Kiwi Property announces FY21 annual results

Annual
Report
2021

WE BELIEVE
THE MORE
CONNECTED
THE PLACE,
THE MORE
CONNECTED
THE PEOPLE
WITHIN IT

Credit: Wraight + Associates / Nathan Young.

Contents
01.
04
06
12
16
Our Year in Review
Letter from the Chair
Chief Executive Officer’s Report
Creating Value
03.
72
74
76
85
Other Information
Corporate Governance
Remuneration Report
Other Investor Information
02.
18Financials
04.
92Directory

01.
Our Year
in Review
0 4

0 5

Kiwi Property made important
progress on the delivery of
its business strategy in 2021,
despite the impact of COVID-19.
Letter from
the Chair
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following periods at both Stride Property
and Morrison & Co and has been tasked
with accelerating the delivery of our
funds management strategy.
03.
Empower customer success
In order for Kiwi Property to be successful
over the long term, so too must our tenants.
This has never been more apparent than over
the past year when COVID-19 placed many
of our retailers and SMEs under significant
pressure. We have acted as a partner
through this period, helping to safeguard
their physical and financial wellbeing.
The support provided has evolved in step
with the pandemic, including providing rent
relief during the initial lockdown, assisting
stores to establish click and collect facilities
in the weeks that followed and implementing
best practice cleaning regimes.
Our commitment to empowering the
success of our tenants is not simply a
response to COVID-19 though. Given the
breadth of the company’s footprint we are
well placed to aggregate information and
services to create value for Kiwi Property
and its customers. While the company
is still early in its digital journey, we are
currently investing in this space and see
future potential to provide our tenants
with the data to make better decisions,
optimise their footprints and respond more
quickly to new trends. As our mixed-use
communities continue to develop and
evolve, digital will ultimately play a key
role in delivering connected customer
experiences and ensuring a frictionless
user journey for those working, playing
or even staying at our assets.
Sustainability
Sustainability has been a priority for
Kiwi Property for almost 20 years and today,
it is part of the company’s DNA. Through
a dedicated focus on emissions reduction
we have successfully cut our CO
2
output
and Northlands. Further details of this
activity are outlined in the CEO’s report.
There is little doubt the pandemic has
accelerated several key trends in the
property sector. Kiwi Property’s mixed-use
strategy puts the business in a strong
position to respond. A key example
can be found in the office segment,
where COVID-19 and the rise of remote
working has prompted some businesses
to re-evaluate their footprint. While a CBD
office rightly remains important for many
corporates, some others now also want
the flexibility to base employees at a
suburban location. Assets such as Sylvia
Park and LynnMall are ideally placed to
accommodate this ‘hub and spoke’ model,
enabling businesses to reduce costs and cut
employee commute times, while delivering
the culture and collaboration benefits
that only a physical office environment
can provide.
02.
Grow with third-party capital
Kiwi Property has a large and exciting
growth pipeline, including at Drury, where the
company’s 51 hectare site is set to become
the town centre for a thriving new community
that is expected to ultimately number around
60,000 people. This pipeline is a source
of significant competitive advantage and
will unlock value for our shareholders.
Funding the company’s exciting growth
plans will require an integrated capital
solution, including a likely combination
of funds management, asset recycling and
joint ventures, such as those we have with
Tainui Group Holdings at The Base and
now also Centre Place North. By leveraging
third-party capital, we will be in a strong
position to accelerate growth and create
additional revenue streams. To this end,
Steve Penney has been appointed to
the role of General Manager Funds
Management. He brings a wealth of
investment experience to the role,
Dear Shareholders,
COVID-19 has had a significant impact on
Kiwi Property and the world around us over
the past 12 months, causing widespread
disruption and accelerating the rate of
change in many parts of the economy.
As the year has progressed however,
New Zealanders have adapted, responding
to the pandemic with characteristically
Kiwi pragmatism and collective spirit.
The country’s low rate of infection, coupled
with significant Government intervention,
have enabled the retail and office property
sectors to perform better than initially
predicted. As lockdowns have become
more localised and shorter in duration the
economic climate has improved. So too has
Kiwi Property’s performance, contributing

to a solid result through the second half
of the 2021 financial year (FY21), in particular.
Despite the challenging environment,
the company is well placed to progress
important initiatives throughout the coming
year and beyond.
Delivering on strategy
Kiwi Property made important progress
on the delivery of its business strategy in
FY21, despite the impact of COVID-19. This
strategy is based on three core priorities:
01.
Intensify our mixed-use assets
Kiwi Property’s focus on creating mixed-use
communities has never been more relevant,
or important. The company’s large
landholdings at Sylvia Park, LynnMall,
The Base and Drury are ideally placed
to accommodate a broad range of uses,
including office, retail, and potentially
residential. By owning a group of assets
offering complementary economic
benefits, we increase income diversity
and encourage smoother returns. To this
end, we have also taken steps to reduce
the company’s regional retail exposure,
including initiating the sale of The Plaza
A N N U A L R E P O R T 2 0 2 10 7

CREATING
MIXED
--USE
SPACES,
INSPIRED
BY THE
PEOPLE AND
PLACES OF
AOTEAROA
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3 Te Kehu Way, Sylvia Park. Artist’s impression.
to be no less than 5.30 cents per share,
subject to the financial performance of
the company and barring material adverse
effects or unforeseen circumstances, such
as further COVID-19 related lockdowns.
Outlook
Kiwi Property enters FY22 with good
momentum and a clear focus on creating
value for our shareholders and other
stakeholders. The year ahead has the
potential to be decisive for the company,
as we advance the delivery of our strategy,
reduce our retail exposure and continue
on our journey to create mixed-use
spaces inspired by the people and places
of Aotearoa.
Thank you for your continued support.
Regards,
Mark Ford
Chair
by 60% compared to the 2012 baseline.
In 2020, Kiwi Property was given an ‘A’
rating by the Carbon Disclosure Project,
the only business in New Zealand to
achieve this milestone.
This year, we have taken another step
forward on our environmental, social and
governance (ESG) journey, with the launch
of our refreshed sustainability strategy
and our commitment to becoming net
carbon negative in our operations by
2030. Achieving this ambitious target
won’t be easy, but we believe strongly
that it’s the right thing to do. More
information about our sustainability
strategy and commitments is available
at kp.co.nz/sustainability
In March, we also launched our Sustainable
Debt Framework, enabling the company
to green its existing corporate bonds and
paving the way for us to issue additional
green bonds in the future. As a result,
we’ll be able to target new pools of capital,
including ESG funds and institutional
investors with a sustainability mandate.
More importantly though, it reflects a
broader commitment to embed sustainability
into all aspects of Kiwi Property’s
operations, from finance to development
and asset management.
Board update
Richard Didsbury will resign as a director
of Kiwi Property at the company’s next
annual meeting of shareholders, which
will take place in Auckland on 12 July 2021.
Richard jointly founded the company in
1992 and has been a member of the Board
for the past 28 years. In that time, he has
had a profound impact on Kiwi Property
and more than any other individual, has
shaped the company into what it is today.
On behalf of the Board I’d like to thank
him for his remarkable contribution to
Kiwi Property and wish him well for the
future. A search for Richard’s replacement
is currently underway.
Dividend
I am pleased to report that Kiwi Property
will pay a final cash dividend of 2.95 cents
per share for the six-month period ended
31 March 2021. Payment will be made on
24 June 2021. Kiwi Property’s total cash
dividend for FY21 amounts to 5.15 cents
per share, equivalent to 90% of Adjusted
Funds from Operations (AFFO).
We will provide AFFO guidance once
the sale of The Plaza and Northlands has
concluded, however based on current
projections, the FY22 dividend is expected
A N N U A L R E P O R T 2 0 2 10 9

Vero Centre, Auckland.
Vero Centre, Auckland.
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Sylvia Park build to rent scheme. Artist’s impression.
A N N U A L R E P O R T 2 0 2 11 1

Kiwi Property’s future lies
in the creation of mixed-use
communities at our large,
strategic land holdings.
Chief Executive
Officer’s Report
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Daruma Sushi and Master Bao attracting
a loyal following among Auckland diners.
Elsewhere at Sylvia Park, high profile
international brands including JD Sports
and Culture Kings have announced they
will be opening their first New Zealand
stores in the centre’s new urban and
athleisure precinct, adjacent to Hoyts
cinemas. The centre is now home to
more than 270 stores and approximately
5,000 free carparks.
Mixed-use development
Sylvia Park’s evolution into a thriving
mixed-use town centre is set to take
another step forward in October 2021,
when construction of a new $63 million
office building gets underway at 3 Te Kehu
Way. The 7,450 square metre, six-storey
development will target a 6 Green Star
rating and has been designed with the
flexibility to accommodate a range
of tenants, including a specific focus
on health and medical services.
Following the success of ANZ Raranga
and the growing popularity of the ‘hub
and spoke’ workplace model, we are
attracting strong interest in office space
at our mixed-use assets including Sylvia
Park and LynnMall. We expect this trend
to continue, placing Kiwi Property in a
unique position to deliver the convenience,
amenities and links to public transport
sought by today’s office workers.
Centre Place North
At the start of April 2021, we announced
a 50:50 joint venture with Waikato-based
Tainui Group Holdings (TGH) covering
Centre Place North and a number of
adjacent properties in Hamilton’s central
business district, with a combined value of
approximately $71 million. The agreement
builds on the relationship that already
exists between Kiwi Property and TGH
at The Base, and paves the way for the
creation of a new mixed-use precinct
in Hamilton’s CBD. Plans are underway
for a new office tower adjacent to Centre
Place North, with potential for other uses
to be added in the future.
Importantly however, the final six months
of the financial year saw the company
exceed leasing projections and contain
rental abatements.
Balance sheet
Kiwi Property maintained a strong balance
sheet throughout FY21 and ended the year
with gearing of 31.2%, comfortably within
our self-imposed range of 25-35%. Since
the close of the financial year we have
refinanced $700 million of the company’s
bank debt facilities in order to take
advantage of favourable lending rates.
As a result of this activity, our weighted
average term of debt has improved to 3.5
years (on a 31 March 2021 pro-forma basis).
Portfolio rebalancing
As the Chair noted, Kiwi Property’s
future lies in the creation of mixed-use
communities at our large, strategic land
holdings. By diversifying our portfolio uses,
we will create a platform for accelerated
growth and help guard against shocks to
any particular asset class. With this in mind,
we stepped-up our portfolio rebalancing
programme in FY21, with the aim of
reducing our exposure to regional retail
and recycling capital to help fund our
growth pipeline. The Plaza was listed for
sale in October 2020, with Northlands
subsequently also taken to market. We are
currently in negotiations for both properties
and will provide an update on the outcome
of the transactions in due course. While
these assets are high-yielding, we believe
their sales will enable us to create greater
value for the company over the longer term.
Sylvia Park
The exciting $277 million Level 1 expansion
at Sylvia Park opened on 15 October 2020
and has performed well in the months
since. Customer favourites such as Sephora,
North Beach and Superdry have all opened
new flagship stores at the centre, helping
strengthen Sylvia Park’s already compelling
retail offering. In parallel, ‘The Terrace at
Sylvia Park’ dining precinct has exceeded
projections, with restaurants such as
Introduction
Despite the uncertainty caused by COVID-19
over the past 12 months, Kiwi Property has
remained resilient, guided by our mixed-use
strategy, which remains as relevant today as
it did before the pandemic. Throughout the
2021 financial year (FY21) we’ve continued
to put people first. This approach has
helped keep our employees, customers
and communities safe, and seen us act
as a partner to our tenants, supporting
them through the financial and operational
challenges caused by COVID-19.
While Kiwi Property did not escape the
impact of the pandemic, the decisive steps
taken to safeguard our tenants and balance
sheet helped the company end FY21 in
a robust position. As we enter the 2022
financial year (FY22), we are focused on
continuing this trajectory, driving further
growth and shareholder value.
Financial performance
Net profit after tax was $196.5 million in
FY21, up $383.2 million on the year before,
underpinned by growth in the fair value
of our assets, which were up $99.8 million
for the full year. Kiwi Property’s office
assets performed particularly strongly,
delivering a 10.2% fair value gain in FY21,
while mixed-use was up 1.5%. At 31 March
2021, our property portfolio was valued
at $3.3 billion.
Operating performance
While Kiwi Property’s net profit rose
in FY21, not all elements of our financial
performance avoided the COVID-19 related
headwinds. The cost of asset lockdowns
and the associated rent relief measures
contributed to a 7.1% reduction in net rental
income, which fell to $173.6 million for
the year. While down on the previous year,
it is necessary to consider these figures
within the context of the significant trading
restrictions faced by many of our tenants
in the first half of FY21.
The fall in Kiwi Property’s net rental
income led to a commensurate reduction
in operating profit before tax, which
decreased 10.3% to $116.3 million in FY21.
A N N U A L R E P O R T 2 0 2 11 3

Drury
Our plans to build a 51-hectare
master-planned community at Drury
made substantial progress in FY21.
As previously outlined, Kiwi Property
intends to create a thriving transport-
oriented development, featuring a mix
of residential, commercial and retail
assets, which will cater to the area’s
60,000 expected future inhabitants.
Reflecting the potential for our Drury
development to unlock housing, jobs
and support economic recovery, the
Minister for the Environment is currently
processing a Fast-track application for
the project under the COVID-19 Recovery
Act 2020. If successful, the application
could enable earthworks to begin at
Drury in FY22, up to three years ahead
of schedule. This acceleration of the project
timeline will help us unlock exciting new
opportunities for Kiwi Property and enable
us to create a dynamic new destination
for people to live, work and play, south
of Auckland.
Build to rent
Build to rent (BTR) accommodation
remains a potentially exciting opportunity
for Kiwi Property. With more than half
of Auckland adults now renting and
a well-documented housing shortage in
New Zealand, there is a growing demand
for quality long-term rental accommodation.
BTR has expanded rapidly in the United
States, United Kingdom and Australia, and
New Zealand has the potential to follow suit.
The asset class has a low correlation
to office and retail with lower volatility,
helping to further diversify earnings.
We are preparing development schemes
for BTR at Sylvia Park and LynnMall
and are currently working through the
consenting process for both projects.
Outlook
Kiwi Property started FY21 under the cloud
of COVID-19 and has experienced significant
disruption in the months since. While the
pandemic affected the company’s operating
performance, it also served to galvanise
our people and focus the business on
the delivery of our strategy.
We start the new financial year with
exciting prospects ahead of us, including
Drury, the new office tower at Sylvia Park
and potentially BTR. We are focused on
realising these and other opportunities
in FY22, with an ongoing commitment
to delivering for our stakeholders.
Regards,
Clive Mackenzie
Chief Executive Officer
Kiwi Property Drury development. Artist’s impression.
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WE START
THE NEW
FINANCIAL
YEAR WITH
EXCITING
OPPORTUNITIES
AHEAD OF US
A N N U A L R E P O R T 2 0 2 11 5

TO
BRING
PLACES
TO
LIFE
OUR PURPOSE
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HOW WE CREATE VALUE
STRATEGY
Intensify mixed-use assets
Grow with third party capital
Empower customer success
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A N N U A L R E P O R T 2 0 2 11 7

1 8

02.
Financials
FOR THE YEAR ENDED 31 MARCH 2021
1 9

Five-year summary
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Financial performance
F O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 2 1
2021
$m
2020
$m
2019
$m
2018
$m
2017
$m
Property revenue and management fees234.0243.6237.5251.0239.6
Total income234.0243.6237.5251.0239.6
Direct property expenses(58.9)(54.5)(54.6)(57.2)(55.6)
Employment and administration expenses(23.1)(22.6)(20.9)(20.5)(18.0)
Total expenses(82.0)(77.1)(75.5)(77.7)(73.6)
Profit before net finance expenses, other income/(expenses)
and tax152.0166.5162.0173.3166.0
Interest income0.30.20.20.30.3
Interest and finance
charges
(36.0)(37.0)(37.7)(42.6)(43.2)
Net fair value gain/(loss) on interest rate derivatives6.3(9.9)(11.0)(2.4)9.7
Net finance
expenses
(29.4)(46.7)(48.5)(44.7)(33.2)
Profit before other income/(expenses) and tax122.6119.8113.5128.6132.8
Net fair value gain/(loss) on investment properties99.8(289.9)47.726.541.0
Gain/(loss) on disposal of investment properties--0.9(7.1)(1.3)
Litigation settlement expenses----(0.8)
Other income/(expenses)99.8(289.9)48.619.438.9
Profit/(loss) before income tax222.4(170.1)162.1148.0171.7
Income tax expense(25.9)(16.6)(24.0)(27.9)(28.7)
Profit/(loss) after income tax
1
196.5(186.7)138.1120.1143.0
1The 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 consolidated financial statements which have been the subject
of an audit pursuant to New Zealand Auditing Standards issued by the External Reporting Board.
Reconciliation of profit/(loss) before tax to operating profit before tax
F
O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 2 1
2021
$m
2020
$m
2019
$m
2018
$m
2017
$m
Profit/(loss) before income tax222.4(170.1)162.1148.0171.7
Adjusted for:
Net fair value (gain)/loss on investment properties(99.8)289.9(47.7)(26.5)(41.0)
(Gain)/loss on disposal of investment properties--(0.9)7.11.3
Litigation settlement expenses----0.8
Net fair value (gain)/loss on interest rate derivatives(6.3)9.911.02.4(9.7)
Operating profit
before income tax
1
116.3129.7124.5131.0123.1
1Operating profit
before income tax is an alternative non-GAAP performance measure used by Kiwi Property to assist investors in assessing the Company’s performance for the
year by adjusting for a number of non-operating items. Operating profit before income tax does not have a standard meaning prescribed by GAAP and therefore may not be
comparable
to information presented by other entities. The reported operating profit before income tax has been extracted from the Company’s annual consolidated financial
statements which have been the subject of an audit pursuant to New Zealand Auditing Standards issued by the External Reporting Board.

