Kiwi Property Annual Meeting 2021 presentation and address

NZX RELEASE
12 July 2021
Kiwi Property Annual Meeting 2021 presentation and
address


Kiwi Property has provided the NZX with a copy of the presentation and addresses to be
made by the Chair of the Board and Chief Executive Officer at the company’s Annual
Meeting 2021 to be held today.

Kiwi Property also advises that Richard Didsbury will resign as a director of the company at
today’s meeting.

Ends

Contact us for further information:
Clive Mackenzie
Chief Executive Officer
clive.mackenzie@kp.co.nz
Campbell Hodgetts
Communications and Investor Relations Lead
campbell.hodgetts@kp.co.nz
+64 27 563 4985
About us:
Kiwi Property (NZX: KPG) is one of the largest listed property companies on the New Zealand
Stock Exchange and is a member of the S&P/NZX 20 Index. We’ve been around for over 25
years and proudly own and manage a significant real estate portfolio, comprising some of
New Zealand’s best mixed-use, retail and office buildings. Our objective is to provide investors
with a reliable investment in New Zealand property through the ownership and active
management of a diversified, high-quality portfolio. S&P Global Ratings has assigned Kiwi
Property an issuer credit rating of BBB (stable) and an issue credit rating of BBB+ for each of its
fixed rate senior secured bonds. Kiwi Property is a member of FTSE4 Good, a series of
benchmark and tradable indices for ESG (Environmental, Social and Governance) investors.
Kiwi Property is licensed under the Real Estate Agents Act 2008. To find out more, visit our
website kp.co.nz

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Kiwi Property
Annual Meeting 2021
12 July 2021

Annual meeting agenda
•Chair’s address
•Chief Executive Officer’s address
•Questions
•Formal business
Unless otherwise stated, all information provided in this presentation is for the year ended and/or
as at 31 March 2021. For further information, refer to our website kp.co.nz or NZX.com

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

Chair’s address
4

Navigating COVID-19

Our evolving operating environment
Changing
retail
landscape
New ways
of
working
Housing
under
pressure

Re-positioning for growth: our value creation strategy

Sylvia Park,Auckland
35hectares
The Base,Hamilton(JV with Tainui Group Holdings)
7 hectares
LynnMall,Auckland
Drury,Auckland
53hectares
30hectares
1. Intensify our mixed-use assets

Rebalancing our portfolio
The rationale for asset sales
•Recycle capital to fund
Kiwi Property’s growth pipeline
•Mixed-use expected to deliver
increased growth and lower
risk
•Proactive response to structural
headwinds and retail changes

2. Grow with third party capital

3. Empower customer success

Stepping forward on sustainability
•Refreshed
sustainability
strategy launched
•#1 NZ company
on CDP’s 2020
climate action list
•59% reduction in
CO
2
emissions vs.
2012 baseline

Chief Executive
Officer’s address
13

Sylvia Park: the next level
•Level 1 expansion
continues to perform
well
•New flagship stores
driving visitation:
•Sephora
•Superdry
•North Beach
•Mecca
•Curation of urban and
athleisure precinct
underway

Development gaining pace
3 Te Kehu Way
•$63m development
•7,450 sqm; 6-storey
•6 Green Star rating
targeted
•Construction begins
October 2021
•Continues Sylvia Park’s
mixed-use evolution

Building a new town at Drury
•Drury development
made strong progress in
FY21
•Minister for the
Environment considering
Fast-track application
•Private plan change
application underway
•Earthworks could begin
as early as FY22, if
successful

Final preparations for build-to -rent (BTR)
•BTR is an exciting
opportunity
•Complementary to our
mixed-use strategy
•Diversifies portfolio
returns at lower risk
•Consenting underway
for BTR at Sylvia Park
and LynnMall

Financial
results
18

$
173.6m
Net rental income
-$13.2m (-7.1
%
)
$
89.4m
AFFO
1
-$12.8m (-12.5
%
)
$196.5m
Net profit after tax
+$383.2m
$
116.3m
Operating profit before tax
-$13.4m (-10.3
%
)
FY21 financial results
•COVID-19 related rent abatement costs
caused decrease in net rental income and
Adjusted Funds from Operations (AFFO)
1
.
•Net profit after tax includes a net fair value
gain on investment properties of $99.8m.

$
3.3b
Property assets
FY20: $3.1b (+$0.2b)
31.2
%
Gearing
FY20: 32.0
%
$
1.36
Net asset backing per
share
FY20: $1.26
Balance sheet
•The COVID-19 related decline in property
values recorded in March 2020 has been
partially reversed.
•Gearing remains within the self-imposed
target range of 25-35%.

