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Kiwi Property has spent $ 20 million supporting tenants of its shopping centers with rent reductions and postponements due to their loss of business during the Covid-19 shutdowns.
Kiwi Property, a large shopping center owner, has spent nearly $ 20 million on tenant rent relief.
That was revealed in its mid-year result, where it posted a 47 percent increase in profits to $ 54.2 million thanks to an increase in the value of its office properties.
The company is also moving forward with plans for the construction of two office and apartment buildings in the Sylvia Park shopping center.
The $ 20 million rental relief contributed to a 5.3% drop in net rental income to $ 84.9 million during the six months to Sept. 30, 2020.
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* Kiwi Property’s $ 3.2 billion portfolio value stabilizes after falling six months ago.
* Sylvia Park bets on the strength of the middle class as it expands with the Galleria
* The $ 277 million Sylvia Park Galleria will open next month
* The construction of rental apartments is increasingly attractive for Kiwi Property
* Pedestrian traffic in Kiwi Property shopping centers has recovered to pre-Covid levels
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Kiwi Property opened a 20,000 square meter extension at the Sylvia Park shopping center in Auckland, which has an additional 60 local and international retailers.
Kiwi CEO Clive Mackenzie said that by supporting his retailers he retained productive malls. His portfolio was 99.1% rented.
Rental relief costs would be partially offset by the reintroduction of depreciation allowances for commercial buildings, which is expected to increase Kiwi’s full-year after-tax earnings by approximately $ 4.5 million.
Kiwi has a long-term strategy to reduce its dependence on shopping centers by developing additional “mixed-use” buildings and facilities at four of its large shopping centers in Auckland and Hamilton.
Mixed-use properties are Sylvia Park, Sylvia Park Lifestyle, LynnMall, and The Base in Hamilton.
The company is moving forward with the strategy, announcing that the second office building in Sylvia Park had resource consent and that design was progressing for the 15-story development.
A third office development, a smaller six-story office and medical building in Sylvia Park, as well as a built-to-rent residential development in Sylvia Park were also being planned, Mackenzie said.
Kiwi office properties have been the most resistant to the economic impact of Covid. They increased in value in the semester by 4.3 percent to $ 950 million.
However, its mixed-use properties and retail properties declined in value, nearly 1 percent to $ 1.55 billion for mixed-use, and 3.3 percent to $ 469 million for its shopping centers.
His total portfolio was worth $ 3.2 billion as of September 30, 2020.
“While the uncertainty caused by Covid-19 continues to affect property values, it is encouraging to see a firmness in capitalization rates and an overall stabilization of asset prices across our portfolio,” Mackenzie said.
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Kiwi Property has put The Plaza shopping center in Palmerston North up for sale. Proceeds from the sale will be used to promote its mixed-use developments.
Kiwi has put The Plaza shopping center in Palmerston North up for sale. The funds will be used for your mixed-use developments. It was valued at $ 170 million on his books as of March 31, 2020.
Dividends for shareholders were restored, reflecting a stabilization in trading.
The semi-annual dividend would be 2.2 cents per share to be paid on December 18. It had been set at 95 percent of adjusted funds from operations. For the full year, the company expected adjusted funds from operations to be 4.9c to 5.15 cents per share.
Last month, Kiwi inaugurated the 20,000-square-meter Sylvia Park Level 1 expansion, which cost $ 277 million. The expansion features around 60 local and international brands, including a two-level Farmers flagship store and ‘The Terrace at Sylvia Park’ food court.
Sylvia Park now has more than 250 stores and more than 5,000 free parking lots, the most of any mall in the country.
