The iconic blue walls in the Ikea building in Sylvia Park started being installed in November 2024. Photo: Supplied
One of the country's biggest landlords, Kiwi Property, is back in the black as rental income increased and the downturn in property valuations eased.
Key numbers for the 12 months ended March compared with a year ago:
- Net profit $57m vs $2.1m loss
- Revenue $263.7m vs $244.7m
- Operating profit before tax $116.2m vs $108.2m
- Property valuation loss $11.6m vs $77.8m
- Final dividend 1.35 cents per share vs 1.43 cps
The company, whose portfolio included Auckland's LynnMall, Sylvia Park and Vero Centre, said net rental income rose 5 percent to $194.1 million.
Leaving aside one-offs, operating profit was up 7 percent to $116.2m.
Chief executive Clive Mackenzie said operational cost-cutting led to a 23 percent year-on-year fall in staff and administration expenses.
Recently, Kiwi Property has invested heavily in build-to-rent (BTR) apartments, marked by the opening of the country's biggest build-to-rent development, Resido, at Sylvia Park last year.
However, since opening, the company has faced a "competitive" rental market, with rental supply outpacing demand.
But Kiwi Property said leasing at Resido was faster than expected, with 85 percent leased in under 12 months.
"While still early, initial data from ANZ Research shows that the average Resido resident is spending three times more within the wider Sylvia Park precinct than before they moved into our BTR asset," Mackenzie said.
IKEA to drive retail tourism
In the year ahead, key milestones for Kiwi Property included the upcoming opening of Swedish furniture giant IKEA next to its Sylvia Park centre.
"With the economic downturn easing, premium retail centres like Sylvia Park are poised to accelerate their growth," the company said.
Kiwi Property said IKEA would likely draw visitors from across the country.
"The opening of IKEA next to our centre, scheduled for later in the calendar year, is expected to drive retail tourism and a significant boost in foot traffic for Sylvia Park, attracting new customers from across the country to visit."
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