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“We are well positioned to meet our 12 to 18 month rental target,” an investor presentation said, noting the average age of residents was 34, 48% had an income above the Auckland average and 31% of them had a pet, because allowing animals was part of Resido’s draw.

Kiwi’s new city center in south Auckland Drury East progressed and the earthworks were now completed. Kiwi plans to “carry out the Drury sell-off of large format retail sites”, in the first phase of what is expected to include other adjacent developments that will deliver a new town center equivalent to the size of Napier.

As one of the largest listed real estate companies on the stock exchange, the company says today’s result has reinforced its belief in its strategy of curating and creating mixed-use retail-led properties.

That accelerated as challenging recent macroeconomic conditions began to ease, the report said.

On June 11, Prime Minister Christopher Luxon and Housing Minister Chris Bishop spoke opened the 295-unit Resido Apartments next to Sylvia Park.

At the time, Kiwi had leased just 17% of the complex and was measuring occupancy before committing to developing apartments in the New Lynn shopping center. Lynn Mall.

Resido apartments started at $625/week for a 430 sq ft studio, up to $1,235/week for a 111 sq ft unit with three bedrooms and two bathrooms.

Today, Kiwi chairman Simon Shakesheff described the half-year result as pleasing given the current economic climate.

“The resilience of Kiwi Property’s assets is evidenced by solid net rental income growth of 7% over the half year.”

CEO Clive Mackenzie said the results gave the company greater confidence in its strategy.

“Important, like the interest rate cycle is starting to subside and downward pressure is easing, we are also seeing a stabilization in Kiwi Property asset valuations, which is reflected in the 1H25 results.”

It posted a fair value gain of 0.3% as of March 31 and net tangible assets were flat at $1.17 per share.

This month, the company acquired Mackersy Property via a $6.5 million convertible loan.

Upon conversion, Kiwi’s investment will result in a 50% equity stake.

Mackersy has more than $2 billion of properties under management and specializes in sourcing, financing and managing properties for wholesale investors across New Zealand.

Kiwi’s gearing is 38%, which is lower than the covenant gearing (debt/equity) ratio of 50%. A ratio below 50% is generally not considered a cause for concern.

The company plans to sell land and a completed building to Ikea in that Scandinavian retailer’s New Zealand debut alongside Sylvia Park.

It was said that Sylvia Park had proven to be the best evidence of Kiwi Property retail-led mixed-use strategy.

That strategy emphasized the benefits of a long-term approach, starting with strategic land holdings near transportation and population growth nodes, and adding quality retail, housing, offices and amenities to the community, the company said today.

Drury East was expected to have transport links to the new Drury Central Railway Station next year, as well as housing and major retail to help catalyze the community’s growth, the company said.

In May, Kiwi said it planned to sell its Vero Center to a Hong Kong company for $458 million, but the deal never went through.

Kiwi shares have recently traded around 96c, up 14% year-on-year.

Anna Gibson is the Herald‘s real estate editor for 24 years, wrote books and covered real estate extensively here and abroad.