FY19 Annual Report and Results

Stride Property Group (NS)
NZX Announcement
IMMEDIATE — 29 May 2019




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Stride Property Group - FY19 Annual Report and Results
Stride Property Group (Note 1) is pleased to announce that it has released its Annual Report and
Results presentation for the twelve months ended 31 March 2019 (FY19).
Stride has been focused on the future during FY19, undertaking a number of transactions that
will establish the foundations for future growth, while ensuring stable and profitable returns to
shareholders for the financial year ended 31 March 2019. Highlights for FY19 are set out below.
In addition, Stride Investment Management Limited (SIML) and Stride Property Limited (SPL) are
pleased to announce fourth quarter (1 January 2019 to 31 March 2019) dividends to be paid by
each company on 21 June 2019 to all shareholders on the register as at the close of business on
14 June 2019, as follows:
• SPL announces a cash dividend for the fourth quarter of FY19 of 2.2075 cents per
share.
• SIML announces a cash dividend for the fourth quarter of FY19 of 0.27 cents per share.
The Dividend Reinvestment Plan remains suspended for the FY19 fourth quarter dividends.

Highlights for FY19 include:
Financial Performance – Stride Property Group (FY18 figures in brackets)
• Net rental income of $57.3m ($59.1m), lower primarily due to the divestments (down
$4.0m) and property under development (down $1.8m), offset by completed
development (up $0.8m) and higher underlying portfolio income (up $2.6m)
• Profit before other income/(expense) and income tax of $38.0m ($40.7m), down $2.8m
• Profit after income tax of $76.2m ($95.3m), down $19.1m, largely reflecting lower
revaluation gains when compared to FY18
• Distributable profit (Note 2) after current income tax of $38.8m or 10.62cps ($38.8m or
10.63cps), in line with FY18. Combined 9.91cps cash dividend for Stride for FY19
• Net valuation gain of $36.5m or 4.2%, resulting in Net Tangible Assets (NTA) per share
of $1.92 (excludes value of management contracts), up 10cps from $1.82 as at 31
March 2018

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• Loan to Value Ratio (LVR) 34.4% (34.1% as at 31 March 2018), however LVR average
throughout FY19 was lower by 4.8% as compared to FY18. Post balance date LVR
reduced to 30.8% providing balance sheet headroom of $106m to $177m based on an
indicative LVR range of 38% to 42%


Places – S tride Property Limited (As at 31 March 2018 figures in brackets)
• Portfolio (Note 3) occupancy 97.6% (96.7%), up 0.9%
• Portfolio (Note 3) valuation $966.3m ($902.2m) representing a net valuation gain of
$36.5m or 4.2%
• Industrial portfolio (Note 4) value $262.5m following a net valuation gain of $24.1m or
11.1%. Following the settlement of acquisitions and completion of current development
pipeline the industrial portfolio is estimated to be valued (Note 5) in excess of $345m
• Weighted average lease term (WALT) 4.8 years (5.1 years)
• 270 leasing transactions, including rent reviews, renewals and new lettings completed
across 69% of the portfolio resulting in a 4.3% increase on previous rentals
• Comparable sales (Note 6) for FY19 at NorthWest Shopping Centre and NorthWest Two,
and Silverdale Centre – up 4.7% and 4.4% (Note 7) respectively from the prior year
Developments
The Development team, formed in FY18, is currently managing over $200m of development
projects on SIML managed properties. For SPL, these projects include:
• 11 Springs Road, Auckland – construction of a new head office for Waste Management,
with practical completion expected late December 2019
• $11m in aggregate of property extensions and upgrades for Rebel Sport and Briscoes at
Bay Central Shopping Centre and for Bunnings, Carr Road. New 10 year leases will
commence at the completion of each project
Work continues on the proposed redevelopment of the Johnsonville Shopping Centre, owned
50:50 by SPL and Diversified NZ Property Trust
Transactions
• Unconditional contract to acquire The Concourse, Auckland, for $35m, with completion
expected in June 2019. The acquisition includes established buildings and adjacent
vacant land of 2.2ha which will be developed, with a pre-committed 25 year lease to
Waste Management commencing on completion of the development, anticipated to be in
late 2020
• Unconditional contract to acquire 439 Rosebank Road, Auckland, for $8m, with
completion expected in July 2020
• Disposal of 33 Corinthian Drive, Auckland, completed on 1 April 2019 (post balance
date) for a sale price of $50.5m representing an initial yield of 5.9% and +4.7% premium
to book value (30 September 2018)

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People
• Director refresh continued with appointment of Jacqueline Robertson in March 2019
• Executive team now complete following appointment of:
• Fabio Pagano as Investore Fund Manager
• Steve Penney as General Manager Investment


Products
Investore Property Limited (Investore)
• FY19 dividend increased to 7.60cps (up 0.14cps or 1.9% on FY18 dividend)
• $100m bond issue completed April 2018 and 1.7m shares acquired under buyback
programme
• Successful renewal of two key expiries being the Countdown-operated properties in
Hamilton and Rotorua, for 5 years and 10 years respectively
• Completed disposal of Countdown Dunedin South on 1 April 2019 (post balance date)
for a sale price of $19.3m representing a +5.6% premium to book value (31 March
2018)
Diversified NZ Property Trust (Diversified)
• 290 leasing transactions completed, including rent reviews, renewals and new lettings,
resulting in a total increase on previous rentals of +1.9%
• Significant development activity underway, including Queensgate Shopping Centre
carpark and cinema rebuild, seismic strengthening works and the introduction of H&M to
Chartwell Shopping Centre, due to open in winter 2019
Capital Management – SPL
• $200m bank facility refinanced, increasing average tenor of debt facilities to 2.8 years;
next debt facility maturing is $200m in June 2021 (FY22)
• Following settlement of the sale of Corinthian Drive, Auckland, and the reclassification
and valuation of NorthWest Two (Note 8) to investment property in April 2019, banking
headroom increased to $117m and LVR reduced to 30.8%
• $100m of swaps terminated in April 2018, with an average term of 2.8 years and an
average rate of 4.1%, for a cost of $4.1m
• New $120m swaps entered into with an average 5.2 years tenor and an average rate of
2.8%


Strategy
Stride is focussed on establishing a group of property funds in specific sectors to provide
growth in our investment management business. In terms of our portfolios, this will include:
• Continued focus on delivering strategy and growing our existing products – Investore
and Diversified

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• Transaction and development activity for SPL will be focussed on building portfolios of
assets that can be used for the establishment of new products, with SPL taking a
cornerstone interest
• Evaluating opportunities in markets adjacent to core commercial property sectors

Conclusion – Looking Ahead
• Establish a group of commercial property funds to provide growth in our investment
management business and continue to review opportunities in markets adjacent to core
commercial property sectors
• Development of comprehensive sustainability initiatives
• Board refresh to continue
• Targeting a combined 9.91cps cash dividend for FY20

Notes:

1. Stride Property Group (Stride) comprises Stride Investment Management Limited (SIML) and Stride Property
Limited (SPL). A stapled security of the Stride Property Group comprises one share in SIML and one share in SPL.
The stapled securities are quoted on the NZX Main Board under the ticker code SPG. Information presented in
this presentation is on a combined basis unless otherwise specified.
2. Distributable profit is a non-GAAP financial measure adopted by Stride to assist Stride and investors in assessing
Stride’s profit available for distribution. It is defined as profit/(loss) before income tax, adjusted for determined
non-recurring and/or non-cash items, share of profits in associates, dividends received from associates and
current tax. Further information, including the calculation of distributable profit and the adjustments to profit
before income tax, is set out in note 4.3 to the consolidated financial statements for the year ended 31 March
2019.
3. Includes: Corinthian Drive, Auckland, which was subject to an agreement for sale and subsequently settled on
1 April 2019 and NorthWest Two, Auckland which, as at 31 March 2019, was classified as inventory in the
consolidated financial statements for FY19. Refer notes 3.6 and 3.7 to the consolidated financial statements.
4. Industrial portfolio includes 11 Springs Road, Auckland, which is categorised as ‘Development’ within Investment
Properties in the consolidated financial statements for FY19. Refer note 3.3 to the consolidated financial
statements.
5. Estimated value calculated as the current value of the industrial portfolio plus purchase price of 439 Rosebank
Road, Auckland and The Concourse, Auckland, plus current estimated value on completion of Springs Road and
The Concourse developments.
6. Comparable sales include sales from tenancies which have traded for the past 24 months and includes
commercial services categories.
7. Sales data is not collected for all tenants at Silverdale Centre. Some tenants are not obliged to provide sales data
under the terms of their lease.
8. On 10 April 2019, SPL gave Westgate Town Centre Limited (WTCL) notice to bring the option period held by
WTCL to acquire SPL’s NorthWest Two development to an end. On 29 April 2019, SPL advised that the option
had expired as it had not received notice from WTCL seeking to exercise the option. Under the terms of the
ground lease from WTCL to SPL for the land on which NorthWest Two is located, in the event WTCL did not
exercise the option to acquire the NorthWest Two development, the agreement permits SPL to obtain freehold
title to the land for a nominal amount of $1. On the expiry of the option in April 2019, SPL has reclassified the
property from inventory-development property to investment properties. SPL has undertaken an independent
valuation of the property resulting in an increase of $2.3m in value to $37.75m.
Ends

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Attachments provided to NZX:
• Stride Property Group – FY19 Annual Report – 290519
• Stride Property Group – FY19 Annual Results Presentation – 290519
• Stride Property Group – NZX Appendix 1 – 290519
• Stride Property Limited – NZX Appendix 7 – 290519
• Stride Investment Management Limited – NZX Appendix 7 – 290519
• Stride Property Group – Shareholder Communications Notice - 290519

For further information please contact:
Tim Storey, Chairman, Stride Investment Management Limited / Stride Property Limited
Mobile: 021 633 089 - Email: tim.storey@strideproperty.co.nz


Philip Littlewood, Chief Executive, Stride Investment Management Limited
Mobile: 021 230 3026 - Email: philip.littlewood@strideproperty.co.nz


Jennifer Whooley, Chief Financial Officer, Stride Investment Management Limited
Mobile: 021 536 406 - Email: jennifer.whooley@strideproperty.co.nz


Louise Hill, General Manager Corporate Services, Stride Investment Management Limited and Company
Secretary of Stride Property Group
Mobile: 0275 580 033 - Email: louise.hill@strideproperty.co.nz


A Stapled Security of the Stride Property Group comprises one ordinary share in Stride Property Limited and
one ordinary share in Stride Investment Management Limited. Under the terms of the constitution of each
company, the shares in each can only be transferred if accompanied by a transfer of the same number of
shares in the other.
Stapled Securities are quoted on the NZX Main Board under the ticker code SPG. Further information is
available at
www.strideproperty.co.nz or at www.nzx.com/companies/SPG.

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Stride Property Group
Annual Report
2019

Highlights 02
Performance 04
Chairman & CEO's Report 06
Board of Directors 10
People 12
Executive Team 16
Places 18
Portfolio Sectors 20
Industrial Portfolio 22
Retail Portfolio 24
Office Portfolio 26
Products 28
Investore 30
Diversified 32
Sustainability 34
Safety 36
Financial Statements 38
Governance 90
Statutory Disclosures 112
Implications of Investing in Stapled Securities 118
Glossary of Terms 119
FY20 Corporate Calendar for Stride 120
This document comprises the Annual Report for each of Stride Investment Management Limited (SIML)
and Stride Property Limited (SPL), which are members of Stride Property Group (Stride).
Each of SPL, SIML and Stride has been designated as “Non-Standard” (NS) by NZX.
The implications of investing in stapled securities of Stride are set out at page 118 of this report.
A copy of the waivers granted by NZX in respect of SPL, SIML and Stride’s
“NS” designation can be found at www.nzx.com/companies/SPG/documents
Stride Property Group’s vision is to be New Zealand’s best
performing listed real estate investment and management
company. This vision and our business are based on four
strategic pillars.
PerformancePeoplePlacesProducts
Contents

PerformancePeople
Places
Products
$36.5 million
net valuation gain
representing a 4.2% increase,
taking total portfolio
2
value as at
31 March 2019 to $966.3 million
$1.92 net tangible
assets per share
up 10 cents per share from
31 March 2018
34.4% loan
to value ratio
as at 31 March 2019, consistent
with 31 March 2018 (34.1%)
SIML executive team now complete,
with the appointments of Fabio Pagano
as Investore Fund Manager and Steve
Penney as General Manager Investment
The SIML Development team, which was
formed in FY18, is currently managing
over $200 million of development
projects on SIML-managed properties
A key focus for SPL in FY19 has
been building the foundations for
its future, with places that have
enduring demand
1. See glossary of terms on page 119.
2. Includes: Corinthian Drive, Auckland, which was subject to an agreement for sale and subsequently settled on 1 April 2019 and NorthWest Two, Auckland, which,
as at 31 March 2019, was classified as inventory in the consolidated financial statements. Refer notes 3.6 and 3.7 to the consolidated financial statements.
97.6% portfolio
2
occupancy by area
as at 31 March 2019, up 0.9% from
31 March 2018
Two industrial acquisitions undertaken
during the year, of 439 Rosebank Road,
Auckland, for $8 million (completion
due in July 2020), and The Concourse
in Henderson, Auckland, for
$35 million (completion due in June
2019). The Concourse property includes
a development area, which SPL will
develop into an industrial facility for
Waste Management, following which
Waste Management will take a 25 year
lease (anticipated to be late 2020)
Disposal of Corinthian Drive,
Albany, Auckland, office building
for a sale price of $50.5 million,
with completion occurring post
balance date on 1 April 2019. The
sale represents an initial yield
of 5.9% and a 4.7% premium
to the property’s value in Stride’s
30 September 2018 consolidated
interim financial statements
Development of a new head office
for Waste Management at Springs
Road, East Tamaki, Auckland (seen
to the left), continues to progress,
with completion expected late
December 2019
Director refresh commenced with the
appointment of Jacqueline Robertson
in March 2019 following the retirement
of Michael Stiassny in August 2018
Stride Investment
Management Limited –
Manager
SIML has total assets under
management of over $2.2 billion
as at 31 March 2019, including the
portfolios of Stride Property Limited,
Diversified NZ Property Trust and
Investore Property Limited
Investore
Property Limited
Successful renewal of the leases of
two Countdown-operated properties,
at Rotorua and Hamilton
Capital management initiatives –
$100 million listed bond issue in April 2018;
on-market share buy-back of up to 5% of
shares on issue commenced in August 2018;
refinanced $70 million bank facility
Sale of Countdown Dunedin South
(with completion occurring post balance
date on 1 April 2019) for $19.3 million,
representing a 5.6% premium to the
property’s value recorded in Investore’s
31 March 2018 financial statements
These initiatives contributed to an increase
in FY19 dividend guidance for Investore
in December 2018, to 7.6 0 c ps , u p 0 .14 c p s
or 1.9% on the FY18 dividend
Diversified NZ
Property Trust
Rebuild of the carpark at Queensgate
Shopping Centre progressing, with
cinema rebuild to follow
Seismic strengthening work underway
at Queensgate to ensure this building
is fit for the future
Introduction of H&M at Chartwell,
opening winter 2019
290 leasing transactions completed,
including rent reviews, renewals
and new lettings, resulting in a total
increase on previous rentals of 1.9%
$76.2 million
profit after income tax, down
$19.1 million from FY18, largely
reflecting lower revaluation gains
when compared to FY18
$38.0 million
profit before other income/(expense)
and income tax, down $2.8 million
on FY18, contributed to by higher
income from existing portfolio (up
$3.4 million), and lower income
from disposals and properties under
development (down $5.8 million)
$38.8 million
distributable profit
1
after current
income tax, in line with FY18
9.91 cents per share
total cash dividend for FY19, in line
with F Y18
4.3% increase
on previous rentals from 270 SPL
leasing transactions completed in FY19
3
HighlightsHighlights
2
Stride Property Group | Annual Report 2019Stride Property Group | Annual Report 2019