3.2
%
Total rental growth
FY20:4.0
%
99.7
%
Occupancy
FY20:99.5
%
5.3years
Weighted average lease expiry
FY20:4.9 years
Mixed use and office leasing activity
•We have maintained a productive portfolio
through proactive asset management, with
solid rental growth across mixed-use and
office.
•Occupancy increased, despite the impact
of COVID-19, highlighting the resilience of our
assets.

Retail sales
•Total sales decreases due to inability of stores
to trade during lockdown. On an adjusted
basis however sales grew almost 14% during
the year.
Year ended 31-Mar-21
Investment portfolio
Actual salesAdjusted sales
1
Total sales (billion)
$
1.27
(Mar 20 $1.34)
$
1.27
(Mar 20 $1.12)
Total sales growth
-
5.4
%
(Mar 20 +7.63)
+
13.9
%
Like-for-like sales growth
-
8.0
%
(Mar 20 +4.6%)
+
9.6
%

FY22 Priorities
1.
Rebalance
portfolio
2.
Start
3 Te Kehu Way
3.
Progress
build-to-rent

•Final cash dividend of 2.95 cents per
share for the six-months ended
31 March 2021
•Total cash dividend for FY21 was
5.15 cents per share (90% of AFFO)
•FY22 cash dividend expected to be
no less than 5.30 cents per share
2
FY21 dividend and FY22 guidance

Questions

26
Formal
business

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

Explanatory information:
•In accordance with the Company’s constitution and the NZX Listing Rules, Jane
Freeman, Mark Powell and Chris Aiken will retire at this meeting, however Jane
and Mark offer themselves for re-election and Chris offers himself for election
•The board has determined that Jane Freeman, Mark Powell and Chris Aiken will
be independent directors for the purposes of the NZX Listing Rules, if re-elected /
elected
•The Notice of Meeting contains information on what it means to be an
independent director for the purposes of the NZX Listing Rules
Resolutions 1, 2 and 3:
Re-election / election of directors

Resolution 1:
Re-election of director
Jane Freeman
BCom
Date of first appointment
August 2014
Date last re-elected
June 2018
Board committees
•Chair of the Remuneration and Nominations Committee

Mark Powell
BSC, MSC, MBA, BTheol, MA
Date of first appointment
October 2017
Date last re-elected
June 2018
Board committees
•Chair of the Environmental, Social and Governance Committee
Resolution 2:
Re-election of director

Chris Aiken
BA
Date of first appointment
June 2021
Board committees
•Member of the Remuneration and Nominations Committee
Resolution 3:
Election of director

The board
*
recommends that you vote in favour
of the re-election of Jane Freeman and Mark Powell
and the election of Chris Aiken
Rationale:
•The board is committed to ensuring that it possesses the appropriate mix of skills,
knowledge, experience and diversity to discharge its role and responsibilities
•The board supports the re-election of Jane Freeman and Mark Powelland the
election of Chris Aiken as it considers they have the expertise to contribute to the
overall skill set required by the board
Resolutions 1, 2 and 3:
Re-election / election of directors
*The board, other than Jane Freeman, Mark Powell and Chris Aiken each in respect of their own positions, recommends you vote in favour of the resolutions.

33
That Jane Freeman be re-elected
as a director of the Company
33
Resolution 1

34
That Mark Powell be re-elected as a
director of the Company
34
Resolution 2

35
That Chris Aiken be elected
as a director of the Company
35
Resolution 3

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

37
That the directors be authorised to fix the
auditor’s remuneration
37
Resolution 4

Proxy voting results
Resolution 1: That Jane Freeman be re-elected as a director of the Company
Proxy votes lodgedForAgainstDiscretionary
936,717,759919,919,94298.21%1,465,0850.16%15,332,7321.64%
Resolution 2: That Mark Powell be re-elected as a director of the Company
Proxy votes lodgedForAgainstDiscretionary
936,716,909921,353,59498.36%30,5830.00%15,332,7321.64%
Resolution 3: That Chris Aiken be elected as a director of the Company
Proxy votes lodgedForAgainstDiscretionary
936,629,071921,088,12098.34%187,8030.02%15,353,1481.64%
Resolution 4: That the directors be authorised to fix the auditor’s remuneration
Proxy votes lodgedForAgainstDiscretionary
936,676,697920,472,15098.27%770,5310.08%15,434,0161.65%

Thank you

1.Adjusted Funds from Operations (AFFO) is a non-GAAP performance measures used by Kiwi
Property to assist investors in assessing the Company’s underlying operating performance. AFFO is
commonly used by real estate entities to describe their underlying and recurring earnings from
operations. 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.
2.FY22 dividend guidance and payments are contingent on Kiwi Property’s financial performance
through the financial year and barring material adverse effects or unforeseen circumstances,
such as COVID-19 related lockdowns.
Notes

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

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SLIDE 1: WELCOME

Kia ora everyone and thank you for joining us for the 2021 Kiwi Property annual meeting
of shareholders. Today’s meeting is being conducted both in person and online – a first
for the company. My name is Mary Jane Daly and I’m the Chair of the Audit and Risk
Committee.

