Kiwi Property Group Limited (KPG) Earnings Call Transcript & Summary

Good morning, everyone, and welcome to the 2026 Annual Meeting of shareholders for Kiwi Property. I'm pleased to welcome you all today, whether you're joining us here in person or online via the virtual meeting platform. My name is Simon Shakesheff. I'm the Chair of Kiwi Property. It's my pleasure to open today's meeting. I can confirm that a quorum is present, and I now declare the meeting open. Before we start proceedings, I'd like to cover off on a few housekeeping matters. Firstly, please switch your mobile phone to silent. Restrooms are in the landing area near the rear entrance to the room. If a fire alarm goes off, please follow the venue staff in orderly fashion down the stairs and congregate in the car park at the front of the building. If you're joining us online and need assistance, please refer to the virtual meeting portal guide or call the helpline on 0800-200-220. And with that, we'll get things underway. I'll start -- I want to start today's meeting by introducing my colleagues on the Board, and so I'll ask them to raise their hands. Chris Aiken. Chris is an Auckland-based professional director who joined our Board in June 2021. He has significant property experience spanning both public and private sectors, and Chris is a member of our People and Culture Committee and our Investment Committee. Peter Alexander. Peter is an Auckland-based professional director who joined our Board in May 2023 and stands for reelection today. He has extensive property experience and has held executive roles at several large listed New Zealand companies. Peter is the Chair of our Investment Committee and a member of our People and Culture Committee. Michele Embling. Michele is an Auckland-based professional director who joined our Board in May 2025. She has extensive leadership and governance experience across the public and private sectors, including the insurance, energy and financial industries in New Zealand and Australia. Michele is the Chair of our Audit, Risk and Sustainability Committee. Carlie Eve. Carlie is an Auckland-based professional director. She joined our Board in May 2023 following a successful finance and funds management career. She also stands for reelection today. Carlie is a member of our Audit, Risk and Sustainability Committee and our Investment Committee. And Kevin Kenrick. Kevin is an Auckland-based professional director who joined our Board in May 2024. He's currently a Director of BNZ and the former CEO of TVNZ and House of Travel. He has significant experience leading the strategic transformation of prominent businesses across multiple sectors from travel to media. Kevin is the Chair of our People and Culture Committee. In accordance with the NZX listing rules, the Board has determined that all directors are independent. The Notice of Meeting contains further information on director independence. Also joining us today are Clive MacKenzie, our Chief Executive Officer; and Tiniya du Plessis, our Interim Chief Financial Officer. I warmly welcome the team from our registrar, MUFG Pension and Market Services. They will help to conduct the voting on the formal business later in the meeting and act as scrutineer. Finally, I'd like to welcome Andrew Boivin and Josh Burgess from Deloitte down the front here, our group's auditor for the 2026 financial year. So I'll start with a brief address and then invite Clive to provide an update on the company's financial performance for the year ended 31st of March 2026 or FY '26. After these presentations, we'll then take questions and conduct the formal business for today, being resolutions to reelect myself to the Board, reelect Peter to the Board, reelect Carlie to the Board and fix the auditor's remuneration. Shareholders present at today's meeting can ask questions and can those participating through the virtual meeting website. If you're online, you may submit a question at any time by clicking on the ask a question box at the top or the bottom of the online portal as shown here. We'll answer general questions after the business update and performance overview and then specific questions relating to each resolution before voting on them. I encourage shareholders who are attending online to send their questions through as soon as possible. This will allow us to answer these questions at the appropriate point in the meeting. As this is a shareholders meeting, only shareholders or appointed proxies can ask a question. So you'll be prompted to input your shareholder or proxy number before completing the online process. Moving now to my remarks. Reflecting on the 2026 financial year, we saw improvement across both the retail and office sectors as well as the transaction environment. The retail sales environment strengthened through the year, supporting improved trading outcomes across the sector. Office conditions remain competitive, but we saw good leasing demand for quality assets and delivered strong leasing results during the year. Transaction activity also resumed during FY '26, which supported our ability to capital recycle. In recent months, conditions have become more complex with a more uncertain environment emerging. The war in the Middle East has impacted market volatility globally and emerging cost pressures from fuel supply disruption have increased uncertainty across the operating environment. Against that backdrop, Kiwi Property's portfolio remains resilient, supported by quality assets with high occupancy which positions us well as we move into FY '27. Over recent years, we've delivered against our strategic priorities, strengthened our balance sheet, sharpened our portfolio and demonstrated the resilience of our retail-led portfolio through a challenging economic environment. And as the business has matured, we saw an opportunity to simplify how we articulate our strategy. Our strategy remains consistent, but we've refined how we describe