Performance
The Five Year Financial Summary table reflects the numbers in the financial statements for each respective year.
Five Year Financial Summary
2019
($m)
2018
($m)
2 017
($m)
2016
($m)
2015
($m)
Net rental income
1
57. 359.157.961.857.2
Profit before net finance expenses, other income
and income tax from continuing operations
53.757.151. 055.452.6
Net finance expenses(15.7)(16.3)(16.8)(15.2)(13.0)
Profit before other income and income tax
from continuing operations
38.040.734 .140.239.6
Other income43.460.127.958.337.7
Profit before income tax from continuing operations81.4100.862 .198.577. 3
Income tax expense(5.2)(5.5)(7.9)(9.1)(8.5)
Profit after income tax from continuing operations76.295.354.289.468.8
(Loss)/profit from discontinued operations
2
0.00.0(0.9)3.00.0
Profit attributable to shareholders76.295.353.392.468.8
Basic earnings per share - weighted (cents)20.8626 .10 14.6327.9323 .16
Distributable profit
3
before income tax
45.848.445.546.340.3
Distributable profit after income tax38.838.837.737.132 .1
Basic distributable profit after income
tax per share - weighted (cents)
10.62 10.63 10.3311. 2 2 10.80
Property values
4
966.3902.2895.31, 274. 8872.4
Bank debt drawn332.9307.7347.5532.2305.9
Bank loan to value ratio
34.4%
4
34 .1%
4
38.8%
4
41.7%35 .1%
NTA per share
5
$1.92$1.82$1.67$1.97$1.81
Adjusted NTA per share
6
$1.94$1.84$1.68$2.00$1.82
1. The implementation of NZ IFRS 15 Revenue from contracts with customers has required a change in the presentation of service charges and the recovery
of employee expenses in the consolidated statement of comprehensive income. Previously, Stride presented the income generated from service charges
recovered from tenants as a direct offset against property operating expenses and income generated from the recovery of employee expenses from its
managed entities as an offset to corporate overhead expenses. In implementing NZ IFRS 15, these components have been separated out between income
and expense. As a result, the 31 March 2018 comparatives have been restated.
2. Includes the reclassification of cash flow hedge reserve to the consolidated statement of comprehensive income for discontinued operations.
3. See glossary of terms on p a g e 119 .
4. See footnote 2 on page 2.
5. Excludes intangibles.
6. Excludes intangibles and after tax fair value of interest rate derivatives.
On 11 July 2016, SPL distributed shares in its subsidiary Investore Property Limited (Investore) to SPL shareholders and Investore
issued shares to investors in connection with its initial public offer (IPO). Investore entered into a listing agreement with NZX Limited
(NZX) and its ordinary shares were quoted, and commenced trading, on the main board equity market of NZX, on 12 July 2016.
The financial performance for Investore for the period ended 11 July 2016 (2017 column) and the year ended 31 March 2016
(2016 column) has been presented as “Profit from discontinued operations”.
Values in the table above are calculated based on the numbers in the consolidated financial statements for each respective financial
year and may not sum accurately due to rounding.
5
4
Stride Property Group | Annual Report 2019PerformancePerformance

Grey Street,
Wellington
Stride Property Group | Annual Report 2019

Stride has had its eyes firmly on the future during the latest
financial year, undertaking a number of transactions focussed
on establishing the foundations for future growth, while
ensuring stable and profitable returns to shareholders for the
financial year ended 31 March 2019
Dear Shareholders, the Boards and
Management of Stride Property Group (Stride)
are pleased to present Stride's results for the
financial year ended 31 March 2019. The results
this year have once again been driven by a stable
and growing underlying business, together with
strong growth in valuations.
Stride consists of two stapled entities, Stride
Investment Management Limited (SIML) and
Stride Property Limited (SPL), the shares of
which trade on the NZX as a stapled security
1
.
SIML is a specialist real estate investment
manager, managing over $2.2 billion of
investment property across the portfolios of
SPL, Investore Property Limited (Investore)
and Diversified NZ Property Trust (Diversified).
SPL invests in quality New Zealand property
investments, owning $966.3 million of
commercial property
2
as at 31 March 2019
and stakes in Stride’s investment management
products – a 19.9% shareholding in Investore
and 2% interest in Diversified.
Investors will be familiar with the four pillars of
the Stride business strategy — performance,
people, places, and products. These four pillars
Chairman &
CEO’s Report
drive the outcomes of our business and strategy,
and accordingly, we review the business’s
performance for the year ended 31 March 2019
(FY19) against each of these pillars.
Performance We were very pleased to deliver
strong shareholder returns for FY19, with total
shareholder returns (TSR)
3
of 24.6%.
Stride’s profit after tax attributable to
shareholders for the year was $76.2 million.
Although this was down on the result for the
prior year (FY18) of $95.3 million, there were a
number of contributing factors:
• Net rental income was lower by $1.8 million
when compared to FY18, however after
adjusting for lower net rental income from
the disposal of the three Bunnings-operated
properties on 28 February 2018 ($4 million)
and the Springs Road property which is under
development and therefore not generating a
rental return ($1.8 million), net rental income
from the underlying properties and completed
development was higher by $3.4 million when
compared to FY18.
• SIML management fee income was
slightly lower in FY19 at $24.5 million
(FY18: $24.9 million on a comparable
basis
4
), although fees earned from the
external funds under management of
Investore and Diversified was steady
at $15.7 million. SIML was pleased to
earn a $0.5 million performance fee in
relation to its management of Investore,
as a result of the total return delivered
to Investore shareholders over the
24 months to 31 March 2019.
• SIML's corporate costs were
$1.5 million higher in FY19 than in
FY18, due to vacant positions being
filled. The additional SIML resource is
generating increased activity, which
is expected to lead to higher activity-
based fee incomes. For example, the
Development team was established in
FY18, and the team is now managing
over $200 million of developments,
which not only provides access to high
quality investments for Stride and the
SIML-managed funds, but will also lead
to additional activity-based fee revenue
for SIML's business.
• The net valuation gain for the SPL
portfolio was $36.5 million or 4.2% for
FY19. This compares to a $48.3 million
gain for FY18. Similarly, share of profit
in associates (Investore and Diversified)
was lower by $2.8 million, primarily due
to lower net valuation gains when
compared to the prior period.
People We are pleased to report on the
progress in the refresh of directors, as
announced in July 2018. Director Michael
Stiassny retired at the August 2018
Annual Shareholder Meetings. Following
an extensive search, the Boards have
appointed Jacqueline Robertson as a
director of SIML and SPL. Jacqueline
has 25 years of experience in financial
audit and advisory services, and was
a partner at Deloitte for 11 years. We
believe Jacqueline brings a strong mix of
skills and personal attributes to the Stride
Boards, and we are very pleased to have
Jacqueline as a director of SPL and SIML.
During the year in review two additional
SIML executives were appointed, which
completes the SIML executive team –
we welcome Fabio Pagano to the role of
Investore Fund Manager and Steve Penney
to the role of General Manager Investment.
The Investore Fund Manager role is a
newly created role, designed to ensure
SIML continues to provide market leading
real estate investment management
services to Investore, particularly as the
company evolves and targets growth.
The General Manager Investment role
has a focus on transactions, strategy and
business development – executing Stride’s
strategy to ensure a portfolio of places
with enduring demand and the creation of
future investment management products.
Places Strong underlying market dynamics
have contributed to growth in property
values across all of the commercial
property sectors in which SPL owns
property, particularly the industrial, office
and large format retail sectors. Overall,
SPL’s portfolio
2
increased in value to
$966.3 million as at 31 March 2019,
representing an increase of $64.0 million
or 7.1% on a gross basis, and $36.5 million
or 4.2% on a net basis.
Over the last 12 months, market rental
across the portfolio grew by $3.3 million
or 5.9%, with a market capitalisation rate
contraction of 26 basis points to 6.35%.
Industrial: The value of SPL’s industrial
portfolio has grown significantly over the
past 12 months. The net valuation gain for
the industrial portfolio
5
was $24.1 million
or 11.1% for FY19. Excluding 11 Springs
Road (under development), market rental
growth of 4.9% and market capitalisation
rate compression of 24 basis points
contributed to this valuation gain.
A significant portion of the revaluation
gain ($8.6 million) was attributable to the
assets where key leasing transactions
were completed during the period, being
the Capital S.M.A.R.T. and AA Insurance
premises at 25 O’Rorke Road and the
DHL premises at 22-30 Airpark Drive,
both in Auckland. A further $6.5 million
net valuation gain was achieved at
11 Springs Road, Auckland, which is
currently under development.
SPL’s industrial portfolio
5
, which has a
valuation of $262.5 million as at
31 March 2019, comprises 27% of
the total value of the SPL commercial
property portfolio, up from 24% as at
31 March 2018. Completion of the
Springs Road and The Concourse
developments (both in Auckland), as
well as completing the acquisition
of the property at 439 Rosebank
Road, Auckland, is estimated to add
approximately $85 million to the value
of SPL’s industrial portfolio, based on
today’s estimated values.
Retail: SPL’s retail portfolio showed a net
valuation movement for the 12 months to
31 March 2019 of $3.3 million or 0.8%,
largely due to higher passing income
(5.1%), improved market income (2.0%)
and largely stable market capitalisation
rates (-3 basis points).
Of this valuation movement, the
Carr Road property showed the greatest
net valuation gain ($4.5 million), driven
by the planned upgrade works and
associated rental, as well as market
capitalisation rate compression of
13 basis points to 5.0%.
SPL has committed to $11 million
in aggregate of property extensions and
upgrades for Rebel Sport and Briscoes
at Bay Central Shopping Centre and
for Bunnings, Carr Road, Auckland. On
completion of these works, each tenant
will commit to a new 10 year lease of
their respective premises. This activity
contributed to a combined net valuation
gain in the Bay Central Shopping Centre
and Bunnings Carr Road assets of
$7.3 million or 8.6%, demonstrating
the value that can be achieved through
active portfolio management by SIML.
1. Further details on the implications of investing in Stride stapled securities can be found on page 118.
2. See footnote 2 on page 2.
3. TSR is calculated as: (closing share price on the last traded day of the year to 31 March 2019 plus dividends paid during
the year to 31 March 2019 less the closing share price on the last traded day of the year to 31 March 2018) divided by
the closing share price on the last traded day of the year to 31 March 2018.
4. See footnote 1 on page 5.
5. Industrial portfolio includes 11 Springs Road, Auckland, which is categorised as 'Development' within Investment
Properties in the consolidated financial statements. Refer note 3.3 to the consolidated financial statements.
7
Chairman & CEO’s Report
6
Stride Property Group | Annual Report 2019Stride Property Group | Annual Report 2019Chairman & CEO’s Report

Office: In December 2018, SPL entered
into an agreement to sell its office building
at Corinthian Drive, Albany, Auckland,
for $50.5 million, representing an initial
yield of 5.9% and a 4.7% premium to the
property’s value in the Stride consolidated
interim financial statements as at
30 September 2018.
The net valuation gain for SPL’s office
portfolio was $9.1 million or 4.1% for
FY19. This increase was driven in part
by the valuation improvement seen
in the Grey Street, Wellington, asset
of $3.4 million or 6.4%, due to the
successful leasing of the four floors
vacated by Westpac in April 2018, again
demonstrating the value achieved by
SIML’s active portfolio management.
Products In addition to SPL, SIML also
manages the portfolios and businesses
of Investore and Diversified.
Investore has had an active year, including
a number of capital management
initiatives, such as a $100 million listed
bond issue in April 2018, as well as
commencing a 12 month on-market share
buyback in August 2018. SIML, on behalf
of Investore, also completed the successful
renewal of two leases for Countdown-
operated properties, in Rotorua and
Hamilton. This activity contributed to the
Investore Board increasing its dividend
guidance in December 2018 to 7.60 cents
per share (up 0.14 cents per share or
1.9% on the FY18 dividend).
The year in review has also seen strong
share price growth for Investore. SIML
considers that Investore is now well
placed for considered future growth.

Diversified, which is an Australian trust
owned by SPL and two Australian
superannuation funds, owns three
shopping centres, and has a 50%
interest in the Johnsonville Shopping
Centre. Diversified continues to invest
in its assets in order to make them
contemporary and relevant for its
customers, driving continued demand
for the centres. This can be seen in the
work that has taken place at the Chartwell
Shopping Centre to introduce H&M
as a tenant, the rebuild process that is
ongoing within the Queensgate Shopping
Centre to rebuild the carpark and cinema
demolished following the Kaikoura
earthquake, and the seismic strengthening
work underway at Queensgate. Increased
rebuild costs have resulted in a lower
value for the Queensgate Shopping Centre
over the short term, until completion of the
rebuild. Diversified is making an insurance
claim for the costs of the rebuild.
SIML was pleased to be able to introduce
H&M to the Chartwell Shopping Centre,
with the store due to open in winter 2019.
We have seen from other centres the
attraction of an H&M store and the benefits
that a leading international fashion retailer
can bring to a shopping centre.



Capital Management During the year in
review SPL refinanced $200 million of its
$400 million banking facilities, following
which there are no banking facilities
maturing until June 2021. As at 31 March
2019, the weighted average tenor of
SPL’s debt facilities is 2.8 years (2.2 years
as at 31 March 2018), and the weighted
average cost of debt is 4.6% (5.0% as
at 31 March 2018).
Sustainability The Stride Boards have
had a focus during the year in review on
sustainability. The Boards recognise that
to continue to be successful, companies
need to take a considered, strategic
approach to sustainability. While SPL and
SIML undertake a number of sustainability
initiatives, these need to be clearly linked
with a well-formulated sustainability
strategy to ensure our activities are
targeted at the areas that are important
to our stakeholders and our business.
Accordingly, we have partnered with
'thinkstep', an independent sustainability
consultancy, to develop a sustainability
materiality matrix for Stride, which will be
used to develop a focussed sustainability
strategy. The end result is a list of
material issues that are deemed critical to
achieving long term, sustainable success
for Stride. You can read more about this
work on pages 34 and 35 of this report
Dividend Stride’s strategy continues to be
delivering consistent dividends and long-
term growth for its shareholders.
The Boards of SPL and SIML have
approved a combined cash dividend of
2.4775 cents per share for the fourth
quarter to 31 March 2019, bringing the
full FY19 cash dividend to 9.91 cents
per share, in line with guidance. This
represents a payout ratio of 93.4% of
distributable profit
1
. The Boards note that
this year’s distribution is slightly below
Stride’s payout policy of 95% to 100% of
distributable profit. The Boards confirm
guidance for a combined annual cash
dividend of 9.91 cents per share for the
2020 financial year.
We thank you for your continued support
of Stride Property Group, and look forward
to the next 12 months, during which we
intend to further pursue our strategy, while
ensuring continued focus on returns to
shareholders.
Philip Littlewood
Chief Executive Officer,
SIML
Tim Storey
Chairman,
SPL and SIML
Tim Storey
Chairman,
SPL and SIML
Philip Littlewood
Chief Executive
Officer, SIML
Stride is investing in people and
places for the long term. We will
invest in places with ‘enduring
demand’, which attract the
highest demand in all market
conditions. This will support our
strategy of establishing a group
of products in specific sectors to
provide growth in our investment
management business. Stride’s
focus for the future is to:
• Continue to grow our existing
products — Investore and
Diversified
• Build portfolios of assets
within SPL that can be used
to establish new products,
with SPL taking a cornerstone
interest
• Evaluate opportunities in
markets adjacent to core
commercial property sectors
We consider that SPL has a
portfolio of industrial and office
properties with enduring demand,
which are likely to form the
basis of future products to be
established by Stride. We see our
value proposition as identifying
and managing properties with
enduring demand and managing
investment management
products which deliver leading
returns for our shareholders and
investors, with SPL owning a
share in each specific property
sector product.
Strategy
1. See glossary of terms on page 119.
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Board of
Directors
Tim Storey
Chairman
LLB, BA
Term of Office Appointed to SPL on
1 April 2009, and to SIML on 16 February
2016; Last elected 2017 annual meeting
Tim was appointed Chairman of SPL
in 2009 and has more than 30 years’
business experience across a range of
sectors. Tim has practiced as a lawyer in
Australia and New Zealand, retiring from
the Bell Gully partnership in 2006. Tim
is a member of the Institute of Directors
in New Zealand (Inc.) and is Chairman
of LawFinance Limited (an ASX listed
entity), director of Investore Property
Limited and director of a number of
private companies.
John Harvey
Chair of the Audit and Risk Committee
BCom, FCA, CFInstD
Term of Office Appointed to SPL on
15 September 2009, and to SIML on
16 February 2016; Last elected 2018
annual meeting
John has over 35 years’ professional
experience as a chartered
accountant. He was a partner in
PricewaterhouseCoopers for 23 years
where he held a number of management
and governance responsibilities. John
retired from PwC in June 2009 to pursue
a career as a professional independent
director. He is a Chartered Fellow of the
Institute of Directors in New Zealand
(Inc.) and is currently a director of
Investore Property Limited, Kathmandu
Holdings Limited, Heartland Bank
Limited and Port of Napier Limited.
Michelle Tierney
Director
BA, MBA
Term of Office Appointed to SPL on
17 July 2014, and to SIML on 16 February
2016; Last elected 2017 annual meeting
Michelle has more than 20 years’
experience in the property industry, and
was most recently the General Manager
of Business Development and Strategy
for the National Australia Bank Global
Institutional Bank. Prior to this, Michelle
was Fund Manager of the $3.8 billion
GPT Wholesale Shopping Centre Fund
for ASX50 company The GPT Group.
Michelle is a member of the Australian
Institute of Company Directors, Women
on Boards Australia and the Women’s
Leadership Institute Australia and is
an Associate of the Australian Property
Institute.
David van Schaardenburg
Director
BCom, CA, CMInstD
Term of Office Appointed to SPL on
12 May 2010, and to SIML on 16 February
2016; Last elected 2016 annual meeting
David is a Principal of the investment
firm, New Zealand Funds Management.
He has worked in financial analysis and
portfolio management roles for over 30
years, including three years in London.
From 1994, he directed Fundsource
Limited, New Zealand’s leading
investment research group, and from
1997 was Chief Investment Officer at
NZ Funds, overseeing the management
of $1 billion across a variety of asset
classes. He is a Chartered Member of
the Institute of Directors in New Zealand
(Inc.).
Philip Ling
Director
MSc, MRICS, CMInstD
Term of Office Appointed to SPL and
SIML on 26 June 2017; Elected 2017
annual meeting
Philip brings more than 30 years of
experience in funds and property
management entities, in senior
management and CEO roles and
directorships, throughout the United
Kingdom and Asia Pacific. Most recently,
Philip was CEO, Asia Pacific, of LaSalle
Investment Management, a global real
estate funds manager with assets under
management of $USD58 billion, and
Chairman of the Asia Pacific Investment
Committee. Philip is a Professional
Member of the Royal Institution of
Chartered Surveyors, a Chartered
Member of the Institute of Directors in
New Zealand (Inc.) and a former Fellow
and President of the New Zealand
Institute of Quantity Surveyors.
Jacqueline Robertson
Director
BAcc, CA, CMInstD
Term of Office Appointed to SPL and
SIML on 13 March 2019
Jacqueline has 25 years of experience
in financial audit and advisory services.
Jacqueline was a partner at Deloitte
for 11 years in audit and assurance and
also led the Corporate Responsibility
and Sustainability services function
for Deloitte New Zealand for nine
years. Jacqueline has a broad range
of experience across the financial
services, public, private and not for profit
sectors. She is currently a member of
the External Reporting Board, the Audit
Oversight Committee of the Financial
Markets Authority and the Risk and
Assurance Committee for the Ministry of
Business, Innovation and Employment.
Michael Stiassny (BCom, LLB, FCA,
CFInstD) was a director of SPL & SIML.
He was appointed as a director of SPL
on 9 April 2010 and as a director of
SIML on 16 February 2016. Michael
retired as a director of both SPL and
SIML on 30 August 2018.
All directors are independent
and non-executive.
11
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People
• A leadership development programme
has been established for SIML's
emerging leaders, to ensure they have
the skills necessary to develop high
performing teams and contribute
to the overall success of Stride. Ten
of our people leaders are currently
participating in this year-long
development programme, which has
been designed to ensure they have
the skills to develop the leadership
competencies that we consider
essential for leadership at Stride.
• Development at SIML is not only about
leaders, however. It is important to us
that we develop people at all levels of
the organisation, and promote internally
where possible. During the 12 months
in review, six of our people were
promoted internally to new positions.
This demonstrates growth and
development of our people, and their
commitment to taking the next step in
their careers at SIML.
People are key to the success of SIML’s real estate
investment management business. SIML has invested
in its people during the year in review to foster that
ongoing success.
• All SIML employees were encouraged
to take a day out of the office to
contribute to their community.
Activities included planting trees on
Motuihe Island, fundraising for the
SPCA, and volunteering for Habitat for
Humanity by painting the exterior of
a local family’s home.
• All employees came together in
June 2018 in Rotorua for our first
company-wide employee conference.
This was preceded by a number of
team challenges to set the scene
for the conference. The conference
enabled our teams to demonstrate
what makes them unique, both
individually and as a team, and to forge
closer bonds between all of our people,
who are located across the length
of New Zealand, from Auckland to
Queenstown and in between.
Allan Lockie SIML Development Manager &
Luis Hiller Project Manager, Haydn & Rollett
Waste Management Development
Springs Road, Auckland
13
PeoplePeople
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Stride has four key behaviours that represent
who we are and how we operate. We celebrate
our people who demonstrate these behaviours,
and are proud to share their stories:
Fresh Thinkers

