Kiwi Property Group’s net profit dropped by 77%, with an unrealised fair value loss of $30.3 million, compared to a gain recorded in the previous year.
For the six months ended in September compared with the previous year, key figures included a net profit of $9.8 million versus $43.2 million, revenue of $136.7 million up from $128.4 million, and rental revenue increasing to $102.7 million from $95.3 million.
Underlying profit rose to $62.9 million from $56.4 million, while expenses grew slightly from $43.8 million to $45.7 million. Net tangible assets per share decreased to $1.12 from $1.17.
Kiwi Property’s flagship build-to-rent (BTR) project, Resido at Sylvia Park, achieved 99% occupancy.
According to chief executive Clive Mackenzie, the “result validates the product offering and the attractiveness of well-located, amenity-rich rental accommodation.”
“As we look to the remainder of FY26 and beyond, Kiwi Property is well positioned to benefit from improving economic conditions and the continued execution of our strategy.”
ASB North Wharf, developed by Kiwi Property for the blue-chip tenant ASB Bank, has secured a lease extension through 2040, while the Vero Centre, which was unsuccessfully marketed for sale earlier this year, maintains a 94.3% occupancy rate.
“We are excited about the opportunities ahead, including the opening of IKEA at Sylvia Park in early December, further progress at Drury, and continued improvement in operating conditions for our assets,” Mackenzie said.
“Despite a weak economy and a challenging leasing market during HY26, we have delivered strong leasing outcomes across the portfolio.”
Total rental growth, driven by new leases and rent reviews, increased by over 3.5%, while office leasing spreads grew by 3.4%.
“These results underscore the enduring appeal of our assets and the effectiveness of our leasing strategy in subdued market conditions.”
Mackenzie said the company is prioritising making its centres and office properties the preferred locations for tenants in order to maximise rental growth.