Five-year summary (continued)
A N N U A L R E P O R T 2 0 2 12 1
Adjusted funds from operations
F
O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 2 1
2021
$m
2020
$m
2019
$m
2018
$m
2017
$m
Profit/(loss) after income tax196.5(186.7)138.1120.1143.0
Adjusted for:
Net fair value (gain)/loss on investment properties(99.8)289.9(47.7)(26.5)(41.0)
(Gain)/loss on disposal of investment properties--(0.9)7.11.3
Net fair value (gain)/loss on interest rate derivatives(6.3)9.911.02.4(9.7)
Litigation settlement expenses----0.8
Reversal of lease liability movement in investment properties(0.1)(0.1)---
Straight-lining of fixed
rental increases
-(1.2)(2.0)(2.1)(2.1)
Amortisation of tenant incentives and leasing fees7.27.17.07.86.7
Amortisation of rent abatements (COVID-19)5.9----
Rent deferrals (COVID-19)(1.7)----
Other one-off
items
--4.5--
Deferred tax expense/(benefit)11.3(5.3)(3.1)2.53.8
Funds from operations
1
113.0113.6106.9111.3102.8
Maintenance capital expenditure(5.3)(7.5)(6.9)(4.7)(8.6)
Capitalised tenant incentives and leasing fees(3.1)(3.9)(8.4)(11.9)(16.2)
Capitalised rent abatements (COVID-19)(15.2)----
Adjusted funds from operations
2
89.4102.291.694.778.0
1Funds from operations (FFO) is an alternative non-GAAP performance measure used by Kiwi Property to assist investors in assessing the Company’s underlying operating
performance. FFO is a measure commonly used b
y 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). The reported FFO information has been extracted from the Company’s annual
consolidated financial statements which have been the subject of an audit pursuant to New Zealand Auditing Standards issued by the External Reporting Board. During the
2018 financial year, the Guidelines amended the method used to derive FFO to include the amortisation of leasing fees. Kiwi Property amended its FFO calculation from 2018
to reflect this change.
2Adjusted funds from operations (AFFO) is an alternative non-GAAP performance measure used by Kiwi Property. AFFO is a measure commonly used by real estate entities
to describe their underlying and recurring cash flows from operations. Broadly, AFFO adjusts FFO by deducting the cost of lease incentives, leasing fees, rental abatements
and annual maintenance capital expenditure for sustaining and maintaining existing space. AFFO does not have a standard meaning prescribed by GAAP and therefore may
not be comparable to information presented by other entities. AFFO is calculated by Kiwi Property in accordance with the Voluntary Best Practice Guidelines issued by the
Property Council of Australia (the Guidelines). The reported AFFO information has been extracted from the Company’s annual consolidated financial statements which have
been the subject of an audit pursuant to New Zealand Auditing Standards issued by the External Reporting Board.

Five-year summary (continued)
2 2K I
W I P R O P E R T Y
Dividends
F O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 2 1
2021
$m
2020
$m
2019
$m
2018
$m
2017
$m
Funds from operations113.0113.6106.9111.3102.8
Adjusted funds from operations89.4N/AN/AN/AN/A
Less amount retained(8.6)(58.3)(7.4)(14.1)(15.5)
Cash dividend80.855.399.597.287.3
Payout ratio
1
90%49%93%87%85%
cpscpscpscpscps
Cash dividend5.153.536.956.856.75
Imputation credits1.360.792.001.891.92
Gross dividend6.514.328.958.748.67
1With effect
from 1 April 2020, the Group revised its dividend policy to be based on 90% to 100% of adjusted funds from operations (previously 90% to 100% of funds
from operations).
Financial position
A S A T 3 1 M A R C H 2 0 2 1
2021
$m
2020
$m
2019
$m
2018
$m
2017
$m
Assets
Investment properties
1
3,331.53,114.73,207.43,052.02,969.4
Cash and cash equivalents16.021.39.910.79.8
Other assets18.820.419.118.616.5
Total assets3,366.33,156.43,236.43,081.32,995.7
Liabilities
Interest bearing liabilities1,049.91,009.91,001.7913.51,030.4
Deferred tax liabilities94.583.288.591.789.2
Other liabilities87.191.895.382.070.0
Total liabilities1,231.51,184.91,185.51,087.21,189.6
Equity
Share capital1,661.91,661.01,449.61,432.91,272.6
Share-based payments reserve1.91.60.60.40.5
Retained earnings471.0308.9600.7560.8533.0
Total equity2,134.81,971.52,050.91,994.11,806.1
Total equity and liabilities3,366.33,156.43,236.43,081.32,995.7
Gearing ratio
(finance
debt / total tangible assets)
31.2%32.0%31.0%29.7%34.5%
Net tangible assets per share$1.36$1.26$1.43$1.40$1.39
1Includes investment properties classified as held for sale as at 31 March 2021.

Five-year summary (continued)
A N N U A L R E P O R T 2 0 2 12 3
P
roperty metrics
A S A T 3 1 M A R C H 2 0 2 1
20212020201920182017
Number of core properties812121314
Net lettable area (sqm)341,914435,528436,870451,230474,381
Occupancy99.7%99.5%99.3%99.6%98.8%
Weighted average lease expiry (years)5.34.95.25.35.6
Weighted average capitalisation rate5.49%6.11%5.99%6.11%6.40%
Property metrics exclude The Plaza, Northlands, Westgate Lifestyle and Centre Place North which have been reclassified to either
'inv
estment properties held for sale' or 'other properties' as at 31 March 2021.
Interpretation
The following commentary is provided to assist with the
interpretation of the five-year summary:
2021
•
Concluded development of Sylvia Park Level 1.
•
Acquired additional properties adjacent to Sylvia Park,
Auckland and Drury, South Auckland, for $4.0m.
•
P
rovided rental abatements of $19.5 million as a result of the
COVID-19 pandemic.
•
The Plaza, Northlands and 50% of Centre Place North were
reclassified as 'investment properties held for sale'. Westgate
Lifestyle and 50% of Centre Place North were reclassified as
'other' properties.
2020
•
Raised $193.7 million (net of issue costs) of new equity
through a placement and retail entitlement offer.
•
Acquired additional properties adjacent to Sylvia Park,
Auckland, for $25.5 million.
•
COVID-19 declared a global pandemic by the World Health
Organisation in
March 2020, impacting investment property
valuations at balance date and causing the Board to cancel
the final dividend for the year ended 31 March 2020.
2019
•
Concluded development of an office
tower (ANZ Raranga)
and the central carpark at Sylvia Park, Auckland, and
Langdons Quarter at Northlands, Christchurch.
•
Acquired property adjacent to Sylvia Park, Auckland, for
$25 million.
•
Acquired a further 8.6 hectares of land at Drury, South
Auckland, for $9.1 million.
•
North City, Porirua, was sold.
•
A $100 million bond issue was completed (2025 expiry).
2018
•
Acquired 30.
6 hectares of land at Drury, 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).
•
The Majestic Centre, Wellington, was sold.
•
A $125 million bond issue was completed (2024 expiry).
2017
•
Acquired a 50% interest in The Base, 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 $125 million bond issue was completed (2023 expiry
).

Financial statements
F O
R T H E Y E A R E N D E D 3 1 M A R C H 2 0 2 1
2 4K I
W I P R O P E R T Y
Consolidated statement of comprehensive incomePg 25
Consolidated statement of changes in equityPg 26
Consolidated statement of financial positionP
g 27
Consolidated statement of cash flowsPg 28
Notes to the consolidated financial statementsP
g 30
Independent auditor's reportPg 67
Corporate governancePg 74
Remuneration reportPg 76
Other investor informationPg 85
Shareholder statisticsPg 88
Bondholder statisticsPg 89
Substantial product holdersPg 91

Consolidated statement
of
comprehensive income
F O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 2 1
A N N U A L R E P O R T 2 0 2 12 5
Note
2021
$000
2020
$000
Income
Property revenue2.1232,436241,308
Property management income1,5472,314
Total income233,983243,622
Expenses
Direct property expenses(58,859)(54,525)
Employment and administration expenses2.2(23,087)(22,556)
Total expenses(81,946)(77,081)
Profit before net
finance expenses, other income/(expenses) and income tax
152,037166,541
Interest income274180
Interest and finance
charges
2.2(35,959)(37,014)
Net fair value gain/(loss) on interest rate derivatives3.4.26,305(9,862)
Net finance
expenses
(29,380)(46,696)
Profit before other income/(expenses) and income tax122,657119,845
Net fair value gain/(loss) on investment properties3.299,756(289,969)
Other income/(expenses)99,756(289,969)
Profit/(loss) before income tax222,413(170,124)
Income tax expense2.3(25,884)(16,570)
Profit/(loss) and total comprehensive income after income tax attributable
to shareholders196,529(186,694)
Basic and diluted earnings per share (cents)3.6.312.52(12.50)
The consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

Consolidated statement
of
changes in equity
F O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 2 1
2 6K I
W I P R O P E R T Y
Note
Share
capital
$000
Share-based
payments
reserve
$000
Retained
earnings
$000
Total
equity
$000
Balance at 1 April
2019
1,449,646602600,6322,050,880
Loss after income tax--(186,694)(186,694)
Dividends paid3.6.2--(105,086)(105,086)
Dividends reinvested3.6.117,534--17,534
Shares issued - retail and institutional placements3.6.1193,714--193,714
Employee share ownership plan6742-109
Long-term incentive plan3.6.4-956921,048
Balance at 31 March 20201,660,9611,600308,9441,971,505
Balance at 1 April
20201,660,9611,600308,9441,971,505
Profit after income tax--196,529196,529
Dividends paid3.6.2--(34,516)(34,516)
Long-term incentive plan3.6.4883300231,206
Employee share ownership plan72(10)-62
Balance at 31 March
2021
1,661,9161,890470,9802,134,786
The consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

Consolidated statement
of
financial position
A S A T 3 1 M A R C H 2 0 2 1
A N N U A L R E P O R T 2 0 2 12 7
Note
2021
$000
2020
$000
Current assets
Cash and cash equivalents16,04021,252
Trade and other receivables3.111,84011,932
Investment properties held for sale3.2356,199-
384,07933,184
Non-current assets
Investment properties3.22,975,2953,114,734
Property, plant and equipment4,1154,274
Interest rate derivatives3.4.22,8224,186
2,982,2323,123,194
Total assets3,366,3113,156,378
Current liabilities
Trade and other payables3.553,26553,523
Interest bearing liabilities3.4.1125,664-
Income tax payable2,6721,748
Interest rate derivatives3.4.2-104
Lease liabilities8,7371,024
190,33856,399
Non-current liabilities
Interest bearing liabilities3.4.1924,1971,009,867
Interest rate derivatives3.4.218,96526,530
Deferred tax liabilities3.394,51883,217
Lease liabilities3,5078,860
1,041,1871,128,474
Total liabilities1,231,5251,184,873
Equity
Share capital3.6.11,661,9161,660,961
Share-based payments reserve1,8901,600
Retained earnings470,980308,944
Total equity2,134,7861,971,505
Total equity and liabilities3,366,3113,156,378
The consolidated statement of financial
position should be read in conjunction with the accompanying notes.
For and on behalf of the Board, who authorised these consolidated financial statements for issue on 21 May 2021.
Mark Ford
Chair
Mary Jane Daly
Chair of the Audit and Risk Committee

Consolidated statement
of
cash flows
F O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 2 1
2 8K I
W I P R O P E R T Y
2021
$000
2020
$000
Cash flows
from operating activities
Property revenue227,767245,702
Property management income1,4482,138
Interest and other income274180
Direct property expenses(52,960)(52,768)
Interest and finance
charges
(34,258)(36,566)
Interest costs paid on lease liabilities(1,072)(935)
Employment and administration expenses(21,263)(21,518)
Income tax expense(13,663)(28,822)
Goods and Services Tax received/(paid)944(54)
Net cash flows
from operating activities
107,217107,357
Cash flows
from investing activities
Acquisition of investment properties(4,017)(25,796)
Expenditure on investment properties(103,221)(159,587)
Interest and finance
charges capitalised to investment properties
(8,593)(10,793)
Acquisition of property, plant and equipment(981)(966)
Net cash flows
used in investing activities
(116,812)(197,142)
Cash flows
from financing activities
Proceeds from issue of shares-193,714
Payment of lease liabilities(124)(89)
Net proceeds from bank loans39,0007,000
Settlement of interest rate derivatives-(12,051)
Dividends paid(34,493)(87,460)
Net cash flows
from financing activities
4,383101,114
Net (decrease)/increase in cash and cash equivalents(5,212)11,329
Cash and cash equivalents at the beginning of the year21,2529,923
Cash and cash equivalents at the end of the year16,04021,252
The consolidated statement of cash flows should be read in conjunction with the accompanying notes.

Consolidated statement
of
cash flows (continued)
A N N U A L R E P O R T 2 0 2 12 9
Reconciliation of profit/(loss)
after income tax to net cash flows from operating activities
2021
$000
2020
$000
Profit/(loss) after income tax196,529(186,694)
Items classified
as investing or financing activities:
Movement in working capital items relating to investing and financing activities(8,903)6,747
Non-cash items:
Net fair value (gain)/loss on interest rate derivatives(6,305)9,862
Net fair value (gain)/loss on investment properties(99,756)289,969
Increase/(decrease) in deferred tax liabilities11,301(5,324)
Amortisation of lease incentives, abatements and fees13,5576,470
Straight-lining of fixed
rental increases
36(1,193)
Movements in working capital items:
Decrease in trade and other receivables921,269
Increase/(decrease) in income tax payable924(6,927)
Decrease in trade and other payables(258)(6,822)
Net cash flows
from operating activities
107,217107,357
The consolidated statement of cash flows should be read in conjunction with the accompanying notes.

Notes to the consolidated
fi
nancial statements
F O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 2 1
3 0K I
W I P R O P E R T Y
1.General information
1.1
Reporting entityPg 31
1.2Basis of preparationPg 31
1.3Significant changes during the yearPg 31
1.4Group structurePg 31
1.5New standards, amendments and interpretationsPg
32
1.6Key judgements and estimatesPg 32
1.7Accounting policiesPg
32
2.Profit and loss information
2.
1
Property revenuePg 33
2.2ExpensesPg 34
2.3Tax expensePg 35
3.Financial position information
3.1Trade and other receivablesPg 37
3.2Investment propertiesPg 37
3.3Deferred taxPg 49
3.4FundingPg 50
3.5Trade and other payablesPg 55
3.6EquityPg
55
4.Financial risk management
4.1
Interest rate riskPg 60
4.2Credit rate riskPg 61
4.3Liquidity riskPg 61
5.Other information
5.1Segment informationPg 63
5.2Related party transactionsPg 64
5.3Key management personnelPg 65
5.4CommitmentsPg 65
5.5Subsequent eventsPg 66