Unfortunately, due to the current Sydney lockdown, Mark Ford and Simon Shakesheff are
unable to attend today’s meeting in person, however they are joining us virtually. Before I
hand over to Mark to open today’s event, I’d like to cover off a few housekeeping
matters.

Firstly, can I ask that you please put your mobile phone on silent. Toilet facilities are
located in the landing area near the rear entrance to this room. If a fire alarm goes off,
please follow staff in an orderly fashion down the stairs and congregate in the car park
at the front of the building. If you are participating in the meeting online via the Link
platform and encounter any issues, please refer to the virtual meeting online portal guide
or you can phone the Link helpline on 0800 200 220.

And with that, please let me hand over to Mark.

Good morning ladies and gentlemen, and a warm welcome to the 2021 Kiwi Property
annual meeting of shareholders. My name is Mark Ford. I am an independent director
and Chair of the Board. I am pleased to advise there is a quorum present and I declare
this annual meeting of shareholders open.

As Mary Jane mentioned, Simon and I are unfortunately in lockdown in Sydney and
unable to be with you in Auckland. We were looking forward to meeting with you in
person today but unfortunately COVID-19 has conspired against us. Rest assured though
we’ll do our best to make this an engaging meeting with plenty of opportunity for
questions. I’m sure our New Zealand based directors, who are all in the room, will make
up for Simon and my absence.

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

> Jane Freeman – Jane was appointed to our Board in August 2014. She is an
Auckland-based professional director who has extensive retail experience in the field
of customer-driven technology. Jane also serves as Chair of our Remuneration and
Nominations Committee and is standing for re-election today.

> Mark Powell – Mark is an Auckland-based professional director, following a successful
career as an executive leader in retail, wholesale and logistics. Mark is Chair of the
Environmental, Social and Governance or ESG committee and is also standing for re-
election today.

NZX RELEASE
12 July 2021
Kiwi Property Annual Meeting 2021 address

2
> Mary Jane Daly – Mary Jane was appointed to our Board in September 2014. She is
an Auckland-based professional director with a strong background in banking and
finance. Mary Jane also serves as the Chair of our Audit and Risk Committee.

> Richard Didsbury – Richard was one of the founders of Kiwi Property and has had a
profound impact on the company. After almost 30 years as a director, Richard will be
stepping down from the Board today.

> Simon Shakesheff – Simon is an Australian-based professional director and joined our
Board in November 2019. He brings a wealth of property and finance expertise to the
role and is a member of both the Audit and Risk and ESG Committees.

> Chris Aiken - Chris is an Auckland-based professional director and joined our Board in
June this year. He has significant property experience, spanning both the public and
private sectors. Chris is a member of the Remuneration and Nominations Committee
and will be standing for election today.

We are focused on ensuring a smooth and effective director succession. Chris’s
appointment is an important step in this process, as we continue to add a
complimentary mix of skills and experience to the Board.

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

Joining us today is Clive Mackenzie, our Chief Executive Officer, and Gavin Parker, our
Chief Financial Officer.

I extend a warm welcome to the team from our registrar, Link Market Services. They will
help conduct the voting on the formal business later in the meeting and also act as
scrutineer.

Finally, I’d like to welcome Jonathon Skilton from PwC, our Group’s auditor.

SLIDE 2: AGENDA

Moving to today’s agenda. I will start with a brief address and then invite Clive to provide
an update on some of our key opportunities, before outlining the Company’s financial
results for the year ended 31 March 2021.

At the conclusion of these presentations, I will then hand over to Mary Jane to chair the
meeting while we take questions and conduct the formal business for today, being
resolutions to:

> Re-elect Jane Freeman to the Board;
> Re-elect Mark Powell to the Board;
> Elect Chris Aiken to the Board; and
> Authorise the Board to fix the auditor’s remuneration

SLIDE 3: HOW TO ASK A QUESTION

Shareholders present at today’s meeting will be able to ask questions as will those
participating through the virtual meeting website.

If you are online, you may submit a question at any time by clicking on the ‘Ask a Question’
box at the top or bottom of the online portal, as shown here.

3

We will be answering general questions at the conclusion of the Chair and CEO’s addresses
and then specific questions relating to each of the resolutions before voting on them.

I encourage shareholders who are attending online to send their questions through as soon
as possible. This will allow us to answer these questions at the appropriate point in the
meeting.

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

SLIDE 4: CHAIR’S ADDRESS

Moving now to my remarks.

