SPG – Establishment of New Industrial Product

Stride Property Group (NS)
NZX Announcement
5 September 2019



W strideproperty.co.nz
Stride Property Group
Establishment of New Industrial Product
Stride Property Group (Stride) is pleased to announce the establishment of Industre Property
(Industre), its new industrial property focussed investment management product. Industre is a
joint venture with a group of international institutional investors, through a special purpose
vehicle, and advised by J.P. Morgan Asset Management (together, JPMAM). Industre will own
and develop for long term income producing purposes industrial property in New Zealand,
primarily located in the Auckland region. Stride Property Limited (SPL) will contribute all of its
industrial properties to Industre, which is intended to grow through the acquisition and
development of industrial properties over time.
Industre will be managed by Stride Investment Management Limited (SIML). The management
agreement is consistent with those of other SIML-managed products, structured to reflect the
activity-based focus of Industre in the initial years following establishment, during which time
Industre is expected to grow in value through acquisitions and development activity. The overall
economics of this management contract are broadly equivalent to the management contracts of
other SIML-managed products.
Following the strategic and successfully delivered initiative to grow our portfolio of industrial
property, we have created Industre, an industrial sector focussed product. The creation of
Industre is consistent with Stride’s strategy of establishing a group of property investment
management products in specific sectors to provide growth in our investment management
business.
Industre will be Stride’s sector-specific investment management product focussed on the
industrial property sector in New Zealand, with a majority weighting to the Auckland market. The
vision for Industre is to grow a significant portfolio of high-quality New Zealand industrial
properties.
Initially JPMAM will commit approximately $70 million to the establishment of Industre and SPL
will contribute 12 industrial properties owned by it. SPL will initially have an approximately 70%
shareholding in Industre, with JPMAM holding the remainder.
JPMAM has additionally allocated a further $115 million of capital to fund near term growth
initiatives, subject to meeting certain investment return and approval thresholds, taking JPMAM’s
total equity committed to $185 million. This $115 million of JPMAM committed capital will result
in Industre having capacity to fund initial portfolio growth of over $190 million.
Over the long term, the strategy is for JPMAM to fund further portfolio growth until the respective
shareholdings in the portfolio are 75% / 25% (JPMAM / SPL).

J.P. Morgan Global Alternatives is the alternative investment arm of J.P. Morgan Asset
Management (JPMAM). With more than $148 billion in assets under management (including USD
$70 billion of real estate under management globally) and 750 professionals (as of 31 March
2019), J.P. Morgan Global Alternatives offers strategies across the alternative investment
spectrum including real estate, private equity and credit, infrastructure, transportation, liquid
alternatives, and hedge funds. J.P. Morgan Global Alternatives operates from 18 offices
throughout the Americas, Europe and Asia Pacific. For more information see
www.jpmorganassetmanagement.com

The recent growth of SPL’s industrial portfolio and the establishment of Industre are important
steps in the delivery of Stride’s strategy. Stride’s future investment management strategy is to:
• Maintain a diversified investment portfolio through a combination of investments in our
investment management products and our directly-held portfolio.
• Support and grow Stride’s established investment management products through
carefully considered transaction and development activity, while maintaining our
cornerstone share holdings.
• Grow our directly-held portfolio of commercial office properties, with a view to
establishing a sector-specific investment management office product in the future.
• Review new investment management opportunities in markets adjacent to the core
commercial property sector.
After the financial close of Industre, SPL is expected to have approximately $181 million of
headroom available from banking resources to help fund this growth.
Stride’s FY20 cash dividend guidance remains unchanged at a combined 9.91cps.
The establishment of Industre remains subject to a number of conditions, which are described in
the schedule to this announcement, along with the key terms of the transaction. More
information on Industre and the Stride strategy is set out in the attached presentation.


End

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 Officer, 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
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.

