Kiwi Property CEO Clive Mackenzie paid $1.78m as goals mostly met, including Ikea arrival
Ikea opened last year at Mt Wellington after Kiwi headed construction and sold it the land. Photo / Corey Fleming
The $3 billion listed landlord Kiwi Property Group paid its chief executive $1.78 million in the latest year for achieving four out of his five goals, hinging partly on Ikea’s arrival.
Clive Mackenzie’s pay rose 14%, partly because he met most short-term incentives, excelling in achieving growth in adjusted funds from operations and boosting investment capacity in non-core assets.
That is according to the 2026 full-year annual report released today.
The achievements were in the Drury stage-one land sales and in enhancing Sylvia Park after Ikea opened next door and an airbridge was built to connect the two.
The only goal Mackenzie didn’t achieve was meeting a projected internal rate of return for Kiwi at Drury stage one, which was below the board-approved threshold expectation.
Drury stage one’s internal rate of return was 18% but the target was 20%, hence Mackenzie was close.
But the annual report also noted that Drury is a significant multi-year development so forecast outcomes change over time as development delivery progresses.
Mackenzie earned $1.55m last year and was reluctant to discuss his pay today.
“The growth in salary came from the long-term incentives, rather than short-term,” he said.
Long-term incentive pay was $727,800 of the $1.78m.
Yet his pay appears meagre compared to the big-hitters. The CEO Pay Survey in 2025 was led by Gentrack’s Gary Miles getting $17.3m followed by the a2 Milk Company’s David Bortolussi getting $7.7m.
Kiwi shareholders’ payday improves, though: 2026 dividends are up 3.7% to 5.6 cents per share (cps) and are forecast to rise to 5.75cps in the 2027 year.
The chart above is a snapshot of Kiwi’s 2026 result.
Despite the challenging economic environment, net rental income rose 4.3% to $202.4m for the year to March 31, 2026.
Net profit after tax fell 11.5% to $50.4m.
Kiwi sold Palmerston North mall The Plaza for $118.9m, settled in December.
Kiwi chairman Simon Shakesheff earned $180,000. Directors Chris Aiken got $112,000, Peter Alexander got $110,000, Michele Embling got $102,000, Carlie Eve got $117,000, Kevin Kenrick got $118,000 and Mary Jane Daly got $29,000.
Operating profit before tax increased by 8.6% to $126.2m and adjusted funds from operations rose 8% to $100.2m.
Retail sales increased 1.6% to $1.9b, with foot traffic up by 3% to 36.7 million visits in the latest year to March.
The December opening of the new pedestrian link between Ikea and Sylvia Park was a visible milestone, broadening customer flow between the two destinations and increasing foot traffic through the centre, Kiwi’s result said.
Kmart has been expanded. Asian grocer Stacks will begin trading mid-year to cater to a growing Asian catchment.
At Drury, Kiwi has sold sites to Costco, Harvey Norman, Briscoe Group and Foodstuffs.
In the six months to September 30, 2025, Kiwi’s net after-tax profit fell 77% to $9.8m, from $43m in the previous corresponding period. It made $136m in revenue but $29m of writedowns hit net profit.
Highlights cited in that half-year included:
- ASB extended North Wharf lease in July for a further nine years;
- Resido apartments at Sylvia Park 99% leased;
- Vero Centre occupancy up to 94.3% from 92.4%;
- Shopping centre sales up 0.2%, foot traffic up 1.1%.
Today, ahead of the full-year result, one institutional investor wondered if Kiwi would say more about selling further sites at its new town centre at Drury, having already sold a site there to Costco Wholesale.
Unlike Costco Wholesale Westgate, the new South Auckland Costco will be able to offer alcohol – a key part of its appeal globally.
While the demise of department stores continues, big-box single-brand global retailers are increasingly drawn here.
Mackenzie is one of the 12 men listed in a Herald top property developer feature, which named those shaping the future of Auckland.
The investor also wondered about Kiwi’s botched $90m plans to sell its Sylvia Park Lifestyle big-box format shopping centre to a Mackersy large format retail (LFR) fund.
“The Mackersy LFR Fund is no longer proceeding, as the minimum capital raising condition required to establish [it] is unlikely to be met within the agreed timeframe,” Kiwi said in March.
“The sale of the property at 393 Mt Wellington Highway, known as Sylvia Park Lifestyle, will not proceed and the company will retain full ownership and operational control of the property.”
The centre is opposite Sylvia Park mall.
The investor said the centre had stable rents and excellent tenants, so it remained an attractive part of Kiwi’s real estate portfolio.
Mackersy Property is a commercial property investment and management business with offices in Queenstown, Christchurch, Dunedin, Tauranga and Hamilton. It manages $2.2b of property.
Another sale is, however, proceeding according to the original plans.
The sale of ASB North Wharf waterfront bank headquarters went unconditional on April 30.
Precinct Properties and GIC of Singapore is paying Kiwi $205m, due to settle on May 29.
Last month, Kiwi said ex-Summerset Group deputy chief financial officer Sarah Theodore was appointed as its chief financial officer.
She starts in late July.
Owen Batchelor, an Amova Asset Management portfolio manager, said today’s result was broadly in line with market expectations.
Good leasing progress over the year and portfolio occupancy increasing, with solid re-leasing rental spreads, were noted.
It was positive to see the company guiding to an increased dividend next year, with the level of growth a touch ahead of market expectations, Batchelor said.
Anne Gibson has been the Herald’s property editor for 26 years, has written books and covered property extensively here and overseas.
- Stay ahead with the latest market moves, corporate updates, and economic insights by subscribing to our Business newsletter – your essential weekly round-up of all the business news you need.