1. General information
F O
R T H E Y E A R E N D E D 3 1 M A R C H 2 0 2 1
A N N U A L R E P O R T 2 0 2 13 1
1
.1 Reporting entity
The consolidated financial
statements are for Kiwi Property
Group Limited (Kiwi Property or the Company) and its controlled
entities (the Group). The Company is incorporated and
domiciled in New Zealand, is registered under the Companies
Act 1993 and is an FMC reporting entity for the purposes of
the Financial Markets Conduct Act 2013. The Company is listed
with NZX Limited with its ordinary shares quoted on the NZX
Main Board and fixed-rate green bonds quoted on the NZX
Debt Market.
The principal activity of the Group is to invest in New Zealand
real estate.
1.2 Basis of preparation
The consolidated financial
statements have been prepared
in accordance with Generally Accepted Accounting Practice
(GAAP) and the Financial Markets Conduct Act 2013. They
comply with New Zealand Equivalents to International Financial
Reporting Standards (NZ IFRS) and other guidance as issued
by the External Reporting Board, as appropriate to for­
profit entities, and with International Financial Reporting
Standards (IFRS
).
The consolidated
financial statements have been prepared on
the basis the Group is a going concern.
The consolidated financial statements are prepared on the
basis of historical cost, except where otherwise
identified. The
functional and presentation currency used in the preparation of
the consolidated financial statements is New Zealand dollars.
Certain comparative
figures have been reclassified to accord
with current year presentation.
1.3 Significant changes during the year
The financial
position and performance of the Group was
affected by the following events and transactions during
the year:
COVID-19 global pandemic
In response to the COVID-19 global pandemic, New Zealand
entered a nationwide Alert Lev
el 4 lockdown on 26 March 2020.
During Alert Levels 3 and 4 the operations of many of
the Group’s tenants were restricted to varying degrees,
and at Alert Level 2 businesses were able to operate with
restrictions remaining in place around social-distancing and
mass gatherings. At Alert Level 1, businesses were able to
operate with no restrictions around social-distancing and mass
gatherings. Auckland experienced additional Alert Level 3
lockdowns in August 2020
, February 2021 and March 2021 and
tenants were again restricted to varying degrees.
The pandemic resulted in the Group offering rental relief across
the majority of the Group’s tenants. This rental relief included
abatements for rental income payable for the months of April,
May and June and in some cases also included rental deferrals
(generally for 18 to 24 months
). Additional relief was provided
for certain Auckland based tenants significantly impacted by
the return to Alert Level 3. Certain rental abatements have
been accounted for as lease modifications under NZ IFRS, with
the change in lease payments amortised over the remaining
terms of the leases, while other concessions have been
recognised directly as a charge to the Consolidated Statement
of Comprehensive Income. Rental abatements relating to the
COVID-19 global pandemic were $19.5 million on a cash basis,
with a charge to the Consolidated Statement of Comprehensive
Income of $10.2 million for the year ended 31 March 2021. Rent
deferrals recognised in the Consolidated Statement of Financial
Position as at 31 March 2021 amounted to $1.7 million, exclusive
of GST.
Investment property
Following the decision by the Board to divest retail properties
from the inv
estment property portfolio, and the subsequent
receipt of offers for various properties, a new classification of
'investment properties held for sale' has been recognised as at
31 March 2021. As at 31 March 2021 the retail segment has been
remo
ved in alignment with the Group's strategy. Refer to note
3.2 for more information.
During the year ended 31 March 2021, the Group acquired
properties in Mount Wellington and Drury for a total of
$4.0 million.
1.4 Group structure
Controlled entities
The Company has the following wholly owned subsidiaries: Kiwi
P
roperty
Holdings Limited (KPHL), Kiwi Property Holdings No. 2
Limited (KPHL2), Kiwi Property Te Awa Limited (KPTAL), Sylvia
Park Business Centre Limited (SPBCL) and Kiwi Property Centre
Place Limited (KPCPL). SPBCL owns Sylvia Park and Sylvia Park
Lifestyle. KPHL2 owns the development land at Drury. KPTAL
owns the Group's 50% interest in The Base. KPCPL, incorporated
on 30 March 2021, will hold a 50% interest in The Centre Place
unincorporated joint
venture which was formed on 1 April 2021.
All other properties are owned by KPHL and SPBCL.
The Company has control ov
er the trust fund operated by Pacific
Custodians (New Zealand) Limited as trustee for the Company's
long-term incentive plan (for further details refer to note 3.6.4).
The trust fund is consolidated as part of the Group.

3 2K I
W I P R O P E R T Y
1.4 Group structure (continued)
Joint venture
The Group holds its 50% interest in The Base by way of an
unincorporated joint venture.
The Group has determined that its
interest constitutes a joint arrangement as the relevant decisions
about the property require the unanimous consent of both
parties. The joint arrangement has been classified as a joint
operation on the basis that the parties have direct rights to the
assets and obligations for the liabilities relating to their share
of the property in the normal course of business. The Group
recognises its share of assets, liabilities, revenue and expenses
of the joint venture.
Principles of consolidation
The consolidated financial
statements include the Company and
the entities it controls up until the date control ceases. The
balances and effects of transactions between controlled entities
and the Company are eliminated in full.
1.5 New standards, amendments and
in
terpretations
There were no new accounting standards impacting the
consolidated financial
statements for the year ended
31 March 2021.
1.6 Key judgements and estimates
In the process of applying the Group's accounting policies, a
number of
judgements have been made and estimates of future
events applied. Judgements and estimates are found in the
following notes:
Note 2.3Tax expensePage
35
Note 3.1Provision for doubtful debtsPage 37
Note 3.2Investment propertiesPage 37
Note 3.4.2Interest rate derivativesPage 52
Note 3.6.4Share-based paymentsPage 57
1.7 Accounting policies
Accounting policies that summarise the measurement basis
used and are rele
v
ant to an understanding of the consolidated
financial statements are provided throughout the notes to the
consolidated financial statements. Other relevant policies are
provided as follows:
Measurement of fair values
The Group classifies
its fair value measurement using a fair
value hierarchy that reflects the significance of the inputs used
in making the measurements. The fair value hierarchy has the
following levels:
•
Level 1: Quoted prices (unadjusted) in active markets for
identical assets or liabilities.
•
Level 2: Inputs other than quoted prices included within Lev
el
1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices).
•
Level 3: Inputs for the asset or liability that are not based on
observable market data (
unobservable inputs).
The carrying amount of all financial assets and liabilities is
equivalent to their fair v
alues apart from the fixed-rate green
bonds (refer to note 3.4.1 for further details on the fair value of the
fixed-rate green bonds).
Goods and Services Tax
The consolidated financial
statements have been prepared on
a Goods and Services Tax exclusive basis, with the exception
of receivables and payables which are inclusive of Goods and
Services Tax where relevant.
Government grants
The Group received
a government grant of $1.0 million under the
COVID-19 wage subsidy scheme in May 2020. The government
grant was accounted for under NZ IAS 20 - Accounting for
Government Grants and Disclosure of Government Assistance in
the financial statements for the six months ended 30 September
2020. The Group voluntarily repaid the grant in January 2021.

2. Profit and loss information
F O
R T H E Y E A R E N D E D 3 1 M A R C H 2 0 2 1
A N N U A L R E P O R T 2 0 2 13 3
2
.1 Property revenue
2021
$000
2020
$000
Gross rental income
1
245,005245,587
Straight-lining of fixed
rental increases
(36)1,193
Amortisation of capitalised lease incentives and abatements(12,533)(5,472)
Property revenue232,436241,308
1Includes $39.1 million of operating expenses recovered from tenants (2020: $38.7 million).
The contractual future minimum property operating lease income to be received
on properties owned by the Group at balance date,
including assets held for sale, is as follows:
2021
$000
2020
$000
Within one year259,675243,457
Between one and two years214,015207,567
Between two and three years190,170173,386
Between three and four years164,443152,802
Between four and five years130,424126,260
Later than five
years
424,673426,338
Property operating lease income1,383,4001,329,810
Recognition and measurement
The Group enters into property leases with tenants on its investment properties. The Group has determined that it retains all
significant risks and rewards of ownership of these properties and has therefore classified the leases as operating leases.
Rental income from those leases, including
fixed rental increases, is recognised on a straight-line basis over the term of
the lease.
Lease incentives offered to tenants as an inducement to enter into leases are capitalised to investment properties and then
amortised ov
er the term of the lease as a reduction of rental income. Rental abatements provided to tenants are also capitalised
to investment properties and amortised over the lease term as a reduction of rental income.

3 4K I
W I P R O P E R T Y
2.2 Expenses
2021
$000
2020
$000
Interest and finance
charges on bank loans
20,32623,554
Interest on fixed-rate green bonds23,15423,339
Interest on lease liabilities1,072935
Interest capitalised to investment properties being developed(8,593)(10,814)
Interest and finance
charges
35,95937,014
Auditor's remuneration:
Statutory audit and review of the consolidated financial
statements
249312
Assurance related services
1
4844
Remuneration benchmarking933
Agreed upon procedures in respect of a specified remuneration metric55
Professional services in relation to long-term incentive plan design-29
Directors' fees686772
Employee entitlements23,91523,678
Less: recognised in direct property expenses(6,856)(5,888)
Less: capitalised to investment properties being developed(1,800)(2,151)
Information technology1,9131,534
Investor related expenses527617
Occupancy costs428448
Professional fees1,9891,208
Trustees' fees110107
Other1,8641,808
Employment and administration expenses23,08722,556
1Assurance related services includes the audits of special purpose financial information in accordance with tenancy agreements.
Subsequent to year end the auditors were engaged to perform agreed upon procedures in respect of the Centre Place North
apportionment statement for approximately $3,500, which represents the Group's 50% share.

A N N U A L R E P O R T 2 0 2 13 5
2
.2 Expenses (continued)
Recognition and measurement
Interest and finance charges
The interest and finance
charges on bank loans are expensed in the period in which they occur, other than associated
transaction costs, which are capitalised and amortised over the term of the facility to which they relate.
The interest expense on fixed-rate green bonds is recognised using the effective interest rate method.
To determine the amount of borrowing costs capitalised to inv
estment properties that are being constructed or developed for
future use, the Group uses the weighted average interest rate applicable to its outstanding borrowings during the year. For 2021
this was 4.24% (2020: 4.58%).
Finance charges also include interest on lease liabilities as outlined in note 3.2.
Employee entitlements
Employee benefits
are expensed as the related service is provided. Details of the employee entitlements expense in relation to
share-based payments is outlined in note 3.6.4.
2.3 Tax expense
A reconciliation of profit/(loss)
before income tax to income tax expense follows:
2021
$000
2020
$000
Profit/(loss) before income tax222,413(170,124)
Prima facie income tax (expense)/benefit at 28%(62,276)47,635
Adjusted for:
Net fair value gain on interest rate derivatives1,765613
Net fair value gain/(loss) on investment properties27,932(81,191)
Depreciation14,2328,046
Net abatements and deferred leasing costs2,138(250)
Deferred rent474-
Deductible capitalised expenditure2,4353,166
Prior year adjustment1112
Other(1,294)75
Current tax expense(14,583)(21,894)
Depreciation recoverable(7,864)5,727
Net fair value gain on interest rate derivatives(1,765)(613)
Deferred leasing costs and other temporary differences(1,672)210
Deferred tax (expense)/benefit(11,301)5,324
Income tax expense reported in profit(25,884)(16,570)
Imputation credits available for use in subsequent periods7,92711,242

3 6K I
W I P R O P E R T Y
2.3 Tax expense (continued)
Recognition and measurement
Current tax
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted
at balance date, and any adjustment to tax payable in respect of previous years.
D
eferred tax
Deferred tax is recognised in respect of all taxable temporary differences between the carrying amounts of assets and liabilities
for financial reporting purposes and the amounts used for taxation purposes. For deferred tax liabilities or assets arising on
inv
estment property measured at fair value, it is assumed that the carrying amounts of investment property will be recovered
through sale (refer to note 3.3).
Imputation credits
The imputation credits available represent the balance of the imputation credit account at the end of the reporting period,
adjusted for imputation credits which will arise from the payment of the income tax liability.
Key estimates and assumptions: income tax
Deferred tax on depreciation
Deferred tax is provided in respect of depreciation expected to be recovered on the sale of investment properties at fair
v
alue.
Investment properties are valued each year by independent valuers. These values include an allocation of the valuation
between the land and building components. The calculation of deferred tax on depreciation recovered relies on this allocation
provided by the valuers.
The calculation of deferred tax on depreciation recov
ered also requires an assessment to be made of market values attributable
to fixtures and fittings. The market values of fixtures and fittings for significant properties have been assessed utilising
independent valuation advice and the remaining properties have been assessed with reference to previous transactional
evidence and their age and quality.
As part of the assistance package offered by the Government on 25 March 2020, depreciation allowances have been
re-introduced for commercial building structure
effective from 1 April 2020.
Depreciation recovered on the former PricewaterhouseCoopers Centre (PwC Centre), Christchurch
The impairment of the PwC Centre in the year ended 31 March 2012 (resulting from the 2010 and 2011 Canterbury earthquakes)
and the associated insurance reco
very triggered a potential tax liability for depreciation recovered.
Following the earthquakes, the Government introduced legislation that provides, in certain circumstances, rollover relief for
taxpayers affected by the earthquakes where insurance income will be used to acquire or develop replacement property in
the Canterbury region. The legislation requires that the replacement property be av
ailable for use by 31 March 2024. As at
31 March 2021, the Group continues to qualify for this relief and a deferred tax liability of $3.6 million has been provided (2020:
$4.2 million).

3. Financial position information
F O
R T H E Y E A R E N D E D 3 1 M A R C H 2 0 2 1
A N N U A L R E P O R T 2 0 2 13 7
3
.1 Trade and other receivables
2021
$000
2020
$000
Trade debtors7,5666,779
Provision for doubtful debts(2,620)(1,030)
Accrued COVID-19 rent relief
1
(1,478)-
3,4685,749
Deferred rent
2
1,947-
Prepayments6,4256,183
Trade and other receivables11,84011,932
1Relates to expected abatements and other rent reductions offered to certain tenants as part of COVID-19 rent relief which were not finalised at balance date.
2Relates to rental amounts where payment terms have been extended as part of COVID-19 rent relief offered to certain tenants.
Recognition and measurement
Trade debtors are initially recognised at fair value and subsequently measured at amortised cost using the effective interest
rate method, less an allowance for impairment. Collectability of trade debtors
is reviewed on an ongoing basis and a provision
for doubtful debts is made when there is evidence that the Group will not be able to collect the receivable. In determining
the provision, the Group applies the simplified approach to measuring expected credit losses prescribed by NZ IFRS 9, which
permits the use of lifetime expected credit losses for all trade debtors. To measure the expected credit losses the Group uses
a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the
debtors and the economic environment. Debtors are written off when recovery is no longer anticipated. There are no overdue
debtors considered impaired that have not been provided for.
3.2 Investment properties
Recognition and measurement
Investment properties are properties held for long-term capital appreciation and to earn rentals.
Initial recognition - acquired properties
Investment properties are initially measured at cost, plus related costs of acquisition. Subsequent expenditure is capitalised to
the asset's carrying amount when it adds value to the asset and its cost can be measured.
Init
ial recognition - properties being developed
Investment properties also include properties that are being constructed or dev
eloped for future use as investment properties.
All costs directly associated with the purchase and construction of a property, and all subsequent capital expenditures for the
development qualifying as acquisition costs, are capitalised. Borrowing costs are capitalised if they are directly attributable to
the development.

3 8K I
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3.2 Investment properties (continued)
Subsequent recognition
After initial recognition, investment properties are measured at fair value as determined by independent registered valuers.
In
v
estment properties under construction are carried at cost until it is possible to reliably determine their fair value, from which
point they are carried at fair value. Investment properties are valued at least annually and may not be valued by the same valuer
for more than three consecutive years.
Any gains or losses arising from changes in fair value
are recognised in profit or loss in the reporting period in which they arise.
Investment properties are classified as held for sale when they are actively marketed for sale and their carrying amount will be
recoverable principally through a sale transaction rather than continuing use. Investment properties held for sale are carried at
fair value. Where a contracted sale price is available, the investment property is carried at that value less associated costs for
seismic remediation or rental guarantees, this being the best indicator of fair value. Where no contracted price is available, the
fair value is determined by independent registered valuers.
Lease incentives
Lease incentives provided by the Group to lessees are included in the measurement of fair value of investment properties and
are treated as separate assets. Such assets are amortised on a straight-line basis ov
er the respective periods to which the lease
incentives apply.
Ground leases
While the majority of the Group’s investment portfolio is freehold, the Group has entered into several occupational ground
leases of properties or components of properties in its inv
estment portfolio to which NZ IFRS 16 applies. Lease liabilities are
initially measured as the present value of the remaining cash flows discounted at the 'incremental borrowing rate', being the
property yield for the properties with the benefit of the occupational ground leases. Property yield is used given the long term
nature of the leases. The cash flows relating to the ground leases are also included in the fair value of the investment properties
and therefore a gross up for the lease liability is recognised in the investment property balance at the amount equal to the
lease liability.
The Group is exposed to potential future increases in variable lease payments which are not included in lease liabilities until
they take effect. When this occurs a corresponding adjustment is made to the gross up of the lease liability in the investment
property balance.
Lease payments are allocated between principal and finance costs. The finance cost is charged to the Consolidated Statement
of Comprehensive
Income over the lease period so as to produce a constant periodic rate of interest on the remaining balance
of the liability for each period.
Disposals
Investment properties are derecognised when they hav
e been disposed of. The net gain or loss on disposal is calculated as the
difference between the carrying amount of the investment property at the time of the disposal and the proceeds on disposal
and is included in profit or loss in the reporting period in which the disposal settled.