André Froggatt Facilities Manager
Murray Kinzett Risk Manager
Queensgate Shopping Centre

During the year SIML undertook
installation of fibre infrastructure to
the Queensgate Shopping Centre
and Tower. André and Murray worked
closely with the retailers and the
Chorus staff who were undertaking
the works to ensure that the impact
to retailers was minimised, and
the project ran smoothly. The main
contractor commented: “Thank you for
your assistance in this project. Without
the active involvement of these two
individuals, the work would not have
progressed as well as it has. In terms
of the major projects I have been
involved in, this is the best contractor -
client relationship I have had in my 40
plus years in the industry.”
Maaike Ferguson
Accountant
Auckland Office
Maaike was a key member of the SIML
team that worked on the implementation
of the Yardi financial and property
management software. After rejoining
the finance team, Maaike has been
managing both her day job and finishing
off implementation projects for the
Yardi software. She is an invaluable
member of the finance team due to
her knowledge of Yardi, and her ability
to solve problems that arose once the
team started using Yardi in everyday
situations. She has also willingly and
cheerfully undertaken the development
of detailed user manuals for the system,
and established multiple training
sessions to ensure the system is used
effectively, for the betterment of the
Stride organisation.
Allan Lockie
Development Manager
Auckland Office
Allan is leading two major projects,
being the rebuild of part of the
Queensgate Shopping Centre and
the Springs Road development for
the new Waste Management head
office (Auckland). He has had to
overcome challenges with each
project, demonstrating his disciplined
and committed approach. Allan has
been instrumental in ensuring a good
working relationship between SIML
and SPL’s tenant at Springs Road,
Waste Management. Allan works hard
to ensure that the project achieves the
needs of the tenant, while at the same
time achieving commercial success for
SPL. Allan is admired by his colleagues
for his unwavering commitment to
each project, and his positivity and
professional manner.
Staff wellbeing is important at Stride. Our people
participated in the following events aimed at keeping
healthy and well:
Sharyn Bramwell-Reweti
Safety & Sustainability Manager
Auckland Office
Sharyn has been working on improving
our health and safety processes and
practices at Stride since she joined
in April 2018, including new health
and safety processes for contractor
management and implementing a new
health and safety software system.
Sharyn worked closely with those people
and teams who will be most involved in
using these systems and processes and
has actively sought feedback to ensure
that the processes she implements meet
the needs of the people who will be
using them. She has gone out of her way
to work with her colleagues to make the
system usable, efficient and effective.
People Centred Discipline DrivenNimble Performers
People
• A company-organised
tennis evening
• Participation in all distances
of the Auckland marathon
• Round the Bays Auckland
• The Panasonic Peoples
Triathlon, Mission Bay
In addition, we have an
Employee Assistance
Programme available to all
of our employees and their
immediate families, to assist
them with any aspect of their
lives, whether work related
or not.
Wellbeing
15
PeoplePeople
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Executive Team
Fabio Pagano
Investore Fund Manager
MBA
Fabio joined Stride in 2018
and brings over 15 years’
international experience in
retail management, including
at Coles Group in Australia,
where he led property teams
across the country. He has
broad experience across all
aspects of leasehold and
freehold portfolios. Recently,
he held senior roles in New
Zealand government across
property and infrastructure
departments.
Roy Stansfield
General Manager Shopping
Centres ACA
Roy is responsible for
Stride’s retail portfolio.
His role covers all aspects
of retail asset management,
including retail planning
and leasing. Roy has more
than 25 years’ experience in
the retail shopping centre
industry. Prior to joining
Stride, he was employed
by Challenge Properties,
St Lukes Group and Kiwi
Income Property Trust.
Andrew Hay
General Manager Commercial
& Industrial BProp, MBA
Andrew joined Stride in 2004
and has more than 20 years’
property industry experience.
Prior to joining Stride,
Andrew worked in property
development roles, including
two years in Dublin, where he
managed a property portfolio
for Ireland’s leading betting
agency. Andrew is responsible
for the asset management of
the commercial and industrial
portfolios, and is currently
Auckland Branch Vice President
of the Property Council.
Steve Penney
General Manager
Investment BBS, BSc
Steve joined Stride in
2019 and has overall
responsibility for investment
and portfolio management
activity. Steve's investment
and asset management
experience includes 15
years across the real estate
and infrastructure sectors.
Steve has performed lead
roles in capital raising,
origination, execution
and post acquisition
management of assets.
Jennifer Whooley
Chief Financial Officer
CA
Jennifer has more than
25 years’ experience in the
property industry. Jennifer
is responsible for Stride’s
overall financial plans and
policies, ensuring compliance
of its accounting practices,
and also heads up the HR
function within Stride. Prior
to joining Stride, Jennifer
was Chief Accountant for
Fletcher Property. Jennifer
was named the EY CFO of
the Year for 2018.
Louise Hill
General Manager Corporate
Services BCom, LLB
Louise joined Stride in
November 2017, and has
more than 20 years’ legal
experience. Louise’s previous
roles include Head of Legal
(NZ) for Fletcher Building and
Senior Associate at Bell Gully.
Louise is responsible for a
range of corporate functions
within Stride, including legal,
governance, compliance,
health and safety and risk.
Philip Littlewood
Chief Executive Officer
BProp, BCom, MBA
Philip joined Stride in 2014
and has over 18 years’
experience in property
investment management in
New Zealand and overseas.
Highlights of his work
history include time with
Morgan Stanley’s real estate
merchant banking team
and a partnership in a large
private-equity real estate firm,
both in London. Prior to this,
Philip held the position of
Investment Manager at
AMP Capital Investors.
Mark Luker
General Manager
Development Dip.Val.Prop
Mark is responsible for Stride’s
development activities. He has
over 25 years of experience in
the property development and
investment industry, and has
been involved in complex large-
scale retail and commercial
development projects in both
New Zealand and Australia.
Mark joined Stride from Kiwi
Property Group Limited.
17
Executive TeamExecutive Team
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1919
Places
Stride Property Limited (SPL) forms part of the Stride Property
Group. SPL owns quality New Zealand property investments, has
a cornerstone 19.9% shareholding in Investore Property Limited
and owns 2% of the units in Diversified NZ Property Trust.
These pages outline key metrics for the SPL portfolio overall,
and the following pages provide further information in relation
to SPL's portfolio by sector.
1. See note 2 on page 2.
2. See glossary of terms on page 119.
3. Represents the scheduled expiry for each lease, excluding any rights of renewal that may be granted under each lease, for the entire portfolio as at
31 March 2019, as a percentage of Contract Rental.

Overview
As at
31 March 2019
As at
31 March 2018
Properties (no.)2626
Tenants (no.)381379
Net Lettable Area (m
2
)252,014251,953
Net Contract Rental
2
($m)5 8 .156.7
WALT
2
(years)4.85 .1
Occupancy Rate
(% by area)
97.696.7
Property Value

($m)966.3902.2
Overview of SPL Portfolio
1
Rental Reviews
The components that have led to the increased rental achieved
across the SPL portfolio over the FY19 financial year can be
demonstrated as follows:
SPL Portfolio Location
by Contract Rental
2
SPL Lease Expiry Profile
3

by Contract Rental
2

77% Auckland

18% Wellington


5% Other North Island

31 March 2018

31 March 2019

FY20
Previous
Rental
($000s)
CPIFixedMarketSettled
Rental
10 .1%
$31,078$32,266
+3.8%
+$385
+2.8%
+$344
+3.0%
+$459
+8.0%
7.1%
15.3%
13.8%
18.6%
20.4%
FY21FY22
19
PlacesPlaces
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Portfolio
Sectors
Industrial
Office
Retail Shopping
Centres (35%)
Large Format
Retail & LFR
Centres
2
(13%)
48%
25%
27%
SPL’s properties can be grouped into three sectors — Industrial,
Retail and Office. Over time, these property sector portfolios
may form the basis of future products to be established by
Stride, supporting Stride’s strategy of growing SIML’s assets
under management. Below is the SPL portfolio
1
by sector by
value as at 31 March 2019.
Retail
Silverdale Centre
Auckland
Industrial
20 Rockridge Ave
Auckland
Office
33 Customhouse Quay
Wellington
1. See footnote 2 on page 2.
2. LFR Centres is defined as Mt Wellington and Bay Central centres included within the 'Retail' category of Investment
Properties in the consolidated financial statements. Refer note 3.3 to the consolidated financial statements. See also page
25 for further information.
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Industrial
Portfolio
SPL’s industrial properties are all
located in the Auckland region. Two
thirds of the industrial properties
by value were developed by SPL, or
are currently under development,
including the O'Rorke Road precinct
in Penrose, the DHL building in the
Auckland Airport precinct, and the
Springs Road site.
SPL agreed to acquire two more
Auckland industrial properties in FY19
— The Concourse, for $35 million, with
completion due in June 2019; and
439 Rosebank Road, for $8 million,
with completion due in July 2020.
The Concourse property includes
an area of development land which
SPL has agreed to develop for Waste
Management, following which Waste
Management will take a lease of the
site for 25 years. This development is
expected to be completed late 2020.
The SPL property at Springs Road,
East Tamaki (Auckland), is currently
under development as a new head
office, workshop and depot for Waste
Management, with completion due
in late December 2019. On behalf of
SPL, SIML has worked collaboratively
with Waste Management to design
a head office and facilities that
meet Waste Management’s needs,
and which incorporate a number of
sustainability initiatives.
During the year in review, SIML
set tled 10,239m
2
of market rent
reviews at a 1.6% premium to the
2018 valuation rentals and 23.3%
above previous rentals – the review
of the ground rent at 34 Airpark Drive,
Auckland, contributed significantly to
this increase over previous rentals.
Overall, including structured rent
reviews, SIML settled 68,644m
2
of
rent reviews within the industrial
portfolio at a 5.4% premium to
previous rentals.
Industrial
Tenants
Include:
Hydraulink
NZ Post
Laminex Group
AA Insurance
Goodyear Tyres
DHL
11
properties
100%
occupancy rate
21
tenants
Penrose
•
O’Rorke Rd
Ellerslie
Remuera
1. See footnote 5 on page 6.
2. See glossary of terms on page 119.
As at 31 March 2019
1
As at 31 March 2018
Properties (no.)
1111
Tenant s (no.)
2118
Net Lettable Area (m
2
)
100,919100,852
Net Contract Rental
2
($m)
12.210.8
WALT
2
(years)
4.44.3
Occupancy Rate (% by area)
10094.6
Value of Industrial Properties ($m)
262.5216 . 8
Net Valuation Gain ($m)
2 4 .119.4
22
23
Stride Property Group | Annual Report 2019Stride Property Group | Annual Report 2019Industrial PortfolioIndustrial Portfolio

Major Retail
Tenants:
7
properties
96.3%
occupancy rate
290
tenants
Briscoes
Bunnings
Farmers
Rebel Sport
Countdown
Retail
Portfolio
31 March 201931 March 2018
Large Format Retail/
LFR Centres
3
Retail Shopping
Centres
Retail
Total
Retail
Tot al
Properties (no.)
3477
Tenant s (no.)
49241290292
Net Lettable Area (m
2
)
37, 20 565,284102,489102,465
Net Contract Rental
4
($m)
8 .122.230.329.5
WALT
4
(years)
4.94.94.95.4
Occupancy Rate (% by area)
9 9.194.796.397.2
Value of Retail Properties
5
($m)
128 . 9338.0466.9461.9
Net Valuation Gain ($m)
6.5(3 .1)3.314. 8
The wholly-owned SPL retail properties
are located in Auckland and Tauranga.
SPL also owns 50% of Johnsonville
Shopping Centre, located in Wellington.
For portfolio overview purposes, Stride
divides its retail properties into two
sub-groups – retail shopping centres
(comprising the larger centres of
Silverdale, NorthWest, NorthWest Two
and Johnsonville) and large format retail/
LFR centres (being the large format retail
property of Carr Road, plus the Bay Central
and Mt Wellington centres where the
anchor and major tenants comprise more
than 50% of the total net lettable area).
Bunnings Carr Road, Auckland, is currently
subject to a planned capital upgrade,
following which Bunnings will enter into
a new 10 year lease for the premises.
Works to expand the Rebel Sport and
Briscoes premises at the Bay Central
Shopping Centre, Tauranga, are currently
underway, with the new areas expected
to be operational for the Christmas
shopping period. Following completion
of the works, new 10 year leases of each
premises will commence.
In the 12 months to 31 March 2019, SIML
settled 3,164m
2
of market rent reviews
for leases over the SPL retail portfolio at
a 3.6% premium to previous rentals. In
total, including structured rent reviews,
SIML settled 47,455m
2
of reviews at a
3.3% premium to previous rentals.
Comparable sales
1
for NorthWest
Shopping Centre and NorthWest Two
increased by 4.7% over the 12 months
to 31 March 2019 and 4.4% at the
Silverdale Centre
2
over the same period.
1. Comparable sales only includes sales from those tenancies which have traded for the past 24 months and includes commercial services categories.
2. Sales data is not collected for all tenants at Silverdale Centre. Some tenants are not obliged to provide sales data under the terms of their lease.
3. See footnote 2 on page 20.
4. See glossary of terms on page 119.
5. Includes Northwest Two, Auckland, which is classified as inventory in the consolidated financial statements (refer note 3.7 to the consolidated financial statements).
25
Retail PortfolioRetail Portfolio
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Office
Portfolio
Office Tenants
Include:
Meridian Energy
Westpac
Heartland Bank
Statistics NZ
Maritime NZ
As at
31 March 2019
1
As at
31 March 2018
Properties (no.)
88
Tenant s (no.)
7069
Net Lettable Area (m
2
)
48,60648,637
Net Contract Rental
2
($m)
15.716 . 3
WALT
2
(years)
4.95 .1
Occupancy Rate (% by area)
95.599.8
Value of Office Properties

