Kiwi Property's Dividend Growth Reliant on Several Factors — Market Talk

About this update from Kiwi Property Group Ltd.

Kiwi Property's forecast dividend of 5.75 New Zealand cents a share in FY 2027 represents growth of 2.7% on the prior year. That rise is line with its long-run goal. Still, Forsyth Barr says continued growth is reliant on a combination of a higher payout ratio, using some of its Drury land sale proceeds and potentially regearing its balance sheet. Kiwi Property does still have a couple of non-core assets that it can sell, Forsyth Barr says. "While divestment of these will be less dilutive than recent asset sales (The Plaza was circa 4% of assets but circa 8% of adjusted funds from operations), meeting growth targets will likely remain front of mind," says analyst Rohan Koreman-Smit. Forsyth Barr has a "neutral" call on Kiwi Property, which is down 2.2%, to NZ$0.91 today. ([email protected]; @dwinningWSJ)

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