Revaluations push Kiwi Property Group result up 205%, last year’s net loss now profit

Big property revaluation boosts were responsible for one of New Zealand’s biggest NZX listed landlords enjoying 205 per cent bottom-line boost and last year’s net loss becoming a profit.

Last year, Kiwi Property Group suffered a $289.9m reduction in its property values but this year, that became a $99.8m gain. So net profit after turned around hugely from last year’s $186.7m loss to a $196.5m profit in the year to March 31, 2021.

But revenue fell slightly for one of the largest listed companies on the NZX: Kiwi made $241.4m revenue last year but $232.5m this year

Kiwi’s office assets had a 10.2 per cent fair value gain, while mixed-use was up 1.5 per cent. The company’s property portfolio was valued at $3.3b.

Despite the growth in net profit, the result was adversely impacted by Covid-19. The cost of asset lockdowns and the associated rent relief measures contributed to a 7.1 per cent reduction in net rental income, which decreased to $173.6mfor the year.

Operating profit before tax fell 10.3 per cent to $116.3m.

Clive Mackenzie, chief executive, said: “Like many businesses, Kiwi Property was affected by Covid-19 in the 2021 financial year, with the cost of supporting our tenants, following early lockdowns in particular, causing a drag on operating profit. Despite this, we ended the year in a robust position, with leasing projections and rental abatements tracking better than forecast.”

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