SCHEDULE
Key terms of establishment of Industre
Parties SPL (through its wholly owned subsidiary, Stride Industrial
Property Limited) and a special purpose vehicle advised by JP
Morgan Asset Management (together JPMAM)
Properties to be transferred On commencement of Industre, SPL will transfer 11 of its
current industrial properties
Price The initial properties will be sold to Industre at a purchase price
of $256.9 million, which represents a net 3.1% premium to
SPL’s 31 March 2019 valuations, plus capital adjustments
between 30 June 2019 and the commencement of the joint
venture
Equity interests JPMAM will initially contribute approximately $50 million equity
with an SPL subsidiary holding the balance of the equity, and
debt funding provided by a syndicate of banks. While the final
purchase price of the properties and thus proportionate
ownership interests will be determined closer to
commencement of Industre, based on current expected values
of the properties, this will result in JPMAM holding an
approximately 30% interest in Industre at commencement, with
SPL (through its wholly owned subsidiary Stride Industrial
Property Limited) holding the remaining approximately 70%
interest
Additional Property –
Springs Road
In addition to the existing 11 properties transferred to Industre
on commencement, Industre will acquire the Springs Road (East
Tamaki, Auckland) property that is currently under development
by SPL as a head office for Waste Management. This property
will be acquired shortly after practical completion of the project
(with practical completion expected to occur in late December
2019), or, if later, on establishment of Industre. The value at
which the Springs Road property is sold to Industre will be
determined by a valuation at the completion of the development
of this property. JPMAM will contribute $20 million (in addition
to its initial $50 million contribution) of equity in relation to the
acquisition of Springs Road.
A long stop date for acquisition of Springs Road applies, which
means if the development is not completed by the later of (1) six
months after commencement of Industre and (2) 31 December
2020, then Industre can elect not to acquire the property.
Industre will then have a right of first refusal to acquire this
property if SPL seeks to sell it within a period of time thereafter.

Additional Property – 439
Rosebank
Industre will also be nominated as the purchaser for the
acquisition of 439 Rosebank Road (with completion expected in
June 2020).
Key Conditions
• Overseas Investment Office approval
• Finalisation of banking arrangements (including
satisfaction of conditions precedent under the banking
facility) for Industre with its banking group – and to this
end, funding has been committed by a syndicate of
banks under a terms sheet agreed with SIPL and
JPMAM.
• Agreement by SPL with its banks to amendments to its
current banking arrangements to provide for the
establishment of Industre and transfer of properties to
the joint venture.
• Finalising the terms of investment by SPL in the JPMAM
SPV. SPL will take a small shareholding in the SPV
(approximately $250,000) to assist in alignment of the
interests of SPL with its joint venture partner. The
terms of this investment are to be finalised, and this will
be a condition to completion of the overall transaction
and commencement of the joint venture
The conditions are to be satisfied within nine months, subject to
an extension to 12 months in the case of the Overseas
Investment Office approval condition in certain circumstances.
Settlement is to occur on the last business day of the calendar
month that is at least 20 business days after the last condition is
satisfied, subject to certain exceptions.
Investment Mandate Invest in industrial properties that are used primarily or
predominantly for the purposes of warehousing, distribution,
production, manufacturing, assembly, research, fulfilment or
trade-based retail (such as panel beaters or mechanics), and
bare land or development properties that may be able to be
developed into a property used for these purposes; targeting a
long term equity IRR of 8% and an initial yield of 5%. The
investment mandate specifically excludes office properties,
large format retail, shopping centres and self storage facilities.
Preferred Investment
Vehicle
Industre will be the investment vehicle through which the parties
will invest in properties that meet the Investment Mandate
subject to limited exceptions.

Key terms of Management Agreement
Parties Industre (via a new nominee company acting for the
participants) and Stride Investment Management Limited (as
manager)
Term Open-ended (no fixed maturity date), with limited termination
rights
Asset Management Fee For the first three years 0.40% per annum of Gross Asset Value
of Industre (‘GAV’) and thereafter 0.45% per annum of GAV
Building Management Fee All building manager’s fees and property management fees
payable to Industre under the service charge in respect of each
property
Leasing Fee 12% of annual gross rent, where a new lease or right of renewal
is arranged by the Manager for a term of at least one year
Capital Expenditure and
Maintenance Fee
6% of cost
Transaction Fees
• Initial transaction fee of 0.5% of the gross value of all initial
properties transferred to Industre, to be paid by Industre at
completion.
• Minimum 0.5% of purchase price and up to 1.0% of
purchase price for future acquisitions
• Minimum 0.5% of sale price, and up to 1.0% of sale price
for disposals
Performance Fee A performance fee, calculated on a quarterly basis, equal to
10% of the amount by which investor returns are above 10%
and under 15% per annum, calculated quarterly. Any excess or
deficit returns are carried forwards to the next quarter and
cease to be taken into account two years after the quarter in
which they are incurred