it, bringing greater clarity, focus and consistency to what already drives performance at Kiwi Property. Our purpose to create places where people connect and thrive reflects the role our assets play in people's lives. Our ambition is to be New Zealand's leading creator of retail-led destinations, delivering superior experiences and returns. This refinement more clearly expresses what we do and why it matters and specifically highlights our aspirations for our investors. Our long-term strategic pillars are enduring and describe the fundamental drivers of value at Kiwi Property, which is supported by annual goals and priorities. The 4 pillars are: assets, we own and operate a portfolio of the best retail-led mixed-use assets in the best locations; capital, we actively manage the balance sheet and allocate capital with discipline to fund growth and deliver superior returns; customer, we deliver compelling experiences that meet the evolving needs of customers and tenants; and capability, we operate a high-performing organization with the people and systems to deliver consistently and adapt with confidence. By maintaining focus on these 4 strategic pillars, we believe we will drive value for shareholders over time. Our program of recycling nonstrategic assets frees up capital for reinvestment as it intended to enhance overall portfolio quality and performance over time, aligned to our capital allocation framework. In FY '26, we agreed to the sale of 2 property assets that were no longer core to our retail-led strategy. The Plaza was sold for $118.9 million and settled in December 2025, and ASP North Wharf was sold for $205 million with settlement occurring in May 2026. Both assets performed strongly for Kiwi Property over time. The Plaza delivered an internal rate of return or IRR from inception of 11.4% per annum, and ASB North Wharf delivered an IRR from inception of 10.1%. Following these transactions, pro forma gearing reduces to 33.3%, 74% of Kiwi Property's total portfolio by value will be retail-led mixed-use with high-quality retail as the primary use. We'll also be more concentrated in our preferred locations with 95% of the total portfolio by value located in Auckland and Hamilton. Our focus is on growth areas such as these that are expected to have higher longer-term population growth versus the wider New Zealand population. Overall, these sales are consistent with our strategy, sharpening portfolio quality, recycling capital and reinforcing our focus on high-quality retail-led destinations in the best locations. With asset sales providing capital for reinvestment, we've commenced several targeted projects across the portfolio that support long-term growth by enhancing tenant mix, customer experience and asset quality. Two of these projects are at Sylvia Park. First is an Asian supermarket at the northern end of the center, which responds to a growing Asian catchment. We're also underway with Sylvia Park's Southern enhancement. This includes an extension to the existing Kmart tenancy and a new customer respite experience including new and reconfigured food offerings opening directly onto a green space. At Vero Centre, we're providing a comprehensive refresh of shared spaces to enhance amenity, functionality and tenant experience. We continue to explore further development opportunities, including expanding retail space on the upper level at the base. Our build-to-rent apartment building at Sylvia Park, Resido, continues to move towards stabilization with strong occupancy outcomes despite soft apartment leasing conditions and increased supply. In March 2026, 98% of units were leased. Since September last year, Resido has maintained at least 97% of units leased. High-quality assets have continued to demonstrate resilience with new competing supply, having no material impact on Resido's occupancy to date. Proximity to Sylvia Park is a key demand driver supporting both retention and demand with residents naming access to Sylvia Park as the standout benefit. Our large landholding at Drury will be a significant retail-led development in the future. Development works continue to progress through the year with Stage 1 civil and infrastructure works now well underway. Current works include the construction of key roads, installation of drainage and provision of utility services across the site. Completing this infrastructure is a key step to creating individual sections and enabling titles to be issued for the purchases of large-format retail or LFR land. We remain focused on capital discipline, settlement of contracted sales and staged delivery. A major milestone was achieved with a fast-track project approval granted for Stage 2 in November last year under the government's Fast-track Approvals Act 2025. That approval increases the consented developable area to around 140,000 square meters, providing additional scale and flexibility as the project advances. We've made strong progress in selling LFR land at Drury with 3 conditional and 1 unconditional sale and purchase agreements entered into during FY '26. Importantly, these Drury land sales are expected to help fund the project's capital expenditure with minimal net gearing impact anticipated for Kiwi Property's balance sheet. Across these agreements, the LFR land sales have been agreed at an average price of $1,080 per square meter for a total selling price of $115 million. These transactions mean 77% of the land intended for sale for LFR purposes is now under contract, which derisks the project in a meaningful way. Remaining sale conditions largely relate to completing agreed development works to enable the transfer of titles, which links directly to the civil and infrastructure progress I mentioned on the prior slide. Settlement timing is expected to occur across FY '27 to FY '29, consistent with the sequencing of the development works and issuance of titles. And I'll now hand over to Clive to discuss our FY '26 performance in more detail.

