Kiwi Property Group Ltd. · NZX:KPG
Kiwi Property — FY2025 Earnings Presentation
41 slides from Kiwi Property's earnings presentation, May 26, 2025
Slide 1: Annual results presentation
Annual results presentation For the year ended 31 March 2025 26 May 2025
Slide 2: Contents
Contents Section Page Business highlights 3 Financial results FY25 11 Resido and development update 17 FY26 priorities & guidance 21 Appendix 1: Financial update 23 Appendix 2: Property update 28 Glossary 37 This annual results presentation for the year ended 31 March 2025 should be read in conjunct
Slide 3: Business highlights
Business highlights 3
Slide 4: FY25 overview
FY25 overview In a tough trading environment, Kiwi Property continued to progress key strategic priorities • The resilience of Kiwi Property’s mixed-use assets is evident through Kiwi Property strategic priorities strong new leasing spreads (+8.3%) and stable valuations (+1.1%). • The first sale of
Slide 5: Continued rent growth
Continued rent growth Rental growth remains strong despite economic conditions 4.3% Rental growth • Overall rental growth from mixed-use, office and retail leasing activity was +4.3%, with new leasing +6.1% and rent reviews +3.7%. Total rental growth • +8.3% uplift in leasing spreads for new lease d
Slide 6: Optimising performance
Optimising performance Significant growth in Activate income • Kiwi Property’s annual performance is underpinned by strong rental growth across the portfolio and a significant 30% increase in Activate income from the prior year. • ‘Activate’ is our approach to maximising the return on our assets thr
Slide 7: Employment and admin costs reduced by 23%
Employment and admin costs reduced by 23% A continued focus on reducing overheads and elevating high performers 2025 2024 Variance • Employment and administration expenses $m $m $m % have decreased by $7.5m (23%), as a result Net property income1 198.4 189.1 +9.3 +4.9% of people-related cost-saving
Slide 8: Mixed-use sales marginally lower
Mixed-use sales marginally lower A slowdown in the wider NZ retail sector, leading to a marginal decrease in retail sales Mixed-use1 Total portfolio2 • Mixed-use sales totalled $1.76 billion for the 12 12 months ended 31-Mar-25 31-Mar-24 31-Mar-25 31-Mar-24 months ending 31 March 2025, representing
Slide 9: Asset values are stable
Asset values are stable Capitalisation rates broadly flat across the portfolio 31-Mar-25 valuation 31-Mar-24 valuation Movement • Kiwi Property’s total property fair value movement was relatively flat, decreasing by Cap. rate Val. Cap. rate Val. Cap. Val. Val. 0.3% or $11.6 million in the 12 months
Slide 10: Sustainability in focus
Sustainability in focus Progressing the sustainability performance of our assets Following targeted investment in key sustainability initiatives, Resido was awarded a 9 NABERSNZ ratings increased for: Overall operational Homestar Built rating, the emissions reduced by 14% first building of this scal
Slide 11: Financial results FY25
Pictured: Level 1 expansion at The Financial results Base FY25 11
Slide 12: Net rental income up by 5%
Net rental income up by 5% Strong performance across mixed-use offsets slower office and retail leasing markets 2025 2024 Variance Sylvia Park precinct +$7.6m $m $m $m % • Highlights include: underlying rental growth of Sylvia Park retail (+3.5% rental income) Sylvia Park precinct 85.4 77.7 +7.6 +9.