---

Stride Property Group (NS)
Industre Property announcement
5 September 2019

Summary
•Stride Property Group (Stride) is pleased to announce the establishment of Industre Property
(Industre), its new industrial property focussed investment management product. Industre is a joint
venture with a group of international institutional investors, through a special purpose vehicle and
advised by J.P. Morgan Asset Management (together, JPMAM).Industre will own and develop for long
term income producing purposes industrial property in New Zealand, primarily located in the Auckland
region. Stride Property Limited (SPL) will contribute all of its existing industrial properties to Industre,
which is intended to grow through the acquisition and development of industrial properties over time.
Industre will be managed by Stride Investment Management Limited (SIML).
•The creation of Industre is consistent with Stride’s strategy of establishing a group of property
investment management products in specific sectors to provide growth in our investment management
business. Following the strategic and successfully delivered initiative to grow our portfolio of industrial
property, we have created Industre, an industrial sector focussed product.
Establishment of Industre and growth strategy
•Industre will be Stride’s sector-specific investment management product focussed on the industrial
property sector in New Zealand, with a majority weighting to the Auckland market. The vision for
Industre is to grow a significant portfolio of high-quality New Zealand industrial properties.
•Initially JPMAM will commit approximately $70 million to the establishment of Industre and SPL will
contribute 12 industrial properties owned by it. SPL will initially have an approximately 70%
shareholding in Industre, with JPMAM holding the remainder.
•JPMAM has additionally allocated a further $115 million of capital to fund near term growth initiatives,
subject to meeting certain investment return and approval thresholds, taking JPMAM’s total equity
committed to $185 million. This $115 million of JPMAM committed capital will result in Industre having
capacity to fund initial portfolio growth of over $190 million.
•Over the long term, the strategy is for JPMAM to fund further portfolio growth until the respective
shareholdings in the portfolio are 75% / 25% (JPMAM / SPL).
•The establishment of Industre remains subject to a number of conditions, which are outlined on page
seven of this document.
Stride’s new industrial
property focussed product
Industre
SPL initial holding
c. 70%
JPMAM equity
commitment
$185m
2
Overview

Sector-specific investment management product
Industre will be Stride’s industrial-focussed investment product. SPL will seed
Industre with its existing portfolio of industrial assets and will commit to take its future
exposure to industrial property through its holding in Industre. Industre is mandated
to invest in industrial properties that are used primarily for the purposes of
warehousing, distribution, production, manufacturing, assembly, research fulfilment,
or trade-based retail (such as panel beaters or mechanics) and targets a long term
equity IRR of at least 8% and an initial yield of 5%. Industre’s mandate specifically
excludes office properties, large format retail, shopping centres and self storage
facilities.
Growth in Industre – growing Stride’s investment management business
In addition to its initial equity investment of approximately $70 million, JPMAM has
committed to contribute $115 million of equity to Industre in the first two years for
future acquisitions and developments which meet the mandate for Industre and
which are approved by the parties.This will result in funding available for an
additional $190 million of acquisitions and developments over the short term, which
would take the value of the portfolio (based on current values) to approximately $550
million, with each of SPL and JPMAM holding approximately 50% of the joint
venture.Over the medium to long term, the intention of both parties is to continue to
grow the assets of Industre, with JPMAM providing the equity to fund this growth until
SPL’s interest in Industre is reduced to 25% through dilution over time.
Leveraging Stride’s existing investment management capabilities
One of Stride’s stated key strategic objectives has been to grow its industrial portfolio
through transactions and development activity. The establishment of Industre shows
JPMAM’s confidence in SIML’s ability to grow its portfolio in the industrial sector.
Since 31 March 2018, SIML has grown SPL’s industrial portfolio by over
$145 million. This track record provides evidence of SIML’s ability to transact
effectively in the industrial market and its ability to continue to grow Industre further in
the future.
Strategic alignment
3