Thank you, Simon, and [Foreign Language], everyone. It's great to connect with our shareholders face-to-face, and thank you for joining us today. And to everyone viewing this event online, we appreciate you logging on. As Simon mentioned, Kiwi Property delivered strong operating results in FY '26 with our retail-led mixed-use assets, in particular, performing well. Let's take a look at some of our key financial and operational highlights over the year. As demonstrated on this slide, the operating performance of our assets supported robust earnings growth in FY '26, with improvement in all 5 of these key growth metrics when compared to FY '25. There were 36.7 million visits to our centers, up 3% with $1.9 billion of sales across the centers, representing an increase of 1.6% on FY '25. Our occupancy across the total portfolio has risen to 99%, up from 96.9% last year. We continue to deliver rental growth with a 4.5% rent growth across the total portfolio. Importantly, this operating momentum flowed through to earnings with adjusted funds from operations, or AFFO, of $100.2 million, an increase of 8% on the previous financial year. On a per share basis, AFFO was $0.0611 per share, up 5%. Kiwi Property delivered strong growth in key profit metrics during FY '26. Net rental income was up 4.3% to $202.4 million, reflecting strong leasing performance across the portfolio. Operating profit before tax increased by 8.6% to $126.2 million. And as noted on the previous slide, AFFO increased by 8% to $100.2 million. Together, these results show that the operating momentum we delivered through the year translated into stronger earnings. They also reflected our focus on disciplined asset management, leasing execution and cost control. Net profit after tax was $50.4 million, which was 11.5% lower than the prior year due to fair value movement on assets. We're pleased to have continued to maximize the day-to-day operational performance of our assets during FY '26. Our leasing team have achieved significant rental growth both from new leases, which were up 6.3% and rent reviews on existing leases, which saw 4% growth. Total rental growth was 4.5% across new leases and existing rent reviews for FY '26. The retail-led mixed-use portfolio performed well with a 6.6% uplift in leasing spreads for new leases and renewals. This was led by the base, up 10.5% and Sylvia Park up 7%, underscoring strong tenant demand at these high-performing centers. There was also strong leasing spreads at our office assets, which were up 13.4%, driven by leasing outcomes at the Vero Centre. In addition to delivering strong rental growth outcomes, we also maintained disciplined control over operating costs with a sustained focus on efficiency across the business. After normalizing for one-off costs, employment and administration expenses were down $900,000 or 3.6% versus FY '25. The key one-off items were adjusted for included costs associated with the ASB North Wharf lease extension and other one-off transaction items. This cost discipline support an improvement in our management expense ratio with this ratio improving by 5 basis points year-on-year. Sustainability remains an important focus for Kiwi Property, and we continue to lift the sustainability performance of our assets through targeted initiatives. During the year, 2 of our office assets delivered improved Neighbor's NZ energy ratings. For its first certification, Geneva House achieved a 5.5 star energy rating while the Aurora Centre and Wellington improved its performance, increasing from 5 star to 5.5 star rating. At the Vero Centre, we delivered a 29% reduction in gas consumption following targeted investment to phase our gas usage from the base build. Looking ahead, Neighbor's NZ energy rating for shopping centers rating tool is expected to launch in New Zealand in late 2026. Sylvia Park Shopping Center will participate in the pilot, creating the potential to add it to our green asset base over time. Looking ahead, we have a clear set of FY '27 focus areas designed to drive sustainable growth and create value for you, our shareholders. First, we'll refine and grow our high-quality retail-led portfolio progressing opportunities that strengthen portfolio quality and earnings resilience. Second, we'll maintain balance sheet flexibility and deploy capital with discipline, staying anchored on our capital allocation framework. Third, we'll aim to win on customer experience to sustain leasing momentum, building on strong leasing outcomes delivered in FY '26. And fourth, we'll seek to lift operating performance through an efficient and high-performing team with continued focus on cost control, productivity and execution. These focus areas linked directly back to our 4 strategic pillars of our refined strategy that Simon mentioned earlier in the presentation, giving a clear line of sight between strategy, priorities and delivery in FY '27. With that, I'll now hand back to Simon. Thank you.