Slide 13: AFFO impacted by higher finance costs and tax expense
AFFO impacted by higher finance costs and tax expense Dividend payout ratio of 93% 2025 2024 Variance AFFO down by $7.0m $m $m $m % • Effective tax rate on FFO increased to 16.9% Net rental income 194.1 184.9 +9.2 +5.0 (FY24: 13.6%). Property management revenue 4.2 4.1 +0.1 +2.4 • Net finance expens
Slide 14: Balance sheet management
Balance sheet management Balance sheet 2025 2024 Investment properties and inventories Investment properties and inventories $3,298m $3,195m +$103.1m Net tangible assets per share $1.14 $1.17 • $118.8m in capital expenditure, offset by -$11.6m of fair value movement and Covenants amortisation of lea
Slide 15: Capital management - debt facilities
Capital management - debt facilities Bonds and banking facilities 2025 2024 Bank facilities $m $m • Increased by $50m during the year. Total bonds outstanding 500.0 500.0 Headroom of $217.0m. Bank facility drawn 783.0 694.0 Total debt outstanding 1,283.0 1,194.0 Weighted average term to maturity of
Slide 16: Capital management - cost of debt
Capital management - cost of debt Bond and bank facilities 2025 2024 Weighted average interest rate (inclusive of bonds, active interest rate 5.30% 5.61% Weighted average interest rate of 5.30% derivatives, margins and line fees) • Reduced by 31 bps from FY24. Fixed-rate profile (includes bonds on i
Slide 17: Resido and development update
Resido and development update 17
Slide 18: Resido leases at 85%
Resido leases at 85% Resido has been well-received by tenants • As at 16 May, 252 apartments were leased (85% Achieved vs target lease up of the development), with the lease-up 300 performance at the faster end of our 12-18 month lease-up target. 250 200 • The rents being achieved reflect the additi
Slide 19: Resido resident insights
Resido resident insights An average Resido resident: • 36 years of age, a working professional (with 23% working in the healthcare industry). • Has an average weekly income 56% higher than the Auckland average1. • 37% of residents are pet owners (with an almost even split of cats and dogs). • Saves
Slide 20: Land sales at Drury underway
Land sales at Drury underway Land sale progress Sale of 1.2ha of large-format retail land to major NZ supermarket business, Foodstuffs, became unconditional in April 2025. This represents ~5% of the total land intended for sale, with a further ~44% in advanced sale discussions. Residential land sale
Slide 21: FY26 priorities & guidance
FY26 priorities & guidance 21
Slide 22: FY26 priorities and dividend guidance
FY26 priorities and dividend guidance Delivering on priorities will help to drive sustainable growth and create value for shareholders Manage the balance sheet Continue to drive Maintain strong discipline Progress sell-down of Drury and free up additional rent growth on costs large format retail sit
Slide 23: Appendix 1: Financial update
Appendix 1: Financial update 23
Slide 24: Net rental income contribution by property
Net rental income contribution by property 2025 2024 Variance $m $m $m % Sylvia Park shopping centre 64.6 60.6 +4.0 +6.6 ANZ Raranga 4.9 5.1 -0.2 -3.9 Sylvia Park Lifestyle 6.4 5.4 +1.0 +18.0 Geneva House (3 Te Kehu Way) 2.8 1.2 +1.6 +138.3 Resido 1.3 - +1.3 NA Adjoining properties 5.4 5.4 - - Sylvi
Slide 25: AFFO reconciliation to profit/(loss) after income tax
AFFO reconciliation to profit/(loss) after income tax 2025 2024 Variance $m $m $m % 1 Profit/(loss) after income tax 57.0 -2.1 +59.1 +2,814.3 Adjusted for: Net fair value loss on investment properties 11.6 77.8 -66.2 -85.1 Net fair value loss on interest rate derivatives 10.1 4.1 +6.0 +146.3 Loss on
Slide 26: Dividend five-year summary
Dividend five-year summary 2025 2024 2023 2022 2021 Year ended 31 March $m $m $m $m $m Dividend ($m) 86.9 90.5 89.5 87.9 80.8 Payout ratio 93% 90% 77% 88% 90% cps cps cps cps cps Dividend 5.40 5.70 5.70 5.60 5.15 Imputation credits 1.30 1.01 1.13 1.43 1.36 Gross dividend 6.70 6.71 6.83 7.03 6.51 202
