Fuel price rises prompted SkyCity Entertainment Group to downgrade its full-year earnings guidance, but it has struck a deal to sell its Auckland head office and its The Grand by SkyCity hotel on Federal St.
The company said today earnings for the June 2026 year were now forecast to be$180 million to $190m instead of $190m to $210m.
That guidance was based on trading conditions experienced since the fuel price increases, remaining broadly consistent for the remainder of FY26, it said.
“Significant uncertainty exists on the breadth and duration of prevailing macroeconomic conditions, and further deterioration in these conditions could affect this guidance,” SkyCity said.
The company struck a non-binding heads of agreement deal to sell 99 Albert St as well as investment properties on Victoria St.
The AA Centre at 99 Albert St, Auckland central, is valued at $28.9 million. Photo / NZ Herald
The office block is valued at $28.9m.
The announcements follow the company’s annual meeting late last year when SkyCity reiterated its annual earnings guidance but chief executive Jason Walbridge said the broader economic environment remained challenging.
“Although the broader economic environment remains challenging, there are early signs of stabilisation in the New Zealand economy. That said, trading across our New Zealand precincts in the first three months of FY26 has not revealed any noticeable improvement in consumer spending,” Walbridge said.
The number of people visiting SkyCity’s properties in Adelaide, Auckland, Hamilton and Queenstown remained strong, Walbridge said last year.
The NZICC would contribute to previous guidance in the second half of FY26, Walbridge told shareholders at the October meeting.
Forward bookings were encouraging and would support Auckland and New Zealand’s visitor economy, Walbridge said then.
“As is typical for a project of this scale and complexity, some work will continue post-handover. We’re working closely with Fletcher Construction to finalise these remaining elements ahead of the opening in February 2026,” he told the AGM.
Anne Gibson has been the Herald’s property editor for 26 years, written books and covered property extensively here and overseas.
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