABSTAIN" for Resolution 3 on the
voting card.

Before we move to the next resolution, I want to acknowledge the contribution that Mike Steur
has made to Kiwi Property as a director over the past 10 years. Mike was a key figure in the
internalisation and corporatisation of Kiwi Property and has continued to play a key role in the
years since. His deep property and finance knowledge has been invaluable to the Board. Mike’s
commercial acumen is matched only by his integrity and commitment to robust corporate
governance. On behalf of the Board I want to wish him all the best in his future endeavours.

RESOLUTION 4: AUDITOR’S REMUNERATION RECOMMENDATION (SLIDE 37)

This resolution is sought to authorise the directors to fix the remuneration of the auditor
pursuant to Section 207(S)(a) of the Companies Act 1993.

During the 2020 financial year, $351,000 was paid to PwC for audit and assurance related
services, this included $65,000 of costs due to COVID-19. $66,000 was also paid for advisory
services, primarily in relation to remuneration benchmarking and long-term incentive plan
design.

This is an ordinary resolution.

The Board recommends that you vote in favour of the resolution.

RESOLUTION 4: AUDITOR’S REMUNERATION (SLIDE 38)

I will now read Resolution 4.

That the directors be authorised to fix the auditor’s remuneration.

Are there any comments or questions from shareholders on this resolution?

Thank you.

For this resolution to be passed, it must be approved by a simple majority of votes of those
shareholders or appointed proxies entitled to vote and voting on the resolution. I will now put
the motion. Please now select either “FOR”, “AGAINST” or "ABSTAIN" for Resolution 4 on the
voting card.

PROXY VOTING RESULTS (SLIDES 39)

That completes voting on the resolutions. At this time, I’d like to advise the outcome of proxy
votes that were lodged in respect of each of the resolutions. I will not read the proxy results for
each resolution, but they are shown up on the screen now.

The Registrar, Link Market Services will complete the counting of all votes and complete their
duties as scrutineer for the purposes of the poll. We will make an announcement of the results
of the voting to the NZX once this process has been completed.

THANK YOU (SLIDE 40)

I now draw this meeting to a close. Thank you for your attendance and participation today.
For your information, a copy of this presentation and our addresses are available on our
website and on the NZX.

Thank you.

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Ends


Contact us for further information
Clive Mackenzie
Chief Executive Officer
clive.mackenzie@kp.co.nz
Campbell Hodgetts
Communications Lead
campbell.hodgetts@kp.co.nz
+64 27 563 4985
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
proudly own and manage a significant real estate portfolio, 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 an issuer 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 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