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Kiwi Property half-year profit drops 24% to $36m

Kiwi Property half-year profit drops 24% to $36m

New Zealand’s biggest listed landlord, Kiwi Property Group, has delivered a $36.7m net profit after tax for the latest half-year, down 24 per cent on the previous $48m due to a combination of factors including falling interest rates.

Net rental income fell due to the sale of North City in Porirua, funds from operations fell reflecting the impact of one-off disposals and due to a fair value loss of $12.9m in the value of Kiwi’s interest rate swaps after successive interest rates cuts.

Yet in the half-year to September 30, 2019, Kiwi pushed up revenue from $116m in the 2018 half-year to $117m. Total expenses rose from $59m to $70m driving down pre-tax profit from $59m to $47m. And Kiwi said its total rental growth was 4.6 per cent.

Kiwi chief executive Clive Mackenzie was this month named by the Herald in a power list. He appeared in first place on the NZX listed entities, with a portfolio of around $3.3b. Kiwi’s market capitalisation is around $2.3b.