($m)
236.9223.6
Net Valuation Gain ($m)
9 .14.4
8
properties
95.5%
occupancy rate
70
tenants
1. These metrics include SPL’s property at Corinthian Drive, Auckland, which SPL agreed to sell during the financial year.
This transaction subsequently settled on 1 April 2019.
2. See glossary of terms on page 119.
The SPL office portfolio is entirely
located in the main centres of Auckland
and Wellington, in areas where SPL
considers there to be enduring market
demand from occupiers, which will
support long term income and value
growth.
In December 2018, SPL entered into
an agreement to sell its office building
at Corinthian Drive, Albany, Auckland,
for $50.5 million, representing an
initial yield of 5.9% and a 4.7%
premium to the property’s value in the
Stride consolidated interim financial
statements as at 30 September 2018.
Completion of the sale of this property
occurred on 1 April 2019.
As at 31 March 2019, the office portfolio
was 95.5% occupied. The vacancy
was concentrated at 80 Greys Avenue,
Auckland, following DDB vacating five
floors in March 2019. SPL is pleased
to report that two floors of the five
formerly occupied by DDB were leased
to Statistics New Zealand (a Government
entity) and, post balance date, a further
floor has been leased to Serato, a current
tenant in the building.
In the year to 31 March 2019, SIML
settled rent reviews over 11,562m
2

of office space owned by SPL at a 3.3%
premium to previous rentals and 7.1%
above 2018 valuation rentals. Market rent
reviews equated to a third of all reviews
and were settled 5.9% above previous
rentals and at a 4.5% premium to 2018
valuation rentals.
These increases have contributed to a net
valuation gain for the office portfolio of
$9.1 million or 4.1% for FY19.
27
Office PortfolioOffice Portfolio
26
Stride Property Group | Annual Report 2019Stride Property Group | Annual Report 2019

Products
SIML-Managed Properties
Stride Investment Management Limited (SIML) is part of the
Stride Property Group. SIML is a specialist real estate investment
manager, managing over $2.2 billion of investment property.
SIML manages the portfolios and business of SPL, Investore
and Diversified.
550 leasing transactions were undertaken by SIML during
FY19 across 318,000m
2
of commercial property over the three
managed portfolios, representing $88 million of rentals.
35%
25%
100%100%
13%
27%

Office

Industrial
3

Large Format Retail / LFR Centres
4

Retail Shopping Centres

Large Format Retail


Retail Shopping Centres
Portfolio
1
Composition by Value
Value of
Investment
Properties
Number of
Investment
Properties
SPL
Investment in
Managed Entities
$966m26–
$761m4019.9%
$485m42%
Total
$2,212m69–
Portfolio
1
Valuations
as at 31 March 2019
1. See footnote 2 on page 2 in relation to SPL's properties. The number and value of properties owned by
Investore as at 31 March 2019 includes the Countdown-operated property at Dunedin South,
which Investore had agreed to sell during the financial year. This transaction settled on 1 April 2019.
2. Includes Johnsonville Shopping Centre, Wellington, which is owned 50:50 by SPL and Diversified.
3. See footnote 5 on page 6.
4. See footnote 2 on page 20.
2
2
2
29
ProductsProducts
28
Stride Property Group | Annual Report 2019Stride Property Group | Annual Report 2019

Investore revised its market dividend
guidance on 18 December 2018,
announcing an increased cash dividend
for FY19 to 7.60 cents per share, up
0.14 cents per share or 1.9% on the
FY18 dividend. The revised guidance
followed a solid performance for the
six months ended 30 September 2018
and positive activity with two new
successful lease renewals and the sale
of Countdown Dunedin South, which
settled on 1 April 2019.
This portfolio activity and sales
evidence also contributed to a six cents
per share gain in net tangible assets
value to $1.70 per share, and takes the
total gain in net tangible assets since
listing in July 2016 to 15.6%.
Highlights
Fabio Pagano was appointed as
Investore Fund Manager during FY19.
This is a newly created role within the
SIML Executive Team, to ensure SIML
continues to provide market leading
real estate investment management
services to Investore, particularly as the
company evolves and targets growth.
Investore agreed to sell Countdown
Dunedin South for $19.3 million in
December 2018, representing a
5.6% premium to the property’s value
recorded in Investore’s 31 March 2018
financial statements of $18.3 million.
Completion occurred post balance date,
on 1 April 2019. This sale completes
the divestment programme announced
by Investore on 13 November 2017,
which has resulted in average sales
prices achieved of 9.1% premium to
book values.
SIML completed a number of key
leasing transactions during FY19 for
Investore, including the early renewal
of the lease of Countdown at 230 - 240
Fenton Street, Rotorua, with a new
10 year lease commencing FY21.
A new 5 year lease renewal was also
secured for Countdown at Anglesea
and Liverpool Streets, Hamilton, taking
effect from 1 February 2019.
The extension project at Mitre 10 Mega,
Botany, Auckland, was completed in
December 2018. Following completion
of the works, Mitre 10 entered into a
new lease for a further 12 years, with
Investore receiving rental return on
this investment from Mitre 10 over the
duration of the lease.
Active capital management initiatives
have been a focus for FY19, including:
• A successful $100 million inaugural six-
year senior secured fixed rate bond issue
in April 2018, with a fixed interest rate
of 4.4% per annum. This issue extended
the overall tenor of Investore’s funding
facilities, resulting in improved alignment
between Investore’s debt profile and
its property portfolio’s long weighted
average lease term profile.
• Refinancing of $70 million out of
Investore’s $270 million of banking
facilities. There is now no debt maturing
until F Y21.
• On 1 August 2018, Investore announced
a share buyback programme, reserving
the right to acquire up to 5% of its
ordinary shares on issue, an efficient
use of balance sheet capacity. Investore
acquired and cancelled 1.7 million
ordinary shares through the buyback
programme (representing 0.65% of the
shares on issue immediately prior to the
launch of the buyback programme), with
the average price of shares purchased
at $1.53. On 29 March 2019, the
last trading day of the financial year,
Investore's share price closed at $1.61.
The buyback programme has now been
concluded.
Investore’s future focus
Considered investment to target
growth opportunities
Continued proactive capital
management
Partnering with tenants in the
execution of the FY20 store
refurbishment programme
31
InvestoreInvestore
Countdown
326 Great South Road
Greenlane, Auckland
SIML manages the business and portfolio of Investore
Property Limited, which is an NZX listed entity. SPL owns
19.9% of the shares in Investore.
Investore’s strategy is to invest in quality, large format
retail properties throughout New Zealand, and actively
manage shareholders’ capital, to maximise distributions
and total returns over the medium to long term.
30
Stride Property Group | Annual Report 2019Stride Property Group | Annual Report 2019

Last year Chartwell Shopping Centre
launched its Community Art Space,
“chARTwell”, which has been met with
a great reception by shoppers and
retailers alike.
chARTwell has created a space to
contemplate, reflect and appreciate
the myriad of talent in the Creative
Waikato Community, and enables
the Centre to connect with its
community.
There has been a considerable amount of
activity within the Diversified portfolio during
the year in review, particularly in relation
to the Queensgate Shopping Centre. Work
has continued on the rebuild of part of the
Queensgate Shopping Centre following the
demolition of a carpark building and cinema
as a result of the Kaikoura earthquake. A
considerable amount of investment has also
gone into seismic strengthening at Queensgate,
to ensure it is an asset that is fit for the future
and remains a preferred retail centre in the
region. We look forward to the new carpark
building being completed by 2020, with the
cinema to follow.
As at 31 March 2019, Diversified's total
investment property valuation reduced to
$485 million ($538 million as at 31 March
2018), primarily resulting from higher expected
earthquake rebuild costs at Queensgate
Shopping Centre. If these works were
completed the value of the portfolio would
be over $575 million. Diversified is making an
insurance claim for the costs of the rebuild.
SIML was pleased to be able to introduce H&M
to the Chartwell Shopping Centre, with the
store due to open in winter 2019. We anticipate
that this will drive significant visitation to
the Centre from the Waikato region. The
introduction of an iconic international fashion
retailer to Chartwell will increase the appeal of
the Centre to both customers and potential new
tenants.
SIML has agreed the terms of a new lease
with Hunting & Fishing New Zealand for over
2,000m
2
of space at the Remarkables Park
Town Centre, with the lease commencing in
November 2019, for an initial five year term,
providing a strong drawcard for the Centre.
Once opened, this store will be the largest
Hunting & Fishing store in New Zealand.
SIML is anticipating a very busy year ahead
for Diversified, with the Queensgate rebuild
reaching an intensive period, completion of
seismic strengthening work at Chartwell and
Queensgate, and a continued focus on ensuring
the Diversified shopping centres continue to
achieve enduring demand.
Queensgate, Chartwell and Remarkables
Park Centres provide a Christmas gift
wrapping service whereby the Centre
provides the resources and charities operate
the gift wrapping station, with all proceeds
going to charity
The Centres sponsor a number of community
events, including the Hutt City Youth Awards
(Lower Hutt), “Christmas at the Douse” (a
community Christmas event held by Hutt
City Council), Hamilton’s Special Children’s
Christmas Party (Hamilton), and local drama
productions (Queenstown)
During the year, old Christmas decorations
were donated to a hospice, a hospital and a
local council
The Centres allocate community space
for schools and charities to fundraise and
build awareness for their organisation and
undertake performances
Chartwell hosts a Justice of the Peace,
providing services to members of the public.
This is the second busiest Justice of the Peace
community support desk in the country
Lighting within a number of the shopping
centres continues to be upgraded to LEDs,
which are more energy efficient
Remarkables Park Town Centre installed
Tesla EV charging stations, and plans to install
generic electric vehicle charging stations
beside the Tesla stations
The Diversified shopping centres are very
conscious of their impact on the environment,
and take steps to minimise waste to landfill,
with cardboard, plastic, scrap metal, and fat
and oil recycling undertaken
Chartwell Shopping Centre recycled retailer
clothing racks and storage units by donating
them to Waikato Women’s Refuge Te
Whakaruruhau
Community
Involvement &
Engagement
Energy
Efficiency
Waste &
Recycling
Sustainability Initiatives at Diversified Centres
33
DiversifiedDiversified
SIML manages the business and portfolio of Diversified NZ
Property Trust. Diversified is an Australian trust owned by SPL
(2%) and two Australian superannuation funds.
Diversified owns:
— Chartwell Shopping Centre, Hamilton
— Remarkables Park Town Centre, Queenstown
— Queensgate Shopping Centre, Lower Hutt
— A 50% interest in the Johnsonville Shopping Centre,
with SPL owning the remaining 50%
32
Stride Property Group | Annual Report 2019Stride Property Group | Annual Report 2019

35
Sustainability
A key focus during FY19 was
commencing the process of coordinating
and formalising Stride's sustainability
strategy, which has previously operated
on a more informal basis.
What has been achieved? During
the year in review, SIML management
undertook a gap analysis, facilitated
by 'thinkstep', an organisation that
works worldwide assisting companies
to recalibrate their sustainability
strategy and operations for long
term success. This gap analysis set a
baseline for Stride’s current position
on the sustainability maturity curve
and provides a level of understanding
for how Stride could further integrate
sustainability within the organisation.
Having established a context for
sustainability within Stride, we then
undertook a materiality assessment to
ensure that our sustainability strategy
focusses on those aspects that
matter most to both the business and
stakeholders.
We engaged with a number of
stakeholders – including employees at a
range of levels and areas of our business,
tenants, investors, Stride and Investore
Board members, a local council that we
work with regularly, service providers,
and community organisations we partner
with – to identify topics of importance
to Stride. These issues were then ranked
by our stakeholders and the impact on
our business of each of the material
issues identified during the stakeholder
interviews was also assessed.
The materiality matrix set out above
clearly identifies which sustainability
issues Stride should focus its attention
and resources on – that is, those that
appear in the top right hand corner of
the matrix. These are the issues that
are critical to achieving long term,
sustainable success for Stride and
implementing a business model that
creates and delivers value.
Why have we done this? The Stride
Boards recognise that being more
sustainable will help our business.
At Stride we recognise that sustainability is an important part of
doing business. We value sustainable business practices because
an organisation can only thrive if it considers all the pillars of a
successful, sustainable business — prosperity, planet and people.
We believe these three sustainability factors align with the four
Stride strategic pillars:
While Stride recognises that it is starting
on its sustainability journey, the process
to date has already benefitted the
business, by:
• Engaging with our stakeholders
• Identifying and prioritising significant
issues at an early stage
• Improving our brand among
employees, through requesting their
input on material sustainability matters
for Stride
Next steps Our next steps are to develop
a comprehensive sustainability strategy
based on the most important issues
identified as a result of the sustainability
materiality matrix. We will also identify
how each of the processes and practices
we currently undertake align with each
of these material sustainability issues.
Going forward, we will report on our
progress against our sustainability
strategy and the material issues for our
business and stakeholders.
P
L
A
N
E
T
P
R
O
S
P
E
R
I
T
Y

P
E
O
P
L
E
Performance
+
Places
People
Products
Stride's Sustainability Materiality Matrix
HIGH
LOW
Water
Industry leadership
Energy efficiency
Communication
Anticipating & responding to societal trends
Social license
Data privacy
Public transport
encouraging use/proximity
Attracting investors
Profitability
Governance
Waste & recycling
Green buildings
Diversity
Asset quality
Tenant relationships
Stride as a great
place to work
Health, safety
& wellbeing
Sustainability strategy & performance management
Carbon & climate change - including asset resilience
Procurement
HIGHSIGNIFICANCE TO STAKEHOLDERS
IMPACT ON BUSINESS
Community involvement
& engagement
35
SustainabilitySustainability
34
Stride Property Group | Annual Report 2019Stride Property Group | Annual Report 2019

People
By proactively managing health and
safety risks within the workplace we:
• aim to reduce incidents and the
severity of injuries
• will continue to report incidents and
improve investigation into root causes
to prevent reoccurrence
• will promote the wellbeing of our staff
and increase awareness of managing
health as well as safety
Regular training and competency
assessments of staff will assist in achieving
this, ensuring our employees will be strong
leaders in health and safety and will
promote the wellbeing of our employees,
contractors, visitors and tenants.
Environment
We will ensure we:
• provide a safe and healthy environment
for our staff, tenants, contractors and
visitors to our sites
• implement actions to minimise the
impact of critical and high hazards
occurring
• proactively engage with clients,
contractors and tenants to maintain
best practice in health and safety
Resources
We will ensure our staff are provided
with the tools, skills and resources to
learn and upskill so we continue to
achieve improvements in health and
safety across SIML.
Communication
The Boards and Executive Team within the
business will provide leadership for the
development and implementation of best
practice health and safety management.
We will ensure the continued effectiveness
of SIML’s systems for staff participation
and consultation on health and safety and
will ensure the provision of safety related
information/feedback.
We will recognise staff who proactively
promote safety and undertake safety
initiatives.
37
Our employees will
be strong leaders
in health & safety
and will promote
the wellbeing of
our employees,
contractors, visitors
and tenants.
We will provide
safe and healthy
environments for
all places that we
manage.
We will ensure our
people have the tools,
skills & resources to
achieve continuous
improvements in
health & safety.
We will ensure
regular effective
communication and
consultation to ensure
our employees are fully
engaged in health and
safety.
H&S STRATEGIC PILLARS
LONG TERM GOAL
“ We lead by
example ”
“ Our places are
safe & healthy ”
“ We have the skills
& resources to
keep improving ”
“ We talk about
safety daily ”
To provide leading health & safety
performance in the New Zealand
property market
A new health and safety
policy was adopted by
the Stride Boards during
the year. In addition, the
overall long term goal
of Stride for health and
safety was refreshed,
and the health and safety
strategic pillars that will
support achievement of
the long term goal were
developed. This is the
foundation of our health
and safety approach
at Stride and can be
depicted as follows:
Stride is committed to ensuring that
it continually monitors its progress in
achieving its long term goal, and ensuring
progress in each health and safety
strategic pillar. Accordingly, it has set a
number of actions with associated key
performance indicators, which will be
monitored and audited (both internally and
externally) to ensure Stride is achieving
best practice in health and safety.
To support achievement of the long
term goal, a three year strategic plan
was approved by the Boards, with specific
targets set for each of the strategic safety
pillars identified above. The key focus in
each area is described on the right.
Key areas of activity in safety during the
year in review, aligned with the areas of
highest risk for Stride, were:
• Development of a new contractor
management framework, to ensure that
Stride engages contractors who have
excellent health and safety practices
and procedures. Stride recognises
that it has strength in influencing the
safety practices of contractors, and
accordingly is committed to ensuring
it partners only with those contractors
who can guarantee the safety of
workers in all areas of practice. The
permit to work process was also
reviewed and refreshed, and a new
system is now operational.
• Establishment of a new health and
safety software system. The new
system, which commenced operation
on 1 April 2019, makes it easier for staff
to record incidents and risks, as well
as log required actions, meaning that
the Stride Boards will get richer data
about safety at the SPL properties and
SIML-managed sites, better enabling
a comprehensive approach to risk
and safety.
• Health and safety committees were re-
established across all levels of the SIML
business, in order to ensure effective
communication and feedback between
the business and employees.
PeopleEnvironmentResources
Communications
Safety
Safety has been a significant focus at Stride during the year
in review. A new Safety and Sustainability Manager was
appointed during FY19, and she has set about transforming
our approach to health and safety at Stride. The Stride Boards
aim to achieve the highest level of safety at Stride and SIML-
managed sites. Our focus is to ensure that our people are
healthy and return home safe and well.
37
Safety Safety
36
Stride Property Group | Annual Report 2019Stride Property Group | Annual Report 2019

Financial
Statements
Consolidated Statement of Comprehensive Income 40
Consolidated Statement of Changes in Equity 41
Consolidated Statement of Financial Position 42
Consolidated Statement of Cash Flows 43
Notes to the Consolidated Financial Statements 45
Independent Auditor’s Report 86
38
39
Financial StatementsFinancial Statements
Stride Property Group | Annual Report 2019Stride Property Group | Annual Report 2019