Enduring structure
Industre will be set up for the long term in an open-ended structure with no final
maturity date. To provide certainty for the continued growth of Industre, under the
terms of the agreement with JPMAM, if JPMAM declines to approve or fund its
share of asset acquisition opportunities in the future SPL, or an affiliate of SPL or
SIML, is able to fund 100% of the equity for each acquisition. There are also
contractual mechanisms enabling additional investors to be introduced to fund
growth, if required.
Long term cornerstone holding
SPL is using its balance sheet to aggregate groups of assets with a view to
establishing an enduring investment management business for SIML. SPL will
initially hold a majority stake in Industre of approximately 70%, enabling SPL to
continue its exposure to this sector and manage its earnings to Stride
shareholders. SPL does not intend to sell down its position any further, but
expects to reduce its proportionate interest in Industre over time by way of
dilution as JPMAM provides capital for future acquisitions and developments.
Strategic alignment
4

About J.P. Morgan Global Alternatives
J.P. Morgan Global Alternatives is the alternative investment arm of J.P. Morgan Asset
Management (JPMAM). With more than $148 billion in assets under management and
750 professionals (as of 31 March 2019), J.P. Morgan Global Alternatives offers
strategies across the alternative investment spectrum including real estate, private
equity and credit, infrastructure, transportation, liquid alternatives, and hedge funds.
J.P. Morgan Global Alternatives operates from 18 offices throughout the Americas,
Europe and Asia Pacific.
For more information:
www.jpmorganassetmanagement.com
Global real estate investor
J.P. Morgan Global Alternatives was established 50 years ago and includes USD $70
billion of real estate under management globally, over 300 investment professionals,
18 offices, and has completed average annual acquisition activity of USD $5 billion
over the past five years.
Asia Pacific real estate
J.P. Morgan Global Alternatives recognises Asia-Pacific as the largest real estate
market globally. It offers scale, transparency and liquidity to investors, with structurally
higher economic growth and attractive demographics relative to other developed
markets, and offering low volatility and low correlations making investment in the
region an attractive diversifier for global investors.
About J.P. Morgan Global Alternatives
5

Summary
•On commencement of Industre, SPL will transfer 11 of its current industrial properties as
set out in the Appendix to this announcement. The properties will be sold to Industre at a
purchase price of $256.9 million, which represents a net 3.1% premium to SPL’s 31 March
2019 valuations, plus capital expenditure adjustments between 30 June 2019 and the
commencement of the joint venture.
•JPMAM will initially contribute approximately $50 million equity with an SPL subsidiary
holding the balance of the equity, and debt funding provided by a syndicate of banks. While
the final purchase price of the properties and thus proportionate ownership interests will be
determined closer to commencement of Industre, based on current expected value of the
properties, this will result in JPMAM holding an approximately 30% interest in Industre at
commencement, with SPL (through its wholly owned subsidiary Stride Industrial Property
Limited) holding the remaining approximately 70% interest.
•In addition to the existing 11 properties transferred to Industre on commencement, Industre
will acquire the Springs Road (East Tamaki, Auckland) property that is currently under
development by SPL as a head office for Waste Management. This property will be
acquired shortly after practical completion of the project (with practical completion expected
to occur in late December 2019), or, if later, on establishment of Industre. The value at
which the Springs Road property is sold to Industre will be determined by a valuation at the
completion of the development of this property. JPMAM will contribute $20 million (in
addition to its initial $50 million contribution) of equity in relation to the acquisition of
Springs Road.
•A long stop date for acquisition of Springs Road applies, which means if the development
is not completed by the later of (1) six months after commencement of Industre and (2)
December 2020, then Industre can elect not to acquire the property. Industre will then
have a right of first refusal to acquire this property if SPL seeks to sell it within a period of
time thereafter.
•Industre will also be nominated as the purchaser for the acquisition of 439 Rosebank Road
(with completion expected in June 2020).
•Industre will be governed by a Management Committee with equal voting rights and
unanimous decision making for SPL and JPMAM.
6
Transaction overview

Conditions
While initial agreements have been signed, the commencement of the joint venture is
subject to a number of conditions, the material ones being:
i.Overseas Investment Office approval
ii.Finalisation of banking arrangements (including satisfaction of conditions
precedent under the banking facility) for Industre with its banking group – and to
this end, funding has been committed by a syndicate of banks under a terms sheet
agreed with SIPL and JPMAM.
iii.Agreement by SPL with its banks to amendments to its current banking
arrangements to provide for the establishment of Industre and transfer of
properties to the joint venture.
iv.Finalising the terms of investment by SPL in the JPMAM SPV –SPL will take a
small shareholding in the SPV (approximately $250,000) to assist in alignment of
the interests of SPL with its joint venture partner. The terms of this investment are
to be finalised, and this will be a condition to completion of the overall transaction
and commencement of the joint venture
The conditions are to be satisfied within nine months, subject to an extension to 12 months
in the case of the Overseas Investment Office approval condition in certain circumstances.
Settlement is to occur on the last business day of the calendar month that is at least 20
business days after the last condition is satisfied, subject to certain exceptions.
7
Transaction overview

