Kiwi Property is in excellent shape, with a high-quality portfolio of retail centres and office buildings, a robust balance sheet and an exceptional team of professionals committed to executing a clear investment strategy. On this page, you can read about the highlights from our 2019 interim result.
Clive joined the Kiwi Property team in July this year. As Chief Executive Officer, he is responsible for the leadership, strategic direction and management of the company. Click here to listen to the audiocast.
In the six months to 30 September 2018, we recorded a net profit after tax of $48.3 million, up from $47.9 million in the prior corresponding period. This is a sound result given the disposal of non-core assets.
Profit after tax is a GAAP measure. Refer to interim result presentation for definitions.
The sale of our non-core assets to strategically rebalance our portfolio has impacted our funds from operations, as we anticipated, along with some portfolio vacancies which we are rapidly addressing in line with our strategy.
FFO is a non-GAAP measure. Refer to interim result presentation for definitions.
Our property portfolio value decreased following the disposal of our non-core asset North City, offset by money spent to bring our development pipeline to life, most notably at Sylvia Park and Northlands.
We currently have $245 million of developments in progress that will continue to add to both the income performance and quality of our property portfolio. These include our Galleria and south carpark and Kmart projects at Sylvia Park. This follows the completion or near completion of $140 million of development projects, including our first ever office building at Sylvia Park and our Langdons Quarter food and entertainment project at Northlands.
We continued to meet our shareholder goals by delivering long-term total returns of 9.3% per annum, in excess of our 9% target. In step with our portfolio rebalancing programme, which has resulted in the divestment of a number of non-core assets, and therefore a reduction in rental income, we recorded a pre-tax funds from operations per share growth of -5.1% for the period, below our 2% target.
FY18 interim cash dividend: 3.425cps
The board has declared an interim cash dividend of 3.475 cents per share for the six months ended 30 September 2018, up from 3.425 cents per share in the prior period. The dividend will be paid on 19 December 2018.
The board continues to project the cash dividend for the year ending 31 March 2019 to be 6.95 cents per share (absent material adverse events or unforeseen circumstances), up from 6.85 cents per share in the prior year.
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