Thank you, Clive. With the majority of our portfolio income subject to fixed or CPI-based rent reviews, Kiwi Property has a solid platform for future rental growth. As a business, our goal is to deliver sustainable earnings growth, and we target 3% average annual dividend growth over time. For FY '27, we're guiding to a full year dividend of $0.0575 per share. This represents 2.7% growth on the prior year and average annual growth of 3.2% over FY '26 and '27. We're very conscious of the current period of global economic volatility and will adopt a highly disciplined approach to the operation of our business in FY '27, delivering on strategy, driving asset performance and strictly managing our balance sheet. This will put Kiwi Property in the best position to deliver sustainable earnings and dividend growth for our shareholders. Now before moving to the formal business of the day, we will happily answer questions. We ask that you limit your questions to the company's activities at this time. You'll be able to ask questions about the formal business shortly. As this is a shareholders meeting, only shareholders or appointed proxies can ask a question or vote. When I call for questions, can shareholders present in the room, please wait until a microphone is provided to you and then clearly state your name before asking the question. I'll take questions from those present in the meeting before moving on to questions from shareholders online. Are there any questions from shareholders here in the room?

My name is Richard [indiscernible], I'm a shareholder, through my company, [indiscernible] Investments. Something that's always intrigued me. In 2015, the company internalized its contract, buying it off the Commonwealth Bank of Australia. Up until then, I could always understand why we had a Chairman from Australia. So with all due respect to you, I wonder why this tradition has continued. The company is called Kiwi. We have no interest at all in Australia, and I would like to hear from other members of the Board, why they continue to support an Australian-based Director as Chairman. Thank you.

Thanks, Richard. That's an excellent question. And just to put that into context, in that time frame, there have been 2 chairs of Kiwi Property, previously, Mark Ford, who was the chair at the time who is an Australian-based Director. I joined the Board in 2019 and took over as the chair from Mark Ford in 2024, I think. I'm the longest-standing director on the Board here. In terms of my background, and then I will subsequently ask a couple of the directors to comment. In terms of my background, I think I bring a slightly different perspective to Kiwi. The listed real estate market in Australia is bigger and deeper and has a broader pool of investors and a broader pool of businesses. And a lot of our retail tenants, for instance, are operating in Australia and are essentially operating in New Zealand as well as another offshoot of their business. I think I bring quite a lot of personal experience in the listed real estate market and a different perspective as a non Auckland-based director. I am the only non-New Zealand Director on our Board. But it's a valid question. So I might just ask a couple of the directors. I don't know if anyone wants to feel that they can answer that.

