Sylvia Park owner posts smaller loss, while rental income falls

Large property investor Kiwi Property has reduced its full-year loss as the value of its investment portfolio fell at a slower pace, while rental income fell following the sale of two shopping centres.

Key numbers for the 12 months ended March compared with a year ago:

• Net loss $2.1m vs $227.7m
• Revenue $244.7m vs $259.1m
• Net rental income $184.9m vs $203.7m
• Operating profit $108.2m vs $129.6m
• Property devaluation $77.8m vs $352.6m
• Full-year dividend 5.7 cents per share

Its net rental income fell 9.2 percent following the sale of Northlands and Westgate malls in Christchurch and Auckland, but when adjusted for the sale of properties, Kiwi Property said rental income rose 5.8 percent on a like-for-like basis.

It said Sylvia Park sales were flat after a sustained period of growth, but remained well-ahead of pre-Covid levels.

Sales at The Base Te Awa and LynnMall improved 13.1 and 1.8 percent respectively, following the opening of new stores.

Kiwi Property continued to progress its mixed-use strategy, with its 295 build-to-rent apartment complex at Sylvia Park nearing completion, with two of the three towers finished.

It said the final building would open next week.

It recently announced the sale of Auckland’s Vero Centre for $458 million, subject to approval from the Overseas Investment Office.

KiwiProperty said it undertook several cost-cutting initiatives during the year, but the results of the measures would not be seen until the 2025 result.

The company expected to see demand for quality rental accommodation, fuelled by record migration and declining building consents.