Kiwi Property Group, the owner of Sylvia Park, has reported a strong full-year result, with operating profit rising on the back of higher rental income and improved occupancy, even as its bottom line declined due to lower property valuations.
For the 12 months ended March 2026, net profit fell to $50.4m from $56.9m a year earlier, while revenue increased to $271.4m from $263.7m. Operating profit before tax rose to $126.2m compared with $116.6m previously. However, the company recorded a larger property valuation loss of $37.8m, up from an $11.6m loss. The final dividend also edged higher, lifting to 1.4 cents per share from 1.35 cents per share.
Kiwi Property Group said the opening of IKEA adjacent to Sylvia Park in December led to a strong lift in activity in the area, with foot traffic rising by nearly 8% over the four months since the opening compared with the same period a year earlier.
The company said net rental income rose 4.3% to $202.4 million, while the company is also awaiting settlement of the $205 million sale of ASB North Wharf at Wynyard Quarter, expected to be completed in late May.
Portfolio occupancy rose to 99%, up from 96.9% in the prior year, while the total portfolio was valued at $3 billion, reflecting a 0.9% fair value decline amid a softer market.
It sold The Plaza shopping centre for $118.9 million during the year.
“Near-term priorities include progressing selective initiatives to further enhance portfolio quality, including completion of Sylvia Park’s southern enhancement project and the Vero Centre upgrade, alongside continued progress at Drury through the staged completion of land sales,” KPG chief executive Clive Mackenzie said.
“We will also continue to carefully manage operating costs and capital expenditure while recycling capital from non-strategic assets where appropriate.”