Kiwi Property revised Sustainable Debt Framework

Sustainable Debt Framework
May 2023

Kiwi Property Sustainable Debt Framework02
Contents
Purpose Pg 3
Introduction to Kiwi Property Pg 4
Sustainable Debt Framework Pg 5
1. Green Bonds and Loans Pg 6
2. Sustainability-Linked Bonds and Loans Pg 9
Further information Pg 11

Kiwi Property Sustainable Debt Framework03
Purpose
This document outlines
the governance framework
(Framework) that applies
to Sustainable Debt issued
by Kiwi Property.

Kiwi Property Sustainable Debt Framework04
Kiwi Property is one
of New Zealand’s
largest NZX listed
property companies.
We own, invest in,
develop and manage
some of the country’s
most well-known
properties.
Introduction
to Kiwi Property
Our purpose is to ‘create connected
communities’ underpinned by a
deeply held commitment to
environmental, social and governance
(ESG) factors, that dates back over
20 years.
We recognise that sustainability
is critical to the people who work, visit,
shop, socialise and stay at our assets
– as well as to the long-term
performance of our business.
Accordingly, Kiwi Property has a
comprehensive and quantifiable
sustainability strategy, focused on three
priority pillars:
• Places - creating places that promote
wellbeing and have a positive
environmental impact.
• People - creating vibrant communities
that bring people together and where
everyone feels they belong.
• Partnerships - connecting
and empowering our partners
to deliver social and environmental
change.
We are committed to delivering
a brighter New Zealand by decreasing
our resource consumption, and making a
positive contribution to society. With our
broad reach across multiple stakeholder
groups (including tenants, customers
and suppliers), our sustainability
strategy also aims to galvanise
and empower others to make positive
change within their own businesses. By
ensuring our assets are resilient,
investing in our communities and
intensively managing our assets, we not
only optimise the performance of
our property portfolio, we also drive
sustainable returns for our investors.
Kiwi Property aims to lead in an industry
where sustainability is a key driver.
Amongst our peers, we are well placed,
achieving an ‘A’ rating from the Carbon
Disclosure Project in 2020, the first New
Zealand company to do so. In addition,
we benchmark our ESG performance
using GRESB, a standardised and
globally recognised framework for the
real estate industry.
Year on year, Kiwi Property measures the
material impacts of its buildings, across
energy, waste, water consumption and
carbon footprint metrics. Key milestones
include achieving a 60% reduction in
FY22 emissions from operations,
compared to the 2012 baseline.
We own, invest in, develop and manage
low carbon and energy efficient
buildings. We have large solar arrays at a
number of our properties. Electric
vehicle and bike charging stations are
also available at most of our assets,
encouraging customers to adopt more
environmentally friendly transport
alternatives.
Kiwi Property proudly supports a range
of leading environmental and social
organisations, including the Mental
Health Foundation, the New Zealand
Green Building Council, Safe Space
Alliance and Keystone Trust. In 2020, we
gained Be.Lab accessibility accreditation
for our entire shopping centre portfolio,
one of the first New Zealand companies
to achieve this milestone.
For more information on Kiwi Property’s
sustainability efforts and the latest
sustainability report, please visit
www.kiwiproperty.com/corporate/
sustainability/

