Tracking our performance
Since the appointment of a new Board in mid-2024, we have been undergoing significant change to improve our financial sustainability and refocus on our core mission of being a responsible landlord who looks after our homes and tenants and serves communities well.
Through implementing our Reset Plan, we have lifted our performance in all our key focus areas and we’re on the path to financial sustainability.
Our progress to date
- Clear consequences are now in place for the small minority of our tenants who don’t pay their rent or aren’t good neighbours.
- We’re acting sooner on disruptive behaviour and using the Residential Tenancies Act tools more.
- We’re making greater use of Section 55A notices, which warn tenants their behaviour is putting their tenancy at risk. We issued 1,777 notices in 2024/25 – 9 times as many as were issued in the previous financial year.
- In 2024/25 74 tenancies were ended for abusive, threatening and persistent disruptive behaviour – compared to 12 the previous financial year.
- About 2,400 fewer tenants have rent arears and the amount of owed has fallen from $19.4 million at the end of June 2024 to less than $7 million at the end of June 2025.
- Tenant satisfaction is improving, with around 80% of tenants now satisfied with their home and the way we look after it.
- We’ve met all housing delivery and retrofit targets, delivering 4,330 (gross) new house builds and retrofits in the 2024/25.
- We have reviewed our development pipeline [PDF, 249 KB] to ensure best value for money and we’re delivering in the areas of greatest need.
- We have reviewed our vacant land [PDF, 265 KB] holdings and will sell about 36 hectares that is no longer needed for either social housing projects or urban development work.
- We’re reinvesting more in the quality of our housing stock through selling properties [PDF, 182 KB] that don’t meet our needs and using the proceeds to build new homes better suited to our tenants.
- We’ve made changes to how we manage our housing portfolio, so homes are vacant for the minimal possible time between tenancies.
- Housing plans and build standards have been optimised and procurement processes changed to drive down the cost of the new homes we’re delivering.
- In the last quarter, build costs have come down by 9%. Contracted rates for the new builds in 2025/26 are at substantially lower rates than previously and we’re on track to bring our costs in line with the market on like-for-like new builds.
- Overhead costs are coming down as we take a more disciplined approach to spending. Our annual total expenses for 2024/25 were $1,646 million, compared to $1,897 in 2023/2024.
- We have resized workforce and renewed our structure to align with our narrower focus. Staff numbers have reduced from 3,399 at 30 June 2024 to 2,609 at 30 June 2025.
- We have delivered cost savings through key transformation initiatives, including improvements to our Housing Delivery System, Asset Management and Maintenance Transformation Programme and sharper procurement practices.
- Unbudgeted write-offs have impacted on this year’s deficit but we’re on track to meet our long-term financial targets.
- On a cash basis, the surplus has improved from $149m to $365m in FY25 - this $216m improvement is a result of operating performance and cost reductions.
- Our earnings to interest cover ratio is improving.
- Longer-term savings and investment plans are in place to help ensure we remain efficient and financially sustainable into the future.
Performance scorecard
We still have further work to do – but we’re committed to being open and transparent about how we are performing.
Each quarter we will publish a performance scorecard which measures how we are performing in the key priority areas – tenancy management, build performance and portfolio management, cost efficiency, and financial sustainability – identified in our Reset Plan.
Disruptive behaviour incident with a decision made in 15 days: This is about strengthening our tenancy management and making decisions quickly when we become aware of a disruptive behaviour incident. Our aim is that frontline teams make an appropriate decision on any action required within 15 business days in at least 90% of cases. 1Disruptive behaviour SPE only implemented in 2024/25.
Current tenant rental debt: It is essential our tenants pay rent. This measure indicates the effectiveness of our collection efforts from tenants who have fallen behind in their rental payments. We’ve made changes to bring down the amount owed by tenants and make sure we keep rent debt down in the future.
Renewals – new house builds and retrofits delivered: Renewing our homes helps to improve the overall quality and longevity of our housing portfolio. Each renewal enables us to build the right type of home in the right place to meet tenants’ needs and protects the value of social housing for future generations. 2Renewals results are pre-audit and subject to change.
The percentage of lettable homes tenanted: This is about how well we are managing the homes across our housing portfolio. Our aim is to have 98% of our lettable homes tenanted. The size of our housing portfolio means there will always be a small proportion of homes vacant – due to tenancy turnover, new homes becoming ready to let, and homes being held for a time for tenants with specific needs.
Our overheads costs and how they compare to our revenue: As New Zealand’s largest social housing provider, it is vital we ensure all our resources are used efficiently and effectively. Measuring overheads helps ensure that funding is being directed primarily to delivering good quality homes and effective tenancy services. 3Overhead costs for all corporate functions.
Build costs per square metre: This is a 12-month rolling average of the above ground construction costs for homes, excluding apartments. The build cost is inclusive of all costs related to the main build works, including foundations and site overheads. We need our homes to be operationally efficient and to last for over 50 years, so we have been building to a standard above the minimum required by industry regulation. We’ve also been delivering larger homes (with features such as wider halls and doorways) so they are adaptable to the changing accessibility needs of our tenants. For these reasons, the build costs for Kāinga Ora homes have trended above the market. Our aim is to achieve greater savings in how we build (through doing things like optimising our housing designs and standards) so that we deliver quality homes for New Zealanders in need at a cost that aligns with market prices. 4Pricing achieved in the last quarter indicates we are well on track to achieving the target.
Our operating net deficit after tax: This is an indicator of our financial health. Our Reset Plan focused on improving our operational and financial performance. *The net deficit results are subject to audit and final tax calculation.
Our interest cover ratio: This is a measure of our ability to meet the interest payments on the debt we owe. It shows how many times our operating earnings (before interest, taxes, depreciation and amortisation) can cover our interest expenses. 5Cash earnings divided by interest costs.
This report shows how we are tracking to meet our Statement of Performance Expectations. It provides measures on how we’re performing in areas like renewing and maintaining our homes, supporting tenants and responding to disruptive behaviour and updates our operating financial performance.
页面已更新: 31 七月 2025