Sure. I'm Kevin. I mean, there's a number -- I mean, I don't think we are atypical. So Kiwi Property, like any other kiwi business. I think what you're going to recognize is that New Zealand is a very small country at the bottom of the world, and yet we have to compete with global competitors, and we have to compete with others in terms of sources of capital and in terms of learning and insight. So I think the worst thing that we could do is actually just hunker down and focus on New Zealand and assume that we've got all the answers based on these 2 islands. So from a Board perspective, we see enormous value in having Simon's experience from a larger market, which is adjacent and therefore, very relevant, but it also broadens the thinking beyond what we might have if we only just focus on New Zealand, which would make us a bit weaker in terms of our governance.

Thanks, Kevin. And Richard, I'd also highlight there's absolutely nothing our constitution or anything that says that either we have to have an Australian-based director or that the chair has to be Australian. So I think when my time is up, I will leave it to the other members of the Board to decide whether I should be replaced by another Australian-based director or a New Zealand Director and indeed, whether the next incoming chair should be New Zealand-based or Australian based. But thank you for the question. Other questions?

Barbara [indiscernible], shareholder and also the proxy for New Zealand Shareholders Association. I have 2 questions. The first one, and thanks for highlighting some of the areas of strength in the presentations. One that I noticed wasn't mentioned anywhere was LynnMall. And I'm wondering why it's not mentioned and what role does it have in the portfolio?

Thank you, Barbara. That's again another good question. Interestingly, the Board and myself at the end of this meeting are going off to LynnMall to do a walk of the asset and to have a presentation on how LynnMall is traveling and what the next opportunities that the asset might be. We think LynnMall has been a part of the Kiwi portfolio since, I think, 2012. We regard it as one of our key assets. It's strategically located in the West Auckland in the corridor with a couple of pretty strong competitors around it. But it is an asset that we regard as core to our portfolio. It continues to perform well for us. We just today will be considering some options for where we next to take that asset. So it remains a core part of our portfolio.

On the internal rate of return for that place compared to the others you've mentioned today?

I'm going to ask Clive, I don't know off the top of my head if we know that. I would just comment, one of the issues with LynnMall in terms of -- since we have acquired it, is the seismic challenges at LynnMall have been not insignificant. So if you compare the returns to LynnMall relative to the base or to Sylvia Park, it's not as good. And part of the reason is we have to spend -- had to spend quite a lot on the seismic upgrading of that asset, and we still have a fair bit to go. So the valuation currently includes provisions against future spend on seismic which unfortunately is a little bit out of our control, but nonetheless, we have to continue to do that. I don't know, Clive, do you know off the top of your head what the number is?

I think it's in that 8% to 10% range on IRR, yes. But highlighting the issues around seismic and the contingencies we have for seismic. And obviously, the legislation, which is up for review at the moment and the government, that's busy working through Parliament at the moment may change the requirements for seismic strengthening with the Auckland region, which may have a positive benefit for that asset.

My second question, we started the meeting by saying that we're driving growth over time. And I guess I look at the net tangible asset of the share. Look at the share price. I'm wondering what time frame you've got in mind?

Well, I'll answer that in 2 ways. Firstly, I would say I think your reference to the net tangible asset backing of the shares is very relevant. We're obviously trading at a discount to the net tangible asset, fairly meaningful discount. I can't say that any of us are happy that, that is the case. But I would also say we can't really control the share price. All we can do is hope to run the business as best as we can and hope that the market reflects -- market pricing reflects the outlook and the performance of the business. When you look at the New Zealand listed real estate investment trust market and indeed in Australia, for the last half a dozen years, rising interest rates have impacted performance in share price sense and also cost of borrowings across that entire group. Over the last 5 years, for instance, we are the highest performing New Zealand real estate investment trust amongst the peer group. But I would also say we're not happy that the discount to NTA is where it is. And the second part of that question, in terms of performance, I suppose as the Board, we have to take a mindset that we are looking both short, medium and long term. When we look at individual investment decisions, we have to bear in mind what's the short-term impact. In the last 12 months, for instance, we took the decision to sell 2 assets that were noncore to our portfolio, being the Plaza and the ASB center. Both of those were, let's call it, painful in terms of they were dilutionary to earnings. But our view was that from a medium- to longer-term perspective, the portfolio would be better redeploying the capital elsewhere. So I think it's fair to say we're very focused on the dividend. Over the last couple of years, we've explicitly outlined our desire to grow dividends at 3% per annum, which is what we're striving for. But we also have to look at the longer-term outlook for performance of assets and where we think the business will be over time. Other questions from the room? Well, we'll go to online questions. And if anyone in the room has another question after we've done the online ones, we're happy to do that. So a question, how do shared space rental income at Vero Centre compared with same floor space rental income from a single corporate tenant? And has Vero now confirmed as part of the long-term office portfolio after being moved last year from being held for sale? So I'll ask Clive to answer the first part of that question, and I will answer the second. Clive.

