Kiwi Property Group has lifted its interim dividend 1.5% to 3.3c a share after delivering what chief executive Chris Gudgeon called an ''excellent'' financial result.
The company, which has significant investments in Auckland, reported an operating profit of $51.6million for the six months ended September, up 22.6% on the $42.1million reported in the previous corresponding period (pcp).
Reported profit soared more than 50% to $36million from $23.8million in the pcp but net rental income fell slightly to $76.3million from $77million.
Property assets grew to $2.4billion from $2.3billion and shareholders' funds grew to $1.53billion from $1.4billion.
Mr Gudgeon said the company had successfully advanced investments in attractive Auckland retail assets and core government office accommodation in Wellington.
Key highlights in the period included the acquisition of a large-format retail centre under development in Auckland's northwest, the completion of a dining and entertainment expansion at LynnMall, signing fashion retailer H&M to open its first store in New Zealand at Sylvia Park and advancing the 25,000sq m government accommodation project in Wellington.
To assist with funding future investment and development, including the potential expansion of Silvia Park, KPG successfully completed a one-for-nine entitlement offer in June, raising $148.1million.
The proceeds were applied to reduce bank debt, which had led to substantial interest-expense savings during the period, he said.
The balance of the 2016 financial year promised to be another busy period for KPG as it executed its present development activities, advanced its plans to develop Sylvia Park into a world-class retail centre and sought opportunities to create further investment value for shareholders.
''From a property market perspective, we expect retail sales to grow at least in line with GDP, while underlying demand matched with limited short-term supply will be positive for the Auckland office market.''
In Wellington, the company's focus was on securing long-term government leases on its core office assets, Mr Gudgeon said.