SLIDE 5: NAVIGATING COVID-19

COVID-19 had a significant impact on Kiwi Property and the world around us over the past
12 months.

Despite this, the country’s low rate of infection, coupled with significant Government
intervention, enabled the retail and office property sectors to perform better than initially
predicted.

As lockdowns became shorter and more localised during the year, trading conditions
stabilised across the country, enabling Kiwi Property’s operating performance to do the
same. This contributed to a stronger result through the second half.

Throughout the year we 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 clearly did not escape the impact of the pandemic, the steps taken to
safeguard our tenants and balance sheet helped the company end the 2021 financial year
– or FY21 - in an improved position.

SLIDE 6: OUR EVOLVING OPERATING ENVIRONMENT

COVID-19 has accelerated a number of significant trends in the property sector, with
implications for Kiwi Property and our business strategy,

Firstly, the retail landscape has undergone a significant change, including a pronounced
bifurcation in the sector. Leading shopping centres, such as Sylvia Park and The Base,
continue to get even stronger, while in contrast, many regional centres are under pressure.
Major retailers are focusing on fewer flagship stores at the best locations and servicing other
areas via online.

The flight to quality seen in the retail sector also extends to office, where premium grade
buildings including the Vero Centre, are continuing to achieve high rents and strong
occupancy. The rise of flexible working has also created demand for hub and spoke office
configurations, where tenants retain an inner city presence, supported by one or more
suburban offices, such as ANZ Raranga.

Finally, as I’m sure you’re all aware, house prices in New Zealand have grown rapidly over
recent years, placing home ownership out of reach for many. It takes the average Kiwi

4
more than a decade to save for and purchase their own home, making renting a reality for
over half of Aucklanders over the age of 18. New housing models, including potentially
build-to -rent are required to address this shortfall, and ensure tenants have secure, quality
accommodation.

SLIDE 7: RE-POSITIONING FOR GROWTH: OUR VALUE CREATION STRATEGY

Kiwi Property’s business strategy responds to – and takes advantage of – many of the trends
I’ve just outlined. We believe strongly we have the plan in place to deliver a step-up in
business performance in the years ahead.

We began on our mixed-use journey two years ago, with a focus on re-balancing our
portfolio and positioning the company for long-te rm growth. While COVID-19 temporarily
disrupted our plans, we are focused on once again accelerating progress in the 2022
financial year, with a commitment to creating value for our shareholders.

We will do this in three key ways.

1. Intensify our mixed-us e assets;
2. Grow with third party capital; and
3. Empower the success of our customers

Let me take you through each of these in turn.

SLIDE 8: INTENSIFY OUR MIXED-USE ASSETS

We continue to regard mixed-use community creation as the core of our business. Our
strategy of intensifying our large, transport-oriented landholdings with a range of
complementary asset types remains as relevant today as it did before the pandemic.

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

By owning a group of assets offering complementary economic benefits, we increase
income diversity and encourage smoother returns through the property cycle.

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

Our mixed-use portfolio comprises:
> Sylvia Park;
> LynnMall;
> The Base, which we hold in joint venture with Tainui Group Holdings;
> When ultimately developed, our Drury assets will also be classified as mixed-use

SLIDE 9: REBALANCING OUR PORTFOLIO

With our focus on mixed-use and the strong performance of our office portfolio, we see these
asset classes as the future of our company, alongside a potential move into build to rent.

With this in mind, we stepped-up our portfolio re-balancing efforts in FY21, listing The Plaza for
sale in October 2020 and subsequently also putting Northlands on the market. We expect the
sale process to take some time but it’s important to get things moving.

5
The rationale for our portfolio rebalancing programme is clear. The sale of our regional
shopping centres will recycle capital to fund the development of mixed-use assets that we
believe will deliver greater growth at lower risk.

While the sale of The Plaza and Northlands will have a temporary impact on earnings, by
reinvesting the proceeds into mixed-use, we expect to ultimately drive higher total returns
and create a better quality portfolio.

Our aim will be to move through this transition phase and re-deploy the capital as quickly as
possible.

SLIDE 10: GROW WITH THIRD PARTY CAPITAL

The second pillar of our value creation strategy is to grow with third party capital.

Kiwi Property has a large and exciting growth pipeline, including at Drury, where the
company’s 53 hectare site is set to become the town centre for a community that is
expected to grow to around 60,000 people within the next 20 years. 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 a joined-up solution, including a
likely combination of funds management and joint ventures, such as those we have with
Tainui Group Holdings at The Base and now also Centre Place North.

By using third-party capital, we will be in a strong position to accelerate growth and create
additional revenue streams.

SLIDE 11: EMPOWER CUSTOMER SUCCESS

The third pillar of our strategy is to 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 acted as a partner through this period,
helping to safeguard their physical and financial wellbeing. The support provided evolved
in step with the pandemic, including providing rent relief during the initial lockdown and
assisting stores to establish click and collect facilities in the weeks that followed.

