16 May 2016

Mall property owner valued at $2.67 billion

1:25 pm on 16 May 2016

Kiwi Property, the owner of Auckland's Sylvia Park and Lynn Mall, has more than doubled its full year profit and is now valued at a record $2.67 billion.

The Sylvia Park shopping mall in Auckland

The Sylvia Park shopping mall in Auckland Photo: Supplied

For the year to the end of March the company made an after-tax profit of $250.8 million, up from $115.2 million made in the same period the previous year.

Kiwi Property chief executive Chris Gudgeon said the record profit was driven by a strong operating performance and a significant rise in the value of its portfolio.

"We have seen this year the benefit of our long-term strategic initiatvies, with asset values rising on the back of rental growth, leasing success and development activities, combined with improved market conditions," he said.

It was now valued at $2.67 billion, a 17 percent increase on last year's value thanks to the recent acquisition of Westgate Lifestyle, in West Auckland.

The value of its other building also increased by $175.9m over the year.

Net rental income increased by 0.8 percent to $1.3 million, due to reduced income at The Aurora Centre in Wellington while it was being redeveloped prior to a new 18-year lease with the Government.

Mr Gudgeon said retail sales showed encouraging growth, thanks to strong house prices, low mortgage rates and more migrants moving to New Zealand. Kiwi Property's portfolio retail sales grew by 5.8 percent to $1.36 billion for the 12 months to the end of March.

A final dividend of 3.3 cents a share will be paid, taking the year's total to 6.6 cents per share.

Seperately, Kiwi Property also announced it would only buy half of The Base retail complex in Hamilton, after its bid to buy all of it from Waikato-Tainui was unsuccessful. However, Kiwi said it would have the first right to buy the remaining 50 percent until 2021.