Slide 27: Balance sheet
Balance sheet As at 31-Mar-25 31-Mar-24 Movement $m $m $m % Investment properties 3,209.2 3,121.8 +87.4 +2.8 Inventories 89.2 73.5 +15.7 +21.4 Total investment properties and inventories 3,298.4 3,195.3 +103.1 +3.2 Cash 14.4 18.2 -3.8 -20.9 Trade and other receivables 16.3 13.7 +2.6 +19.0 Other asse
Slide 28: Appendix 2: Property update
Appendix 2: Property update 28
Slide 29: Our investment portfolio
Our investment portfolio Sylvia Park shopping centre Geneva House (3 Te Kehu Way) Resido The Base (Sylvia Park precinct) (Sylvia Park precinct) (Sylvia Park precinct) Sylvia Park Lifestyle ANZ Raranga LynnMall Centre Place North (Sylvia Park precinct) (Sylvia Park precinct) Vero Centre ASB North Wha
Slide 30: Investment portfolio summary
Investment portfolio summary 31-Mar-25 31-Mar-24 Mixed-use Office Retail Total Mixed-use Office Retail Total Number of assets 4 3 2 9 4 3 2 9 Value ($m)1 2,165.0 815.5 158.2 3,138.8 2,086.6 816.0 144.2 3,046.8 % of total portfolio by value 66 25 5 95 65 26 5 95 Weighted average capitalisation rates2
Slide 31: Portfolio statistics
Portfolio statistics Adopted value $m Capitalisation rate % NLA sqm Occupancy % WALE years As at 31-Mar-25 31-Mar-24 31-Mar-25 31-Mar-24 31-Mar-25 31-Mar-24 31-Mar-25 31-Mar-24 31-Mar-25 31-Mar-24 Sylvia Park 1,080.0 1,025.0 5.88 5.88 94,240 94,261 99.6 99.4 2.9 3.2 ANZ Raranga 89.4 90.0 6.00 6.00 1
Slide 32: Portfolio statistics (continued)
Portfolio statistics (continued) Adopted value $m Capitalisation rate % NLA sqm Occupancy % WALE years As at 31-Mar-25 31-Mar-24 31-Mar-25 31-Mar-24 31-Mar-25 31-Mar-24 31-Mar-25 31-Mar-24 31-Mar-25 31-Mar-24 Vero Centre1 456.5 458.0 5.88 N/A 39,717 39,697 92.4 100.0 4.7 4.0 ASB North Wharf 212.0 21
Slide 33: Rent reviews and new leasing
Rent reviews and new leasing FY25 rent reviews Mixed-use Office Retail Total Future Rent Review Structure at 31-Mar-25 No. 376 38 95 509 % investment portfolio gross income1 43 13 6 62 Rental movement (%) +3.7 +3.3 +5.0 +3.7 Compound annual growth (%) +3.4 +2.9 +3.9 +3.3 CPI-based 11% FY25 new lease
Slide 34: Lease expiry profile
Lease expiry profile Lease expiry profile % of investment portfolio gross income 40% 30% 30% 20% 13% 13% 13% 11% 10% 9% 10% 0% Vacant or FY26 FY27 FY28 FY29 FY30 FY31+ holdover Key: Mixed-use Office Retail General note: The analysis on this page excludes Resido. 34
Slide 35: Retail sales
Retail sales All centres1 Mixed-use centres2,3 Other centres4 31-Mar-25 31-Mar-24 31-Mar-25 31-Mar-24 31-Mar-25 31-Mar-24 Total sales $2.10 $2.13 $1.76 $1.78 $0.34 $0.35 (billion) Total sales -1.6% 1.8% -1.3% 2.0% -2.9% 0.8% growth Like-for-like -3.2% -0.6% -3.4% -0.9% -2.4% 1.4% sales growth Specia
Slide 36: Retail sales by property and category
Retail sales by property and category Sales by property MAT $m1 % var Sales3 by category MAT $m1 % var. from 31-Mar-24 12 months ended 31-Mar-25 vs 31-Mar-24 12 months ended 31-Mar-25 Total Like-for-like Supermarkets 199.3 8.1% 8.1% Sylvia Park 843.3 -3.4% Department stores and DDS 162.3 -1.8% -1.8%
Slide 37: Glossary
Glossary 37
Slide 38: Glossary
Glossary Adjusted funds from operations Adjusted funds from operations (AFFO) is an alternative non-GAAP performance measure used by Kiwi Property. AFFO is a measure (AFFO) commonly used by real estate entities to describe their underlying and recurring cash flows from operations. Broadly, AFFO adju
Slide 39: Glossary
Glossary Moving annual turnover (MAT) Annual sales on a rolling 12-month basis (including GST). Net operating income (NOI) NOI is an alternative non-GAAP performance measure used by Kiwi Property. NOI is a measure commonly used by real estate entities to describe their operating earnings from invest
Slide 40: Disclaimer
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, offic
Slide 41: Thank you
Thank you 41