Assembling a sustainable growth story

Research evidence excerpt

Assembling a sustainable growth story

market conditions maintained occupancy around 97-98% shopping centre up 2.2%, The Base up possibly affecting timing and quantum and rents are flat to up slightly on re- 4.2% and LynnMall up 5.6%. of land sales. leasing.

material dilution to come• Despite • The consolidation of funds at • Total portfolio sales were up 1.6%, from a full period of divesting The Mackersy is proving challenging and while on a like-for-like basis this was Plaza and a majority period of the is unlikely to proceed which was a +1.3%. Retail-led mixed-use centres ASB North Wharf divestment, KPG key upside opportunity KPG saw were marginally better at +1.7% like- are targeting 2.7% DPS growth. This in improving Mackersy operating for-like. This saw momentum build is expected to be at the top of the performance. over the year with sales broadly stable payout range however KPG have

conservatively not assumed any • No further land sales at Drury were during the 12m to Sep-25.

announced during the period, with AFFO from Drury land sales, meaning • KPG purchased an additional industrial

KPG focusing on meeting conditions this dividend is supported by core land holding adjacent to Sylvia Park

on current sales, while it noted a AFFO. for $5.6m during the period, yielding

number of discussions underway for

• KPG noted foot traffic at Sylvia additional sites. around 5%.

Park lifted ~8% since IKEA opening, • Gearing is 37.4% while post ASB

including on the upper level increasing • Leasing activity at Centre Place North sale this will decline to 33.3%, which

were at -9.8% spreads, albeit an by 25%. This has allowed for some KPG sees as providing scope for

immaterial asset for the portfolio. leasing and remixing to be achieved, growth opportunities while only being