FY20 Annual Report and Results

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tim.storey@strideproperty.co.nz
philip.littlewood@strideproperty.co.nz

jennifer.whooley@strideproperty.co.nz
louise.hill@strideproperty.co.nz

---

Stride Property Group
Annual Report
2020

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 143 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
Capitalised and technical terms are defined in the glossary on pages 143 and 144.
Highlights 02
Performance
04
Chair and CEO’s Report 06
Board of Directors 10
People 12
Executive Team 16
COVID-19 Update 18
Products 20
Investore 24
Industre 26
Diversified 27
Places 28
SPL’s Portfolio by Sector 32
Capital Management 38
Enduring Demand – Waste Management 40
Sustainability at Stride 44
Community Involvement 46
Financial Statements 48
Auditor’s Report 102
Corporate Governance 108
Statutory Disclosures 134
Implications of Investing in Stapled Securities 142
Glossary 143
Contents
PerformancePeoplePlacesProducts

3

$ 5 9 .1m n e t
rental income
up $1.8m from FY19 ($57.3m)
$37.1m profit
before other income/(expense) and income
tax, down $0.8m from FY19 ($38.0m)
$ 37.7m
distributable profit
after current income tax, down $1.1m
from FY19 ($38.8m)
Performance
Products
People
New Director Nick Jacobson
appointed July 2019 with Director
David van Schaardenburg retiring
in August 2019
First group of senior managers
complete leadership development
course, as part of Stride’s ongoing
employee development programme
SIML development team
completed over $75m of projects
in FY20 and is currently managing
over $185m of developments
across all SIML managed portfolios
Places
$25.3m
profit after
income tax
down from FY19 ($76.2m)
due to a -$1.8m valuation
movement (FY19: $36.5m),
$2.0m impairment of work in
progress on the development of
Johnsonville Shopping Centre
and $8.2m negative fair value
adjustment of cashflow hedges
2
$996.1m
Stride Property Limited’s
total portfolio value
3
as at
31 March 2020
4
, a net $1.8m or
0.2% decline from 31 March 2019
9.91 cents
per share
total combined cash dividend for
FY20, in line with guidance
Development of $98m Waste
Management Auckland
Headquarters at East Tamaki,
Auckland, completed
Development of industrial facility
for Waste Management at
Henderson commenced
Sale of three large format
retail properties to Investore settled
30 April 2020
Acquisition of industrial property at
Wickham Street, Hamilton (settled
1 April 2020), which includes an
area to be developed into a resource
recovery park for Waste Management
Industrial portfolio remained
resilient to the impacts of COVID-19,
increasing in value
7
by $42.7m or
14.3% from 31 March 2019
Stride has agreed to establish Industre
Property Joint Venture, its latest
investment management Product,
with a focus on industrial property and
an initial portfolio value of $398m.
Expected to commence 30 June 2020
Investore progressed its targeted
growth strategy during FY20,
acquiring five new properties for an
aggregate purchase price of $148m
8
,
and successfully raising $182.7m in
additional equity
9
Diversified continued the rebuild of
a carpark and cinema building and
seismic strengthening project at
Queensgate
1. See glossary on pages 143 and 144.
2. Following the settlement of the disposal of three large format retail properties to Investore and commencement of the Industre Property Joint Venture, SPL anticipates
that $120m of interest rate derivatives will be broken and repaid and consequently the ineffective value of these derivates as at 31 March 2020 has been recognised in
the consolidated statement of comprehensive income.
3. Excludes lease liabilities of $27.5m. The portfolio as at 31 March 2020 includes the three large format retail properties that SPL had agreed to sell to Investore for
$140.75m. These properties are classified as investment properties held for sale and are recorded at $132.2m as at 31 March 2020, after allowing for the cost of
seismic upgrade works that SPL has committed to undertake on the properties, a rental underwrite and disposal costs. This transaction settled on 30 April 2020.
4. Due to COVID-19, SPL’s 31 March 2020 investment property valuations have been reported on the basis of ‘material valuation uncertainty’, meaning less certainty and a higher
degree of caution should be applied. The opinion of value has been determined at the valuation date based on a certain set of assumptions, however these could change in a
short period of time due to subsequent events.
5. As at 31 March 2020, as if the following transactions had completed as at that date: (1) the sale of the three large format retail properties to Investore which settled on 30 April 2020;
(2) the refinancing of $135m of bank facilities for three years announced on 1 May 2020; (3) the subscription by SPL for $16.5m of additional shares in Investore’s capital raising
announced on 29 April 2020; and (4) the commencement of the Industre Property Joint Venture, including the expected cost of breaking $120m of interest rate derivatives at an
estimated cost of $9.4m based on the market value of these derivatives as at 31 May 2020.
6. Excludes management fees from SPL which are eliminated on consolidation.
7. Includes net valuation movement for the development at Selwood Road, Henderson, Auckland. As announced in September 2019, SPL has agreed to transfer its industrial properties to
a new joint venture, Industre Property Joint Venture. Upon commencement of the joint venture, SPL expects to own 68.3% of the interests in the joint venture. SPL has agreed to sell the
industrial assets to Industre at a determined price. Upon commencement of Industre, Industre will recognise the assets at the then market price. If that market price was the same as the
31 March 2020 valuations, there would be a $2.9m valuation gain attributable to JPMAM.
8. Includes three properties agreed to be acquired from SPL for $140.75m purchase price, which settled on 30 April 2020.
9. Comprising $77.7m of gross proceeds from capital raising conducted during November and December 2019, and $105m of gross proceeds from capital raising conducted during April and May 2020.
17.8% pro forma
loan to value
ratio
5