The attached notes form part of and are to be read in conjunction with these financial statements.The attached notes form part of and are to be read in conjunction with these financial statements.
Notes
Number
of shares
000
Share
capital
$000
Retained
earnings
$000
Other
reserves
$000
Total
$000
Balance at 1 Apr 17364,856499, 974112 ,17 2(4,288)607, 858
Transactions with shareholders:
Dividends paid4.2––(35,988)–(35,988)
Transfer to share capital on vesting of employee
long term incentive plan
5.5133231–(231)–
Share based payment expense5.5
–––526526
Total transactions with shareholders133231(35,988)295(35,462)
Other comprehensive income:
Movement in cash flow hedges, net of tax5.5–––(28)(28)
Change in cash flow hedge reserve in associates
5.5–––(474)(474)
Total other comprehensive income
–––(502)(502)
Profit after income tax
––95,254–95,254
Total comprehensive income––95,254(502)94,752
Balance at 31 Mar 18364,989500,205171,438(4,495)6 6 7,14 8
Transactions with shareholders:
Dividends paid4.2––( 3 6 ,17 3)–( 3 6 ,17 3)
Transfer to share capital on vesting of employee
long term incentive plan
5.5
308442–(442)–
Share based payment expense5.5
–––478478
Total transactions with shareholders308442( 3 6 ,17 3)36(35,695)
Other comprehensive income:
Deferred tax on share based payment expense5.5–––4545
Movement in cash flow hedges, net of tax5.5–––(2,951)(2,951)
Change in cash flow hedge reserve in associates
5.5–––(519)(519)
Total other comprehensive income
–––(3,425)(3,425)
Profit after income tax
––76 ,191–76 ,191
Total comprehensive income––76 ,191(3,425)72,766
Balance at 31 Mar 19
365,297500,647211, 4 5 6(7,884)704,219
Notes
2019
$000
2018
$000
Gross rental income76,72779,002
Direct property operating expenses
(19,430)(19,886)
Net rental income3.1
57, 2975 9 ,116
Management fee income15,70715,707
Less corporate expenses
Corporate overhead expenses(16,010)(14, 353)
Administration expenses
(3,301)( 3 , 411)
Total corporate expenses8.2(19,311)(17,76 4)
Profit before net finance expense, other income/(expense)
and income tax
53,69357,059
Finance income302345
Finance expense(14,631)(16,662)
Finance expense – swap break expense
(1,403)–
Net finance expense5.3(15,732)(16 , 317 )
Profit before other income/(expense) and income tax37,9614 0,742
Other income/(expense)
Net change in fair value of investment properties3.336,5064 8 , 341
Gain on disposal of investment properties342–
Share of profit in associates6.46,6339,436
Loss on disposal of other investments(35)–
Other (expense)/income – insurance recoveries
(17 )2,276
Profit before income tax
81,390100,795
Income tax expense8.1
( 5 ,19 9)(5, 541)
Profit after income tax attributable to shareholders
76 ,19195,254
Other comprehensive loss:
Items that may be reclassified subsequently to profit or loss
Deferred tax on share based payment expense5.545–
Gross movement in cash flow hedges 5.5(4,098)(39)
Tax arising from cash flow hedges 5.51,14711
Changes in cash flow hedge reserve in associates5.5
(519)(474)
Total other comprehensive loss after tax(3,425)(502)
Total comprehensive income after tax attributable to shareholders
72,76694,752
Stride Property Limited (SPL) total comprehensive income after tax
attributable to shareholders
67, 87288 , 519
Stride Investment Management Limited (SIML) total comprehensive income
after tax attributable to shareholders
4,8946,233
Total comprehensive income after tax attributable to shareholders
72,76694,752
Earnings per share 4.1
Basic earnings per share (cents)20.8626 .10
Diluted earnings per share (cents)20.8126.06
Consolidated Statement of Changes in Equity
For the year ended 31 March 2019
Consolidated Statement of Comprehensive Income
For the year ended 31 March 2019
40
41
Financial StatementsFinancial Statements
Stride Property Group | Annual Report 2019Stride Property Group | Annual Report 2019

The attached notes form part of and are to be read in conjunction with these financial statements.
Notes
2019
$000
2018
$000
Current assets
Cash at bank5,36410,006
Trade and other receivables8.53,0591,886
Prepayments 232212
Other current assets646196
Deposit on investment property3.41,750–
Inventory – development property 3.7
35,43636,277
46,48748,577
Investment property classified as held for sale3.6
50,082–
96,56948,577
Non-current assets
Investment properties3.3880,735865,960
Deposit on investment property3.4400–
Work in progress3.51,6561,912
Other investments6.491,36889,978
Loan to associate6.33,3973,397
Software1,4821,097
Property, plant and equipment
822824
979,860963,168
Total assets1,076,4291,011,745
Current liabilities
Trade and other payables8.617, 95414,450
Current tax liability1,6381,14 4
Derivative financial instruments5.2
6284,616
20,22020,210
Non-current liabilities
Bank borrowings5.1332,399307, 365
Deferred tax liability8.110,61813,427
Derivative financial instruments5.2
8,9733,595
351,990324,387
Total liabilities372,210344,597
Net assets
704,219667,148
Share capital500,647500,205
Retained earnings211, 4 5 6171, 4 3 8
Reserves5.5
(7,884)(4,495)
Equity
704,219667,148
SPL equity701,703665,316
SIML equity (non-controlling interest)
2,5161,832
Equity
704,219667,148
For and on behalf of the Board of Directors of SPL and SIML, dated 29 May 2019:
Tim Storey John Harvey
Chairman of the Board Chair of the Audit and Risk Committee
Notes
2019
$000
2018
$000
Cash flows from operating activities
Gross rent received76,74678,346
Management fee income15,20515,485
Interest received302293
Other income received – insurance recoveries3251,845
Dividends received3–
Interest paid(14,388)(16,705)
Direct property operating and corporate expenses(38,706)(34,507)
Income tax paid
(6,327)(6,946)
Net cash provided by operating activities3 3 ,16 037, 811
Cash flows from investing activities
Dividend income from associates6.44,2304,322
Deposits on investment property3.4( 2 ,15 0 )–
Capital expenditure on investment properties(23,880)(19,354)
Inventory – development property expenditure(121)(2 ,14 5 )
Software expenditure(767)(988)
Property, plant and equipment purchased(185)(200)
Proceeds from disposal of investments8.4459–
Proceeds from disposal of investment properties–78,387
Lease restructure expenditure
–(18,000)
Net cash (applied to)/provided by investing activities(22,414)42,022
Cash flows from financing activities
Dividends paid 4.2( 3 6 ,17 3)(35,988)
Drawdown on bank borrowings2 5 ,15 038,200
Repayment of bank borrowings–(78,000)
Borrowings establishment costs(307)–
Swap break expense paid5.2
(4,058)–
Net cash applied to financing activities(15,388)(75,788)
Net (decrease)/increase in cash and cash equivalents held(4,642)4,045
Opening cash and cash equivalents
10,0065,961
Closing cash and cash equivalents
5,36410,006
Cash and cash equivalents at year end comprises:
Cash at bank
5,36410,006
Cash and cash equivalents at year end
5,36410,006
Consolidated Statement of Financial Position
As at 31 March 2019
Consolidated Statement of Cash Flows
For the year ended 31 March 2019
The attached notes form part of and are to be read in conjunction with these financial statements.
42
43
Financial StatementsFinancial Statements
Stride Property Group | Annual Report 2019Stride Property Group | Annual Report 2019

The attached notes form part of and are to be read in conjunction with these financial statements.
Notes to the Consolidated Financial Statements
For the year ended 31 March 2019
Reconciliation of profit after income tax attributable to shareholders to net cash provided by operating activities
Notes
2019
$000
2018
$000
Profit after income tax attributable to shareholders76 ,19195,254
(Less)/add non-cash items:
Movement in deferred tax 8.1(2,360)(735)
Income tax movement in cash flow hedges8.1743–
Net change in fair value of investment properties(36,506)(4 8 , 341)
Gain on disposal of investment properties(342)–
Share of profit in associates(6,633)(9,436)
Loss on disposal of other investments35–
Capitalised lease incentives(972)(870)
Lease incentives amortisation1,19 91,291
Spreading of fixed rental increases(441)(11)
Movement in loss allowance8.555217
Share based payment expense478526
Depreciation 221282
Software amortisation29453
Finance expense – swap break expense 5.21,403–
Accrued interest movement in derivative financial instruments5.2(53)–
Borrowings establishment cost amortisation
191147
33,50338,377
Add activities classified as investing activity:
Movement in working capital items relating to investing activities
(2,643)1,445
30,86039,822
Movement in working capital:
Increase in trade and other receivables(1,228)(249)
(Increase)/decrease in prepayments and other current assets(470)81
Increase/(decrease) in trade and other payables3,504(1,170 )
Increase/(decrease) in current tax liability
494(673)
Net cash provided by operating activities
3 3 ,16 037, 811
Consolidated Statement of Cash Flows (continued)
For the year ended 31 March 2019
1.0 General information 46
1.1 Reporting entity 46
1.2 Basis of preparation 46
1.3 Adoption of new standards 46
1.4 New standards, amendments and interpretations 48
1.5 Fair value estimation 48
1.6 Significant accounting policies, estimates and judgements 48
1.7 Significant events and transactions 49
2.0 Operating segments 50
3.0 Property 52
3.1 Net rental income 52
3.2 Operating lease commitments 53
3.3 Investment properties 54
3.4 Capital expenditure commitments contracted for 61
3.5 Work in progress 62
3.6 Investment property classified as held for sale 62
3.7 Inventory - development property 63
4.0 Investor returns 64
4.1 Basic and diluted earnings per share 64
4.2 Dividends paid and proposed 65
4.3 Distributable profit 66
5.0 Capital structure and funding 67
5.1 Borrowings 67
5.2 Derivative financial instruments 68
5.3 Net finance expense 69
5.4 Share capital 70
5.5 Reserves 71
5.6 Capital risk management 71
6.0 Interest in associates and joint arrangement 72
6.1 Interest in associates 72
6.2 Investore 72
6.3 Diversified 72
6.4 Summarised financial information for associates 73
6.5 Interest in joint arrangement 74
7.0 Financial instruments and risk management 75
7.1 Financial assets at amortised cost 75
7.2 Financial liabilities at amortised cost 76
7.3 Fair values 76
7.4 Financial risk management 76
7.5 Interest rate risk 76
7.6 Credit risk 77
7.7 Liquidity risk 77
8.0 Other 78
8.1 Tax 78
8.2 Corporate expenses 80
8.3 Remuneration 80
8.4 Related party disclosures 82
8.5 Trade and other receivables 83
8.6 Trade and other payables 84
8.7 Investment in subsidiary 84
8.8 Contingent liabilities 84
8.9 Subsequent events 85
45
Notes to the Consolidated Financial Statements
Stride Property Group | Annual Report 2019
44
Financial Statements
Stride Property Group | Annual Report 2019

1.0 General Information1.0 General Information (continued)
This section sets out Stride Property Group’s accounting policies that relate to the consolidated
financial statements (financial statements) as a whole. Where an accounting policy is specific to
a note, the policy is described within the note to which it relates.
1.1 Reporting entity
The financial statements presented are those of Stride Property Limited (SPL) and Stride Investment Management Limited (SIML),
each of SPL and SIML being a “Stapled Entity”, and together the Stride Property Group (Stride). For accounting purposes, stapling
gives rise to the combination of stapled entities into a consolidated group. For the purposes of financial reporting, one of the
combining entities is required to be identified as the parent entity of the consolidated group. In the case of Stride, SPL has been
identified as the parent for the purposes of preparing the financial statements.
SPL is principally involved in the ownership of investment properties in New Zealand and SIML is principally involved in the
management of real estate investment entities in New Zealand. SPL and SIML are both domiciled in New Zealand, are both registered
under the Companies Act 1993 and are both FMC reporting entities under Part 7 of the Financial Markets Conduct Act 2013.
Shares of SPL and SIML are stapled and quoted on the Main Board equity securities market of NZX under the ticker code SPG.
The financial statements were approved for issue by the Board of Directors of SPL (SPL Board) and the Board of Directors of
SIML (SIML Board), together the “Boards”, on 29 May 2019.
1.2 Basis of preparation
The financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP).
Stride is a for-profit entity for the purposes of financial reporting. The financial statements comply with New Zealand Equivalents to
International Financial Reporting Standards (NZ IFRS), other New Zealand accounting standards and authoritative notices that are
applicable to entities that apply NZ IFRS. The financial statements also comply with International Financial Reporting Standards (IFRS).
The financial statements were prepared in accordance with the Financial Markets Conduct (Stride Property Group) Exemption Notice
2017 and waivers granted to Stride from certain of the NZX Main Board Listing Rules dated 1 October 2017 (NZX Listing Rules), which
each permit SPL and SIML, subject to the conditions of the exemption notice and waivers (respectively), to prepare financial statements
in respect of Stride in place of separate financial statements of each Stapled Entity.
The financial statements have been prepared under the historical cost basis except for assets and liabilities stated at fair value as disclosed.
The financial statements have been presented in New Zealand dollars and have been rounded to the nearest thousand, unless stated
otherwise.
1.3 Adoption of new standards
Stride has adopted NZ IFRS 9 Financial Instruments and NZ IFRS 15 Revenue from contracts with customers from 1 April 2018.
NZ IFRS 9 Financial Instruments
SPL has applied NZ IFRS 9 retrospectively, but has elected not to restate comparative information.
Classification and measurement
The classification of financial instruments has not resulted in any reclassification between measurement categories for SPL’s
financial assets and liabilities. Derivative financial instruments that are in cash flow hedge relationships remain measured at fair
value, and other financial instruments (including cash and cash equivalents, trade and other receivables, the NZX bond, trade and
other payables, bank borrowings and fixed rate bonds) continue to be measured at amortised cost.
Hedging
Interest rate swaps in place as at 31 March 2019 qualify as cash flow hedges under NZ IFRS 9. SPL’s risk management strategies
and hedge documentation are aligned with the requirements of NZ IFRS 9 and are therefore treated as continuing hedges.
1.3 Adoption of new standards (continued)
NZ IFRS 15 Revenue from contracts with customers
The majority of the revenues of SPL are derived from rental income from lease agreements with tenants of the investment
properties. Accounting for lease income is out of scope of NZ IFRS 15 Revenue from contracts with customers. However, certain
non-rental income streams, such as recovery of property operating expenses, are within the scope of NZ IFRS 15. SIML’s revenue
is derived from management fees, which, along with recovery of employee expenses, are within the scope of NZ IFRS 15.
Process and policy
Accounting policies have been amended to include the five-step method, as defined in NZ IFRS 15, and are applied consistently to
revenue recognition processes across Stride.
The five-step method for recognising revenue from contracts with customers involves consideration of the following:
• Identifying the contract with the customer
• Identifying performance obligations
• Determining the transaction price
• Allocating the transaction price to distinct performance obligations
• Recognising revenue when performance obligations are satisfied, this may be at a point in time or over time.
Classification and measurement
The implementation of NZ IFRS 15 has required a change in the presentation of service charges and the recovery of employee
expenses in the consolidated statement of comprehensive income. Previously, Stride presented the income generated from service
charges recovered from tenants as a direct offset against property operating expenses and income generated from the recovery
of employee expenses from its managed entities as an offset to corporate overhead expenses. In implementing NZ IFRS 15, these
components have been separated out between income and expense as income falls under the scope of NZ IFRS 15 and cannot be
netted off against related expenses. As a result, the 31 March 2018 comparatives have been restated as follows:
2018
$000
Consolidated statement of comprehensive income extract
Gross rental incomeIncreased13,707
Direct property operating expensesIncreased
(12, 201)
Net rental income
1,506
Management fee incomeIncreased2,432
Less corporate expenses
Corporate overhead expensesIncreased(3,938)
Administration expenses
–
Total corporate expenses(3,938)
Profit before net finance expense, other income/(expense) and income tax–
Consolidated statement of cash flows extract
Cash flows from operating activities
Gross rent receivedIncreased13,707
Management fee incomeIncreased2,432
Direct property operating expensesIncreased(16 ,139)
The 31 March 2018 comparatives have also been restated to remove the elimination of $7,714,000 management fees charged by
SIML to SPL to align with the 31 March 2019 presentation.
The revenue recognition and measurement of management fees, service charge income and recovery of employee expenses
under NZ IFRS 15 is the same as the previous standard NZ IAS 18 Revenue, where the revenue is recognised in the period the
service is rendered.
46
47
Notes to the Consolidated Financial StatementsNotes to the Consolidated Financial Statements
Stride Property Group | Annual Report 2019Stride Property Group | Annual Report 2019