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 it as a source of
future competitive advantage. As our mixed-use communities continue to develop and
evolve, digital will ultimately play a key role in delivering connected experiences for those
working, playing or even staying at our assets.

SLIDE 12: STEPPING FORWARD ON SUSTAINABILITY

Sustainability has been a focus for Kiwi Property for almost 20 years and today, it’s part of
the company’s DNA.

Over the past year we’ve achieved a number of important milestones in this space
including a 59% reduction in emissions compared to our 2012 baseline, and being awarded

6
an A Rating by the Carbon Disclosure Project –the only New Zealand company to achieve
this standard.

In May we also released our refreshed 2021-2025 sustainability strategy, including new
targets and a commitment to becoming net carbon negative in our operations by 2030.

Built around the three pillars of people, places and partnership, the strategy extends Kiwi
Property’s traditional environmental focus to include an additional emphasis on enhancing
the wellbeing of our communities.

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

SLIDE 13: CHIEF EXECUTIVE OFFICER’S REVIEW

Thanks Mark and Kia Ora everyone.

After last year’s fully virtual annual meeting, it’s great to be connecting with our
shareholders face to face once again. Thank you for joining us. And to everyone viewing
this event online, we appreciate you logging on.

As Mark mentioned, Kiwi Property faced a number of challenges in FY21, fuelled by
COVID-19 and its impact on New Zealand. Despite this, we finished the year strongly and
have begun FY22 with positive momentum. Our aim is to maintain that trajectory
throughout the year, with a focus on delivery.

Kiwi Property is in a period of transition, including rebalancing our portfolio, reducing our
retail exposure and increasing our focus on mixed-use.

By making this strategic pivot, we will help drive higher growth and total returns for
shareholders over the medium to long term.

In addition, we have a number of exciting opportunities ahead that have the potential
to unlock significant value for our shareholders. Let’s take a look at some of them now.

SLIDE 14: SYLVIA PARK: THE NEXT LEVEL

Sylvia Park’s 20,000 square metre, Level 1 expansion, has traded strongly since its launch
in October 2020, fuelled by exciting new flagship stores such as H&M, Sephora, Superdry,
North Beach and Under Armour. Last week, high profile beauty retailer, Mecca, opened
its largest New Zealand store, featuring two floors of the latest cosmetics.

In parallel, ‘The Terrace at Sylvia Park’ dining precinct has exceeded expectations, with
restaurants such as Master Bao and Daruma Sushi attracting significant followings. With
the launch of the Terrace at Sylvia Park, the centre’s food and beverage offering has
never been stronger.

Elsewhere at Sylvia Park, major international sportswear retailers, JD Sports and Culture
Kings, have announced their first New Zealand stores at the centre’s new urban and
athleisure precinct, at the former H&M site.

These exciting brands will offer a unique customer experience and previously unseen
brands, giving Kiwis even more reason to visit the country’s favourite shopping centre.

SLIDE 15: DEVELOPMENT GAINING PACE

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We stepped up our development programme late in FY21, announcing plans to
proceed with a second office building at Sylvia Park. Known as 3 Te Kehu Way, the $63m,
six storey development will target a 6 Green Star rating and is set to begin construction in
October 2021.

Following the success of ANZ Raranga, we’re continuing to receive strong interest in
office space at Sylvia Park, due to its convenience, amenities and excellent links to
public transport. As you heard from Mark earlier, hub and spoke office networks have
risen in popularity following COVID-19 and the construction of the new building will help
us to capitalise on that trend.

The development of 3 Te Kehu Way is an important step in Sylvia Park’s mixed-use
evolution, providing the core of an attractive office and commercial precinct at the site,
that we’ll build on for years to come.

SLIDE 16: BUILDING A NEW TOWN AT DRURY

Also, on the development front, we are making strong progress at Drury, including advancing
plans to develop our landholding into a master-planned mixed-use community.

Working alongside a consortium of property companies, we intend to create a thriving
transport-oriented development, with our site acting as the new town centre. Drury will be an
attractive place to live, work and play south of Auckland, as the city’s geographic
boundaries continue to expand.

The Government has recently announced a significant increase in funding for a new train
station adjacent to our land, further enhancing its connectivity.

The Minister for the Environment is currently processing a fast-track application for the project
under the COVID-19 Recovery Act. In parallel, we have also submitted a private plan
change, which is due to be heard next month.

If either of these applications is successful, there is the potential for earthworks to begin on
our site at Drury as early as 2022, up to three years ahead of schedule.