Sure. We don't actually have any co-working tenants in Vero. But to sort of talk to a single large tenant, obviously, we had Belgali that had a number of floors at the asset, and they departed a couple of years ago. We've backfilled all that space, and we haven't put in a single tenant. We've had multiple tenants over that space, and we've actually ended up with better rental returns as a result of cutting up that space from 1 single tenant.

And the second part of the question, is it confirmed as part of the long-term office portfolio. So we're currently spending $14 million -- or sorry, $12 million. The cost of the refurb came in less than our budget. But we're spending $12 million on upgrading the lifts, the common areas and the lobbies at Vero, and that's to ensure that the asset remains a high-quality asset in a market that's office market that's changing a bit in terms of potential new supply coming through. Vero has been a really strong performer for us over time. We think it will continue to be a strong performer. We have no current plans for sale of the asset. I would highlight, though, as per the start of our discussion, our focus really is on retail-led mixed-use assets. And in the long run, if we find appropriate investments, that's where we feel that we can add best value. So Sylvia Park, for instance, is the flagship of our portfolio. And if we can continue to develop and expand in both Sylvia and other assets like that, that's in the long run, that's the direction of where we are going. Do we have other questions? What was the change in fair asset value that affected net profit so much? So we had a net fair value reduction of about $38 million. That's an unrealized valuation change. So -- and then we had a $13 million impairment of inventories. The biggest driver of that was a write-down in the value of our office portfolio. The net fair value is a function of external valuers telling us what they feel that our portfolio is worth. Every year, we make an adjustment through the income statement to write up or write down the value of the portfolio in line with what the valuer says. It does not have an impact on cash flow. It is purely an asset value measure. But the biggest impact in the last 12 months has been some decline in value of the office portfolio. Generally speaking, really since COVID and since interest rates have risen from 0 to plus numbers, asset values, in general, have been flat to mildly down over that time frame as the capitalization rates on which the assets are value tends to move upwards in a rising rate environment. Next question. Do we have any more? No other questions online. Do we have any other questions in the room? No? Okay. Well, thank you very much, everyone. In that case, we'll move to the formal resolutions of the meeting. Voting on each resolution will be by poll. Each person voting at the annual meeting and each shareholder has cast a vote by proxy has 1 vote for each share held. These resolutions are ordinary resolutions and are required to be passed by a simple majority of the votes of those shareholders who are entitled to vote and are voting on the resolution. I'll put each resolution to the meeting and provide an opportunity for you to ask questions concerning that resolution. I ask that you keep the questions focused on the resolution. In respect to proxies received, if as Chair of the meeting, I have been appointed to act as proxy and am not directed on how to vote in respect of the resolution, I will vote in favor of all resolutions. For shareholders joining us here today, you should have had a voting card given to you when you registered. Please raise your hand now if you do not have a voting card and someone will assist you. Please mark your voting intention for each resolution and the voting cards will be collected after the meeting. Shareholders voting online can vote using the electronic voting card received once online registration is validated. To vote, you will need to click get a voting card within the online meeting platform. You'll be asked for your shareholder number or proxy number to validate. Please then mark your voting card in the way you wish to vote by clicking for, against or abstain on the voting card. Once you've made this election, please click submit vote on the bottom of the card to lodge your vote. Please refer to the virtual meeting guide or use the helpline specified if you require assistance. Note that voting will remain open until 5 minutes after the conclusion of the meeting. The results of the votes will be declared and announced on the NZX once all votes have been tallied. Moving to Resolutions 1, 2 and 3. These are all ordinary resolutions. Each of myself, Peter Alexander and Carlie Eve were last elected or reelected at this meeting 3 years ago, and in accordance with NZX Listing Rule 2.7.1, we now offer ourselves for reelection to the Board. The Board has determined each of myself, Peter Alexander and Carlie Eve will be independent directors for the purposes of the NZX listing rules, if elected. I will now provide a brief bio and commentary supporting my reelection and then ask Peter and Carlie to do the same for their reelections. My name is Simon Shakesheff, I was appointed to the Kiwi Property Board in November 2019 and was last reelected in June 2023. I'm standing for reelection again today. I am an Australian-based professional director with over 30 years' experience across the property and finance sectors, including strategy, mergers and acquisitions and debt and equity finance. I currently serve as a director of Cbus Property, Assembly Funds management, St. George Community Housing and Ingenia Communities. I am Chair of the Daily News Real Estate Investment Trust. Earlier in my career, I held senior executive roles at Stockland, Bank of America Merrill Lynch, UBS, JPMorgan and Macquarie Bank. At Kiwi Property, I have the privilege of serving as Chair of the Board and as a member of the Audit Risk and Sustainability Committee. I'm committed to supporting the company's continued focus on high-quality retail-led mixed-use assets and long-term value creation for shareholders and would be honored to continue serving on the board. If reelected, I look forward to continuing to contribute my experience to support Kiwi Property's strategic direction and growth. Thank you for your support. I'll now hand over to Peter to provide further details regarding his reelection.

