An ongoing ability to connect with customers on a social level has been hailed as one of the reasons for Kiwi Property’s impressive financial growth for the last year. The report shows a record $1.8 billion in retail sales across the portfolio.
Profit after tax for the full year ending March 2018 is $120.1 million, while the property portfolio value went up from last year, and now sits at $3.1 billion.
Net profit is down from the year before (by $22.9 million), due to lower revaluation gains on its property portfolio and the absence of fair value gains on interest rate derivatives, says the report.
Kiwi Property, owners of some of our largest centres, has $370 million worth of developments in progress. This includes its office tower, central carpark and Galleria and south carpark projects at Sylvia Park, and the Langdons Quarter foodcourt redevelopment at Northlands.
According to the report, the demand for tenancy within the groups shopping centres far surpass what they can give out. The occupancy rate for the portfolio is at 99.7 percent, with continued demand from both domestic and international retailers.
The report is a positive look into the groups predictions for retail.
“The outlook for New Zealand’s retail sector remains robust,” says the report.
“After more than a decade of competition from online sales, we can now say with confidence that the retail sector has room for both online sales and brick and mortar retail. With the latter’s ability to connect people socially becoming an increasingly important differentiator.”
The report highlights the groups impressive numbers, which includes 964 tenants across its nine retail centres. Its $2.1 billion value and $1.8 billion in retail sales can be attributed to its upwards of 50 million visitors a year.
Retail accounts for 68 percent of the groups portfolio, with retail income up 5.8 percent to the previous year.
The report says that for the next financial year, progress will continue across Sylvia Park’s up and coming Galleria, along with other upgrades on the site. The group also plans to open its Langdons Quarter at Northlands in November this year and settle the sale of North City which it sold for $100 million.
Retail wise, the group says it will, “use the customer data we are collecting to further connect with our customers.” While also continuing the leasing programme for the Galleria development at Sylvia Park.
Kiwi Property this year have also realised its sustainability report, which compares current savings to its base year in 2012. Highlights include energy consumption reduced by 4,480,000 kWh, 310 tonnes of waste consumption diverted from landfill and water consumption reduced by 23.3 million litres.
Kiwi Property also has plans to roll out New Zealand’s largest combined solar installations across at least four of its centres with an agreement with Meridian Energy.
In the past six years Kiwi Property has managed to reduce its carbon footprint by 40 percent.