Kiwi Property Sustainable Debt Framework05
Sustainable
Debt Framework
Sustainable Debt may include:
• Green Bonds and Loans; and
• Sustainability-Linked Bonds
and Loans.
This Framework sets out the processes
for these products separately and may
be amended from time to time at Kiwi
Property’s discretion, including
as relevant market standards and best
practices continue to evolve.
A reference in this Framework to:
• we, our and Kiwi Property includes
a reference to (a) Kiwi Property
Group Limited, Kiwi Property
Holdings Limited and each other
Group member that provides a
cross-guarantee in respect of the
indebtedness of the Group; and (b)
in relation to property management
functions, any other company
established by Kiwi Property to
provide investment management
services on its behalf; and
• Green Debt proceeds means an
amount equal to the proceeds of
Green Bonds and Green Loans.
Important Notice
This Framework does not form part of
the contractual terms of any
Sustainable Debt issued by Kiwi
Property. This means there is no legal
obligation for Kiwi Property to comply
with this Framework or the relevant
market standards described in this
Framework on an ongoing basis. If Kiwi
Property fails to comply with this
Framework or the relevant market
standards:
• this does not constitute an event of
review, event of default or any other
breach in relation to the Green Bonds
and/or Green Loans;
• there is no requirement on Kiwi 
Property to repay the Green Bonds
and/or Green Loans early; and
• the Green Bonds and/or Green Loans
may cease to be labelled as “green”.
If Kiwi Property fails to comply with this
Framework or the relevant market
standards, or if any Green Bonds and/
or the Green Loans cease to be labelled
as “green”, Kiwi Property will set out this
information in its annual use of
proceeds reporting.
This Framework is
designed to govern
Kiwi Property’s use
of Sustainable Debt
on an ongoing basis.

Kiwi Property Sustainable Debt Framework06
Green Bonds and Loans under the
Framework may take the form of:
• Green Bonds in accordance with the
ICMA Green Bond Principles (GBP)
1

and, where appropriate, Climate Bonds
Standard (CBS) as published by the
Climate Bonds Initiative (CBI); and
• Green Loans in accordance with the
APLMA Green Loan Principles (GLP)
2

and, where appropriate, the CBS.
In accordance with the above market
standards and best practice, the
Framework covers four key components:
1. Use of proceeds;
2. Process for project evaluation and
selection;
3. Management of proceeds; and
4. Reporting.
1. Use of proceeds
Kiwi Property intends to allocate Green
Debt proceeds to finance or refinance
its direct and indirect investments in low
carbon and energy efficient buildings
that constitute Eligible Projects
(see below).
Kiwi Property may allocate Green Debt
proceeds to refinance low carbon and
energy efficient buildings without any
limitation on the look-back period
provided the buildings constitute Eligible
Projects at the time of refinancing.
A reference in this Framework to Green
Debt proceeds being “allocated” means
a notional allocation in Kiwi Property’s
systems.
Eligible Projects
Criteria
To qualify as an Eligible Project, a low
carbon and energy efficient building
must meet one or more of the following
criteria:
• Certified as obtaining, or targeting,
a minimum 5-Star NZGBC Green
Star Design (for planned buildings)
and/or Built (for existing buildings)
rating. Green Star is an internationally
recognised rating system for the
sustainable design, construction and
operation of buildings and fit-outs;
• Certified as obtaining, or targeting, a
minimum 4-Star NABERSNZ Energy
Base Building rating or Energy Whole
Building rating. NABERSNZ is a system
for rating the energy efficiency of
office buildings. It is an independent
tool, backed by the New Zealand
government;
• Certified as obtaining, or targeting,
a minimum 7-Star Homestar
rating. Homestar is an independent
rating tool for assessing the health,
efficiency and sustainability of
residential properties; or
• Any other green building rating that is
a recognised equivalent standard to
one of those above.
Existing and/or planned buildings that
are targeting (but are yet to receive) one
or more of the above ratings criteria may
also qualify as an Eligible Project where
we have evidence indicating that the
rating will be achieved.
Ownership or investment interest
Eligible Projects may include existing
and/or planned buildings that Kiwi
Property:
• owns outright;
• owns in part (for example, through an
unincorporated joint venture); or
• has an interest in because we hold a
direct or indirect equity investment
in the owner of the relevant buildings,
where the entity in which we invest
derives at least 90% of its revenue
from green or green targeted assets
(an equity investment).
Green Bonds
and Loans
1 https://www.icmagroup.org/green-social-and-sustainability-bonds/green-bond-principles-gbp/
2 https://www.lsta.org/content/green-loan-principles/
SECTION 1