On commencement, SIML and Industre will enter into a management agreement under which SIML will manage the assets and business of Industre. This
management agreement is consistent with those of other SIML-managed funds, structured to reflect the activity-based focus of Industre in the initial years
following establishment, during which time the fund is expected to grow in value through acquisitions and development activity. The overall economics of this
management contract are broadly equivalent to the management contracts of other SIML-managed funds.
The key terms of the management agreement are as follows:
8
SIML Management Agreement
TermOpen-ended (no fixed maturity date), with limited termination rights
Asset Management FeeFor the first three years 0.40% per annum of Gross Asset Value of Industre (‘GAV’) and thereafter 0.45% per annum of GAV
Building Management FeeAll building manager’s fees and property management fees payable to Industre under the service charge in respect of each property
Leasing Fee12% of annual gross rent, where a new lease or right of renewal is arranged by the Manager for a term of at least one year
Capital Expenditure and
Maintenance Fee
6% of cost
Transaction Fees•Initial transaction fee of 0.5% of the gross value of all initial properties transferred to Industre, to be paid by Industre at completion.
•Minimum 0.5% of purchase price and up to 1.0% of purchase price for future acquisitions
•Minimum 0.5% of sale price and up to 1.0% of sale price for disposals
Performance FeeA performance fee, calculated on a quarterly basis, equal to 10% of the amount by which investor returns are above 10% and under15%
per annum, calculated quarterly. Any excess or deficit returns are carried forwards to the next quarter and cease to be taken into account
two years after the quarter in which they are incurred

656.0
256.9
742.1
485.0
256.9
105.3
105.3
Overview of SIML Products
Industre
Industre establishment portfolio
•On establishment, Industre will acquire 11 industrial properties from SPL for a price of
$256.9 million plus capital expenditure adjustments in the period between 30 June 2019 and
commencement of Industre.
•In addition, SPL will transfer the Springs Road property to Industre shortly after the later of (1)
practical completion of the development at that site and (2) commencement of Industre. Springs
Road will be independently valued at practical completion (being the value that Industre will
acquire the property for). While this value will be subject to final rentals and valuation at practical
completion, based on an independent valuation as at 31 March 2019, the current expected value
on practical completion is $70.7
1
million.
•Industre will have a pipeline of developments and acquisitions from commencement, including:
•The Concourse – estimated incremental value on completion of development of
$26.6
2
million; and
•439 Rosebank Road – acquisition price of $8.0 million, due to settle in July 2020.
•In aggregate, Industre’s total committed industrial portfolio, following these acquisitions and
developments, will comprise a value of approximately $362.2 million, based on today’s estimated
values (subject to the valuation on completion of developments at Springs Road and
The Concourse). This will form the establishment portfolio for Industre.
•Industre will be SIML’s fourth managed portfolio and third product, including Investore Property
Limited, Diversified NZ Property Trust and Industre, together with SPL’s portfolio. In aggregate,
SIML manages $2.2 billion of commercial property.
1.Colliers valuation on completion as at 31 March 2019.
2.Based on JLL valuation on completion for the whole property of $62.3 million as at 20 June 2019.
3.Valuations as at 31 March 2019, excluding the disposal of 33 Corinthian Drive, Auckland, and including North West Two valuation as at 29 April 2019.
4.Valuations as at 31 March 2019 excluding the disposal of Countdown Dunedin South which settled post balance date.
3
4
SIML-managed portfolios by Investment Property value
(as at 31 March 2019)
9
362.2