SLIDE 17: DIVERSIFYING OUR PORTFOLIO

We continue to progress planning of build to rent or BTR residential accommodation, and are
making final preparations for this exciting asset class. We have now secured resource
consent for our BTR development at Sylvia Park and have submitted an application for a
subsequent BTR tower at LynnMall. Detailed design is underway for both projects.

With houses becoming increasingly expensive and people taking longer to save for a
deposit, we see significant opportunity for BTR. The asset class has undergone rapid growth in
the US, UK and Australia and we expect the same to happen here, if the right legislative
settings are in place.

With our large landholdings, serviced by excellent transport infrastructure, we believe Kiwi
Property is well placed to become a leader in BTR in New Zealand. Not only is the asset class
complementary to our mixed-use strategy, it also offers less volatile returns and helps further
diversify the company’s earnings.

We’re closely monitoring the proposed law changes around interest deductibility for new
build developments and will await the outcome of the consultation process before deciding
if and when we will move forward.

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SLIDE 18: FINANCIAL RESULTS BREAKER SLIDE

Moving now to our financial results.

Please note that as we’re undertaking a sale process for The Plaza and Northlands these
assets, along with 50% of Centre Place North, have been reclassified as ‘assets held for sale’
and are therefore excluded from the sales and leasing metrics shown in today’s
presentation.

SLIDE 19: FY21 FINANCIAL RESULTS

As you can see from this slide, COVID-19 had a material impact on Kiwi Property’s
financial performance in the 2021 financial year.

The Level 3 and 4 lockdowns early in the year had a significant effect on our mixed-use
assets, contributing to a 7.3% decrease in net rental income or NRI. Pleasingly, our office
portfolio remained resilient however delivering NRI growth of 2.1%.

The cash impact of COVID-19 also resulted in reductions in both full-year AFFO and
operating profit before tax, which declined 12.5% and 10.3% respectively.

In contrast, an increase in the fair value of our property portfolio contributed to net profit
after tax of $196.5m in FY21, up $383.2m on the year before.

SLIDE 20: BALANCE SHEET

The Company’s property portfolio was worth $3.3 billion at 31 March 2021, up from $3.1 billion
the year before. This includes a fair value gain of circa $100m, partially reversing the negative
valuation movement that followed the arrival of COVID-19.

While the uncertainty caused by the pandemic continues to impact property valuers’
assumptions, recent transactions suggests investor confidence has returned to the
commercial property markets. We hope to see this trend continuing, resulting in a further
firming of the capitalisation rates across our mixed-use and office portfolios.

The $100m revaluation gain also contributed to an improvement in our gearing ratio, which
decreased to 31.2% and remains well within our self-imposed target range of 25-35%. Net
asset backing per share is $1.36, up from $1.26 at the end of FY20.

SLIDE 21: MIXED-USE AND OFFICE LEASING ACTIVITY

Despite the challenging year, we achieved pleasing rental growth of 3.2% in FY21 across our
investment portfolio.

Mixed-use leasing spreads were up 2.7% for the year, while several strong deals at Vero
Centre were the catalyst to a 3.5% increase for the office portfolio.

At year-end our mixed-use and office assets were 99.7% occupied for the year, up 20 basis
points on the prior comparable period. This is an impressive achievement, given the impact
of COVID-19, reflecting the strength and quality of those portfolios.

Our weighted average lease expiry has also increased to 5.3 years, up from 4.9 years in FY20,
driven by new leases at Sylvia Park’s Level 1 expansion.

SLIDE 22: RETAIL SALES

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Unsurprisingly, retail sales and pedestrian counts declined in FY21, with a number of stores
unable to trade during the Level 4 lockdown, in particular.

Total sales at Sylvia Park, LynnMall and The Base were down 11.4% on the prior year, and 5.4%
across our mixed-use and large format retail centres combined.

We’ve also calculated adjusted sales based on the actual days stores were able to trade, to
provide a more accurate comparison against the prior year. A high level snapshot is shown
here.

As you can see, on an adjusted basis, sales were actually up significantly on FY20, with the
post-lockdown retail rush contributing to an increase in total sales at Sylvia Park, LynnMall
and The Base and an impressive 13.9% rise across both mixed-use and large format retail.

SLIDE 23: FY21 PRIORITIES

That concludes my review of FY21.

As we look ahead to FY22, the management team and I are squarely focussed on
delivery. That includes moving ahead with our development pipeline, progressing our
portfolio rebalancing programme and getting ready to go on BTR.

Kiwi Property is in a period of transition, but we believe strongly that we have the plan
and the people to drive growth and increase returns. Over the next year we look forward
to making substantive progress on our strategy as we continue striving to create value for
our shareholders.

Thank you for your continued support.

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

SLIDE 24: FY21 DIVIDEND AND FY22 GUIDANCE

Thank you Clive.