A N N U A L R E P O R T 2 0 2 13 9
3
.2 Investment properties (continued)
Investment properties held by the Group are as follows:
Valuer
Capitalisation
rate
%
Fair value
31 March 2020
$000
Capital
movements
2021
$000
Fair value
gain/(loss)
2021
$000
Fair value
31 March 2021
$000
Mixed-use
Sylvia ParkJLL5.50982,00086,32531,6751,100,000
Sylvia Park LifestyleJLL5.8874,30068911,51186,500
LynnMallColliers6.63245,0009,695(5,695)249,000
The Base
1
CBRE6.38198,0002,807(13,307)187,500
1,499,30099,51624,1841,623,000
Office
Vero CentreColliers4.75445,00043855,062500,500
ASB North WharfJLL4.88238,00019821,802260,000
The Aurora CentreCBRE5.50170,300(1,656)13,056181,700
44 The TerraceCBRE5.8857,100(178)2,47859,400
910,400(1,198)92,3981,001,600
Other
Westgate Lifestyle
2
Colliers6.0079,0002989,20288,500
Other properties
3
170,0504,40415,896190,350
Development land60,0008,362(62)68,300
309,05013,06425,036347,150
2,718,750111,382141,6182,971,750
Gross up of lease liabilities1,2692,310(34)3,545
Investment properties - non-current2,720,019113,692141,5842,975,295
Investment properties held for sale
Properties held for sale
4
386,1003,138(41,738)347,500
Gross up of lease liabilities
4
8,615174(90)8,699
Investment properties held for sale - current394,7153,312(41,828)356,199
Total investment properties3,114,734117,00499,7563,331,494
1Represents the Group's 50% ownership interest.
2Following a change in the Group's strategy to focus on mixed-use and office assets, Westgate Lifestyle has been reclassified from retail to other in the current year.
3Includes 50% of Centre Place North, which is not held for sale.
4Includes The Plaza, Northlands, 50% of Centre Place North and an adjoining property. The associated gross up of lease liabilities has also been classified as properties held for
sale. The Centre Place North transaction settled on 1 April 2021. Refer to note 5.5 for further information. Conditional offers have been received for The Plaza and Northlands,
with settlement dates yet to be determined.

4 0K I
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3.2 Investment properties (continued)
Valuer
Capitalisation
rate
%
Fair value
31 March 2019
$000
Capital
mov
ements
2020
$000
Fair value
gain/(loss)
2020
$000
Fair value
31 March 2020
$000
Mixed-use
Sylvia Park
1
JLL5.50955,000135,723(108,723)982,000
Sylvia Park LifestyleJLL6.2577,000(64)(2,636)74,300
LynnMallColliers6.63284,0004,787(43,787)245,000
The Base
2
CBRE6.63217,5002,519(22,019)198,000
1,533,500142,965(177,165)1,499,300
Retail
Westgate LifestyleColliers6.6390,00069(11,069)79,000
Centre Place NorthCBRE11.2553,500238(17,238)36,500
The PlazaCBRE8.25207,0002,688(39,688)170,000
NorthlandsJLL8.00247,0006,070(58,070)195,000
597,5009,065(126,065)480,500
Office
Vero CentreColliers5.25450,0002,786(7,786)445,000
ASB North WharfJLL5.25230,0008467,154238,000
The Aurora CentreCBRE6.00159,500(443)11,243170,300
44 The TerraceCBRE6.3853,500(314)3,91457,100
893,0002,87514,525910,400
Other
Other propertiesVarious125,23926,0113,400154,650
Development landJLL58,1506,425(4,575)60,000
183,38932,436(1,175)214,650
3,207,389187,341(289,880)3,104,850
Gross up of lease liabilities--(89)9,884
Investment properties3,207,389187,341(289,969)3,114,734
1Sylvia Park was valued 'as if complete' at $1.09 billion based on a capitalisation rate of 5.50%. The deduction of outstanding development costs for the Level 1 and south carpark
de
velopment ($84.9 million) together with allowances for profit and risk and stabilisation ($23.2 million) results in an 'as is' value of $982 million.
2Represents the Group's 50% ownership interest.

A N N U A L R E P O R T 2 0 2 14 1
3
.2 Investment properties (continued)
The movement in the Group's investment properties during the year is as follows:
Mixed-use
$000
Retail
$000
Office
$000
Other
$000
Held for sale
$000
2021
$000
Balance at the beginning of the year excluding gross
up of lease liabilities1,499,300480,500910,400214,650-3,104,850
Transfer from retail to other-(97,250)-97,250--
Transfer to held for sale-(383,250)-(2,850)386,100-
Capital movements:
Acquisitions---4,017-4,017
Capitalised costs (including lease incentives, fees,
abatements and fixed rental income)99,629-3,1276,0586,689115,503
Capitalised interest and finance charges4,755--3,838-8,593
Amortisation of lease incentives, fees, abatements
and fixed rental income(4,868)-(4,325)(849)(3,551)(13,593)
99,516-(1,198)13,0643,138114,520
Net fair value gain/(loss) on investment properties
excluding gross up of lease liabilities24,184-92,39825,036(41,738)99,880
Balance at the end of the year excluding gross up of
lease liabilities1,623,000-1,001,600347,150347,5003,319,250
Gross up of lease liabilities:
Balance at the beginning of the year4988,656-730-9,884
Transfer from retail to other-(771)-771--
Transfer to held for sale-(7,885)-(730)8,615-
Capital movements9--2,3011742,484
Fair value movements(34)---(90)(124)
473--3,0728,69912,244
Balance at the end of the year including gross up of
lease liabilities1,623,473-1,001,600350,222356,1993,331,494

4 2K I
W I P R O P E R T Y
3.2 Investment properties (continued)
The movement in the Group's investment properties during the prior year is as follows:
Mixed-use
$000
Retail
$000
Office
$000
Other
$000
2020
$000
Balance at the beginning of the year1,533,500597,500893,000183,3893,207,389
Capital movements:
Acquisitions---25,58325,583
Capitalised costs (including lease incentives,
fees and fixed rental income)138,51810,5894,0083,127156,242
Capitalised interest and finance charges6,715154-3,92410,793
Amortisation of lease incentives, fees and fixed
rental income(2,268)(1,678)(1,133)(198)(5,277)
142,9659,0652,87532,436187,341
Net fair value (loss)/gain on
investment properties(177,165)(126,065)14,525(1,175)(289,880)
Gross up of lease liabilities4988,656-7309,884
Balance at the end of the year1,499,798489,156910,400215,3803,114,734
Key estimates and assumptions: valuation and fair value measurement of investment properties
Introduction
All of the Group's inv
estment properties have been determined to be Level 3 (2020: Level 3) in the fair value hierarchy because
all significant inputs that determine fair value are not based on observable market data. Refer to note 1.7 for further information
on the fair value hierarchy.
Valuation process
All investment properties were valued as at 31 March 2021 (and as at 31 March 2020). All valuations are prepared by independent
v
aluers who are members of the Group's valuation panel and members of the New Zealand Institute of Valuers.
Investment property values are assessed within a range indicated by at least two valuation approaches; most commonly
the income capitalisation approach and discounted cash flow approach. Other valuation approaches, including the sales
comparison approach
or deferred land value approach may be used depending on the nature of the property. In addition, the
adopted valuation of an investment property undergoing development may be assessed using a residual approach.
Estimates are used in these valuation
approaches to determine fair value. For the two most common approaches, these include
the capitalisation rate in the income capitalisation approach and the discount rate in the discounted cash flow approach. Both
approaches are also influenced by other estimates relating to market rental levels, vacancy rates, letting-up allowances and the
cost of ongoing operating expenses, capital expenditure and other capital payments.
In relation to capital expenditure, the valuers
for LynnMall, The Base, Centre Place North, The Plaza and Northlands have made
deductions for seismic strengthening works. The Group has provided the valuers with the estimated cost of works for each
asset. In some instances the valuer has assessed additional costs for potential works to buildings which have not been subject
to a Detailed Seismic Assessment (DSA) and/or made additional allowances for escalation and profit and risk.

A N N U A L R E P O R T 2 0 2 14 3
3
.2 Investment properties (continued)
The timing of the cash outflow for these costs has been spread over the likely remediation period and the overall value
deduction
reflects the present value of costs over the adopted time horizon.
Under the residual approach, valuers estimate the ‘as if complete’ value of an asset using the common investment valuation
approaches described abov
e. They then deduct remaining project costs to determine the asset’s ‘as is’ or residual value.
Sylvia Park was valued using the residual approach as at 31 March 2020 and at 30 September 2020 as the Level 1 development
was still in progress. Now the development is substantially complete, the residual approach has not been used as at
31 March 2021.
The v aluations are reviewed by the Group and adopted as the carrying value in the financial statements. As part of this process,
the Group’s management
verifies all major inputs to the valuations (including costs to complete for investment properties
being developed), assesses valuation movements since the previous year and holds discussions with the independent valuers
to assess the reasonableness of the valuations.
Impact of the COVID-19 global pandemic
As at 31 March 2021 the real estate markets to which the Group’s investment properties belong continued to be impacted by
market uncertainty caused by CO
VID-19.
The market uncertainty has
affected key inputs, assumptions and processes used in the valuation of the Group’s investment
properties, being:
•
estimating the net income that a property can produce (income uncertainty), and
•
converting that income to value by applying investment rates of return which are derived from analysis of recent market
transactions (inv
estment uncertainty).
Income uncertainty
The pandemic has impacted the income earning potential of the Group’s properties during the financial year. The Group leases
commercial accommodation
to a range of businesses from where they conduct their operations. Restrictions imposed by the
Government to combat the pandemic prevented certain businesses from operating out of their premises in the usual manner. In
response, the Group worked through a cost sharing programme with each affected tenant whereby the Group forgave a portion
of the rent payable by the tenant. In certain cases the Group also deferred rent payable. The percentage of rent forgiven, the
duration of the forgiveness period, and the deferral period (where applicable) were subject to negotiation between the Group
and the tenant. This programme had a negative impact on the Group’s income for the year ended 31 March 2021. Future income
may also be impacted as:
•
the underlying activity and profitability of many of the Group’s tenants may be affected by further restrictions which prevent
the
population from socialising or accessing goods and services to the extent they could before the pandemic, although the
combination of the Government’s pandemic management protocols and the eventual roll-out of an effective vaccination
programme ov
er time is expected to reduce the need for long-term restrictions, and therefore the need for further cost
sharing measures of the same scale.
•
border restrictions into New Zealand mean businesses that rely on travel and tourism will continue to be
negatively impacted.

4 4K I
W I P R O P E R T Y
3.2 Investment properties (continued)
Investment uncertainty
Valuation uncertainty during the
financial
year also arose from an inactive property investment market. Investment market
participants were not able to conduct normal business activities during Alert Levels 3 and 4. Additionally, many large
investors are domiciled offshore and travel restrictions prevent them from physically inspecting assets and undertaking typical
due diligence. An inactive market means a lack of transactional evidence demonstrating current market pricing. In these
circumstances the only inputs and metrics available to reliably estimate fair value relate to the market before the event occurred
and the impact of the event on prices cannot be known until the market stabilises.
Valuation uncertainty
The Group’s valuers have noted the difficulty in undertaking valuations as a result of income and investment uncertainty and
accordingly valuations for the portfolio at
31 March 2020 and 30 September 2020 contained Material Valuation Uncertainty
statements as recommended by The New Zealand Institute of Valuers to highlight the difficulties in undertaking valuations in
the market prevailing at the time. This implies the valuations were current at the date of the valuation only and that less certainty
and a higher degree of caution should be attached to the valuation. In addition, it was recommended that the valuations should
be kept under frequent review as the assessed value may change significantly and unexpectedly over a relatively short period
of time.
More recently, there has been increased transactional activity across some property sectors. This has enabled valuers of
properties within these sectors to conclude valuations
with a greater degree of certainty and consequently remove the Material
Valuation Uncertainty clauses from the valuations for these assets. Notwithstanding, these valuations still include downgraded
statements pertaining to market volatility, elevated risk and uncertainty suggesting that a higher degree of caution should still
be exercised when relying upon the valuations.
Investment uncertainty remains for some assets as there hav
e been no transactions of scale in the retail market. Valuations for
Sylvia Park, The Base, Centre Place North, The Plaza and Northlands at 31 March 2021 continue to contain Material Valuation
Uncertainty statements. In the absence of relevant market evidence, the valuers have adjusted valuation inputs and estimates
to reflect the impact of the pandemic on investment property value. The valuers have tended to place greater emphasis on the
discounted cash flow approach as this methodology allows them to more explicitly model assumptions and events that are not
expected to prevail long into the future.
Until investment property values can be demonstrated to have stabilised post COVID-19, the Group intends to more closely
monitor the inv
estment markets to determine if more frequent valuation updates need to be obtained.
Impact on values at 31 March 2021
To reflect the impact of the pandemic on inv
estment property value, the valuers have generally adopted softer valuation inputs
than those adopted prior to the pandemic, including lower growth rates across the near term, lower market rental levels,
increased vacancy rates and increased letting-up allowances. The valuers have also made deductions for the costs of estimated
rent relief to tenants for occupancy disruption resulting from pandemic-related impacts. This is consistent with the approach
taken for the valuations prepared as at 31 March 2020 although the quantum of the deductions is less as at 31 March 2021,
with the Alert Level 4 lockdown period having now passed. At 31 March 2020 the valuers also expanded capitalisation and
discount rates due to the greater market uncertainty. At 31 March 2021, capitalisation and discount rates contracted with the
lesser uncertainty, however these are not back to pre-pandemic levels.
For the year ended 31 March 2021 the Group reported a fair value gain of $99.9 million ($99.8 million after accounting for the
gross up of lease liabilities
).

A N N U A L R E P O R T 2 0 2 14 5
3
.2 Investment properties (continued)
Seismic uncertainty
The Group is committed to upgrading the seismic resilience of its assets to appropriate New Building Standards (NBS). Initial
seismic assessments (ISA
)
have been undertaken across most of the Group’s assets excluding those which have been recently
constructed and therefore deemed to have met current building code. Where the ISA of a building is below acceptable NBS
standards, the Group will generally procure a detailed seismic assessment (DSA) to more accurately verify the NBS rating and
assist in the design of remediation solutions to increase the NBS to acceptable levels.
The valuations for certain Group assets therefore contain deductions for costs associated with identified seismic remediation
works. The
cost deductions are based on quantity surveyor assessments with additional allowances for professional fees and
other associated costs. In some instances, valuers add additional allowances for profit and risk.
Cost assessments for seismic works contain some uncertainty. The level of accuracy of design solutions and cost estimates
can vary as the design and remediation process progresses. Initially, estimates may be based on structural plans of a building
which can sometimes be found to be inaccurate once more intrusive building investigations are carried out. Therefore, costs
associated with current or imminent remediation works will be more accurate than those for a project in the early phases of
investigation or planning.
Valuation inputs
A valuation is determined based on a range of unobservable inputs. These are unobservable as they are not freely available or
explicit in the marketplace but rather analysed from transactional data that has taken place in similar market circumstances to
that prev
ailing at the date of valuation. Refer to note 1.7 for further information on the fair value hierarchy.
The Group’s inv
estment property values contain unobservable inputs in determining fair value, some of which can be described
as ‘key unobservable inputs’ where significant judgement is applied in determining the input and a change to any one of these
inputs could significantly alter the fair value of an investment property.
Key unobservable inputs are the capitalisation rate, discount rate, terminal capitalisation rate, market rent and growth rates.
The table on the following page sets out these key unobservable
inputs and the ranges adopted by the valuers across the various
properties making up the Group’s mixed-use and office portfolios. The retail portfolio has been excluded in the current year in
alignment with the Group's strategy.
The impact of COVID-19 has been partially reversed and can be seen in the analysis below through the general strengthening
in metrics from 2020 to 2021. This is mainly evident through the capitalisation rate and discount rates metrics, which ha
ve
contracted (decreased), and the growth rates, which have expanded (increased), having an effect of increasing the fair value.
The lower end of the growth rate range for the mixed-use portfolio can still be seen to be negative. These metrics indicate a
range across all assets in that portfolio, so don’t affect all properties, and typically relate to the early year or years of the cash
flow so don’t continue across the full discounted cash flow horizon.

4 6K I
W I P R O P E R T Y
3.2 Investment properties (continued)
Class of propertyInputs used to measure fair value
Range of significant
unobserv
able inputs
20212020Sensitivity
Mixed-useCore capitalisation rate5.5% - 6.6%5.5% - 6.6%The higher the capitalisation rates and
discount rate, the lower the fair value.
Other income capitalisation rate5.5% - 6.9%6.2% - 8.3%
Discount rate7.0% - 8.3%7.3% - 8.3%
Terminal capitalisation rate5.6% - 6.6%5.5% - 6.8%
Gross market rent (per sqm)
1
$381 - $787$371 - $786The higher the market rent and growth rate,
the higher the fair value.
Rental growth rate (per annum)-2.3% - 3.9%-14.6% - 7.4%
RetailCore capitalisation rate
Not applicable
6.6% - 11.3%The higher the capitalisation rates and
discount rate, the lower the fair value.
Other income capitalisation rate6.6% - 11.3%
Discount rate8.3% - 10.6%
Terminal capitalisation rate8.1% - 12.3%
Gross market rent (per sqm)
1
$263 - $638The higher the market rent and growth rate,
the higher the fair value.
Rental growth rate (per annum)-15.3% - 6.5%
OfficeCore capitalisation rate4.8% - 5.9%5.3% - 6.4%The higher the capitalisation rates and
discount rate, the lower the fair value.
Discount rate6.5%- 6.9%6.8% - 7.4%
Terminal capitalisation rate4.9% - 6.3%5.3% - 6.8%
Gross market rent (per sqm)
1
$486 - $670$492 - $668The higher the market rent and growth rate,
the higher the fair value.
Rental growth rate (per annum)1.0% - 3.5%0.0% - 4.0%
1Weighted average by property.
These key inputs are explained above.

