New Zealand's biggest commercial and retail landlord Kiwi Property reported a $400,000 increase in net profit in its half-year result.


Net profit after tax for the September 30 half-year was $48.3m, up on the previous corresponding $47.9m.

However, net rental income dropped from last year's $95.1m to $89.9m.

Gearing at 29.4 per cent is down slightly on last year's 29.7 per cent. Funds from operations dropped from last year's $54.2m to $52.3m although Kiwi said that decrease reflected asset sales.

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Kiwi's portfolio stands at $3b, down from $3.1b in March and retail sales in its big mall network rose from $1.6b last year to $1.7b this year.

Sylvia Park, LynnMall, Westgate Lifestyle , Hamilton's Centre Place and The Base, Palmerston North's The Plaza and Papanui's Northlands comprise Kiwi's retail portfolio.

The business has a big expansion of Sylvia Park on, having completed a 10-level $80m office block there, expanding its dining offer with The Grove, building its galleria upstairs where new shops including a Farmers will open and developing a new multi-level free parking building for shoppers.

Kmart is moving into the area where Countdown was at Sylvia Park.

Kiwi's interim report notes that it had sold non-core assets as part of its portfolio rebalancing programme. Clive Mackenzie has taken over from Chris Gudgeon as chief executive.

Kiwi sold North City in Porirua to a private investor for $100m and office tower the Majestic Centre in Wellington for $123m.

Shareholders will get an interim cash dividend for the six months to September 30 of 3.4cps, up 1.5 per cent from the prior corresponding period.