95.7
97.6
97.7
Directly-heldSIML
Investment
Products
Weighted
look-through
Occupancy
3
2
SPL Portfolio metrics by sector
1
10
4.8
9.5
8.0
Directly-heldSIML
Investment
Products
Weighted look-
through
WALT (years)
2
656656
411
1,067
Directly-heldWeighted look-through
Portfolio Value ($m)
SPLSIML Investment Products
2
SPL’s directly-held and look-through portfolio metrics
•After the establishment of Industre, Stride will hold its investments in industrial property through Industre.
•When SPL’s directly-held investment properties are combined with SPL’s look-through holdings in the other SIML-managed products,including its approximate
70% holding in Industre
2
, its 19.9% holding in Investore Property Limited and its 2% holding in Diversified NZ Property Trust, SPL’s $1,067 million look-through
portfolio shows strong investment metrics, including 97.7% occupancy and a WALT of 8.0 years.
Notes
1.After commencement of Industre.
2.Assumes the committed developments at Springs Rd and The Concourse are completed.
3.SPL’s weighted look-through Occupancy % is higher than SIML Investment Products due to SPL’s different proportionate holdings ineach Product. Refer Appendix A for Occupancy for each Product.
% by NLA

Office
18%
Industrial
24%
Large Format
Retail / LFR
Centres
26%
Retail Shopping
Centre
33%
Office
28%
Large Format
Retail / LFR
Centres
20%
Retail Shopping
Centre
52%
SPL Portfolio metrics by sector
11
SPL’s directly-held portfolio
•Total portfolio value of $656 million, after establishment of
Industre
•Industrial property will be held in Stride’s indirect portfolio,
no-longer forming part of SPL’s directly held portfolio
•SPL’s directly held portfolio will be weighted to sectors
where SPL has not yet established sector-specific
products
•Total look-through value of investment property is $1,067 million
•When taking into account SPL’s investments in Stride’s
products, industrial property will comprise 24% of SPL’s total
look-through portfolio, which is consistent with Stride’s total
holding in industrial property as at 31 March 2019 of 27%
•Large format retail, including SPL’s 19.9% share of Investore
Property Limited and its directly held investments, will comprise
26% of SPL’s portfolio
•Shopping Centres, including SPL’s 2% investment in Diversified
NZ Property Trust and its directly held investments, will comprise
33%
•Office, all directly-held on SPL’s balance sheet, will comprise
18%. This sector has been identified for future portfolio growth
SPL’s look-through portfolio
1
Notes
1.Assumes the committed developments at Springs Rd and The Concourse are completed.

Debt facilitiesIndustreSPL
Banking facility limit
$140m$340m
Facility headroom available post
transfer of SPL’s industrial assets
$125m
1
$181m
Weighted maturity of debt facilities5.0 years2.4 years
2
Equity at establishment of Industre$217mn/a
Forecast LVR35%24%
Highlights
•To support the initial transaction, Industre has obtained $140m of 5 year
syndicated, senior, committed funding, which is available for up to 270 days
from the signing of the Industre documents
3
.
•Additionally, up to $100m of further funding is available via an Accordion
facility which provides funding from the initial syndicate on materially the same
terms at the lenders’ discretion, or from additional lenders on the same terms.
•Initially Industre will have an LVR of ~35%, with a long term targeted level of
30% to 40%.
•Based on current commitments, SPL has agreed with its existing lenders to
reduce its banking facilities to $340m from financial close of Industre. This
provides $181m of forecast headroom for SPL once Industre acquires SPL’s
industrial portfolio, and a forecast 24% LVR (assuming no further acquisitions
by SPL).
•SPL’s existing syndicated facility agreement has been amended to facilitate
the transaction and support future SPL transactional activity in the interim
period by maintaining existing facility limits.
Capital Structure
12
Notes
1.Includes $100m Accordion facility.
2.SPL weighted maturity of debt facilities as at 31 August 2019.
3.Finalisation of banking arrangements (including satisfaction of conditions precedent under the banking facility).
Figures in the above table are calculated using current transaction values. Actual figures will
reflect capital expenditure adjustments from 30 June 2019 to the commencement of Industre.