A N N U A L R E P O R T 2 0 2 14 7
3
.2 Investment properties (continued)
Valuation sensitivity
A sensitivity analysis that shows how a change to capitalisation and discount rates affects the value of the Group’s portfolios is
pro
vided below. The metrics chosen are those single-
value inputs where movements are likely to have the most significant impact
on fair value of investment properties.
The capitalisation rate relates to the income capitalisation approach and the discount rate relates to the discounted cash flow
approach. Generally, a change in the capitalisation rate is accompanied by
a directionally similar change in the discount rate. The table
below assesses each of these inputs in isolation and assumes all other inputs are held constant.
31 March
2021
Adopted
value
Capitalisation rate
- 25bp
Capitalisation rate
+ 25bp
Discount rate
- 25bp
Discount rate
+ 25bp
Mixed-use
Actual valuation ($000)1,623,000
Impact of assumption change ($000)78,300(68,200)30,100(29,400)
Impact of assumption change (%)4.8(4.2)1.9(1.8)
Office
Actual valuation ($000)1,001,600
Impact of assumption change ($000)52,900(48,100)19,000(18,400)
Impact of assumption change (%)5.3(4.8)1.9(1.8)
31 March 2020
Adopted
value
Capitalisation rate
- 25bp
Capitalisation rate
+ 25bp
Discount rate
- 25bp
Discount rate
+ 25bp
Mixed-use
Actual valuation ($000)1,499,300
Impact of assumption change ($000)70,100(63,500)37,500(34,900)
Impact of assumption change (%)4.7(4.2)2.5(2.3)
Retail
Actual valuation ($000)480,500
Impact of assumption change ($000)17,200(14,800)8,700(8,500)
Impact of assumption change (%)3.6(3.1)1.8(1.8)
Office
Actual valuation ($000)910,400
Impact of assumption change ($000)44,700(39,800)16,800(16,500)
Impact of assumption change (%)4.9(4.4)1.8(1.8)

4 8K I
W I P R O P E R T Y
3.2 Investment properties (continued)
The valuation of investment properties is complex with a number of interrelated key inputs and assumptions.
When calculating the income capitalisation value,
the gross market rent has a strong interrelationship with the core capitalisation rate.
An increase in the gross market rent and an increase in the core capitalisation rate could potentially offset the impact to fair value.
The same can be said for a decrease in each input. A directionally opposite change in the two inputs could potentially magnify the
impact to the fair value.
When calculating the discounted cash flow value, the discount rate has a strong interrelationship with the terminal capitalisation rate.
An increase in the discount rate and a decrease in the terminal capitalisation rate could potentially offset the impact to fair value. The
same can be said for an opposite movement in each input. A directionally similar change in the two inputs could potentially magnify
the impact to the fair value.
The following table explains the key inputs used to measure fair value for investment properties.
Valuation techniques
Income capitalisation approachA valuation technique which determines fair value by capitalising a property's core net income at
an appropriate, market derived rate of return with subsequent capital adjustments for near-term
e
vents, typically including letting up allowances, capital expenditure and the difference between
contract and market rentals.
Discounted cash flow
approach
A valuation technique which requires explicit assumptions to be made regarding the prospective
income and expenses of a property ov
er an assumed holding period, typically 10 years. The
assessed cash flows are discounted to present value at an appropriate, market-derived discount
rate to determine fair value.
Residual approachA valuation technique used primarily for property which is undergoing, or is expected to
undergo, rede
velopment. Fair value is determined through the estimation of a gross realisation on
completion of the redevelopment with deductions made for all costs associated with converting
the property to its end use including finance costs and a typical profit margin for risks assumed by
the developer.
Unobservable inputs within the income capitalisation approach
Gross market rentThe annual amount for which a tenancy within a property is expected to achiev
e under a new arm's
length leasing transaction, including a fair share of property operating expenses.
Core capitalisation rateThe rate of return, determined through analysis of comparable market-related sales transactions,
which is applied to a property's core net income to derive v
alue.
Other income capitalisation rateThe rate of return which is applied to other, typically variable
or uncontracted, sources of property
income to derive value and that is assessed with consideration to the risks in achieving each
income source.
Unobservable inputs within the discounted cash flow approach
Discount rateThe rate, determined through analysis of comparable market-related sales transactions that is
applied to a property's future net cash flows
to convert those cash flows into a present value.
Terminal capitalisation rateThe rate which is applied to a property's core net income at the end of an assumed holding period
to derive an estimated future market v
alue.
Rental growth rateThe annual growth rate applied to market rents over an assumed holding period.

A N N U A L R E P O R T 2 0 2 14 9
3
.3 Deferred tax
2021
$000
2020
$000
Deferred tax assets
Interest rate derivatives4,5206,285
Deferred tax liabilities
Depreciation recoverable(88,801)(80,937)
Deferred leasing costs and other temporary differences(10,237)(8,565)
(99,038)(89,502)
Net deferred tax liabilities(94,518)(83,217)
Recognition and measurement
Deferred tax is provided
for all taxable temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for taxation purposes. Deferred tax assets are recognised to the extent that it is
probable that future taxable profits will be available to utilise them. For deferred tax assets or liabilities arising on investment
property, it is assumed that the carrying amounts of investment property will be recovered through sale. Deferred tax is
disclosed on a net basis, as the deferred tax assets and the deferred tax liabilities relate to the same taxation authority.
The carrying amount of deferred tax assets is reviewed at each balance date and reduced to the extent that it is no longer
probable that sufficient
taxable profit will be available to allow all or part of the deferred tax asset to be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised
or the liability is settled, based on tax rates (and tax laws
) applicable at balance date.

5 0K I
W I P R O P E R T Y
3.4 Funding
3.4.1 Interest bearing liabilities
The Group's secured interest bearing liabilities are as follows:
2021
$000
2020
$000
Bank loans - total facilities825,000825,000
Bank loans - undrawn facilities(252,000)(291,000)
Bank loans - drawn facilities573,000534,000
Fixed-rate green bonds - current125,664-
Fixed-rate green bonds - non-current351,197475,867
Fixed-rate green bonds - amortised cost476,861475,867
Interest bearing liabilities1,049,8611,009,867
2021
$000
2020
$000
Face value of fixed-rate
green bonds - current
125,000-
Face value of fixed-rate
green bonds - non-current
350,000475,000
Face values475,000475,000
20212020
Weighted average interest rate for drawn debt
(inclusive of bonds, active interest rate derivatives, margins and line fees)4.19%4.35%
Weighted average term to maturity for the combined facilities2.9 years3.9 years
Recognition and measurement
All interest bearing liabilities are initially recognised at the fair value of the consideration received, less directly attributable
transaction costs.
After initial recognition, they are subsequently measured at amortised cost using the effective interest rate
method whereby the transaction costs are spread over the expected life of the instrument.

A N N U A L R E P O R T 2 0 2 15 1
3.4.
1 Interest bearing liabilities (continued)
Bank loans
The bank loans are provided
by ANZ Bank New Zealand, Bank of New Zealand, China Construction Bank Corporation (New Zealand
Branch), Commonwealth Bank of Australia, The Hongkong and Shanghai Banking Corporation (HSBC) and Westpac New Zealand
(unchanged from 31 March 2020).
In March 2020, $361 million of existing bank debt facilities were refinanced.
In May 2021, the Group refinanced $700 million of bank debt facilities and reduced the overall bank facilities from $825 million to
$800 million. Refer to note 5.5 for further information.
F
ixed-rate green bonds
Following the launch of the sustainable debt
framework on 31 March 2021, the NZX approved the conversion of the Group's existing
fixed-rate bonds to fixed-rate green bonds.
The following table provides details of the Group's fixed-rate green bonds:
NZX code
Value of issue
$000
Date
issued
Date of
maturity
Interest
rateInterest payable
Fair value
2021
$000
Fair value
2020
$000
KPG010125,0006-Aug-1420-Aug-216.15%February, August127,362129,762
KPG020125,0007-Sep-167-Sep-234.00%March, September131,858127,004
KPG030125,00019-Dec-1719-Dec-244.33%June, December136,421128,922
KPG040100,00012-Nov-1812-Nov-254.06%May, November108,120101,807
Fixed-rate green bonds475,000503,761487,495
The fair value of the fixed-rate green bonds is based on their listed market prices at balance date and is classified as Level 1 in the fair
v
alue hierarchy (2020: Level 1). Refer to note 1.7 for further information on the fair value hierarchy.
Security
The bank loans and fixed-rate green bonds are secured by
way of a Global Security Deed (the Deed). Pursuant to the Deed, a security
interest has been granted over all of the assets of the Group. No mortgage has been granted over the Group's properties, however,
the Deed allows a mortgage to be granted if an event of default occurs.

5 2K I
W I P R O P E R T Y
3.4.2 Interest rate derivatives
The Group is exposed to changes in interest rates and uses interest rate derivatives to mitigate these risks (commonly referred to as
interest rate swaps).
The
following table provides details of the fair values, notional values, terms and interest rates of the Group's interest rate derivatives.
2021
$000
2020
$000
Interest rate derivative assets - non-current2,8224,186
Interest rate derivative liabilities - current-(104)
Interest rate derivative liabilities - non-current(18,965)(26,530)
Net fair values of interest rate derivatives(16,143)(22,448)
Notional value of interest rate derivatives - fixed-rate payer - active290,000245,000
Notional value of interest rate derivatives - fixed-rate receiver - active
1
40,00040,000
Notional value of interest rate derivatives - fixed-rate payer - forward starting50,000165,000
Notional values380,000450,000
Fixed-rate payer swaps:
Weighted average term to maturity - active2.6 years2.3 years
Weighted average term to maturity - forward starting5.5 years5.0 years
Weighted average term to maturity3.1 years3.4 years
Fixed-rate payer swaps:
Weighted average interest rate - active
2
2.98%3.51%
Weighted average interest rate - forward starting
2
2.27%2.74%
Weighted average interest rate2.87%3.20%
1The Group has $40 million of fixed-rate receiver swaps for the duration of the $100 million KPG040 fixed-rate green bonds. The effect of the fixed-rate receiver swaps is to
conv
ert a portion of the bond to floating interest rates.
2Excluding fees and margins.

A N N U A L R E P O R T 2 0 2 15 3
3.4.2
Interest rate derivatives (continued)
Recognition and measurement
Interest rate derivative instruments are initially recognised at fair value on the date on which a derivative contract is entered
into and are subsequently re-measured to fair value
each balance date exclusive of accrued interest. Fair values at balance date
are calculated to be the present value of the estimated future cash flows of these instruments. Transaction costs are expensed
on initial recognition and recognised in profit or loss. Derivatives are carried as assets when their fair value is positive and as
liabilities when their fair value is negative.
The Group does not designate any derivatives into hedging relationships. Gains or losses arising from changes in fair value of
interest rate derivativ
es are recognised in profit or loss.
Key estimate: fair value of interest rate derivatives
The fair values of interest rate derivatives are determined from valuations prepared by an independent treasury adviser using
v
aluation
techniques classified as Level 2 in the fair value hierarchy (2020: Level 2). Refer to note 1.7 for further information on
the fair value hierarchy. These are based on the present value of estimated future cash flows based on the terms and maturities
of each contract and the current market interest rates at balance date. Fair values also reflect the current creditworthiness
of the derivative counterparties. These values are verified against valuations prepared by the respective counterparties. The
valuations were based on market rates at 31 March 2021 of between 0.35% for the 90-day BKBM and 1.97% for the 10-year swap
rate (2020: 0.49% and 0.93%, respectively).

5 4K I
W I P R O P E R T Y
3.4.3 Capital management
The Group's capital includes equity and interest bearing liabilities. The Group maintains a strong capital base to ensure investor,
creditor and market confidence and to sustain the Group's ongoing activities. The impact of the lev
el of capital on shareholder returns
and the need to maintain a balance between the higher returns that might be possible with greater gearing and the advantages and
security afforded by a sound capital position is managed by the Group. The Group is subject to the capital requirement imposed by the
Group's Senior Facilities Agreement governing its interest bearing liabilities which requires that total finance debt be maintained at no
more than 45% of the total tangible assets of the Group. However, the Group actively manages its debt to its internal treasury policy
which sets a target gearing range of 25% to 35%. The Group has complied with its Senior Facilities Agreement capital requirement
at all times throughout the year.
The Group actively manages liquidity risk to ensure that it is able to access sufficient funds on a timely basis to meet operational
expenses, capital and debt expiry commitments as and when they fall due. To enhance its access to a range of funding sources, the
Group has secured credit ratings from S&P Global Ratings. To minimise liquidity risk, the Group ensures that it maintains sufficient
capacity in its overall debt facilities to cover projected debt (current debt plus Board approved capital commitments), has ready
access to sufficient cash reserves or available debt drawdowns, and reliably forecasts its expected cash requirements. Further detail
on liquidity risk is provided in note 4.3.
Given the inherent uncertainty created by the COVID-19 global pandemic, the Board adopted a prudent approach to capital
management and
determined that no final dividend would be paid for the year ended 31 March 2020. Dividend payments resumed
with an interim dividend being paid for the half year ended 30 September 2020.
Following the decision that no final dividend be paid for the year ended 31 March 2020, the Group revised its dividend policy. Dividend
payments are now based on a range of factors, including with particular reference to the Group’s adjusted funds from operations
(
AFFO), which will be the primary basis on which dividend amounts are determined. AFFO is a non-GAAP performance measure used
by the Group to determine underlying and recurring cash flows from operations. AFFO is calculated with reference to the guidelines
established by the Property Council of Australia. In determining a dividend payment, the Group will have regard to, amongst other
things, the solvency requirements under the Companies Act 1993, its banking and green bond covenants and internal financing
targets, its future investment plans, current and forecast earnings, operating cash flows, and the economic climate and competitive
environment. Having regard to these matters, the Group will target a dividend payout ratio of approximately 90% to 100% of AFFO.
The Board also temporarily suspended all non-essential capital expenditure projects until the duration and financial impact of the
COVID-19 pandemic became more certain. The Board has subsequently approved a return to normal operations.
At balance date, the market capitalisation of the Group (being the 31 March 2021 closing share price, as quoted on the NZX Main
Board, multiplied by
the number of shares on issue) was below the carrying amount of the Group’s net assets and shareholders’ funds.
In considering the difference, the Group notes that 99% of total assets at 31 March 2021 are investment properties which are carried
at fair value as detailed in note 3.2.
Factors that may influence market capitalisation include, amongst other things:
•
Broader market and investor sentiment
•
Property market segment sentiment, particularly with regard to retail assets
•
Effect of leverage of debt funding and including corporate overheads
•
The le
vel of uncertainty due to the impact of COVID-19 and its impact on the New Zealand and global economies.
In the review of valuations and the considerations around fair value determined by the independent valuers (as disclosed in note 3.2),
and having considered the
influencing factors above, the Group considers the carrying amount of net assets is appropriate.

A N N U A L R E P O R T 2 0 2 15 5
3
.5 Trade and other payables
2021
$000
2020
$000
Trade creditors31,31224,264
Interest and finance
charges payable
1,3161,682
Development costs payable12,82421,660
Employment liabilities4,4394,409
Rent in advance1,690768
Goods and Services Tax payable1,684740
Trade and other payables53,26553,523
Recognition and measurement
Trade and other payables are carried at amortised cost and due to their short-term nature are not discounted. Provisions are
recognised when the Group has a legal or constructive
obligation as a result of a past event, it is probable that a future outflow
of cash or other benefit will be required and a reliable estimate can be made of the amount of the obligation.
3.6 Equity
3.6.1 Share capital
The following table pro
vides details of movements in the Group’s issued shares:
2021202120202020
Number
000
Amount
$000
Number
000
Amount
$000
Balance at the beginning of the year1,569,0881,660,9611,432,8201,449,646
Issue of shares:
Dividend reinvestment--11,47517,534
Retail and Institutional placements--124,793193,714
Long-term incentive plan - shares issued281---
Long-term incentive plan - shares vested-439--
Long-term incentive plan - shares forfeited-444--
Employee share ownership plan - shares vested-72-67
Balance at the end of the year1,569,3691,661,9161,569,0881,660,961
563,315 shares at a cost of $0.8 million are held by Pacific Custodians (New Zealand) Limited (the LTI Trustee) for the Group’s
long-term incentive plan (2020: 1,
064,642 shares, at a cost of $1.5 million). Refer to note 3.6.4 for further information on
share-based payments.