Kiwi Property paid a final cash dividend of 2.95 cents per share for the six-month period
ended 31 March 2021. This takes the total cash dividend for FY21 to 5.15 cents per share,
equivalent to 90% of AFFO.

AFFO guidance for FY22 will be provided once the sales of The Plaza and Northlands
have concluded, however based on current projections, next year’s dividend is
expected to be no less than 5.30 cents per share, contingent on the financial
performance of the company and barring material adverse effects or unforeseen
circumstances, such as COVID-19 related lockdowns.

The disposal of our regional shopping centres, coupled with last year’s change to the
dividend policy will likely contribute to a re-basing of dividends in the short term.
Ultimately though, we expect these steps to contribute to a higher quality asset portfolio
and more stable income stream.

Ladies and gentlemen, that concludes our overview of the Company’s activities for FY20.
I’d now like to hand over to Mary Jane to chair this part of the meeting.

SLIDE 25: QUESTIONS

Thanks Mark.

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Before we move to the formal business of the day, we would be happy to answer questions.

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

As this is a shareholders’ meeting, only shareholders or appointed proxies can ask a question
or vote. When I call for questions, can shareholders present in the room please wait until a
microphone is provided to you and then clearly state your name before asking the question.
I will take questions from those present in the meeting first before moving onto any questions
from shareholders online.

Are there any questions from shareholders?

SLIDE 26: FORMAL BUSINESS

Thank you. We will now move to consider the formal resolutions of the meeting.

Voting on each resolution will be by poll. Each person voting at the annual meeting and
each shareholder who has cast a vote directed by proxy has one vote for each share held. I
will put each resolution to the meeting and provide an opportunity for you to ask questions in
relation to that resolution. I ask that you keep the questions strictly to the resolution. In respect
of proxies received, if as the Chair of the meeting I have been appointed to act as proxy,
and am not directed how to vote in respect of a resolution, I will vote in favour of the
resolution.

For shareholders joining us here today, you should have a voting card which was given to
you when you registered. Please put up your hand if you do not have a voting card and
someone will assist you. Please mark your voting intention for each resolution and the voting
cards will be collected at the conclusion of the meeting.

SLIDE 27: HOW TO VOTE

Shareholders joining online will be able to cast their vote using the electronic voting card
received, once online registration is validated.

To vote, you will need to click “Get Voting Card” within the online meeting platform. You will
be asked to enter your Shareholder or Proxy Number to validate. Please then mark your
voting card in the way you wish to vote by clicking “FOR”, “AGAINST” or "ABSTAIN" on the
voting card. Once you have made your selection please click “Submit Vote” on the bottom
of the card to lodge your vote. Please refer to the virtual meeting online portal guide or use
the help line specified if you require assistance. Note that voting will remain open until 5
minutes after the conclusion of the meeting.

Results of the votes will be declared and announced via the NZX.

SLIDE 28: RESOLUTIONS 1, 2 AND 3: RE-ELECTION / ELECTION OF DIRECTORS

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

In accordance with the Company’s constitution and the NZX Listing Rules, Jane
Freeman, Mark Powell and Chris Aiken will retire at this meeting, however Jane and Mark
offer themselves for re-election and Chris offers himself for election.

11
The Board has determined that if Jane Freeman or Mark Powell are re-elected and/or Chris
Aiken is elected, they will each be independent directors for the purposes of the NZX Listing
Rules.

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

SLIDE 29: RESOLUTION 1: RE-ELECTION OF JANE FREEMAN

Thank you Mary Jane.

I am an Auckland-based professional director with extensive retail experience and expertise
in the field of customer-driven technology. I am a director of Foodstuffs North Island and was
previously a director of ASB Bank, Delegat Group and Air New Zealand.

Prior to my Governance career, I held a number of senior general management roles in
major New Zealand businesses including Telecom, ASB Bank, Bank Direct and Clear
Communications.

I am the current Chair of Kiwi Property’s Remuneration and Nominations Committee.

I will now pass you over to Mark.

SLIDE 30: RESOLUTION 2: RE-ELECTION OF MARK POWELL

Thank you Jane and good morning

I am an Auckland-based professional director and currently sit on the Boards of ASX-listed
companies, JB Hi-Fi and Bapcor, as well as a number of not-for-profit charitable
organisations. I was previously a director of farming group, Trinity Lands, and Stihl Shop New
Zealand.

I am a former Chief Executive of The Warehouse Group, with extensive experience in strategy
setting and execution, cultural and digital transformation, property development, mergers
and acquisitions and joint venture management in publicly listed companies.

I am the current Chair of Kiwi Property’s Environmental, Social and Governance Committee.

I will now pass you over to Chris.

SLIDE 31: RESOLUTION 3: ELECTION OF CHRIS AIKEN

Thanks Mark.