1.0 General Information (continued)1.0 General Information (continued)
1.4 New standards, amendments and interpretations
At the date of approval of the financial statements, the following relevant standard was in issue but not applied as the standard is
effective for accounting periods beginning on or after 1 January 2019.
NZ IFRS 16 Leases
NZ IFRS 16 replaces the current guidance in NZ IAS 17 Leases and requires a lessee to recognise a lease liability reflecting future
lease payments and a “right-of-use” asset for most lease contracts.
Given that SPL is the lessor for the majority of its leases, NZ IFRS 16 is not expected to have significant impact on how SPL
currently accounts for its leases. However, SPL has four ground leases on investment properties and therefore SPL will recognise
a lease liability of approximately $23,249,000 as at 1 April 2019, representing the present value of the remaining lease cash flows.
The right-of-use asset represents the rental benefit from use. Investment property will be reduced by the difference between the
right-of-use asset and the lease liability. Overall the net balance sheet impact is nil and there is no impact to profit.
Stride intends to adopt NZ IFRS 16 effective from 1 April 2019.
1.5 Fair value estimation
SPL classifies its fair value measurement using a fair value hierarchy that reflects the significance of the inputs used in making
measurements. The fair value hierarchy has the following levels:
Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2 – inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly
(as prices) or indirectly (derived from prices); and
Level 3 – inputs for the asset or liability that are not based on observable market data.
1.6 Significant accounting policies, estimates and judgements
In the application of NZ IFRS, the Boards and management are required to make judgements, estimates and assumptions
about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated
assumptions are based on experience and other factors that are believed to be reasonable under the circumstances, the results of
which form the basis of making the judgements. Actual results may differ from the estimates, judgements and assumptions made
by the Boards and management.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised and in any future periods affected.
Judgements made by management in the application of NZ IFRS that have significant effects on the financial statements and
estimates with a significant risk of material adjustments in the next year are disclosed, where applicable, in the relevant notes to
the financial statements.
In particular, information about areas of estimation uncertainty that have the most significant effect on the amount recognised in
the financial statements is disclosed in the relevant notes as follows:
• Investment properties (note 3.3);
• Derivative financial instruments (note 5.2); and
• Deferred tax (note 8.1).
1.7 Significant events and transactions
The financial position and performance of Stride was affected by the following events and transactions that occurred during the
reporting period:
Interest rate derivatives
Between 24 and 30 April 2018, SPL broke interest rate derivative contracts with a notional value of $100 million for a cost of
$4,058,147 and entered into new interest rate derivative contracts with a notional value of $120 million commencing on 30 April
2018 with an average tenor of 5.2 years and an average rate of 2.8%. Of the total swap break costs incurred, $1,403,491 has been
recognised as finance expense in the current period and $2,654,656 has been recognised in equity as other reserves as at
31 March 2019 and will be amortised to finance expense over the remaining original life of the interest rate derivative contract
or until the repayment of the bank borrowings, whichever comes first.
Sale of 33 Corinthian Drive, Auckland
On 21 December 2018, SPL announced that it had entered into an unconditional agreement for the sale of its commercial
property tenanted by ASB Bank Limited at 33 Corinthian Drive, Albany, Auckland, for $50.5 million, with settlement occurring post
balance date on 1 April 2019. The property has been separately disclosed as investment property classified as held for sale in the
2019 financial statements and the fair value reflects the sales price net of disposal costs.
48
49
Notes to the Consolidated Financial StatementsNotes to the Consolidated Financial Statements
Stride Property Group | Annual Report 2019Stride Property Group | Annual Report 2019

2.0 Operating Segments (continued)2.0 Operating Segments
This section sets out how Stride’s revenue streams are reported internally, reflecting the two
operating segments being SPL and SIML.
Accounting policy
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision-maker, identified as the respective Board of each of SPL and SIML, as each makes all key strategic resource
allocation decisions.
SPL’s revenue streams are earned from investment properties owned in New Zealand, with no specific exposure to geographical
risk. Given SPL’s diverse client base, no one tenant represents greater than 10% of the portfolio contract rental. SIML’s revenue
streams are earned from the management of the real estate investment of Investore Property Limited (Investore), Diversified NZ
Property Trust (Diversified) and SPL. For the revenue earned from Investore and Diversified, refer to note 8.4 on related party
disclosures.
Segment profit
SPL
$000
SPL
eliminations
$000
SIML
$000
SIML
eliminations
$000
2019
$000
Net rental income5 5 ,1212 ,176––57, 297
Management fee income––24,484(8,777)15,707
Less corporate expenses
Corporate overhead expenses8–(16,018)–(16,010)
Administration expenses
( 7,07 7 )5,465(1,689)–(3,301)
Total corporate expenses( 7,0 6 9)5,465(17,707 )–(19,311)
Profit before net finance expense, other income/
(expense) and income tax
48,0527,6 41
6,777(8,777)
53,693
Finance income297–5–302
Finance expense(14,632)25(24)–(14,631)
Finance expense – swap break expense
(1,403)–––(1,403)
Net finance expense(15,738)25(19)–(15,732)
Profit before other income/(expense) and income tax
32,3147,6666,758(8,777)37,961
Other income/(expense)
Net change in fair value of investment properties3 5 ,1371,369––36,506
Gain on disposal of investment properties342–––342
Share of profit in associates6,633–––6,633
Loss on disposal of other investments(35)–––(35)
Other expense – insurance recoveries
(17 )–––(17 )
Profit before income tax
74,3749,0356,758(8,777)81,390
Income tax expense
(3,290)–(1,909)–( 5 ,19 9)
Profit after income tax attributable to shareholders
71,0849,0354,849(8,777)76 ,191
Total other comprehensive (loss)/income after tax
(3,470)–45–(3,425)
Total comprehensive income after tax attributable to
shareholders
67,6149,0354,894(8,777)72,766
In the current period, the following expenses payable by SPL to SIML have been eliminated in the consolidated statement of
comprehensive income:
• direct property operating expenses $2,176,000 (2018: $2,519,000)
• management fees $5,465,000 (2018: $5,487,000)
• refinancing fees $25,000 (2018: nil)
• disposal fees $252,500 (2018: $392,500)
• capital expenditure on investment properties $1,070,706 (2018: $737,116)
• development expenditure on inventory - development property $15,146 (2018: $18,456)
• development expenditure on work in progress $30,296 (2018: $4,629)
Segment profit
SPL
$000
SPL
eliminations
$000
SIML
$000
SIML
eliminations
$000
2018
$000
Net rental income56,5972 , 519––5 9 ,116
Management fee income––24,927(9,220)15,707
Less corporate expenses
Corporate overhead expenses29–(14, 382)–(14, 353)
Administration expenses
( 7,147 )5,487(1,751)–( 3 , 411)
Total corporate expenses( 7,118 )5,487(16 ,133)–(17,76 4)
Profit before net finance expense, other income
and income tax
49,4798,0068,794(9,200)57,059
Finance income335–10–345
Finance expense
(16,644)–(18)–(16,662)
Net finance expense(16,309)–(8)–(16 , 317 )
Profit before other income and income tax
3 3 ,1708,0068,786(9,220)4 0,742
Other income
Net change in fair value of investment properties47,18 81,153––4 8 , 341
Share of profit in associates9,436–––9,436
Other income – insurance recoveries
2,276–––2,276
Profit before income tax
92,0709,1598,786(9,220)100,795
Income tax expense
(2,988)–(2,553)–(5, 541)
Profit after income tax attributable to shareholders
89,0829,1596,233(9,220)95,254
Total other comprehensive loss after tax
(502)–––(502)
Total comprehensive income after tax attributable to
shareholders
88,5809,1596,233(9,220)94,752
Segment assets and liabilities
SPL
$000
SPL
eliminations
$000
SIML
$000
SIML
eliminations
$000
Total
$000
Balance at 31 Mar 19
Total assets1,071,784 (667)5,312–1,076,429
Total liabilities369,679(253)2,784–372,210
Balance at 31 Mar 18
Total assets1,007,345(673)5,346(273)1,011,745
Total liabilities
341, 356(273)3 , 514–344,597
As at 31 March 2019, Stride had assets of $94,765,000 (2018: $93,375,000) relating to other investments and loan to associates
(notes 6.1,6.3) which increased by $1,390,000 from the prior year (2018: $4,640,000 increase).
50
51
Notes to the Consolidated Financial StatementsNotes to the Consolidated Financial Statements
Stride Property Group | Annual Report 2019Stride Property Group | Annual Report 2019

3.0 Property (continued)3.0 Property
This section covers property assets which generate Stride’s trading performance.
3.1 Net rental income







Accounting policy
Rental income from investment properties is recognised on a straight-line basis over the lease term. Lease incentives
provided in relation to letting the properties are capitalised to the respective investment properties, investment
property classified as held for sale or inventory – development property in the consolidated statement of financial
position and amortised on a straight-line basis over the non-cancellable portion of the lease to which they relate, as
a reduction of rental income. Where a lease provides for fixed rental increases over the term of the lease, they are
amortised on a straight-line basis over the non-cancellable portion of the lease to which they relate.
Income generated from service charges recovered from tenants are included in the gross rental income with the
service charge expenses to tenants shown in the direct property operating expenses. Such revenue is recognised in the
accounting period the underlying expenses are incurred in accordance with the contractual terms.
The recovery of employee expenses from its managed entities are included in the gross rental income with the
employee related costs shown in corporate overhead expenses.
SPL
2019
$000
2018
$000
Gross rental income
Rental income and service charge income recovered from tenants76,21678,928
Capitalised lease incentives752855
Lease incentives amortisation(682)(792)
Spreading of fixed rental increases
44111
Total gross rental income76,72779,002
Direct property operating expenses
Rates and insurance(6,822)(6,632)
Property maintenance costs(4,969)(4,879)
Ground and office rent(1,895)(1,119 )
Utilities(1,367)(1,379)
Other non-recoverable property operating expenses
(4,377)(5,877)
Total direct property operating expenses(19,430)(19,886)
Net rental income
57, 2975 9 ,116
Other non-recoverable property operating expenses represents operating expenses not recoverable from tenants and property
leasing expenses. Salaries and wages costs of $1,530,000 (2018: $1,506,000) charged by SIML to SPL have been eliminated in
the direct property operating expenses.
3.1 Net rental income (continued)
Accounting policy
Leases are classified at their inception as either an operating or finance lease based on the economic substance of
the agreement so as to reflect the risks and rewards incidental to ownership. Leases in which a significant portion of
the risks and rewards of ownership are retained by the lessor are classified as operating leases.
Properties leased out under operating leases are included in investment properties, investment property classified
as held for sale and inventory – development property in the consolidated statement of financial position.
SPL has determined that it retains all significant risks and rewards of ownership of properties and has therefore classified the
leases as operating leases.
The future aggregate minimum rentals receivable under non-cancellable operating leases are as follows:
2019
$000
2018
$000
No later than 1 year60,31357, 823
Later than 1 year and no later than 5 years158,474159,751
Later than 5 years
88,52910 0 ,717
Future rentals receivable
307, 316318,291
3.2 Operating lease commitments
Accounting policy
Payments, including prepayments made under operating leases (net of any incentives received from the lessor), are
charged to the consolidated statement of comprehensive income on a straight-line basis over the period of the lease.
SPL is committed under four (2018: four) operating leases where SPL is the lessee, with one at each of the following properties:
• 7 - 9 Fanshawe Street, Auckland,
• 33 Customhouse Quay, Wellington,
• NorthWest Shopping Centre, Auckland, and
• NorthWest Two, Auckland.
2019
$000
2018
$000
Rental expense
1,8541,110

The commitments below reflect the amounts payable under current signed lease contracts up until the next rent review, at which
time the terms of the leases may be renegotiated.
2019
$000
2018
$000
No later than 1 year1,8491,876
Later than 1 year and no later than 5 years6,4047, 505
Later than 5 years
5,3556, 213
Future rentals payable
13,60815,594

Stride has no other operating lease commitments (2018: nil).
52
53
Notes to the Consolidated Financial StatementsNotes to the Consolidated Financial Statements
Stride Property Group | Annual Report 2019Stride Property Group | Annual Report 2019

3.0 Property (continued)3.0 Property (continued)
3.3 Investment properties
Accounting policy
Investment properties are held either to earn rental income or for capital appreciation or both. Investment property
is initially stated at cost, including related transaction costs, and then at fair value as determined at least every
12 months by an independent registered valuer.
Any gain or loss arising from a change in the fair value of the investment property is recognised in the consolidated
statement of comprehensive income within net change in fair value of investment properties. Subsequent
expenditure is capitalised to the asset's carrying amount only when it is probable that future economic benefits
associated with the item will flow to SPL and the cost of the item can be measured reliably. All other repairs and
maintenance costs are expensed to the consolidated statement of comprehensive income during the period in which
they are incurred.
Investment properties are de-recognised when they have been disposed. The net gain or loss on disposal is
calculated as the difference between the carrying amount at the time of the disposal and the net proceeds on the
disposal, and is included in the consolidated statement of comprehensive income in the reporting period in which the
disposal occurs.
SIML does not hold investment properties, but provides management services over SPL’s investment property portfolio.
Office
$000
Industrial
$000
Retail
$000
Large
Format
Retail
$000
Land/
Development
$000
Total
$000
Balance at 31 Mar 17214,950182,495371,10 088,0002,500859,045
Subsequent capital expenditure4,00212,4782,96913–19,462
Capitalised lease incentives96–123––219
Lease incentives amortisation(157 )(437)(522)––(1,116 )
Spreading of fixed rental increases266(98)124(396)–(104)
Transfers from work in progress–485–––485
Reclassification
–(18,925)––18,925–
Lease restructure expenditure–––18,000–18,000
Disposals–––(78,372)–(78,372)
Net change in fair value
4,39319,7029,06615,505(325)4 8 , 341
Balance at 31 Mar 18
223,550195,700382,86042,75021,100865,960
Subsequent capital expenditure3,4341,0142,7311119,77726,967
Capitalised lease incentives68287184––953
Lease incentives amortisation(190)(394)(414)––(998)
Spreading of fixed rental increases28089(42)55–382
Transfers from work in progress––––1,0471,047
Transfer to investment property classified
as held for sale
(50,082)––––(50,082)
Net change in fair value
9,12 617, 579(1,15 9)4,4846,47636,506
Balance at 31 Mar 19
186,800214,075384,16047, 30 048,400880,735
In the current year, a revaluation movement of $1,070,706 (2018: $737,116), arising from the elimination of the capital expenditure
fees charged by SIML to SPL, has been reflected in the consolidated statement of comprehensive income. Capital expenditure
consists of fit-outs and other physical enhancements to the investment properties, with ownership of such capital amounts being
retained by SPL.
3.3 Investment properties (continued)
Valuations are performed by independent registered valuers who hold an annual practising certificate with the Valuers Registration
Board and are members of the New Zealand Institute of Valuers. Valuers are engaged on terms ensuring that no valuer values the
same investment property for more than three consecutive years. All valuations are dated effective 31 March 2019.
Breakdown of valuation by valuer
2019
$000
2018
$000
CIVAS Limited (Colliers
1
)358,010268,060
Jones Lang LaSalle Limited (JLL)229,350218,750
CBRE Limited (CBRE)190,375215,90 0
Colliers International (Wellington Valuation) Limited (Colliers
2
)76,95070,000
Bayleys Valuations Limited (Bayleys)
26,05093,250
880,735865,960
The following tables provide a summary of the valuation of the individual investment properties, their net lettable area, market
capitalisation rate (cap rate), contract yield, occupancy and weighted average lease term (WALT) for the purpose of providing
further detail of the assets which are considered to be the most relevant to the operations of SPL. Colliers
1
refers to the valuer
CIVAS Limited and Colliers
2
refers to the valuer Colliers International (Wellington Valuation) Limited.
The investment property at 11 Springs Road, Auckland, is currently under development (2018: held for development) and
consequently the net lettable area, contract yield %, occupancy % and WALT are not applicable.
The cap rate %, contract yield %, occupancy % and WALT years for the property class totals and the total of investment properties
are weighted averages. The totals may not sum due to rounding.
54
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Notes to the Consolidated Financial StatementsNotes to the Consolidated Financial Statements
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3.0 Property (continued)3.0 Property (continued)
3.3 Investment properties (continued)
As at 31 Mar 19Valuer
Net
lettable
area
m
2
Value
$000
Cap
rate
%
Contract
yield
%
Occupancy
%
WALT
years
Office
7 - 9 Fanshawe Street, AucklandColliers
1
4,8179,50010.2513.09100.02.2
80 Greys Avenue, AucklandCBRE5,45020,2006.753.4959.82.5
21 - 25 Teed Street, AucklandColliers
1
4,08822,8007.0 07.12100.02.5
35 Teed Street, AucklandJLL2,87421,6006.006.34100.05 .1
33 Customhouse Quay, WellingtonJLL5,21735,7506.286.53100.08.6
1 Grey Street, WellingtonColliers
2
10,44357, 20 07.0 07.0 5100.04.3
22 The Terrace, WellingtonColliers
2
4,78119,7507. 256.98100.02.8
Office total37,670186,8006.916.7994.24.5
Industrial
30 Airpark Drive, AucklandColliers
1
13,73328,3005.885.06100.05.7
22 Ha Crescent, AucklandBayleys8,75714,5006.005.48100.02.3
8 Reg Savory Place, AucklandCBRE4,0258,7255.505.62100.04.4
20 Rockridge Avenue, AucklandCBRE10,23915,8506.255.96100.01.5
460 Rosebank Road, AucklandColliers
1
12,21018 ,10 06.506.38100.04.0
15 Rockridge Avenue, AucklandColliers
1
9,11324,6005.385.38100.06.4
25 O’Rorke Road, AucklandColliers
1
27,0 8 666,6005.755.70100.04.8
415 East Tamaki Road, AucklandColliers
1
9,72717, 8 0 06.256.60100.02.0
15 Ride Way, AucklandBayleys6,02711, 5 5 05.755.58100.04.4
34 Airpark Drive, AucklandColliers
1
–8,0505.385.28100.08.8
Industrial total100,919214,075 5.86 5.69100.04.4
Retail
Cnr Mt Wellington Highway & Penrose Road,
AucklandColliers
1
9,01136,5006.756.749 6 .12.8
Johnsonville Shopping Centre, Wellington (50%)Colliers
1
6,92430,0607.947. 3289.82.7
61 Silverdale Street, AucklandCBRE22,948100,5006.386.2397. 35.5
65 Chapel Street, TaurangaCBRE16,5924 5 ,10 07.0 07. 36100.04.2
NorthWest Shopping Centre, AucklandJLL
27, 512172,0006.506.7497. 44.9
Retail total82,988384,1606.666.729 7.14.2
Large Format Retail
2 Carr Road, Auckland Colliers
1
11,6 0147, 30 05.004.94100.07. 9
Development
11 Springs Road, AucklandColliers
1
–48,4005.25–––
Total
233,178880,7356.356.3798.04.5
3.3 Investment properties (continued)
As at 31 Mar 18Valuer
Net
lettable
area
m
2
Value
$000
Cap
rate
%
Contract
yield
%
Occupancy
%
WALT
years
Office
33 Corinthian Drive, AucklandBayleys10,93647, 3506.306.28100.07.5
7 - 9 Fanshawe Street, AucklandColliers
1
4 , 8179,80010.2512 .97100.02.4
80 Greys Avenue, AucklandCBRE5,45019,70 07.0 07.45100.01.6
21 - 25 Teed Street, AucklandColliers
1
4,090 21,7007.0 07.0597.92 .1
35 Teed Street, AucklandBayleys2 , 87421,10 06.256 .17100.05.5
33 Customhouse Quay, WellingtonCBRE5 , 21733,9006.757. 36100.09.2
1 Grey Street, WellingtonColliers
2
10,47252,7507.507.46100.04.4
22 The Terrace, WellingtonColliers
2
4,78117, 25 07.887.87100.03.6
Office total48,637223,5507.077. 3099.85 .1
Industrial
30 Airpark Drive, AucklandColliers
1
13,73322,6006.636.21100.01.7
22 Ha Crescent, AucklandBayleys8,75713,60 06 .135.67100.03.3
8 Reg Savory Place, AucklandCBRE4,0257,70 06.006.36100.05.4
20 Rockridge Avenue, AucklandCBRE10,23914,70 06.635.84100.02.5
460 Rosebank Road, AucklandColliers
1
12, 26516 ,10 06.887.09100.03.8
15 Rockridge Avenue, AucklandColliers
1
8,99121,5005.631.8939.010.0
25 O’Rorke Road, AucklandColliers
1
27,08664,0005.885.79100.05.0
415 East Tamaki Road, AucklandColliers
1
9,72717,10 06.386.78100.03.0
15 Ride Way, AucklandBayleys6,02711, 2 0 05.755.75100.05.4
34 Airpark Drive, AucklandColliers
1
–7, 20 04.883.50100.09.8
Industrial total100,852195,70 06 .10 5.5494.64.3
Retail
Cnr Mt Wellington Highway &
Penrose Road, AucklandColliers
1
9 , 01136,3006.756.8697.12.4
Johnsonville Shopping Centre,
Wellington (50%)Colliers
1
6,92430,6607.756.2990.33.0
61 Silverdale Street, AucklandCBRE22,95198,4006.506.2298.95.4
65 Chapel Street, TaurangaCBRE16,59241, 50 07.637.81100.03.0
NorthWest Shopping Centre, AucklandJLL
27,465176,0006.386 .1796.26 .1
Retail total82,944382,8606.696.4397. 34.9
Large Format Retail
2 Carr Road, Auckland JLL11, 6 0142,7505 .135.33100.08.9
Land/Development
11 Springs Road, AucklandColliers
1
–21,10 0––––
Total
244,033865,9606.576.4096.85.0
56
57
Notes to the Consolidated Financial StatementsNotes to the Consolidated Financial Statements
Stride Property Group | Annual Report 2019Stride Property Group | Annual Report 2019