5 6K I
W I P R O P E R T Y
3.6.1 Share capital (continued)
Recognition and measurement
Share capital is recognised at the fair value of the consideration received by the Company. Costs relating to the issue of new
shares hav
e been deducted from proceeds received.
All shares carry equal weight in respect of voting
rights, dividend rights and rights on winding up of the Company and have no
par value.
3.6.2
Dividends
Dividends paid during the year comprised:
Date declared
2021
cps
2021
$000Date declared
2020
cps
2020
$000
Cash--3.47549,790
Imputation credits--1.07015,331
Final dividend--17-May-194.54565,121
Cash2.20034,5163.52555,296
Imputation credits0.85613,4230.79012,393
Interim dividend20-Nov-203.05647,93915-Nov-194.31567,689
Cash2.20034,5167.000105,086
Imputation credits0.85613,4231.86027,724
Total dividends3.05647,9398.860132,810
The Group operates a Dividend Reinvestment Plan (DRP) which allows eligible shareholders to elect to reinvest dividends in shares.
The Board, at its sole discretion, may suspend the DRP at any time and/or
apply a discount to which shares are issued under the DRP.
The DRP was suspended and did not apply to the interim dividend paid for the half year ended 30 September 2020.
The Board determined that no final cash dividend would be paid for the year ended 31 March 2020 (if declared this would have
ordinarily
occurred in May 2020). This decision was made after considering the inherent uncertainty surrounding the financial impact
of the COVID-19 pandemic occurring at and around balance date, and the desire to take a prudent approach to capital management.
3.6.3 Earnings per share
20212020
Profit and total comprehensive income after income tax attributable to shareholders ($000)196,529(186,694)
Weighted average number of shares (000)1,569,3131,493,136
Basic and diluted earnings per share (cents)12.52(12.50)

A N N U A L R E P O R T 2 0 2 15 7
3.6.4
Share-based payments
Long-term incentive plans (LTI plans)
Performance Share Rights LTI Plan
In the financial
year ended 31 March 2020 the Company introduced a new LTI plan to replace the legacy plan for selected senior
employees. Currently both plans have tranches operating. Under the new LTI plan, participants are issued Performance Share Rights
(PSRs) for service periods of one, two and three years. The number of PSRs that can be exercised and converted into shares in the
Company depends on a mix of the Company's shareholder return relative to comparator entities and a return on capital employed
metric over a one year performance period. On vesting, the participant is entitled to receive one share upon the valid exercise of each
vested PSR they hold.
Legacy LTI Plan
The Company has previously operated a legacy LTI plan for selected senior employees, which has tranches that remain subject to
vesting.
Under the legacy LTI plan, ordinary shares in the Company were purchased on market by Pacific Custodians (New Zealand)
Limited (the LTI Trustee). Participants purchased shares from the LTI Trustee with funds lent to them by the Company. The number of
shares that vest depends on the Company's absolute total shareholder return as well as its shareholder return relative to comparator
entities. On vesting, the employee is provided a cash amount which must be used to repay the loan and the relevant number of shares
are then transferred to the participant.
Recognition and measurement
The fair value of the LTI plans at grant date is recognised over the vesting period of the plan as an employee entitlements
expense, with a corresponding increase in the share-based payments reserve.
The fair value is independently measured using
an appropriate option pricing model.
Number of performance share rights (new plan)
Grant dateMeasurement date
Performance
share right
price at grant
date
Balance at the
beginning of
the year
Granted
during the
year
Exercised
during the
year
Forfeited
during the
year
Balance at the
end of
the year
2021
1 April 202031 March 2021$0.888-1,464,491--1,464,491
1 April 201931 March 2020$1.4551,126,274-(281,568)(281,568)563,138
Total1,126,2741,464,491(281,568)(281,568)2,027,629
Number of performance share rights (new plan)
Grant dateMeasurement date
Performance
share right
price at grant
date
Balance at the
beginning of
the year
Granted
during the
year
Exercised
during the
year
Forfeited
during the
year
Balance at the
end of the year
2020
1 April 201931 March 2020$1.455-1,126,274--1,126,274
Total-1,126,274--1,126,274

5 8K I
W I P R O P E R T Y
3.6.4 Share-based payments (continued)
Number of shares (legacy plan)
Grant dateMeasurement date
Share price at
grant date
Balance at the
beginning of
the year
Granted
during the
year
Exercised
during the
year
Forfeited
during the
year
Balance at the
end of the year
2021
1 April 201831 March 2021$1.368563,315---563,315
1 April 201731 March 2020$1.383501,307--(501,307)-
Total1,064,622--(501,307)563,315
Number of shares (legacy plan)
Grant dateMeasurement date
Share price at
grant date
Balance at the
beginning of
the year
Granted
during the
year
Exercised
during the
year
Forfeited
during the
year
Balance at the
end of the year
2020
1 April 201831 March 2021$1.368608,068--(44,753)563,315
1 April 201731 March 2020$1.383513,987--(12,680)501,307
1 April 201631 March 2019$1.466388,875--(388,875)-
Total1,510,930--(446,308)1,064,622

A N N U A L R E P O R T 2 0 2 15 9
3.6.4
Share-based payments (continued)
Key estimates and assumptions: fair value measurement of LTI plan
The fair value of the LTI plans have been determined using a Monte Carlo simulation to model a range of future share price
outcomes for the Company and comparator entities. The fair value at grant date and the measurement inputs used were
as follows:
P
erformance Share Rights LTI Plan
Measurement date31 March
202131 March 2020
Weighted average performance share right price at grant date$0.888$1.455
Risk-free rate0.18%0.98%
Standard deviation of the comparator entities12.1% - 17.8%8.5% - 16.7%
Correlation between Company share price and comparator entities18.2% - 59.9%16.3% - 56.8%
Estimated fair value per share$0.815$1.145
Legacy LTI Plan
Measurement date31 March
2021
Weighted average share price at grant date$1.368
Risk-free rate1.92%
Standard deviation of the comparator entities9.3% - 12.1%
Correlation between Company share price and comparator entities5.3% - 57.5%
Estimated fair value per share$0.462
The volatility and correlation measures were derived from measuring the standard deviation and correlation of returns for listed
entities in the S&P/NZX All Real Estate Index over a three-year period. The risk free rate was based on government bond yields
over the same period.
It has been assumed that participants will remain employed with the Company on the vesting date. Dividend assumptions are
based on projected dividend payments ov
er the vesting period.
The employee entitlements expense relating to the LTI plan for the year ended 31 March 2021 is $1,183,304 (2020: $955,565)
with a corresponding increase in the share-based payments reserve.
The unamortised fair value of the remaining shares in the
legacy LTI plan at 31 March 2021 is $nil (2020: $92,522) and the unamortised value of the remaining performance share rights
at 31 March 2021 is $594,130 (2020: $491,024).

4. Financial risk management
F O
R T H E Y E A R E N D E D 3 1 M A R C H 2 0 2 1
6 0K I
W I P R O P E R T Y
In the normal course of business, the Group is exposed to a variety of financial risks. This section explains the Group's exposure to
financial risks, how these risks could affect the Group's financial performance and how they are managed.
The Group is exposed to the following financial risks through its use of financial instruments:
•
Interest rate risk
•
Credit risk
•
Liquidity risk
Financial instruments
The following items in the Consolidated Statement of Financial Position are classified as financial instruments: cash and cash
equivalents,
trade and other receivables, trade and other payables, interest bearing liabilities and interest rate derivatives. All financial
instruments are recorded at amortised cost with the exception of interest rate derivatives, which are recorded at fair value through
profit or loss.
Risk management
The Board has overall responsibility for establishing and overseeing the Group's risk management framework. The Board has
established an audit and risk committee with responsibilities that include risk management, compliance and financial management
and control.
The Group has dev
eloped a risk management framework which guides management and the Board in the identification, assessment
and monitoring of new and existing risks. Management report to the audit and risk committee and the Board on relevant risks and the
controls and treatments of those risks.
In response to the uncertainty caused by the COVID-19 global pandemic, the Group has considered financial risk management and
any additional controls needed. These are discussed further in notes
4.2 and 4.3.
4.1 Interest rate risk
Nature of the risk
Interest rate risk is the risk that fluctuations in interest rates impact the Group's financial performance or the fair v
alue
of its holdings
of financial instruments.
Risk management
The Group adopts a policy of reducing its exposure to changes in interest rates by utilising interest rate derivatives to limit future
interest cost
volatility by exchanging floating rate interest obligations for fixed rate interest obligations or by exchanging fixed rate
interest obligations for floating rate interest obligations. The Group has established a treasury management group consisting of senior
management and external treasury advisors to review and set treasury strategy within the guidelines of its treasury policy.
Exposure
The Group's exposure to interest rate risk arises primarily from bank loans which are subject to floating interest rates. The weighted
av
erage interest rate, term to maturity of interest bearing liabilities and details of the interest rate derivatives utilised are set out in
note 3.4. The fair value of interest rate derivatives is impacted by changes in market interest rates.

A N N U A L R E P O R T 2 0 2 16 1
4
.1 Interest rate risk (continued)
Sensitivity to interest rate movements
The following sensitivity analysis shows the effect on profit
or loss and equity if market interest rates at balance date had been 100
basis points higher or lower with all other variables held constant.
100 bps increase ($000)100 bps decrease ($000)
(5,102)
(7,821)
(3,674)
Equity – 2021
Profit or loss (pre-tax)– 2021
Equity – 2020Profit or loss (pre-tax)–2020
4,793
7,312
3,451
5,264
(5,
631)
4.2 Credit rate risk
Nature of the risk
Credit rate risk is the risk that a counterparty will default on its contractual obligations resulting in
financial
loss to the Group. The
Group incurs credit risk in the normal course of business from trade receivables and transactions with financial institutions.
Risk management
The risk associated with trade receivables is managed with a credit policy which includes performing credit evaluations on tenants
and imposing standard payment terms and the monitoring of aged debtors. Collateral is ob
tained where possible. The risk from
financial institutions is managed by only placing cash and deposits with high credit quality financial institutions.
Exposure
The carrying amounts of financial assets recognised in the Consolidated Statement of Financial Position best represent the Group's
maximum exposure to credit risk and are recognised net of any pro
vision for losses on these financial instruments.
The COVID-19 pandemic has increased credit rate risk from trade receivables and the Group continues to work with tenants most
vulnerable to
the impacts of the pandemic to agree rent relief and other measures where needed. This is expected to assist tenants
in resuming their business operations as quickly as possible and increase their ability to pay trade receivable balances owing to
the Group.
4.3 Liquidity risk
Nature of the risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due.
Risk management
The Group evaluates its liquidity requirements on an ongoing basis by continuously forecasting cash flows. The Group generates
sufficient
cash flows from its operating activities to meet its obligations arising from its financial liabilities and has bank facilities
available to cover potential shortfalls. The Group's approach to managing liquidity risk is to ensure it will always have sufficient
liquidity to meet its obligations when they fall due under both normal and stress conditions. The Group manages liquidity by
maintaining adequate committed credit facilities and spreading maturities in accordance with its treasury policy.

6 2K I
W I P R O P E R T Y
4.3 Liquidity risk (continued)
Exposure
The following table analyses the Group's financial liabilities into relevant maturity groupings based on the earliest contractual
maturity
date at balance date. The amounts are contractual undiscounted cash flows, which includes interest through to maturity and
assumes all other variables remain constant.
Contractual cash flows (principal and interest)
Consolidated Statement
of Financial Position
$000
Total
$000
0-6 mths
$000
6-12 mths
$000
1-2 yrs
$000
2-5 yrs
$000
>5 yrs
$000
2021
Trade and other payables44,13644,13644,136----
Interest bearing liabilities1,049,8611,139,215141,63713,647148,362835,569-
Net interest rate derivatives16,14316,9013,4133,6425,4074,492(53)
Total financial
liabilities
1,110,1401,200,252189,18617,289153,769840,061(53)
2020
Trade and other payables45,92445,92445,924----
Interest bearing liabilities1,009,8671,145,85218,53418,534156,375555,846396,563
Net interest rate derivatives22,44824,9833,0953,2466,62211,644376
Total financial
liabilities
1,078,2391,216,75967,55321,780162,997567,490396,939

5. Other information
F O
R T H E Y E A R E N D E D 3 1 M A R C H 2 0 2 1
A N N U A L R E P O R T 2 0 2 16 3
5
.1 Segment information
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker. The
chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating
segments, is the Chief Executive Officer.
Operating segments have been determined based on the reports reviewed by the Chief Executive Officer to assess performance,
allocate resources and make strategic decisions.
The Group's primary assets are investment properties. Segment information is provided in note 3.2. As at 31 March 2021 the retail
segment has been remov
ed in alignment with the Group's strategy, however the section below is consistent with the reporting during
the year. The retail segment included Westgate Lifestyle, Centre Place North, The Plaza and Northlands. The Group operates in New
Zealand only.
The following table is an analysis of the Group's profit
by reportable segments used during the year:
Mixed-use
$000
Retail
$000
Office
$000
Other
$000
Total
$000
2021
Property revenue107,66757,70058,6678,402232,436
Less: amortisation of fixed
rental increases
(1,715)3721,386(7)36
Less: direct property expenses(31,694)(12,759)(12,454)(1,952)(58,859)
Less: ground lease expenses(60)(1,067)-(69)(1,196)
Segment profit74,19844,24647,5996,374172,417
2020
Property revenue109,86164,10960,6566,682241,308
Less: amortisation of fixed
rental increases
61246(1,395)(105)(1,193)
Less: direct property expenses(24,917)(15,418)(12,709)(1,481)(54,525)
Less: ground lease expenses(60)(895)-(69)(1,024)
Segment profit84,94548,04246,5525,027184,566
2021
43%
Mixed-use
26%
Retail
27%
Office
4%
Other
Segment profit
2020
46%
Mixed-use
26%
Retail
25%
Office
3%
Other
Segment profit

6 4K I
W I P R O P E R T Y
5.1 Segment information (continued)
A reconciliation of the segment profit to the profit/(loss) before income tax reported in the Consolidated Statement of
Comprehensive Income is pro
vided as follows:
2021
$000
2020
$000
Segment profit172,417184,566
Property management fees1,5472,314
(Decrease)/increase in rental income resulting from straight-lining of fixed rental increases(36)1,193
Interest income274180
Net fair value gain/(loss) on investment properties99,756(289,969)
Interest and finance charges(35,959)(37,014)
Employment and administration expenses(23,087)(22,556)
Net fair value gain/(loss) on interest rate derivatives6,305(9,862)
Ground lease expenses classified as interest and fair value loss on investment properties1,1961,024
Profit/(loss) before income tax222,413(170,124)
5.2 Related party transactions
The Group holds its 50% interest in The Base by way of an unincorporated joint venture. Kiwi Property manages the entire property
on behalf of the joint v
enture and receiv
es management fees in accordance with the Property Management Agreement.
An equity contribution of $1.75 million was made by the Group to the unincorporated joint venture in April 2020.
During the year, the following transactions were undertaken with the joint venture:
2021
$000
2020
$000
Property management fees1,2711,397
Expenditure reimbursement1,3281,181
Leasing fees676957
Development management fees66302
Legal fees18163
Retail design management fees2174
Total related party transactions3,5433,974

A N N U A L R E P O R T 2 0 2 16 5
5
.3 Key management personnel
2021
$000
2020
$000
Directors' fees686772
Short-term employee benefits4,3084,535
Other long-term benefits118
Termination benefits188-
Share-based payments848754
Key management personnel costs6,0416,069
Additional disclosures relating to key management personnel are set out in the remuneration report. Further details regarding
share-based payments can be found in note 3.6.4.
5.4 Commitments
The following costs have been committed to but not recognised in the consolidated financial statements as they will be incurred in
future reporting periods:
2021
$000
2020
$000
Development costs at Sylvia Park5,89463,572
Development costs at LynnMall2,6695,605
Development costs at The Base
1
-1,080
Development costs at Northlands90765
Drury infrastructure5,5351,913
Commitments14,18872,935
1Represents the Group’s 50% ownership interest. Refer to note 1.4 for further information.
The Base
Under the Group's agreement to purchase 50% of The Base from The Base Limited (TBL), TBL has the right to require the Group to
purchase its remaining 50% interest, at a price determined b
y
independent valuation. This right may be exercised within three months
of receipt of the independent valuation for the year ended 31 March 2021.
Ground leases
Ground leases exist ov
er ASB North Wharf, The Base and certain adjoining properties. In addition, ground leases also exist over parts
of the land at Sylvia Park, Westgate Lifestyle, Centre Place North, The Plaza and Northlands. The amount paid in respect of ground
leases during the year was $1.2 million (2020: $1.0 million). The leases terminate between November 2026 and March 3007.
The ground leases are accounted for in line with NZ IFRS 16 as outlined in note 3.2.

6 6K I
W I P R O P E R T Y
5.5 Subsequent events
On 1 April
2021, the Group entered into a 50:50 joint venture with Tainui Group Holdings (TGH) in respect of Centre Place North.
Under the terms of the agreement, the joint venture will comprise Centre Place North, 61-65 Bryce Street, 511-523 Victoria Street and
land at 10 Ward Street, with a combined value of approximately $71 million. A new 100-year ground lease has been granted by TGH,
with rent pre-paid.
On 9 April 2021, the Group acquired property in Drury for $4.0 million.
On
18 May 2021, the Group refinanced $700 million of bank debt facilities and reduced the overall bank facilities from $825 million to
$800 million. The refinanced facilities comprise a mix of three, four and five year terms. The new weighted term of all debt facilities
is 3.5 years (calculated on a 31 March 2021 pro-forma basis).
During May 2021, conditional contracts were received for The Plaza and Northlands. The fair value of these assets at 31 March 2021
reflects the terms of these contracts.
On 21 May 2021 the Board declared a final dividend for the year ended 31 March 2021 of 2.95 cents per share (cps) (equivalent to
$46.3 million), together with imputation credits of 0
.505 cps. The dividend record date is 9 June 2021 and payment will occur on
24 June 2021.