My name is Chris Aiken.

I am also an Auckland-based professional director and was appointed to the Board in
June this year.

I have significant property experience in both the public and private sectors. I am the
current Chair of the Kainga Ora Construction Programme Assurance Panel and was
previously a director of both Metlifecare and Piritahi.

Prior to commencing my governance career, I was Chief Executive of HLC, a subsidiary
of Housing New Zealand, responsible for developing large urban communities, including
Hobsonville Point.

12

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

SLIDE 32: RESOLUTIONS 1, 2 AND 3: RE-ELECTION / ELECTION OF DIRECTORS -
RECOMMENDATION

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

The Board supports the re-election of Jane and Mark and the election of Chris as it considers
these candidates have the expertise to contribute to the overall skill set required by the
Board.

The Board, other than Jane, Mark and Chris each in respect of their own positions,
recommends you vote in favour of the resolutions.

SLIDE 33: RESOLUTION 1: JANE FREEMAN RE-ELECTION

I will now read Resolution 1.

That Jane Freeman be re-elected as a director of the Company.

Are there any questions from shareholders on this resolution?

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

SLIDE 34: RESOLUTION 2: MARK POWELL RE-ELECTION

I will now read Resolution 2.

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

Are there any questions from shareholders on this resolution?

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

SLIDE 35: RESOLUTION 3: CHRIS AIKEN ELECTION

I will now read Resolution 3.

That Chris Aiken be elected as a director of the Company.

Are there any questions from shareholders on this resolution?

Thank you. For this resolution to be passed, it must be approved by a simple majority of votes
of those shareholders or appointed proxies entitled to vote and voting on the resolution. I will
now put the motion. Please now select either “FOR”, “AGAINST” or "ABSTAIN" for Resolution 3
on the voting card.

SLIDE 36: RESOLUTION 4: AUDITOR’S REMUNERATION - RECOMMENDATION

13

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

During the 2021 financial year, $297,000 was paid to PwC for audit and assurance
related services. $14,000 was also paid for advisory services, primarily in relation to
remuneration benchmarking.

The Board recommends that you vote in favour of this ordinary resolution.

SLIDE 37: RESOLUTION 4: AUDITOR’S REMUNERATION

I will now read Resolution 4.

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

Are there any questions from shareholders on this resolution?

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

SLIDES 38: PROXY VOTING RESULTS

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

The Registrar, Link Market Services will now move through the room to collect your voting
cards. For those shareholders online, you can now submit your vote – voting will be open until
five minutes after the conclusion of the meeting.

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

I’d now like to hand back to Mark.

SLIDE 39: THANK YOU

Thanks Mary Jane.

Before I close this meeting, I’d like to say a few words about Richard Didsbury, who is
retiring from the Board today after almost thirty years of exemplary service.

As you likely know, Richard was one of the founders of Kiwi Income Property Trust, as it
was then called, in 1992. In the years since he has had a greater impact on the
company than any other person. Richard was a driving force behind many of our most
successful projects, including the construction of the Royal & Sun Alliance building,
known today as the Vero Centre, as well as the development of Sylvia Park.

Richard has demonstrated an unwavering dedication to our business, our people and
our shareholders for the better part of three decades. He’s challenged us to be better, to
aim higher and be more innovative.

14
Richard has asked that I don’t make a long speech today, so instead I’d just like to say
thank you – not just for your unparalleled contribution to Kiwi Property, but on a personal
note, for your friendship and support over the 10 years we’ve worked together. You’ll
leave a huge hole in our organisation, but we wish you all the best for the future. Please
join me in a round of applause for Richard.

Richard, would you like to say a few words?

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

Thank you.

Ends

Contact us for further information:
Clive Mackenzie
Chief Executive Officer
clive.mackenzie@kp.co.nz
Campbell Hodgetts
Communications and Investor Relations Lead
campbell.hodgetts@kp.co.nz
+64 27 563 4985
About us:
Kiwi Property (NZX: KPG) is one of the largest listed property companies on the New Zealand
Stock Exchange and is a member of the S&P/NZX 20 Index. We’ve been around for over 25
years and proudly own and manage a significant real estate portfolio, comprising some of
New Zealand’s best mixed-use, retail and office buildings. Our objective is to provide investors
with a reliable investment in New Zealand property through the ownership and active
management of a diversified, high-quality portfolio. S&P Global Ratings has assigned Kiwi
Property an issuer credit rating of BBB (stable) and an issue credit rating of BBB+ for each of its
fixed rate senior secured bonds. Kiwi Property is a member of FTSE4 Good, a series of
benchmark and tradable indices for ESG (Environmental, Social and Governance) investors.
Kiwi Property is licensed under the Real Estate Agents Act 2008. To find out more, visit our
website kp.co.nz