In This Article:
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Net Rental Income: Increased by 7% to $95.3 million.
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Operating Profit Before Tax: Up by 7.7% to $56.4 million.
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Adjusted Funds From Operations: Remained flat at $48.4 million.
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Leasing Spreads: Increased by 4.2% overall, with new leases up by 5.6%.
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Retail Sales: Declined by 1.8%, compared to a national average decline of 3.8%.
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Portfolio Sales: Totaled $2.1 billion for the 12-month period.
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Portfolio Value: Increased by 0.3% or $9.5 million.
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Occupancy Rate: Slightly declined to 98.4% from 99.3%.
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Weighted Average Lease Expiry: Remained stable at 3.8 years.
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Bank Debt Facilities: Increased by $50 million to $1 billion.
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Gearing: Stable at 38%, up from 37% in March 2024.
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Dividend Reinvestment Plan Participation: Increased to 47%, retaining $10.2 million.
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Cash Dividend: Quarterly cash dividend of 1.35 per share, half-year total of 2.7 per share.
Release Date: November 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Kiwi Property Group Ltd (KWIPF) reported a 7% increase in net rental income to $95.3 million, showcasing strong demand and rental growth prospects.
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The company achieved a 4.2% increase in total leasing spreads, with new leases up by 5.6%, indicating strong rental growth.
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Foot traffic at Kiwi Property Group Ltd (KWIPF) centers increased by 1 million visits to 37.3 million, reflecting the attractiveness of their retail destinations.
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The company's investment in MSEE Property provides access to a deep pool of wholesale investors, potentially enhancing earnings growth.
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Kiwi Property Group Ltd (KWIPF) successfully reduced employment and admin expenses by 20%, demonstrating effective cost management.
Negative Points
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Retail sales at Kiwi Property Group Ltd (KWIPF) centers declined by 1.8%, although this was better than the national average decline of 3.8%.
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The office portfolio's valuation declined, primarily influenced by challenges within the sector, particularly at the Vera Center.
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Occupancy slightly decreased from 99.3% to 98.4%, mainly due to the departure of a major tenant at the Vera Center.
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The development cost of the Rosado project exceeded the initial budget by approximately $19 million, or around 9%.
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The current valuation of the Rosado development is below its cost, reflecting challenges in the rental market and rising interest rates.
Q & A Highlights
Q: Regarding the Mazi Property Investment, what are you actually buying with the $6.5 million? Is it a 50% interest in a management contract for $2 billion in assets under management? A: Yes, the investment in Mazi Property is about providing us an additional capital source and the prospect for earnings growth over time. Mazi is a well-established business with a great track record and access to a deep pool of wholesale investors. We believe there's an opportunity for enhanced earnings for Kiwi Property from this relationship.