3.0 Property (continued)3.0 Property (continued)
3.3 Investment properties (continued)
Accounting policy
The fair value of an investment property represents the estimated price for which a property could be sold for at the
date of valuation in an orderly transaction between market participants. The predominant methods for assessing the
current fair value of an investment property are the Income Capitalisation and the Discounted Cash Flow approaches.
Each approach derives a value based on market inputs, including:
• recent comparable transactions;
• forecast future rentals, based on the actual location, type and quality of the investment property, and supported
by the terms of any existing lease, other contracts or external evidence such as current market rents for similar
properties;
• vacancy assumptions based on current and expected future market conditions after expiry of any current lease;
and
• appropriate discount rates derived from recent comparable market transactions reflecting the uncertainty in the
amount and timing of cash flows.
In addition, consideration is given to the maintenance and capital requirements including necessary investments to
maintain functionality of the property for its expected useful life.
At each reporting date, SIML’s asset managers verify all major inputs to the independent valuation report and assess property
valuation movements when compared to the prior year valuation report. SIML’s executive team review the valuations performed by
the independent valuers for financial reporting purposes. This team reports directly to SIML’s Chief Executive Officer. Discussions
of valuation processes and results are held between members of SIML’s executive team and the independent valuers. Discussions
of valuation processes and results are also held between SIML’s Chief Executive Officer and Audit and Risk Committee, at least
once every six months, in line with SPL’s reporting dates. This review includes review of specific independent valuations and
discussions with the independent valuers as considered necessary. Ultimately, SPL’s directors are responsible for reviewing and
approving the investment property valuations.
Investment property measurements are categorised as Level 3 in the fair value hierarchy. During the year there were no transfers
of investment properties between levels of the fair value hierarchy (2018: nil transfers).
Valuation techniques used:
• Income Capitalisation approach – is based on the current contract and market income and an appropriate market yield or
return for the particular investment property. Adjustments are then made to the value to reflect under or over renting, pending
capital expenditure, and upcoming expiries, including allowance for lessee incentives and leasing expenses.
• Discounted Cash Flow approach – adopts a ten-year investment horizon and makes appropriate allowances for rental income
growth and leasing expenses on expiries, with an estimated terminal value at the end of the investment period. The present
value reflects the market-based income and expenditure projections, discounted at a rate of return referred to as a discount
rate. In selecting the discount rate, many factors are considered, including the degree of apparent risk, market attitudes
toward future inflation, the prospective rates of return for alternative investments and the rates of return earned by comparable
properties in the past.
In deriving a market value under each approach, all assumptions are based, where possible, on market-based evidence and
transactions for properties with similar locations, construction detail and quality of lessee covenant. The adopted market value is a
combination of both the Income Capitalisation and the Discounted Cash Flow approaches.
In the case of Bay Central Shopping Centre, 65 Chapel Street, Tauranga, the adopted market value includes a 50:50 weighting for
the Discounted Cash Flow and the Stratum Estates Capitalisation approach.
3.3 Investment properties (continued)
• Stratum Estates Capitalisation approach – assesses the investment property value having regard to its potential to be
divided into individual Stratum Estates. Consideration is given to the price each Stratum Estate is likely to achieve, with costs
deducted for capital expenditure, agency expenses, and profit and risk.
The property at 11 Springs Road, Auckland, is being developed for Waste Management NZ Limited (Waste Management).
The property has been fair valued by calculating what the property will be worth on completion and deducting all costs to
complete the development.
The key inputs used to measure fair value of investment properties, along with their sensitivity to significant increase or decrease,
are stated below:
Fair value measurement
sensitivity to significant
Significant
inputDescription
Increase
in input
Decrease
in input
Valuation
method
Cap rateThe capitalisation rate is applied to the market income to
assess an investment property’s value. The capitalisation
rate is derived from detailed analysis of factors such as
comparable sales evidence and leasing transactions in
the open market, taking into account location, tenant
covenant – lease term and conditions, WALT, size and
quality of the investment property.
DecreaseIncreaseIncome
Capitalisation
Discount rateThe discount rate is applied to future cash flows of
an investment property to provide a net present value
equivalent. The discount rate adopted takes into account
recent comparable market transactions, prospective rates
of return for alternative investments and apparent risk.
DecreaseIncreaseDiscounted
Cash Flow
Market rentalThe valuer’s assessment of gross market rental for both
occupied and vacant areas of the investment property.
IncreaseDecreaseIncome
Capitalisation
and
Discounted
Cash Flow
Rental
growth rate
The rental growth rate applied to the market rental in the
10-year cash flow projection.
IncreaseDecreaseDiscounted
Cash Flow
Terminal yieldThe rate used to assess the terminal value of the property.DecreaseIncreaseDiscounted
Cash Flow
Generally, a change in the assumption made for the adopted capitalisation rate is accompanied by a directionally similar change in
the adopted discount rate. It may also result in an adjustment to the terminal yield. The adopted capitalisation rate forms part of the
Income Capitalisation approach and the adopted discount rate forms part of the Discounted Cash Flow approach.
When calculating fair value using the Income Capitalisation approach, the net market rent has a strong interrelationship with the
adopted capitalisation rate, given the methodology involves assessing the total net market income receivable from the investment
property and capitalising this in perpetuity to derive a capital value. In theory, an increase in the net market rent and an increase
(softening) in the adopted capitalisation rate could potentially offset the impact to the fair value. A decrease in the net market rent
and a decrease (tightening) in the adopted capitalisation rate could also potentially offset the impact to fair value. A directionally
opposite change in the net market rent and the adopted capitalisation rate could potentially magnify the impact on the fair value.
58
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Notes to the Consolidated Financial StatementsNotes to the Consolidated Financial Statements
Stride Property Group | Annual Report 2019Stride Property Group | Annual Report 2019

3.0 Property (continued)3.0 Property (continued)
3.3 Investment properties (continued)
When assessing a discounted cash flow, the adopted discount rate and adopted terminal yield have a strong interrelationship in
deriving a fair value, given the discount rate will determine the rate in which the terminal value is discounted to the present value.
An increase (softening) in the adopted discount rate and a decrease (tightening) in the adopted terminal yield could potentially
offset the impact to the fair value. A decrease (tightening) in the discount rate and an increase (softening) in the adopted terminal
yield could also potentially offset the impact to fair value. A directionally similar change in the adopted discount rate and the
adopted terminal yield could potentially magnify the impact to the fair value.
The following tables detail the ranges used for each key significant input disclosed for the various investment property classes:
As at 31 Mar 19
Cap rate
%
Discount
rate
%
Gross market
rental
$/m
2
Rental
growth rate
%
Terminal
yield
%
Office6.00-10.257.25-9.75287-6122.05-2.906.13-10.25
Industrial5.38-6.506 . 50 -7.75116 -1712.24-2.745.75 -7.0 0
Retail6.38-7.947.25-9.44231-6221.38-2.836.63-8.75
Large Format Retail
5.00-5.006.50-6.50220-2202.41-2.415.50-5.50
Total portfolio
5.00-10.256.50-9.75116 - 6 2 21.38-2.905.50-10.25
As at 31 Mar 18
Office6.25-10.257.50 -9.75289-6362.05-2.956 . 5 0 -10 . 25
Industrial4.88-6.886.25-8.50107-16 32.36-2.785.75 -7.25
Retail6. 38 -7.757.50-9.44219 - 6151.17- 3 . 0 06.50-8.50
Large Format Retail
5 .13 - 5 .136.50-6.50199-1992.30-2.306.50-6.50
Total portfolio
4 . 8 8 -10 . 256.25-9.75107-6361.17- 3 . 0 05 .75 -10 . 25
The estimated sensitivity of the fair value of the total investment property portfolio to changes in the market capitalisation rate or
discount rate, assuming the capitalisation rate or discount rate moved equally on all the properties, is as follows:
Cap rate Discount rate
Impact on fair value+0.25%-0.25%+0.25%-0.25%
As at 31 Mar 19
Change $000(33,502)3 6 ,17 0(15,891)16,302
Change %(4)4(2)2
As at 31 Mar 18
Change $000(31, 0 51)33,956(15,576)14,019
Change %(4)4(2)2
3.4 Capital expenditure commitments contracted for
As at 31 March 2019, SPL has the following commitments:
• $68,135 (2018: $2,130,794) in total for various capital expenditure works to be undertaken on investment properties in the next
financial year.
• Development expenditure of $4,262,000 at Bay Central Shopping Centre, 65 Chapel Street, Tauranga, in relation to the
expansion of Rebel Sports and Briscoes premises, expected to be completed by December 2019.
• Development expenditure of $6 million at 2 Carr Road, Auckland, involving expanding the retail space and trade sales area,
following which Bunnings will enter into a new 10-year lease for the premises. The works are expected to be completed over the
next eighteen months.
• $35 million in relation to a contract to acquire a four-hectare industrial property at 1-11 Selwood Road and 6-12 The Concourse,
Auckland, with completion scheduled to occur in June 2019. A deposit of $1.75 million has been paid. The Concourse property
includes an area of development land which SPL has agreed to develop an industrial facility for Waste Management who will
enter into a 25-year lease upon completion of the development. The agreement allows for base development costs of
$15 million, and for expansion of the scope of works of up to $8 million with an associated higher rental.
• $8 million in relation to a contract to acquire an industrial property at 439 Rosebank Road, Auckland, with completion
anticipated in July 2020. A deposit of $400,000 has been paid.
• Development expenditure of $43 million in total, including SIML development fees, with Waste Management at 11 Springs
Road, Auckland, under an agreement with Waste Management that allows for the expansion of the scope of works by up to
$23 million. The development includes a new head office, workshop and depot, with completion due in late December 2019.
As at balance date $21,657,000 has been incurred including SIML development fees of $833,000, which have been eliminated
in the consolidated statement of financial position.
Stride has no other material commitments as at balance date.
60
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Notes to the Consolidated Financial StatementsNotes to the Consolidated Financial Statements
Stride Property Group | Annual Report 2019Stride Property Group | Annual Report 2019

3.0 Property (continued)3.0 Property (continued)
3.5 Work in progress
Accounting policy
Work in progress is investment property which is being developed by SPL for rental purposes and is initially stated
at cost and subsequently carried at fair value. Fair value measurement is only applied if it is considered that the fair
value can be reliably measured. In order to evaluate whether the fair value of work in progress can be determined
reliably, management considers:
• the provisions of the construction contract;
• the stage of completion;
• whether the project/property is standard (typical for the market) or non-standard;
• the level of reliability of cash inflows after completion; and
• the development risk specific to the property.
When work in progress is at an early stage in a development, fair value cannot be reliably measured and the work in
progress is stated at cost less any impairment.
2019
$000
2018
$000
11 Springs Road, Auckland–1,047
Johnsonville Shopping Centre, Wellington
1,656865
Total work in progress
1,6561,912
Work in progress costs for Johnsonville Shopping Centre, Wellington, have been incurred in relation to the redevelopment of the
shopping centre.
Work in progress costs for 11 Springs Road, Auckland, was incurred in relation to the redevelopment project with Waste
Management, with completion due in late December 2019. This development has now been classified as investment property
in the current year.
3.6 Investment property classified as held for sale
Accounting policy
SPL reclassifies an investment property to investment property classified as held for sale when SPL commences the
process of disposing the property. The carrying value of the investment property is the contracted sale price, net of
sale costs, being the best indicator of fair value.
Any gain or loss arising from a change in the fair value is recognised in the consolidated statement of comprehensive
income within net change in fair value of investment properties.
During the current year, the Board approved disposing the property at 33 Corinthian Drive, Auckland. Upon the change in intention
from holding the investment property to disposing it, SPL reclassified the property from investment property to investment
property classified as held for sale.
On 20 December 2018, SPL entered into an unconditional agreement for the sale of this property for $50,500,000. As at
31 March 2019, the property is held at $50,082,373, being the sales price, net of disposal costs of $417,627. Settlement
occurred post balance date on 1 April 2019 (note 8.9).
3.7 Inventory – development property
Accounting policy
SPL’s inventory relates to a property that was developed, where there is an option held by another party to buy the
property within the short term. The property is held at the lower of cost and net realisable value. Net realisable value
is the estimated selling price in the ordinary course of business less selling expenses.
2019
$000
2018
$000
NorthWest Two, Auckland
35,43636,277
The NorthWest Two development was undertaken further to a conditional right in SPL’s original agreement to acquire the
NorthWest Shopping Centre land from Westgate Town Centre Limited (WTCL) in 2013. Under that agreement:
• WTCL can acquire the development from SPL within three years of the ground lease’s effective date, being 19 December 2014,
at a price equal to 115% of SPL’s total development cost, including holding costs.
• If WTCL does not acquire the development within the three-year period, SPL can obtain freehold title to the land for $1.
SPL agreed to defer the expiry date of WTCL’s three-year option to acquire SPL’s NorthWest Two development. The option was
due to expire on 19 December 2017 but was extended pending the outcome of discussions between SPL and WTCL. On 29 April
2019, SPL advised that the option held by WTCL to acquire SPL’s NorthWest Two development has expired without SPL receiving
notice from WTCL seeking to exercise the option (note 8.9).
62
63
Notes to the Consolidated Financial StatementsNotes to the Consolidated Financial Statements
Stride Property Group | Annual Report 2019Stride Property Group | Annual Report 2019