Kiwi Property Sustainable Debt Framework07
Interests that fall within either of the final
two investment categories above will
only qualify as Eligible Projects if Kiwi
Property is also the appointed manager
of the buildings. Kiwi Property’s
management is intended to ensure
alignment with our sustainability
strategy and this Framework.
Where Kiwi Property partially owns an
Eligible Project, the amount of Green
Debt proceeds we may allocate to
finance or refinance that Eligible Project
will not exceed our proportionate share
of the Eligible Project.
Where Kiwi Property has an interest in
Eligible Projects through an equity
investment, the amount of Green Debt
proceeds we may allocate to finance or
refinance our equity investment will not
exceed the proportionate value of those
Eligible Projects equal to the percentage
of our equity investment. However, if the
relevant owner of those Eligible Projects
issues its own green bonds or loans to
finance or refinance such Eligible
Projects, Kiwi Property will immediately
reduce the allocation of our Green Debt
proceeds on a proportionate basis so
that there is no double counting.
Valuation
Each Eligible Project is valued at its
latest independent market valuation or
at cost (or projected cost if the Eligible
Project is not yet complete) where a
separate market valuation has not been
obtained. When determining the
projected cost of an incomplete Eligible
Project, Kiwi Property relies on the
professional judgement of its
development and senior management
teams and any relevant external advice
(for example, a quantity surveyor).
Continued monitoring
If a building no longer meets the
eligibility criteria set out in this
Framework, Kiwi Property will:
• cease to categorise that building as an
Eligible Project; and
• reduce the aggregate value of the pool
of Eligible Projects by the value of that
building.
A list of Eligible Projects will be
published within the annual use of
proceeds reporting. For any Green
Bonds or Loans that are certified by the
CBI as complying with the CBS, the
ongoing certification status will be noted
within these reports.
2. Process for project
evaluation and selection
Kiwi Property manages the process of
selecting and evaluating whether an
existing and/or planned building may
qualify as an Eligible Project by:
• utilising the external star rating tools
summarised above and, in the case
of a planned building, assessing
the evidence indicating that a rating
will be achieved;
• assessing alignment with the eligible
green projects contemplated by the
GBP or, as applicable, the GLP and the
following United Nations Sustainable
Development Goals (SDGs):
–SDG 9: Build resilient infrastructure,
promote inclusive and sustainable
industrialisation and foster
innovation; and
–SDG 11: Make cities and human
settlements inclusive, safe, resilient
and sustainable;
• assessing alignment with
Kiwi Property’s wider sustainability
strategy and objectives;
• assessing any potential negative
social and/or environmental impacts
from the building and mitigants to
these impacts;
• obtaining external advice
where appropriate; and
• applying professional judgement and
sustainability knowledge.
Once a building is determined to have
met the relevant criteria for inclusion, it
will be included as an Eligible Project.
3. Management of proceeds
In accordance with this Framework, Kiwi
Property intends to allocate Green Debt
proceeds to finance or refinance its
direct and indirect investments in
Eligible Projects.
Kiwi Property maintains a register of
Eligible Projects that outlines (among
other things) their current value,
allocation of proceeds, the applicable
NABERSNZ, Green Star and/or Homestar
rating(s), and the level of Kiwi Property’s
ownership interest.
Kiwi Property monitors the allocation of
proceeds and the current value of
Eligible Projects on a yearly basis,
aligned to the end of year annual
financial reporting process.
Kiwi Property intends to ensure that the
aggregate value of the pool of Eligible
Projects is at least equal to the
aggregate amount of all outstanding
Green Bonds and Loans.
Kiwi Property services its debt
obligations under Green Bonds and
Loans out of its general cashflows and
not specifically from revenues generated
by Eligible Projects alone.