PricewaterhouseCoopers, PwC Tower, 15 Customs Street West, Private Bag 92162, Auckland 1142 New Zealand
T: +64 9 355 8000, www.pwc.co.nz
Independent auditor’s report
To the Shareholders of Kiwi Property Group Limited


Our opinion
In our opinion, the accompanying consolidated financial statements of Kiwi Property Group Limited
(the Company), including its subsidiaries (the Group), present fairly, in all material respects, the
financial position of the Group as at 31 March 2021, its financial performance and its cash flows for the
year then ended in accordance with New Zealand Equivalents to International Financial Reporting
Standards (NZ IFRS) and International Financial Reporting Standards (IFRS).
What we have audited
The Group's consolidated financial statements comprise:
● the consolidated statement of financial position as at 31 March 2021;
● the consolidated statement of comprehensive income for the year then ended;
● the consolidated statement of changes in equity for the year then ended;
● the consolidated statement of cash flows for the year then ended; and
● the notes to the consolidated financial statements, which include significant accounting policies
and other explanatory information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs
(NZ)) and International Standards on Auditing (ISAs). Our responsibilities under those standards are
further described in the Auditor’s responsibilities for the audit of the consolidated financial statements
section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Independence
We are independent of the Group in accordance with Professional and Ethical Standard 1
International Code of Ethics for Assurance Practitioners (including International Independence
Standards) (New Zealand) (PES 1) issued by the New Zealand Auditing and Assurance Standards
Board and the International Code of Ethics for Professional Accountants (including International
Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA
Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements.
Our firm carries out other services for the Group in the areas of audits of special purpose financial
information in accordance with tenancy agreements, agreed upon procedures in respect of a specified
remuneration metric and an apportionment statement, and the benchmarking of remuneration. The
provision of these other services has not impaired our independence as auditor of the Group.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the consolidated financial statements of the current year. These matters were addressed
in the context of our audit of the consolidated financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.

A N N U A L R E P O R T 2 0 2 16 7

Description of the key audit matter How our audit addressed the key audit matter
Valuation of investment properties
including material valuation uncertainty
arising from COVID-19
As disclosed in note 3.2 of the consolidated
financial statements, the Group's investment
properties comprise mixed-use, office and
other portfolios and, including assets classified
as held for sale, was valued at $3.3 billion as
at 31 March 2021.
The valuation of the Group's property portfolio
is inherently subjective and is given specific
audit focus and attention due to the existence
of significant estimation uncertainty. A minor
percentage difference in a single or multiple
input assumption could result in material
misstatement of the valuation.
The valuations were performed by
independent registered valuers who performed
their work in accordance with the International
Valuation Standards and the Australia and
New Zealand Property Institute Valuation and
Property Standards. The valuers are rotated
across the portfolio on a three-yearly cycle.
The Group has adopted the assessed values
determined by the valuers.
As disclosed in the consolidated financial
statements, at the 31 March 2021 valuation
date, the independent registered valuers have
included a material valuation uncertainty
clause in their reports for five properties
(totalling $1.7 billion in value) as an ongoing
result of the COVID-19 pandemic. This clause
highlights the difficulties in undertaking
valuations due to the absence of relevant
transactional evidence that demonstrates
current market pricing. Therefore, less
certainty and a higher degree of caution,
should be attached to the point estimate
valuation.
The valuations for the remaining properties
include a reference to market volatility and
uncertainty associated with COVID-19. This
reflects that, while there are still uncertainties,
such uncertainties have decreased since the
initial COVID-19 period and the uncertainty is
no longer considered material.



Given the subjectivity involved in determining
valuations for individual properties, including
alternative assumptions and valuation methods,
there is a range of values that could be
considered reasonable.
We considered the adequacy of the disclosures
made in note 3.2 to the consolidated financial
statements, Investment properties, which sets out
the key judgements and estimates. This note
explains that material estimation uncertainty
remains in the valuation of certain properties.
In assessing the valuation of investment
properties, we performed the following
procedures.
External valuations
We held discussions with management to
understand:
 movements in the Group’s investment
property portfolio,
 changes in the condition of each property,
 the controls in place over the valuation
process, and
 the impact that COVID 19 has had on the
Group’s investment property portfolio.
For all properties, the carrying value was agreed
to the external valuation reports and we held
discussions with the valuers. These discussions
included the impact that COVID-19 has had on
market activity and how the valuers had factored
this into their valuations.
Applying a risk-based approach, we read and
evaluated the valuations of specific properties.
The valuers confirmed that the valuation
approach for each property was in accordance
with accounting standards and suitable for use in
determining the carrying value of investment
properties at 31 March 2021.
We assessed the valuers' qualifications, expertise
and their objectivity and we found no evidence to
suggest that the objectivity of any valuer was
compromised in their performance of the
valuations.
We also considered whether or not there was bias
in determining individual valuations and found no
evidence of bias.
6 8K I
W I P R O P E R T Y

Description of the key audit matter How our audit addressed the key audit matter
In determining a property's valuation, two
approaches are generally used to determine
the fair value of an investment property: the
income capitalisation approach and the
discounted cash flow approach, to arrive at a
range of valuation outcomes from which the
valuers derive a point estimate.
The valuers take into account property specific
information such as the contracted tenancy
agreements and rental income earned by the
asset. They apply assumptions in relation to
capitalisation rates, discount rates and market
rent and the anticipated growth, based on
market data and transactions where available.
For properties that have development or
seismic work ongoing as at 31 March 2021,
the costs required to complete the works are
estimated by management and adjusted
against the value determined by the valuers
along with profit and risk and stabilisation
allowances.
Management verifies all major inputs to the
valuations, assesses property valuation
movements since prior year and interim and
holds discussions with the independent
valuers to assess the reasonableness of the
valuations, and communicates the results of
the process with the Directors.
For those assets classified as held for sale that
have a contractual offer accepted by the
Directors, the assets have been held at the
contracted sales price less any associated
costs for seismic remediation or rental
guarantees, which is considered fair value at
balance date.
We carried out procedures, on a sample basis, to
test whether property-specific information
supplied to the valuers by the Group reflected the
underlying property records held by the Group.
For the items tested, the information was
consistent.
Assumptions
Our work over the assumptions used in the
valuations focused on the largest properties in the
portfolio and those properties where the
assumptions used and/or year-on-year fair value
movement suggested a possible outlier versus
market data. We engaged our own in-house
valuation specialist to assess the methodologies
and critique and challenge, against market
evidence and current market conditions, the key
assumptions used by the valuers.
We obtained management’s estimates of costs on
the properties with significant development or
seismic works. We compared these estimates to
internal budgets developed by the Group’s project
team and submitted to the Directors for approval,
and to external quantity surveyors’ reports, where
available.
We concluded that the assumptions used in the
valuations, including adjustments made for the
impact of COVID-19, were supportable in light of
available and comparable market evidence.
Assets held for sale
The sales price and any associated costs for
seismic remediation or rental guarantees of
assets classified as held for sale that are under a
contractual offer have been agreed to the signed
sale and purchase agreements.


A N N U A L R E P O R T 2 0 2 16 9

Materiality
Group
Scoping
Key Audit
Matters
Our audit approach

Overview

Overall group materiality: $5.8 million, which represents 5% of profit
before tax excluding the net fair value gain/(loss) on investment
properties and interest rate derivatives.
We chose profit before tax excluding valuation movements relating to
investment properties and interest rate derivatives as the benchmark
because, in our view, it is a benchmark against which the performance of
the Group is commonly measured by users.
Following our assessment of the risk of material misstatement, we
performed a full scope audit over the consolidated financial information of
the Group.
As reported above, we have one key audit matter, being:
● Valuation of investment properties including material valuation
uncertainty arising from COVID-19

As part of designing our audit, we determined materiality and assessed the risks of material
misstatement in the consolidated financial statements. In particular, we considered where
management made subjective judgements; for example, in respect of significant accounting estimates
that involved making assumptions and considering future events that are inherently uncertain. As in all
of our audits, we also addressed the risk of management override of internal controls, including among
other matters, consideration of whether there was evidence of bias that represented a risk of material
misstatement due to fraud.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain
reasonable assurance about whether the consolidated financial statements are free from material
misstatement. Misstatements may arise due to fraud or error. They are considered material if,
individually or in aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the consolidated financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall Group materiality for the consolidated financial statements as a whole as set out
above. These, together with qualitative considerations, helped us to determine the scope of our audit,
the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both
individually and in aggregate, on the consolidated financial statements as a whole.
How we tailored our group audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an
opinion on the consolidated financial statements as a whole, taking into account the structure of the
Group, the accounting processes and controls, and the industry in which the Group operates.
Other information
The Directors are responsible for the other information. The other information comprises the
information included in the annual report but does not include the consolidated financial statements
and our auditor's report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do
not express any form of audit opinion or assurance conclusion thereon.
7 0K I
W I P R O P E R T Y

In connection with our audit of the consolidated financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent
with the consolidated financial statements or our knowledge obtained in the audit, or otherwise
appears to be materially misstated. If, based on the work we have performed on the other information
that we obtained prior to the date of this auditor’s report, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report in
this regard.
Responsibilities of the Directors for the consolidated financial statements
The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of
the consolidated financial statements in accordance with NZ IFRS and IFRS, and for such internal
control as the Directors determine is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Directors are responsible for assessing the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the Directors either intend to liquidate
the Group or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements, as a whole, are free from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with ISAs (NZ) and ISAs will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these consolidated financial statements.
A further description of our responsibilities for the audit of the consolidated financial statements is
located at the External Reporting Board’s website at:
https://www.xrb.govt.nz/assurance-standards/auditors-responsibilities/audit-report-1/
This description forms part of our auditor’s report.
Who we report to
This report is made solely to the Company’s Shareholders, as a body. Our audit work has been
undertaken so that we might state those matters which we are required to state to them in an auditor’s
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the Company’s Shareholders, as a body, for our
audit work, for this report or for the opinions we have formed.
The engagement partner on the audit resulting in this independent auditor’s report is Jonathan Skilton.
For and on behalf of:
Chartered Accountants
21 May 2021
Auckland

A N N U A L R E P O R T 2 0 2 17 1

03.
Other
Information
7 2

7 3

Corporate governance
7 4K I
W I P R O P E R T Y
We are committed to the highest standards of
c
or
porate governance.
Our corporate governance framework draws on principles,
guidelines, recommendations and requirements from a range
of sources including the NZX Listing Rules and NZX Corporate
Gov
ernance Code (the NZX Code). In addition, the Board has
approved policies and practices that aim to reflect best practice
corporate governance.
The overarching purpose of the NZX Code is to promote good
corporate governance. The NZX Code contains eight corporate
governance principles. For each principle, the NZX Code sets
out good practice recommendations.
There are a total of 33 recommendations.
NZX Code compliance
Kiwi Property has followed the recommendations set out
in the NZX Code for the year ended 31 March 2021 except,
to the extent set out in the Kiwi P
roperty FY21 Corporate
Go
vernance Statement, which is available on our website
kp.co.nz/about-us/corporate-governance.
This statement is current as at 31 March 2021 and has been
approved by the Board.
The corporate governance policies, practices and
processes that Kiwi Property adopted or followed
for the year ended
31 March 2021 are summarised,
or referred to, in the Kiwi Property FY21 Corporate
Governance Statement.
The following disclosures are required to be made in this
Annual Report by the NZX Listing Rules, the Companies
Act
1993 and other legislation, rules or disclosure regimes.
Director independence
Director independence is determined in accordance with
the requirements of the NZX Listing Rules. The Board has
determined that, as at 31 March 2021, all directors of
the Company were independent: Mary Jane Daly, Richard
Didsbury, Mark Ford, Jane F
reeman, Mark Powell and Simon
Shakesheff. This assessment is based on the fact that:
•
All directors are non-executive directors.
•
No director is currently, or within the last three years,
employed in an executive role by the Company, or any of
its subsidiaries, and there has not been a period of at least
three years between ceasing such employment and serving
on the Board.
•
No director currently, or within the last 12 months, holds a
senior role in a provider of material professional services to
the Company or any of its subsidiaries.
•
No director currently, or within the last three years, has a
material business relationship (e.g. as a supplier or customer)
with the Company or any of its subsidiaries.
•
No director currently is a substantial product holder
of the Company or a senior manager of, or person
otherwise associated with, a substantial product holder of
the Company.
•
No director currently, or within the last three years, has a
material contractual relationship with the Company or any of
its subsidiaries, other than as a director.
•
No director has close family ties with anyone in the
categories listed abov
e.
•
No director has been a director with the Company for a
length of time that may compromise independence.
The Board noted Richard Didsbury’s 28 year length of tenure
on the Board and that Jane Freeman had previously disclosed
her family connection to NZ Strong Construction. The Board
concluded that Richard Didsbury’s 28 year length of tenure on
the Board and Jane Freeman’s family connection to NZ Strong
Construction did not and does not influence, in a material way,
the capacity for each of those directors to bring an independent
view to decisions in relation to the Company, act in the best
interests of the Company, and represent the interests of the
Company’s financial product holders generally having regard
to the factors described in the NZX Code that may impact
director independence.

Corporate go
vernance (continued)
A N N U A L R E P O R T 2 0 2 17 5
Boar
d committees
The members of the Audit and Risk Committee are Mary Jane
Daly (
Chair
), Mark Ford and Simon Shakesheff.
The members of the Remuneration and Nominations Committee
are Richard Didsbury, Mark Ford and Jane Freeman (Chair).
The members of the Environmental, Social and Governance
Committee are Mark Ford, Mark P
owell (Chair), and
Simon Shakesheff.
Diversity and inclusion policy
The Board has evaluated the performance of the Company
against its Diversity and Inclusion P
olicy and considers that the
Company has complied with the policy.
More information concerning the Company’s Diversity and
Inclusion Policy can be found in the Company’s FY21 Corporate
Governance Statement, which is available on our website
kp.co.nz/about-us/corporate-governance.
Gender diversity
The following table provides a breakdown of the gender
composition of the directors and officers of the Company,
together with all employees as at the current and prior
balance dates:
2021
NumberProportion %
FemaleMaleOtherFemaleMaleOther
Directors24-3367-
Officers26-2575-
All
employees10955166331
2020
NumberProportion %
FemaleMaleOtherFemaleMaleOther
Directors25-2971-
Officers26-2575-
All
employees10957-6634-

Remuneration report
7 6K I
W I P R O P E R T Y
Remuneration strategy
The Board supports a remuneration strategy that is aligned to our investors’ interests and encourages the achievement of our
strategic objectives.
Performance metricsRemuneration strategyRemuneration framework
•
Return on capital employed (ROCE) and
total shareholder return (TSR).
•
Annual operating earnings before interest
and tax.
•
Employee job performance and
achie
v
ement of stretch goals aligned to
strategic objectives.
•
Our remuneration strategy is to drive the
achie
v
ement of strategic objectives and
to focus our people’s performance and
subsequent remuneration outcomes on
the achievement of sustainable returns.
•
Our remuneration framework is designed
to attract, retain, motiv
ate and reward
our people to deliv
er performance that is
aligned to our investors’ interests.
Our remuneration structure
Fixed annual remuneration (FAR)
Short-term incentive
scheme (STI)
Performance Share Rights
plan (PSR)
Restricted Share Rights
plan (RSR)
•
FAR is benchmarked at either
the median or the upper
quartile of the market to enable
competitiv
eness
in the market.
•
Benefits include income
protection, life and total
permanent disability insurance
and KiwiSaver Company
contributions at 3%.
•
A discretionary, at risk
incentiv
e for salaried,
permanent employees.
•
Company, team
and individual-based
performance measures,
founded on stretch goals.
•
Incentiv
es benchmarked at
either the median or the
upper quartile of the market
to enable competitiveness in
the market.
•
The PSR is a discretionary
share plan for officers and
employees (b
y in
vitation),
with one, two and three-year
vesting periods.
•
Reflects reward for delivery
of sustained results over the
long term.
•
The PSR performance hurdles
consist of return on capital
employed (ROCE) and total
shareholder return (TSR),
measured independently of
each other over a one-year
performance period.
•
Assists in employee
retention objectives.
•
The RSR is a discretionary
share rights plan that
automatically v
ests after three
years at no cost to the
employee, as long as they are
employed b
y Kiwi Property.
At the time of vesting, the
Company will issue or transfer
to the employee one ordinary
share for each vested RSR.
•
Provides our people with
an opportunity to take
an ownership stake in
the business.
•
Assists in employee
retention objectives.

