Kiwi Property has reported another big profit with strong gains in the value of its portfolio and rental income.
A view of planned apartments to be built by Kiwi Property at Sylvia Park in Auckland. Photo: Supplied
"Kiwi Property's financial position and diversified property portfolio have remained resilient, despite the impact of Covid-19," chief executive Clive Mackenzie said.
Key numbers for six months ended 30 September vs year earlier:
- Net profit - $143.2 million vs $54.2m
- Valuation gain - $93.6m vs $9.2m
- Revenue - $122.3m vs $112.2m
- Portfolio - $3.5 billion vs $3.3b
Net rental income rose 11.5 percent, but also included a $7.4m provision for Covid-19 lockdown rental abatements, which was expected to be about the same in the second half.
"We're operating in a challenging market and the full financial impact of recent lockdowns won't be known until the second half of our financial year," Mackenzie said.
"We enter that period in good shape though, well placed to tackle whatever comes next."
The increase in the value of the property portfolio value also contributed to a drop in the debt gearing ratio to 30.7 percent.
The company was continuing work on a number of developments, including a large build-to-rent residential project at Sylvia Park, to be followed by another at Lynn Mall.
"Despite the volatile macro-economic climate, our evolution into a creator of integrated retail, office and residential communities has more momentum than ever," he said.
Kiwi Property will pay an interim dividend of 2.75 cents per share, with no less than 5.3 cents for the full year.