Thank you, Simon. My name is Peter Alexander, and I was appointed to the Kiwi Property Board in May 2023 and elected in June 2023, I'm standing for reelection again today. I've over 30 years experience in New Zealand's property sector, having held a range of executive roles across a number of leading organizations, including Chief Executive of Stride Property Group. Prior to that, I was Head of Property at Auckland Airport. I've also held senior roles at Property for Industry, Goodman and SkyCity. I currently serve as Chairman of Smith & Caughey Holdings Limited and was previously a trustee and Deputy Chair of the Dilworth Trust. At Kiwi Property, I am Chair of the Investment Committee and a member of the People and Culture Committee. Since joining the Board, I've focused on supporting disciplined investment decision-making and portfolio optimization, as Kiwi Property continues to sharpen its retail-led mixed-use strategy. I'd be honored to continue serving on the Board and if reelected, I would look forward to apply my experience to support Kiwi Property's long-term growth. Thank you for your support. I'll now hand over to Carlie who will provide further details supporting her reelection.

Thank you, Peter. My name is Carlie Eve. I was appointed to the Kiwi Property Board in May 2023 and elected in June 2023. I am standing for reelection again today. I bring over 30 years' experience across finance and governance, including executive roles at Goldman Sachs, JBWere and Mint Asset Management where I led the Australasian property fund. I currently serve on the Board of the Fonterra Shareholders Fund and I'm a Director of ASB Group Investments Limited, as well as the chair of the Diocesan School Heritage Foundation. I was also previously a Director of Hobsonville Land Company. At Kiwi Property, I'm a member of both the Audit Risk and Sustainability Committee and the Investment Committee. Since joining the Board, I've focused on contributing our capital markets and investor perspective to support prudent financial management and long-term value creation. I would be honored to continue serving on the Board. And if reelected, I look forward to supporting Kiwi Property's strategic priorities and continued performance. Thank you for your support. I'll now hand over to Michele, who will go through the resolutions regarding the reelection of the directors.

