Leaf through NZX Player Kiwi Property Group’s latest updates

Summary

  • Shares of Kiwi Property Group have surged by 30% in the past 3 months and closed at $1.3 on 13 November, down by 1.14% from the previous close.
  • Recently, Kiwi Property Group provided valuation, also, its independent valuation update includes a fair value gain of $9.2 million across its mixed-use, retail and office assets. 
  • The Group unveiled $277 million Sylvia Park Level 1 in October end showcasing more than 50 groundbreaking new local and international shops.

Kiwi Property Group Limited (NZX:KPG) is one of the largest NZX listed property companies, which owns as well as manage a significant real estate portfolio comprising of NZ's best mixed-use, retail and office buildings.

Shares of Kiwi Property have given 30% return in the past 3 months. On 13 November, Kiwi Property Group last traded at $1.3, down by 1.56% from its last close.

As of 30 September 2020, KPG's property portfolio was valued at $3.2 billion.

As per the Company’s update dated 28 October, it declared the result of its independent property valuation that included a fair value gain of $9.2 million across its retail, mixed-use and office assets.

 

Kiwi Property Group’s Portfolio valuation

As of 28 October 2020, the investment portfolio capitalisation rate of Kiwi Property stood at 6% after the most recent valuations, solidifying by 11 basis points since 31 March 2020.

Let's have a look at Kiwi Property Group's 3 portfolios.

  1. Mixed-use portfolio

The Company’s mixed-use portfolio consists of Sylvia Park Lifestyle, Sylvia Park, The Base and LynnMall. KPG's mixed-use portfolio witnessed a drop of 0.9% or $13.5 million in its fair value to $1551 million due to majorly quaky strengthening costs.

The weighted average capitalisation rate of the portfolio strengthened to 5.83% even after the decline, up by 4 bps on the previous period. 

  1. Office Portfolio

The Company's office portfolio again proved to be the most robust of its asset classes, growing to $950 million, with a 4.3% or $38.9 million valuation uplift.

Capitalisation rates flattened between 12.5 and 25 basis points for each of Kiwi Property Group's 4 office properties (Vero Center, ASB North Wharf, The Aurora Centre and 44 The Terrace). The weighted average capitalisation rate also firmed by 19 basis points to 5.27%. 

  1. Retail portfolio

The valuation of the retail portfolio of the Kiwi Property Group decreased to $469 million, down by 3.3% or $16.2 million, with seismic upgrade working again as the key catalyst. Positively, the portfolio's capitalisation values have stiffened 6 basis points to 8.05%.

Independent valuers have calculated the valuations and are subject to scrutiny by auditors, PWC. The valuation would be confirmed in the interim financial statements of the organisation for 6 months ended 30 September 2020.

 

Sylvia Park unlocks its new Level 1 expansion

Kiwi Property Group opened Sylvia Park Level 1 worth $277 million expansion in mid-October, highlighting above 50 exciting new local and international stores. Level 1 would open with all retail space dedicated, marking a significant landmark for the retail industry in New Zealand, following the struggles of COVID-19.

The powerful opening highlights the strength of Sylvia Park and the impact of the continuing confidence of the retailer's in the shopping centre.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)

 

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