وَ means “and,” linking وَالتَّوَدُّدُ with what precedes. إِلَى often means “toward”; here إِلَى النَّاسِ shows the relationship of affectionate conduct toward people.
التَّوَدُّدُ is the subject and نِصْفُ الْعَقْلِ is the predicate. نِصْفُ is the first term of a possessive phrase; الْعَقْلِ is the second. Compare the previous report's نِصْفُ الْمَعِيشَةِ: “half of livelihood” versus “half of understanding.”
The expression emphasizes the value of kind conduct; it does not measure anyone’s intelligence on a numerical scale.