4.0 Investor Returns (continued)4.0 Investor Returns
This section sets out Stride’s earnings per share and how distributable profit is calculated.
Distributable profit is a non-GAAP measurement and is used by Stride to calculate profit
available for distribution to shareholders by way of dividends.
4.1 Basic and diluted earnings per share
Accounting policy
Basic and diluted earnings per share amounts are calculated by dividing profit after income tax attributable to
shareholders by the weighted average number of shares on issue.
2019
$000
2018
$000
Profit after income tax attributable to shareholders
76 ,19195,254
Weighted average number of shares for purpose of basic earnings per share (000)365,247364,969
Basic earnings per share – SPL 19.5324.39
Basic earnings per share – SIML
1.331.71
Basic earnings per share – weighted (cents)
20.8626 .10
Weighted average number of shares for purpose of diluted earnings per share (000)366,209365,537
Diluted earnings per share – SPL 19.4924.35
Diluted earnings per share – SIML
1.321.71
Diluted earnings per share – weighted (cents)
20.8126.06
Weighted average number of shares for the purpose of diluted earnings per share has been adjusted for 911,964 (2018: 747,442)
rights issued under SIML's long term share incentive schemes as at 31 March 2019.
Profit after income tax attributable to shareholders is lower in 2019 than 2018 mainly due to lower net rental income as a result
of the disposal of the three Bunnings operated properties on 28 February 2018 ($3,964,000) and 11 Springs Road property that
is under development and not generating income ($1,786,000). In addition, the 2019 net valuation gain for the SPL portfolio at
$36,506,000 was ($11,835,000) lower than the comparable period.
4.2 Dividends paid and proposed
Accounting policy
Dividends are recognised as a liability in the financial statements in the period in which the dividends are approved.
The following dividends were declared and paid by SPL during the year:
2019
$000
2018
$000
Q4 2018 Final dividend 2.00 cents (Q4 2017 2.10 cents)7, 30 67,666
Q1 2019 Interim dividend 2.2075 cents (Q1 2018 2.07 cents)8,0647,555
Q2 2019 Interim dividend 2.2075 cents (Q2 2018 2.07 cents)8,0647,555
Q3 2019 Interim dividend 2.2075 cents (Q3 2018 2.07 cents)
8,0647,555
Total dividends paid
31,49830,331
Dividend approved subsequent to balance date:
Q4 2019 Final dividend 2.2075 cents (Q4 2018 2.00 cents) (note 8.9).
Supplementary dividends of $40,604 (2018: $94,572) were paid to SPL shareholders not resident in New Zealand for which SPL
received a foreign investor tax credit entitlement.
The following dividends were declared and paid by SIML during the year:
2019
$000
2018
$000
Q4 2018 Final dividend 0.47 cents (Q4 2017 0.32 cents)1,7171,166
Q1 2019 Interim dividend 0.27 cents (Q1 2018 0.41 cents)9861,497
Q2 2019 Interim dividend 0.27 cents (Q2 2018 0.41 cents)9861,497
Q3 2019 Interim dividend 0.27 cents (Q3 2018 0.41 cents)
9861,497
Total dividends paid
4,6755,657
Dividend approved subsequent to balance date:
Q4 2019 Final dividend 0.27 cents (Q4 2018 0.47 cents) (note 8.9).
Supplementary dividends of $9,901 (2018: $28,959) were paid to SIML shareholders not resident in New Zealand for which SIML
received a foreign investor tax credit entitlement.
64
65
Notes to the Consolidated Financial StatementsNotes to the Consolidated Financial Statements
Stride Property Group | Annual Report 2019Stride Property Group | Annual Report 2019

5.0 Capital Structure and Funding4.0 Investor Returns (continued)
4.3 Distributable profit
Accounting policy
Stride’s dividend policy is to target a cash dividend to shareholders that is between 95% and 100% of its
distributable profit. Distributable profit is a non-GAAP measure and consists of profit or loss before income tax,
adjusted for determined non-recurring and/or non-cash items, share of profits in associates, dividends received from
associates and current tax.
2019
$000
2018
$000
Profit before income tax81,390100,795
Non-recurring and non-cash adjustments:
Net change in fair value of investment properties(36,506)(4 8 , 341)
Gain on disposal of investment properties(342)–
Disposal fee income eliminated in SIML–393
Share of profit in associates(6,633)(9,436)
Dividend income from associates4,2304,322
Loss on disposal of other investments35–
Capitalised lease incentives – rent free(752)(855)
Lease incentives amortisation – rent free682792
Capitalised lease incentives – cash incentives(220)(15)
Lease incentives amortisation – cash incentives517499
Spreading of fixed rental increases (441)(11)
Development fee income eliminated in SIML1,112821
Share based payment expense 478526
Depreciation221282
Software amortisation29453
Finance expense – swap break expense 1,403–
Borrowings establishment costs amortisation191147
Other income – insurance recoveries
118(1,600)
Distributable profit before current income tax
45,77748,372
Current tax expense ( 7, 559)(6,276)
Adjusted for:
Tax expense on bank borrowings capitalised interest(95)(60)
Tax expense on depreciation recovered on disposal of investment properties(90)1,797
Income tax movement in cash flow hedges (note 8.1)743–
Tax expense on lease restructure
–(5,040)
Distributable profit after current income tax
38,77638,793
Adjustments to funds from operations:
Maintenance capital expenditure
(6,355)(5,526)
Adjusted Funds From Operations (AFFO)
32,42133,267
Weighted average number of shares for purpose of basic distributable profit per share (000)365,247364,969
Basic distributable profit after current income tax per share – weighted (cents)10.6210.63
AFFO basic distributable profit after current income tax per share – weighted (cents)8.889.12
Weighted average number of shares for purpose of diluted distributable profit per share (000)366,209365,537
Diluted distributable profit after current income tax per share – weighted (cents)10.5910.61
AFFO diluted distributable profit after current income tax per share – weighted (cents)8.859.10
Stride's capital structure includes debt and equity, comprising shares and retained earnings
as shown in the consolidated statement of financial position. This section sets out how Stride
manages its capital structure, funding exposure to interest rate risk and related financing costs.
5.1 Borrowings
Accounting policy
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently
stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value
is recognised in the consolidated statement of comprehensive income over the period of the borrowings using the
effective interest method. Borrowings are classified as current liabilities unless SPL has an unconditional right to
defer settlement of the liability for at least 12 months after the reporting date.
2019
$000
2018
$000
Non-current
Bank facility drawn down332,850307,70 0
Unamortised borrowing costs
(451)(335)
Total net borrowings
332,399307, 365
Total bank facility available
400,000400,000
Bank facility drawn down
332,850307,70 0
Undrawn bank facility available6 7,15 092,300
Facility A200,000200,000
Facility B
200,000200,000
Total bank facility available
400,000400,000
Bank facility expiry dates
Facility A31 Aug 20229 Jun 2019
Facility B9 Jun 20219 Jun 2021
Weighted average interest rate for drawn debt (inclusive of current interest rate
derivatives, margins and line fees) at balance date
4.63%5.04%
Interest rate on the facility (excluding margin)2.97%3.20%
SPL’s bank borrowings are via syndicated senior secured facilities with ANZ Bank New Zealand Limited (ANZ), Bank of New
Zealand, Commonwealth Bank of Australia and Westpac New Zealand Limited. On 31 August 2018, SPL refinanced part of its total
bank facility extending Facility A’s maturity by three years to 31 August 2022.
The bank security on the facilities is managed through a security agent who holds a first registered mortgage on all the investment
properties owned by SPL and a registered first ranking security interest under a General Security Deed over substantially all the
assets of SPL. SPL has been compliant with bank covenants during the respective periods.
SIML does not have any bank borrowings (2018: nil) however, it does have a $3 million overdraft facility with ANZ, which has been
utilised during the current year.
66
67
Notes to the Consolidated Financial StatementsNotes to the Consolidated Financial Statements
Stride Property Group | Annual Report 2019Stride Property Group | Annual Report 2019

5.0 Capital Structure and Funding (continued)5.0 Capital Structure and Funding (continued)
5.2 Derivative financial instruments
Accounting policy
Interest rate derivatives (derivative financial instruments) are initially recognised at fair value on the date a derivative contract
is entered into and are subsequently measured at their fair value at each reporting date. Fair value of over-the-counter
derivatives, such as interest rate swaps, is determined using valuation techniques which maximise the use of observable
data and rely as little as possible on entity-specific estimates.
Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness
assessments to ensure that an economic relationship exists between the hedged item and hedging instrument.
Hedge ineffectiveness for interest rate swaps may occur due to:
• the credit value/debit value adjustment on the interest rate swaps, and
• differences in critical terms between the interest rate swaps and loans.
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is
recognised in the cash flow hedge reserve within equity. The gain or loss relating to the ineffective portion is recognised
immediately in profit or loss, within the statement of comprehensive income.
When a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time
remains in equity and is recognised when the forecast transaction is ultimately recognised in profit or loss.
2019
$000
2018
$000
SPL
255,000255,000
Total active interest rate derivative contracts
255,000255,000
Fixed interest rates range2.70% - 4.00%2.92% - 4.57%
Weighted average interest rate3.22%3.84%
Percentage of drawn debt fixed77%83%
SPL typically designates its interest rate derivatives as cash flow hedges of the interest flows on its variable rate borrowings.
SPL enters into interest rate swaps that have similar critical terms as the hedged item, such as reference rate, reset dates, payment
dates, maturities and notional amount. SPL has not hedged 100% of its floating rate borrowings, therefore the hedged item is
identified as a proportion of the outstanding loans up to the notional amount of the swaps. As all critical terms matched during the
year, the economic relationship was 100% effective.
Between 24 and 30 April 2018, SPL broke interest rate derivative contracts with a notional value of $100 million for a cost of
$4,058,147 and entered into new interest rate derivative contracts with a notional value of $120 million commencing on 30 April
2018 with an average tenor of 5.2 years and an average rate of 2.8%. Of the total swap break costs incurred, $1,403,491 has been
recognised as finance expense in the current period and $2,654,656 has been recognised in equity as other reserves as at 31 March
2019. The amount of swap break costs in reserves will be amortised to finance expense over the remaining original life of the interest
rate derivative contract or until the repayment of the bank borrowings, whichever comes first.
The fair values of interest rate derivatives are determined from valuations prepared by independent treasury advisors using valuation
techniques classified as Level 2 in the fair value hierarchy (2018: Level 2). These are based on the present value of estimated future
cash flows based on the terms and maturities of each contract and the current market interest rates as at balance date. Fair values
also reflect the current creditworthiness of the derivative counterparties. The valuations were based on market rates at 31 March
2019 of between 1.85%, for the 90-day BKBM, and 2.16%, for the 10-year swap rate (2018: 1.96% and 3.06%, respectively). There
have been no transfers between Level 1 and 2 during the respective periods. There were no changes to these valuation techniques
during the reporting period. As at 31 March 2019, the fair value of the interest rate derivatives was a liability of $9,600,899 including
an accrued interest liability of $246,576 (2018: liability of $8,210,396 including an accrued interest liability of $299,746).
SIML does not hold any interest rate derivatives (2018: nil).
5.2 Derivative financial instruments (continued)
The following sensitivity analysis represents the change in fair value of the interest rate derivatives and shows the effect on equity if
the floating interest rates on swaps (hedged bank borrowings) had been 1% higher or lower, with other variables remaining constant.
2019 2018
Gain/(loss)
on +1%
$000
Gain/(loss)
on -1%
$000
Gain/(loss)
o n +1%
$000
Gain/(loss)
o n -1%
$000
Impact on equity6,875( 7,6 9 9)5,721(6,573)
There would have been no impact on profit in either year as the change in fair value is taken to the cash flow hedge reserve. The
interest rate sensitivity analysis is performed by using an instantaneous parallel shift in the yield curve at the testing date.
SPL does not hold derivative financial instruments for trading purposes.
5.3 Net finance expense
Accounting policy
Interest income is recognised on a time-proportional basis using the effective interest rate.
Where SPL borrows funds specifically for the purpose of obtaining a qualifying asset, the amount of borrowing costs
capitalised are the actual borrowing costs incurred on that borrowing, less any investment income on the temporary
investment of those borrowings. A qualifying asset is one that takes six months or longer to prepare for its intended
use or sale. Where SPL borrows funds generally and uses them to fund a qualifying asset, the amount of borrowing
costs capitalised is determined by applying a capitalisation rate to the expenditure on that asset. The capitalisation
rate is the weighted average of the borrowing costs applicable to the borrowings that are outstanding during the
period, other than borrowings made specifically for the purpose of funding a qualifying asset.
As at 31 March 2019, $339,108 (2018: $215,677) of bank borrowing interest expense has been capitalised using an average
capitalisation rate of 3.4% including line fee and margin cost (2018: 3.3%). Other borrowing costs are expensed when incurred
and are recognised using the effective interest rate.
2019
$000
2018
$000
Finance income
Bank interest income96106
Other finance income
206239
302345
Finance expense
Bank borrowings interest(14,970)(16,878)
Bank borrowings interest capitalised339216
Finance expense - swap break expense (note 5.2)
(1,403)–
(16,034)(16,662)
Net finance expense
(15,732)(16 , 317 )
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Notes to the Consolidated Financial StatementsNotes to the Consolidated Financial Statements
Stride Property Group | Annual Report 2019Stride Property Group | Annual Report 2019

5.0 Capital Structure and Funding (continued)5.0 Capital Structure and Funding (continued)
5.4 Share capital
Accounting policy
Shares are classified as equity when there is no obligation to transfer cash or other assets. Incremental costs directly
attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds.
There is only one class of shares, being ordinary shares, and they rank equally with each other. All issued shares are fully paid
and have no par value. SPL and SIML shares are “stapled” and jointly listed on the NZX (Stapled Securities). There is 100%
commonality of shareholding in both entities. Each of SPL and SIML has 365,296,799 shares on issue as at 31 March 2019
(2018: 364,989,277).
Stapling of shares is a contractual and constitutional arrangement between the two Stapled Entities whereby each Stapled
Entity’s equity securities are combined with (or stapled to) the equity securities issued by the other Stapled Entity. The Stapled
Entities have the same shareholders, and their shares cannot be traded or transferred independently of one another. The Stapled
Securities are traded as a single economic unit with a single quoted price.
Under the SIML long term share incentive scheme, the Boards of SPL and SIML issued 307,522 Stapled Securities on 25 May
2018 and a further 54,879 Stapled Securities on 22 May 2019 (note 8.9).
The SPL Board and the SIML Board are constitutionally required to be comprised of the same directors. Shareholders can appoint
up to eight directors to the SIML Board. Under SPL’s constitution, any director appointed to (or removed from) the SIML Board will
be automatically appointed to (or removed from) the SPL Board. SIML shareholders vote on the appointment of the SIML directors
in the usual way (i.e., by ordinary resolution) and the SIML Board may appoint directors to fill any casual or other vacancy on the
SIML Board with such director required to retire and offer him or herself for election at the next Annual Meeting of Shareholders.
Shareholders will not have the right to appoint or remove SPL directors directly but will in effect do so by voting as SIML
shareholders on the appointment or removal of SIML directors.
On 30 August 2018, Michael Stiassny retired as a director and on 13 March 2019, Jacqueline Robertson was appointed to the
Board. As required by the NZX Listing Rules, Jacqueline Robertson will retire and stand for election by shareholders at the 2019
SIML Annual Meeting.
5.5 Reserves
Reserves consist of the following Stride reserves
2019
$000
2018
$000
Cash flow hedge reserve(8,649)(5,698)
Share option reserve725644
Associate reserve – cash flow hedge
40559
Closing balance
(7,884)(4,495)
Cash flow hedge reserve – SPL
Opening balance(5,698)(5,670)
Movement in fair value of interest rate derivatives(4,098)(39)
Tax on fair value movement
1,14711
Closing balance
(8,649)(5,698)
Share option reserve – SPL and SIML
Opening balance644349
Share based payment expense478526
Deferred tax on share based payment expense45–
Transfer to share capital on vesting of employee long term incentive plan
(442)(231)
Closing balance
725644
Share option reserve – SPL–203
Share option reserve – SIML7254 41
Associate reserve – cash flow hedge – SPL
Opening balance5591,033
Changes in reserves of associate
(519)(474)
Closing balance
40559
Gains and losses recognised in the cash flow hedge reserve on interest rate derivative contracts (interest rate swaps) as at
31 March 2019 will be reclassified in the same period in which the hedged forecast cash flows affect profit or loss until the
repayment of the bank borrowings.
5.6 Capital risk management
Stride’s objectives when managing capital are to safeguard Stride’s ability to continue as a going concern in order to provide
returns for shareholders, and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust
the capital structure, Stride may adjust the amount of dividends paid to shareholders, return capital to shareholders, buy back
shares, issue new shares or sell assets to reduce borrowings. As part of its capital risk management, SPL is required to comply
with covenants imposed under its banking facility. The Board regularly monitors these covenants and provides six-monthly
compliance certificates to the banks as part of this process. SPL has complied with these covenants during the relevant periods.
70
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Notes to the Consolidated Financial StatementsNotes to the Consolidated Financial Statements
Stride Property Group | Annual Report 2019Stride Property Group | Annual Report 2019