Kiwi Property Sustainable Debt Framework08
Unallocated proceeds
or surplus funds
In the event that there are unallocated
Green Debt proceeds:
• Kiwi Property will apply an amount
equal to those unallocated proceeds
to repay revolving bank debt or
to invest in cash deposits or cash
equivalents until Kiwi Property is able
to allocate an amount equal to those
unallocated proceeds in accordance
with this Framework;
• no contractual right of review
or repayment will arise, and no loss of
green classification will occur; and
• Kiwi Property will disclose this
information within the annual use of
proceeds reporting.
Kiwi Property will endeavour to allocate
any unallocated Green Debt proceeds in
accordance with this Framework as soon
as practicable.
4. Reporting
Kiwi Property understands
the importance of transparency and
disclosure. All reporting will be in line
with applicable market standards.
The reporting described below will be
publicly available.
Use of proceeds reporting
Kiwi Property intends for annual use of
proceeds reporting (aligned to the end
of year financial reporting process) to
include:
• summary of the pool of Eligible
Projects, including location, type of
asset, whether complete or
in development, ownership or
investment interest and valuation
(adjusted to reflect our ownership or
investment interest);
• current NABERSNZ, Green Star and/or
Homestar rating(s);
• confirmation of the aggregate
amount of Green Bonds and Loans
outstanding;
• disclosure of any unallocated
proceeds;
• alignment with relevant SDGs;
• confirmation of compliance
with applicable market standards; and
• assurance updates or the most recent
assurance report.
Impact reporting
Kiwi Property will also report on relevant
environmental impact metrics in its
sustainability report. Examples of impact
indicators that may be reported include
the relevant building rating, floor space
of qualifying green real estate (m
2
),
carbon footprint by building, and
reduction over time (tCO
2
).
Assurance
In accordance with the applicable
market standards, Kiwi Property will seek
assurance from an approved limited
assurance provider on an annual basis
for the use of proceeds issued under
this Framework, and as deemed
necessary by Kiwi Property. Confirmation
of assurance will be made publicly
available.
Sustainable Debt Framework
Any amendments to the Framework will
be made publicly available.

Kiwi Property Sustainable Debt Framework09
Sustainability-Linked
Bonds and Loans
Sustainability-Linked Bonds and Loans
are distinct from Green Bonds and Loans
as described above. Proceeds from
Sustainability-Linked Bonds and Loans
are utilised for general corporate
purposes. The proceeds are not required
to be allocated towards, monitored or
tracked against any specific purpose.
Sustainability-Linked Bonds and Loans
issued under the Framework may take
the form of:
• Sustainability-Linked Bonds
in accordance with the ICMA
Sustainability-Linked Bond Principles
(SLBP)
3
; and
• Sustainability-Linked Loans in
accordance with the APLMA
Sustainability-Linked Loan Principles
(SLLP)
4
.
In accordance with the above market
standards and best practice, the
Framework covers five key components:
1. Selection of key performance
indicators (KPIs);
2. Selection of sustainability
performance targets (SPTs);
3. Financial characteristics;
4. External review; and
5. Reporting.
The above components form part of the
SLBP. The SLLP components are
substantially similar to those above, and
references for Sustainability-Linked
Loans will be highlighted where required.
Selection of KPIs
When undertaking an issuance
of Sustainability-Linked Bonds or Loans,
Kiwi Property will communicate how the
instrument and selected KPIs relate to
elements of Kiwi Property’s sustainability
strategy and the Framework that are
material to the Company’s overall
performance.
Kiwi Property is committed to delivering
a brighter New Zealand by reducing its
resource consumption, supporting
community building and providing a
reliable investment option via a resilient
and high-quality property portfolio.
For the issuance of Sustainability-Linked
Bonds or Loans, where the bond coupon
or the loan margins are linked to the
achievement of sustainability targets,
Kiwi Property has provided the following
metrics as a guide for potential target
setting:
• NABERSNZ building ratings;
• Green Star building ratings;
• Homestar building ratings;
• Ratings on a subset of properties or
Kiwi Property’s total portfolio;
• Energy, water or waste consumption
for properties, or on a portfolio basis;
• Greenhouse gas (GHG) emissions for
properties, or on a portfolio basis; and
• Other environmental or social
sustainability metrics that are relevant
to Kiwi Property’s overall sustainability
strategy and this Framework.
Selection of sustainability
performance targets
Kiwi Property will ensure the targets set
and metrics used will be meaningful to
Kiwi Property’s sustainability programme
and will be aligned to the group’s
sustainability strategy.
Measurement of performance
with respect to selected SPTs for any
Sustainability-Linked Bonds or Loans will
be undertaken periodically as relevant
for the selected targets. At a minimum,
measurement will be annual.
Material factors that may impact the
achievement of SPTs (either positively or
negatively) will be disclosed in the
relevant documentation for each
Sustainability-Linked Bond or Loan.
Financial characteristics
The proceeds of Kiwi Property’s
Sustainability-Linked Bonds and Loans
will be used for general corporate
purposes, unless otherwise stated.
These transactions will feature financial
and/or structural characteristics that
encourage the achievement of the SPT.
This may include both penalties and/or
incentives, depending on the
transaction.
The magnitude of the coupon or margin
adjustment, as well as the effective
date(s) (otherwise known as trigger
date(s)) will be detailed in the relevant
documentation for each transaction.
3 https://www.icmagroup.org/sustainable-finance/the-principles-guidelines-and-handbooks/sustainability-linked-bond-principles-slbp/
4 https://www.lsta.org/content/sustainability-linked-loan-principles-sllp/
SECTION 2

