Kiwi Property Group, the country's biggest listed property investor by market value, reported a 118 percent jump in full-year profit reflecting an increase in its portfolio value, higher rental returns, and lower costs including interest charges.
Net profit rose to $250.8 million in the year ended March 31, from $115M a year earlier, the Auckland-based company said in a statement.
Total come grew 126 percent to $391M and included a 2.3 percent gain in property revenue and a $176M gain in the value of investment properties.
Kiwi lifted its cash dividend to 6.6 cents per share, in line with guidance and up from 6.5 cents a year earlier. It forecast an increase to 6.75 cents for the 2017 year.
The company has been "recycling" its capital, selling assets such as the Hamilton Centre Place South and targeting properties with greater growth potential, such as a 50 percent stake in The Base , which it has agreed to buy for $192.5M in cash and stock, and Westgate Lifestyle, acquired for $82.5M.
"As we look forward to the year ahead, Kiwi Property is well positioned relative to our shareholder goals, says chairman Mark Ford.
"The New Zealand economy continues to grow positively and investment property fundamentals remain supportive, particularly in Auckland."
Rental income from its biggest retail property, Sylvia Park, rose 1 percent to $36.4m, while income from its biggest office property, the Vero Centre, gained 5.2 percent to $20m.
Kiwi's weighted average lease term or WALT, rose to 5.1 years from 4.5 years while the occupancy rate across both retail and office properties increased to 98.7 percent from 98.4 percent.