Thank you, Carlie. The Board is committed to ensuring it possesses the appropriate mix of skills, knowledge, experience and diversity to discharge its role and responsibilities. The Board supports the reelection of Simon Shakesheff, Peter Alexander and Carlie Eve as it considers they have the expertise to contribute to the overall skill set required by the Board. The Board, other than Simon, Peter and Carlie in respect of their own positions recommends you vote in favor of the resolutions. I will now read Resolution 1, that Simon Shakesheff be reelected as a Director of the company. Are there any questions from shareholders on this resolution? No. Are there any questions from shareholders online? No. Thank you. I will now put the motion. Please now select either for, against or abstain for Resolution 1 on the voting card. [Voting]

Right. I'll now read Resolution #2, that Peter Alexander be reelected as a Director of the company. Are there any questions from shareholders on this resolution? No. Are there any questions from shareholders online? No. Thank you. I will now put the motion. Please now select either for, against or abstain for Resolution 2 on the voting card. [Voting]

I will now read Resolution 3, that Carlie Eve be reelected as a Director of the company. Are there any questions from shareholders on this resolution? No. Are there any questions from shareholders online? No. Thank you. I'll now put the motion. Please now select either for, against or abstain for Resolution 3 on the voting card. [Voting]

With that, I'll now pass back to Simon to go through the final resolution of the day.

Thanks Michele. Expertly handled. We'll move to Resolution 4 on the auditor's remuneration. This resolution is sought to authorize the directors to fix the remuneration of Deloitte Limited as the group's auditor under Section 207 SA of the Companies Act 1993 consistent with commercial practice. During FY '26, total fees paid to Deloitte were $485,000. The Board recommends that you vote in favor of this ordinary resolution. Are there any questions from shareholders on this resolution? Actually, sorry, I should -- I'll read Resolution 4, that the directors of the company be authorized to fix the auditor's remuneration. Are there any questions on this resolution?

My name is Robert. I'm a shareholder for a while. When we come to the AGMs, we always get their shareholders this revision comes up. What I would like to know is how did Kiwi Properties signed on Deloitte? Have you -- did you tender it out? What's the decision was to make Deloitte your auditors?

Thank you. Now I'm going to ask Andrew, to remind me. So 3 years ago? 3 years ago, so we had previously had a reasonably long-standing auditor that had been in place at Kiwi for quite some time. 3 years ago, we went to a tender process, an external process where we invited both the incumbent and other comparable firms to effectively bid into a process for us to put forward both their skill set, their capability, their expertise and their cost and Deloitte was the successful applicant in that process. So third year of Deloitte's process for us as audited this year. We will, again, in future, after an appropriate period of time, we will go through an external tender process again to ensure that we remain competitive and that we get the best external advice. I would say we don't like to change very, very regularly because there's a fairly significant bunch of accumulated and assumed knowledge that the auditor build up about how the organization works and how best to do that. But we clearly are governed by what we think is appropriate commercial practice in the market. Thank you. Any other questions on this resolution? Okay. I will now put the motion. Please now select either for, against or abstain for Resolution 4 on the voting card. [Voting]

That completes voting on the resolutions. The registrar will now move through the room to collect your voting cards. For those shareholders online, you can now submit your vote. Voting will be open until 5 minutes after the conclusion of the meeting. At this time, I'd like to advise the outcome of the proxy votes that were lodged for each resolution. I won't read them. There's a lot of decimal places there for each resolution, but they're shown on the screen now. The registrar will count all votes and then complete their duties as scrutineer for this poll. We will announce the voting results to the NZX once this process has been completed. So just as they go around to collect the votes. We'll just leave that a moment for that to continue. Okay. Thanks, everyone. That concludes today's formal proceedings. As you've heard, Kiwi Property delivered solid underlying operational results in '26, and we've made strong progress on our major strategic initiatives while we're operating in a complex and uncertain environment. As always, we remain committed to driving the performance of the business and delivering returns for our shareholders. Thanks for your attendance, your participation today and also your support of Kiwi Property. I'll now draw the meeting to a close. A copy of this presentation and the speeches are available on our website and the NZX. For those here in person, again, thank you for attending, and please join us for some refreshments at the back of the room. Thank you very much.