Overview of investment management strategy
•Stride’s strategy for its investment management business is to establish a group of
commercial property investment management products to provide growth in our
investment management business and continue to review opportunities in markets
adjacent to core commercial property sectors.
•The recent growth of SPL’s industrial portfolio and the establishment of Industre
are important steps in our delivery of this strategy. Stride’s future investment
management strategy is to:
1.Maintain a diversified investment portfolio through a combination of
investments in our investment management products and our directly-held
portfolio.
2.Support and grow Stride’s established investment management
products through carefully considered transaction and development
activity, while maintaining our cornerstone share holdings.
3.Grow our directly-held portfolio of commercial office properties, with
a view to establishing a sector-specific investment management office
product in the future.
4.Review new investment management opportunities in markets
adjacent to the core commercial property sector.
•After the financial close of Industre, SPL is expected to have approximately
$181 million of headroom available from banking resources to help fund this
growth.
•Stride’s FY20 cash dividend guidance remains unchanged at a combined 9.91cps.
Looking ahead
13

Appendices
14

OverviewTotal Portfolio
IndustrialOffice
1
Large Format Retail
and LFR Centres
Shopping
Centres
Directly – held portfolio
Properties (no.)14
5
734
5
Tenants (no.)319 6949201
Net Contract Rental($m)43.0 12.78.122.2
WALT (years)4.8 4.54.94.9
Occupancy Rate (% by area)95.7 94.299.194.7
Portfolio Valuation ($m)656 187129340
2
Percentage of Portfolio (% by value)100 28%20%52%
SIML Investment ProductsIndustre
4
Investore
3
Diversified
Properties (no.)56
5
13394
5
Tenants (no.)451 2877346
Net Contract Rental ($m)105.8 19.446.440.0
WALT (years)9.5 15.312.43.3
Occupancy Rate (% by area)97.6 100.099.990.5
Portfolio Valuation ($m)1,589 362742485
Percentage of Portfolio (% by value)100%100%100%
SPL investment metrics on a committed, weighted, look-through basis
6
SPL investment in managed entities70%19.9%2.0%
Portfolio Valuation ($m)1,067
254187277350
WALT (years)8.0
15.3 4.5 8.9 4.9
Occupancy Rate (% by area)97.7
100.0 94.2 99.5 94.5
Percentage of Portfolio (% by value)100%
24%18%26%33%
Appendix A: Portfolio by Sector
Stride Property Limited
15
Notes:
1.Metrics as at 31 March 2019 and adjusted for the disposal of 33 Corinthian Drive, Auckland which settled post balance date on1 April 2019.
2.Valuation as at 31 March 2019 and adjusted for NorthWest Two valuation 29 April 2019.
3.Metrics as at 31 March 2019 and adjusted for the disposal of Countdown Dunedin South, which settled post balance date on 1 April2019.
4.Industre transaction values plus the estimated completion value for The Concourse and Springs Road and the acquisition of 439Rosebank Road at $8.0m
5.Includes Johnsonville Shopping Centre, Wellington which is owned 50:50 by SPL and Diversified.
6.Metrics in this section are weighted according to SPL’s proportionate investment in SIML’s investment product.

Appendix B: Industre Portfolio
16
Industre Portfolio
Property
Occupancy
by area Net Income Property WALT Transfer Value
1
Contract
Yield
#
%$ million years $ million%
Establishment assets
122-30 Airpark Drive, Mangere100%1.45.729.0
4.9%
2
34 Airpark Drive, Mangere100%0.48.88.3
5.2%
3
415 East Tamaki Road, East Tamaki100%1.22.018.6
6.3%
4
22 Ha Crescent, Wiri100%0.82.315.0
5.3%
5
25 O'Rorke Road, Penrose100%3.84.869.0
5.5%
6
8 Reg Savory Place, East Tamaki100%0.54.48.8
5.6%
7
15 Ride Way, Albany100%0.64.412.3
5.3%
8
20 Rockridge Avenue, Penrose100%0.91.516.2
5.8%
9
460 Rosebank Road, Avondale100%1.24.018.9
6.1%
10
15 Rockridge Avenue, Penrose100%1.36.425.3
5.2%
11
The Concourse (established)100%1.33.221.6
5.8%
The Concourse (development land)n/an/an/a14.1
n/a
Total establishment assets (11 assets)100%13.44.3256.9
5.5%
Developments on completion
The Concourse (development)n/a16.726.6
n/a
12
11 Springs Roadn/a25.070.7
n/a
Total developments on completion21.297.3
Future acquisitions
13439 Rosebank Road (development)n/an/a8.0
n/a
Total future acquisitions8.0
Total 15.3
362.2
Notes:
1.The transfer value is described in further detail on page 9 of this presentation.