Kiwi Property portfolio valuation update

NZX RELEASE
25 September 2023
Kiwi Property portfolio valuation update
Kiwi Property today released its draft valuations for the six months ending 30 September
2023, disclosing a preliminary 2.4% or $77.1 million decrease in the fair value of its
diversified property portfolio. The Company’s mixed-use, office, retail and other
properties are expected to be worth $3. 1 billion at t he close of the period.
Kiwi Property Chief Executive Officer, Clive Mackenzie said: “New Zealand’s high
inflation, high interest rate environment has contributed to a widespread decline in
property values over recent periods."
“While this is disappointing, we’ve continued to deliver an impressive operational
performance, led by our mixed-use centres, s uch as Sylvia Park, LynnMall and The Base.
Strong rental growth across these assets has offset softening capitalisation rates and
helped mitigate the reduction in property values. It’s also pleasing to see retail property
valuations beginning to strengthen, suggesting mounting confidence in the sector after
a challenging couple of years.”
The draft valuations are expected to result in the following movements through the
period.
•Mi
xed-use portfolio: -1.0% or -$20.1 million, with strong rental growth partially
offsetting capitalisation rate expansion of 17.2 basis points.
•Office portfolio: -5.8% or -$50.8 million, reflecting headwinds in the office sector in
New Zealand and offshore.
•Other properties: -1.7% or -$2.3 million, driven by capitalisation rate softening.
•Overall investment portfolio: -2.4%, led by capitalisation rate expansion of 27.8 basis
points.
•Net tangible asset backing per share: $1.18, a reduction of 5 cents.
K
iwi Property’s draft valuations have been determined by independent valuers and are
subject to finalisation and external review by Kiwi Property’s auditor, Deloitte. They will
be confirmed in the Company’s interim FY24 financial statements, scheduled for
release on 27 November 2023.
E
NDS
No
te:
Full independent valuations have been performed for all investment properties other
than The Base, Centre Place North, Sylvia Park Lifestyle, Resido Lynton (BTR1), Drury
development land and other adjoining industrial assets within the Sylvia Park Precinct
where desktop reviews were performed. The desktop reviews were completed by the
same independent valuers who completed full independent valuations at 31 March
2023. No independent valuations were performed for the adjoining residential

2
properties within the Sylvia Park Precinct and a recently purchased adjoining industrial
asset.

Contact us for further information:
Campbell Hodgetts
Head of Communications and Investor Relations
campbell.hodgetts@kp.co.nz
+64 275 634 985


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. Kiwi Property is licensed under the Real Estate Agents Act 2008.
To find out more, visit our website kp.co.nz