SYDNEY — Kiwi Property cut its dividend guidance for the 2025 fiscal year by 5.3%, even as it talked up the likely boost from a housing shortage and resilient demand for bricks-and-mortar stores in its shopping malls.
Kiwi Property forecast a dividend of 5.40 New Zealand cents (3.30 U.S. cents) per share for the 12 months through March, 2025. That was lower than the 5.70 cents payout for the fiscal year just ended.
It said the lower dividend was mainly driven by the financial impact of a legislative change that removed its ability to claim tax depreciation on commercial buildings.
“We’ve been unable to offset the reduction in Adjusted Funds From Operation caused by the removal of building depreciation and as a result, have lowered the dividend guidance for FY 2025,” said Chair Simon Shakesheff.
Kiwi Property provided the outlook alongside a net loss of NZ$2.1 million for the 2024 fiscal year. Annual revenue fell by 5.6% to NZ$244.7 million.
Write to David Winning at david.winning@wsj.com
Corrections & Amplifications
This article was corrected on May 27, 2024 to reflect Kiwi Property forecast a dividend of 5.40 New Zealand cents (3.30 U.S. cents) per share for the 12 months through March, 2025. The original version incorrectly said the fiscal year ran through June, 2025.