Remuneration report (continued)
A N N U A L R E P O R T 2 0 2 17 7
S
hort term incentive (STI)
The STI potential for our people has a component linked to the Company’s performance, team performance and personal
performance against specific goals.
Measures may change year on year to best driv
e
business objectives and performance. Incentives are set around the market median
for target performance, with potential for participants to earn more for premium performance.
Performance measures
Company performance
•
The Company performance measure is linked to the Company’s budgeted Operating Earnings before Interest and Tax
(Operating EBIT).
•
The scheme is designed to driv
e outperformance of the Operating EBIT metric.
•
The Board determines an annual Operating EBIT target that must be achieved before any incentive is paid.
•
Once this target is achieved, payment of the Company component commences at 50% and can increase to a maximum of 115%
depending on the level of Operating EBIT outperformance.
Team performance
•
Our executive employee's team performance portion is measured against the ‘one team goals’ which are aligned to strategy and
approv
ed by the Board for the performance measurement period.
•
Other employees' team performance portion is measured against a ‘plan on a page’ which feed into the ‘one team goals',
developed by the employee's team manager for the performance measurement period.
Individual performance
•
Our executive team's individual performance is measured against the performance of their team's ‘plan on a page’.
•
Other employees' individual performance are measured against the goals approved by the employee’s team manager.
•
Each employee’s individual performance measures are discussed and agreed between (as applicable) the Board, CEO and
managers (the 'Employee's Manager') with their direct report, in-line with the following principles:
•
Measures will be quantifiable, objective and able to be measured by existing systems/reporting in the business, and
•
All goals and performance indicators will be agreed at the start of the performance measurement period or as soon as
reasonably practicable following the start of the period.

Remuneration report (continued)
7 8K I
W I P R O P E R T Y
Long term incentive (LTI)
Performance Share Rights
The Company’s Performance
Share Rights scheme (PSR), entitles the participant to receive shares in the Company once vested and
exercised. The participant is entitled to receive one share upon the valid exercise of each Vested Share Right they hold.
A grant vests proportionately over a three year period, whereby one-third of the PSR grant has a one year Vesting Period, one-third
has a two year Vesting Period and one-third has a three year Vesting Period.
The vesting of PSRs is subject to the satisfaction of the component measures outlined in the table below, measured independently
of each other.
The Company’s officers
and certain other employees may be invited to join the Company’s PSR plan on an annual basis.
ComponentLTI grantComponent measure
Return on capital
employed (ROCE)
75%
•
The Company’s ROCE ov
er the Performance Period must be greater than 96% of the target ROCE set
by the Board for the Performance Period.
•
The ROCE target is set by the Board in conjunction with the budget approval process. ROCE is
calculated as adjusted funds from operations divided by
the weighted average contributed equity over
the Performance Period.
•
If the ROCE outcome meets a certain percentage of the target (i.e. 96%), 50% of this target component
is eligible to vest. If 100% of the target is met, 100% of this target component is eligible to vest.
•
Vesting between 96% and 100% of the target will occur on a straight-line progression basis.
Relative total
shareholder return
(TSR) hurdle
25%
•
Requires the Company’s TSR to be compared with the TSRs of the entities that make up the S&P/NZX
All
Real Estate Index (excluding Kiwi Property and CDL Investments New Zealand Limited, referred to
as the ‘peer group’).
•
The TSRs of the entities in the peer group over the performance period will be ranked from highest
to lowest.
•
If Kiwi Property’s TSR over the performance period exceeds the 50th percentile in the peer group, 50%
of this portion of the LTI grant will vest.
•
If Kiwi Property’s TSR over the performance period exceeds the 75th percentile in the peer group,
100% of this portion of the LTI grant will vest.
•
There is a straight-line progression and apportionment between these two points.

Remuneration report (continued)
A N N U A L R E P O R T 2 0 2 17 9
L
egacy LTI plan
The Company’s legacy LTI plan had grants that were subject to v
esting
in the year ended 31 March 2021. The final vesting date under
the legacy plan was 31 March 2021. The hurdles for this scheme have been described in previous reports.
Relative weightings of remuneration components for officers
•
Officers (as defined by the NZX Listing Rules) of the Company comprise the Chief Executive Officer,
Chief Financial Officer, GM Asset Management, GM Dev
elopment, GM Funds Management, GM Income and Leasing, GM People
and Communications and GM Property Investment.
•
The total remuneration package for each of our officers comprises FAR, STI, PSR and RSR.
•
The STI for our officers, in the reporting period, was as follows:
STI % of FAR
% of STI attributed
to Company operating
EBIT performance
% of STI attributed to
team performance
% of STI attributed to
individual performance
Chief Executive Officer60%50%25%25%
Other officers40%50%25%25%
•
The LTI for our officers, in the reporting period, was as follows:
LTI % of F
AR
Chief Executive Officer50%
Other officers25–27.5%
Performance and development
All our permanent employees participate in performance and development conversations on a quarterly basis. The outcomes of the
end-of-year conv
ersation inform decisions regarding remuneration adjustments in accordance with the Company’s policy.
Annual remuneration review
The Board is responsible for the ov
erall remuneration strategy and for reviewing and setting the remuneration of the Chief Executive
Officer. The Remuneration and Nominations Committee is responsible for reviewing and setting the remuneration of the direct
reports of the Chief Executive Officer and advising the Board on the remuneration of the Chief Executive Officer. The Board sets the
total pool available for remuneration of our employees at the time the annual budget is approved.
To underpin our remuneration decision making and ensure our employees are paid appropriately, we use a benchmarking job
matching approach utilising market data from sev
eral external remuneration consultancies.
Equal pay
As part of Kiwi Property’s commitment to diversity and inclusion (D&I) we acknowledge and address key D&I concepts including
Equal Employment
Opportunities, Equitable Pay, Flexibility & Work Life Balance, Accessibility, and Cultural / Rainbow Community
sensitivity & celebration. We are committed to follow these principles in all our daily activities including undertaking an annual equal
pay review to assess the impact of gender on the pay and participation of women in the workforce, and to ensure unconscious bias
does not impact remuneration decisions. Kiwi Property provides enhanced primary carer leave to parents by way of a salary top-up
while on government paid parental leave.

Remuneration report (continued)
8 0K I
W I P R O P E R T Y
Remuneration outcomes for the year
Employee remuneration
During the year, there were 81 employees, including se
v
en former employees but excluding directors of the Company, who received
remuneration and other benefits, totalling $100,000 or more. Remuneration includes salary, STI payments, LTI payments that have
vested, employer’s contributions to superannuation, redundancy payments, the cost of providing insurance plans and sundry benefits
received (including the cost of fringe benefit tax). Employee remuneration does not include LTIs that have not vested.
Amount of remuneration (from $ to $)
Number of
employees
100,000 – 110,0003
110,001 – 120,0007
120,001 – 130,0008
130,001 – 140,0006
140,001 – 150,0006
150,001 – 160,0004
160,001 – 170,0003
170,001 – 180,0003
180,001 – 190,0003
190,001 – 200,0002
200,001 – 210,0004
220,001 – 230,0003
230,001 – 240,0002
240,001 – 250,0003
250,001 - 260,0002
260,001 – 270,0002
270,001 – 280,0002
290,001 – 300,0002
300,001 – 310,0002
320,001 – 330,0002
330,001 – 340,0001
340,001 – 350,0001
370,001 – 380,0001
400,001 – 410,0001
410,001 – 420,0001
440,001 – 450,0001
460,001 – 470,0001
470,001 – 480,0001
510,001 – 520,0001
580,001 – 590,0001
840,001 – 850,0001
1,230,001 – 1,240,0001
Total employees earning $100,000+81

Remuneration report (continued)
A N N U A L R E P O R T 2 0 2 18 1
L
TI
Performance Share Rights that have been granted, vested or forfeited by participants (being the officers of the Company and other
in
vited employees, but excluding the Chief Executiv
e Officer) as at 31 March 2021 are detailed in the following table:
Grant date
Measurement
date
Total
participantsGrant value
Number of
shares granted
Number of
shares forfeited
Number of
shares vested
1 April 201931 March 202011$921,798694,921(173,730)(173,730)
1 April 202031 March 202110$826,3621,013,041-
Not yet
applicable
Under the legacy LTI plan, LTIs that have been granted, vested or forfeited by participants (being the
officers of the Company and
other invited employees, but excluding the Chief Executiv
e Officer) as at 31 March 2021 are detailed in the following table:
Grant date
Measurement
date
Total
participantsGrant value
Number of
shares granted
Number of
shares forfeited
Number of
shares vested
1 April 201731 March 202012$1,148,713556,610(556,610)-
1 April 201831 March 202114$1,241,603608,068(44,753)
Not yet
applicable
Note
3.6.4
of the consolidated financial statements provides further details of the number of shares granted, forfeited and vested.
Chief executive officer remuneration
Clive Mackenzie took up the role of Chief Executive
Officer in July 2018. His employment agreement comprises standard conditions
that are appropriate for a Chief Executive Officer in the market. The Chief Executive Officer’s remuneration for the year ended
31 March 2021 includes salary, employer’s contributions to KiwiSaver and the cost of providing insurance plans and sundry benefits,
STI and a PSR grant.
Clive’s annual base salary as at 31 March 2021 was $680,000. He did not receive a salary increase during the reporting period. The
remuneration he received for the
financial year comprised the following:
Base salaryKiwiSaver
Insurance and
other
benefits
Fixed
annual remuneration
STI paymentPSR v
ested
$680,101
1
$20,403$44,628$745,132$382,998
2
$110,534
1The CEO’s base salary received in the year is higher than the annual base salary as he received annual leave at a higher rate in May 2020 due to back pay in May 2019 which
increased his av
erage weekly earnings.
2The CEO’s STI payment is for measures set during the period 1 April 2019 – 31 March 2020.
Performance Share Rights that hav
e been granted, vested or forfeited by Clive as at 31 March 2021 are detailed in the following table:
Grant dateMeasurement dateGrant value
Number of
shares granted
Number of
shares forfeited
Number of
shares vested
1 April 201931 March 2020$572,178
1
431,353(107,838)(107,838)
1 April 202031 March 2021$368,258451,450-Not yet applicable
1As disclosed in previous
reports, Clive received a pro-rata LTI for the years ended 31 March 2019 and 31 March 2020. For the year ended 31 March 2019, the value of the pro-rata
grant was $212,962 and he was granted 160,548 PSRs. For the year ended 31 March 2020, the value of the pro-rata grant was $359,216 and he was granted 270,805 PSRs.
On 1 April 2019, Clive was granted 916 Restricted Share Rights with a grant value of $1,164 and a measurement date of 31 March 2020.
No Restricted Share Rights were granted during the year ended
31 March 2021.

Remuneration report (continued)
8 2K I
W I P R O P E R T Y
Director remuneration
The directors’ remuneration is paid in the form of directors’ fees.
At the Company’s 2017 annual meeting, shareholders approved a total directors’ fee pool of $737,500 per annum. Following the
appointment of Simon Shakesheff as an independent director on 1 November 2019, the directors’ fee pool was increased, by operation
of
Listing Rule 2.11.3, to $834,000 plus GST (if any) per annum, for so long as there were seven directors. This increase did not require
shareholder approval, as it was made to enable the Company to pay the additional director remuneration not exceeding the average
amount then being paid to each of the other independent directors (other than the Chair). Whilst there was an effective increase in
the directors’ fee pool, there was no change to the allocation to each individual director.
As at 31 March
2021, the pool was allocated by the Board as follows:
Fee
Number of
persons holding
office
Total fee pool
Chair (including membership of all committees)$172,5001$172,500
Director (excluding the Chair)$94,0005$470,000
Chair of the Audit and Risk Committee$20,0001$20,000
Audit and Risk Committee member$11,5001$11,500
Chair of the Remuneration and Nominations Committee$20,0001$20,000
Remuneration and Nominations Committee member$11,5001$11,500
Chair of the Environmental, Social and Governance Committee$20,0001$20,000
Environmental, Social and Governance Committee member$11,5001$11,500
Total$737,000
•
Environmental, Social and Governance Committee established 1 April 2020.
•
The allocation of the total directors' fee pool set out above does not include the fees payable to Mike Steur because he retired
from the Board part way through the 2021 financial year.

Remuneration report (continued)
A N N U A L R E P O R T 2 0 2 18 3
The fees
paid to our directors during the year ended 31 March 2021 are outlined below. The directors took a 20% reduction of fees
due to COVID-19 uncertainty for the period of 1 April 2020 to 30 September 2020:
DirectorDutiesFees
Mary Jane Daly
Director$102,600
Chair of the Audit and Risk Committee
Richard Didsbury
Director$94,950
Member of the Remuneration and Nominations Committee
Mark Ford
Chair$155,250
Member of the Audit and Risk Committee
Member of the Environmental, Social and Governance Committee
1
Member of the Remuneration and Nominations Committee
Jane Freeman
Director$102,600
Chair of the Remuneration and Nominations Committee
Mark Powell
Director$102,600
Member of the Audit and Risk Committee
2
Chair of the Environmental, Social and Governance Committee
1
Mike Steur
3
Director$23,040
Member of the Audit and Risk Committee
Member of the Remuneration and Nominations Committee
Simon Shakesheff
Director$105,210
Member of the Audit and Risk Committee
Member of the Environmental, Social and Governance Committee
1
1Appointed as a member on 1 April 2020.
2Ceased to be a member on 1 April 2020.
3Mike Steur retired from the Board at the Company’s annual shareholder meeting on 29 June 2020.

Remuneration report (continued)
8 4K I
W I P R O P E R T Y
From 1 April 2021, the total directors’ fee pool will be allocated as follows:
Fee
Number of
persons holding
office
Total fee pool
Chair (including membership of all committees)$172,5001$172,500
Director (excluding the Chair)$94,0005$470,000
Chair of the Audit and Risk Committee$20,0001$20,000
Audit and Risk Committee member$11,5001$11,500
Chair of the Remuneration and Nominations Committee$20,0001$20,000
Remuneration and Nominations Committee member$11,5001$11,500
Chair of Environmental, Social and Governance Committee member$20,0001$20,000
Environmental, Social and Governance Committee member$11,5001$11,500
Total$737,000

Other investor information
A N N U A L R E P O R T 2 0 2 18 5
R
eporting entity
Kiwi Property Group Limited (the Company) was incorporated
under the Companies Act 1993 on 16 October 2014. In December
2014,
in
vestors approved a move from a unit trust to a company
structure. Prior to this approval, the entity (known as Kiwi
Income Property Trust) was a unit trust established under the
Unit Trusts Act 1960 by a Trust Deed dated 21 August 1992.
Stock exchange listing
The Company’s shares are quoted on the NZX under the ticker
code KPG and the Company’s green bonds are quoted on
the NZDX under the ticker codes KPG010, KPG020
, KPG030
and KPG040.
Credit rating
S&P Global Ratings has assigned a corporate credit rating of BBB
(stable
) to the Company and an issue credit rating of BBB+ to
each of the Company’s fixed-rate senior secured green bonds
(KPG010, KPG020, KPG030 and KPG040).
Further information about S&P Global Ratings’ credit rating scale
is av
ailable 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
annual report are 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.
Changes in the nature of the business
There were no changes to the nature of the Company’s business
or that of its subsidiaries during the year.
NZX waiver
During the year ended
31 March 2021 NZX did not grant and
publish any waivers following an application b
y the Company
and the Company did not rely on any NZX waivers.
NZX disciplinary action
There has been no public exercise by NZX of any of its powers
set out in Listing Rule 9.9
.3 in relation to the Company.
Auditor
PricewaterhouseCoopers (PwC) has continued to act as the
Company’s external auditor and has undertaken the audit of
the consolidated financial statements for the
31 March 2021
financial year.
PwC will be automatically reappointed as external auditor at the
Company’s next annual meeting pursuant to section 207T of the
Companies Act 1993.
Donations
No donations were made by the Company during the year to
31 March 2021.
Dir
ectors of the Company and its subsidiaries
As at 31 March
2021, the directors of the Company were Mary
Jane Daly, Richard Didsbury, Jane Freeman, Mark Ford, Mark
Powell and Simon Shakesheff. Mike Steur ceased to hold office
as a director of the Company during the year.
As at 31 March
2021, the directors of the subsidiary companies
Kiwi Property Holdings Limited, Kiwi Property Holdings No. 2
Limited, Kiwi Property Centre Place Limited, Kiwi Property Te
Awa Limited and Sylvia Park Business Centre Limited, were
Clive Mackenzie, Gavin Parker, and Trevor Wairepo. Steve
Cooper ceased to hold office as a director of certain subsidiary
companies during the year. Directors of the Company’s
subsidiaries do not receive any remuneration or other benefits
in their capacity as a director of those companies, except the
indemnity and insurance referred to below.
Directors’ indemnity and insurance
In accordance with the constitution of the Company and
section 162 of the Companies Act 1993, the directors of the
Company continue to receive an indemnity from the Company
and
insurance to cover liabilities that may arise out of the normal
performance of their duties.
The directors of the subsidiary companies also continue to
receive an indemnity from each subsidiary company and
insurance to co
ver liabilities that may arise out of the normal
performance of their duties.
Annual meeting of shareholders.
The Company’s annual meeting of shareholders will be held on
Monday, 12 July
2021.
Interest register entries
In accordance with section 211(1)(e) of the Companies Act 1993,
listed below are details of the entries made in the Interests
Register of the Company during the year, together with the
existing entries as at 31 March 2021.