Kiwi Property Sustainable Debt Framework10
External review
Kiwi Property will undertake an
appropriate external verification for each
Sustainability-Linked Bond or Loan on
issue. This includes external assurance
of sustainability performance
prior to issuance and ongoing
performance in relation to the selected
SPTs for each issuance.
Reporting
For Sustainability-Linked Loans, Kiwi
Property and the arranging bank(s) will
agree on appropriate reporting
parameters and the schedule for
disclosing information on sustainability
performance to the lenders.
For Sustainability-Linked Bonds, at a
minimum, Kiwi Property will undertake
annual public reporting regarding the
issuance and performance in relation to
the SPTs. This reporting will be available
in Kiwi Property’s Annual Report and
website, and will include relevant
information relating to the aspects of
Section 2 of this Framework.
At issuance, Kiwi Property will disclose
the reporting that will be provided,
including its location, frequency, scope
and assurance commitments. Kiwi
Property will ensure the provision of
timely information regarding the
performance in relation to the selected
SPTs for each transaction.
Governance
Kiwi Property’s Audit and Risk
Committee (ARC) and Environmental,
Social and Governance Committee
(ESGC) will oversee matters relating to
Sustainable Debt. The ARC is a sub-
committee of the Company’s Board,
responsible for oversight of matters
including financial management and
controls, reporting and risk management.
The ESGC is a sub-committee of the
Company’s Board, responsible for
reviewing and recommending to the
Board for approval the ESG strategy,
frameworks and initiatives, amongst
other things. The ARC and ESGC meet at
least quarterly and will consider
Sustainable Debt issues and
opportunities on an ongoing basis.

Kiwi Property Sustainable Debt Framework11
Further
Information
Contacts
Kiwi Property Group Limited
Level 7, Vero Centre
48 Shortland Street
Auckland 1140
+64 9 359 4000
kp.co.nz
info@kp.co.nz
Registrar
Link Market Services Limited
Level 30, PwC Tower
15 Customs Street West
Auckland 1010
+64 9 375 5998 or
0800 377 388
linkmarketservices.co.nz
enquiries@linkmarketservices.co.nz
More information on Kiwi Property’s
sustainability strategy and
performance can be found at:
Sustainability:
https://www.kiwiproperty.com/
corporate/sustainability/
Latest Kiwi Property Annual Report:
https://www.kiwiproperty.com/
corporate/annual-result/

kp.co.nz

---

NZX RELEASE
22 May 2023
Kiwi Property revised Sustainable Debt Framework


Kiwi Property today published its revised Sustainable Debt Framework, which has been
updated to (among other things) expand the Eligible Project definition to include any
other green building rating that is a recognised equivalent standard to one of those set
out in the definition.
The revised framework, annual use of proceeds report and the accompanying
assurance report are available on the company’s website: kp.co.nz
ENDS

Contact us for further information:
Campbell Hodgetts
Head of Communications and Investor Relations
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 have 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 licensed under the Real Estate Agents Act 2008. To find out more, visit our website
kp.co.nz