down from 39.1% at 31 March 2020
(F Y19: 34.4%)
$18.3m F Y20
management
fees
up 16.4% from FY19 ($15.7m)
Waste Management
East Tamaki, Auckland
1
6
2
Stride Property Group
Annual Report 2020
HighlightsHighlights

Five Year Financial Summary
2020
($m)
2019
($m)
2018
($m)
2 017
($m)
2016
($m)
Net rental income
5 9.1
57. 359.157.961.8
Profit before net finance expenses, other income/(expense)
and income tax from continuing operations
53.6
53.757.151. 055.4
Net finance expense(16.5)
(15.7 )(16.3)(16.8)(15.2)
Profit before other income/(expense) and income tax
from continuing operations
37.1
38.040.734 .140.2
Other income/(expense)
(8.5)
43.460.127.958.3
Profit before income tax from continuing operations
28.7
81.4100.862 .198.5
Income tax expense
(3.3)
(5.2)(5.5)(7.9)(9.1)
Profit after income tax from continuing operations
25.3
76.295.354.289.4
(Loss)/profit from discontinued operations
1
0.0
0.00.0(0.9)3.0
Profit attributable to shareholders
25.3
76.295.353.392.4
Basic earnings per share - weighted
6.93
cents
20.86
cents
26 .10
cents
14.63
cents
27.93
cents
Distributable profit
2
before income tax
47.7
45.848.445.546.3
Distributable profit after income tax
37.7
38.838.837.737.1
Basic distributable profit after income
tax per share - weighted
10.32
cents
10.62
cents
10.63
cents
10.33
cents
11. 2 2
cents
Property values
996.1
3
966.3902.2895.31, 274. 8
Bank debt drawn
386.2
332.9307.7347.5532.2
Loan to value ratio
3 9.1%
34.4%34 .1%38.8%41.7%
NTA per share
4
$1.91
$1.92$1.82$1.67$1.97
Adjusted NTA per share
5
$1.93
$1.94$1.84$1.68$2.00
1. Includes the reclassification of cash flow hedge reserve to the consolidated statement of comprehensive income for discontinued operations.
2. See glossary on pages 143 and 144.
3. Refer to footnote 3 on page 2.
4. Excludes intangibles.
5. Excludes intangibles and after tax fair value of interest rate derivatives.
The Five Year Financial Summary table reflects the numbers in the financial statements for each respective year. On 11
July 2016, SPL distributed shares in its subsidiary Investore to SPL shareholders and Investore issued shares to investors
in connection with its initial public offer. Investore entered into a listing agreement with NZX Limited (NZX) and its ordinary
shares were quoted, and commenced trading on the main board equity security 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.
Performance
The Five Year Financial Summary table reflects the numbers in the financial statements for each respective year.
5
15 Rockridge Avenue,
Auckland
Annual Report 2020
Stride Property Group
4
PerformancePerformance

4. Excludes management fees from SPL which are eliminated on consolidation.
5. Includes the twelve industrial properties owned by SPL as at 31 March 2020 plus pre-commencement capex and the Wickham Street, Hamilton, property, which was
acquired with effect from 1 April 2020.
7
Chair and
CEO’s Report
Dear Shareholders,

Stride Property Group has delivered pleasing results for FY20, a year
that saw Stride successfully advance its strategy of establishing a
group of Products in specific commercial property sectors to provide
growth in its investment management business.
On behalf of the Boards and Management, we are
pleased to present the annual report for Stride Property
Group (Stride) for the year ended 31 March 2020
(FY20). This year has been a strong year for Stride in
the execution of its funds management strategy, with
the growth of Investore Property Limited (Investore)
and agreement reached for the establishment of a new
Product, Industre Property Joint Venture (Industre).
Towards the end of FY20 the world was shaken by the
impact of COVID-19. While Stride is not immune from
these impacts, Stride will be in a very sound financial
position, with a loan to value ratio (LVR) under 20%
and available debt facilities of $218m following the sale
of the three properties to Investore (settled 30 April
2020), subscription by Stride Property Limited (SPL)
for $16.5m of additional shares in Investore as part of
the capital raising announced by Investore on 29 April
2020, and the commencement of Stride’s new industrial
property focussed Product, Industre (expected to
commence on 30 June 2020)
1
. This places Stride in a
strong position to successfully manage the significant
economic uncertainties associated with COVID-19
and its aftermath, and to explore opportunities beyond
COVID-19. Stride’s strong balance sheet and access to
liquidity will enable it to invest in new opportunities in
furtherance of its strategy, and in support of its existing
Products. By way of example, Stride has invested $29.5m
1. Including breaking $120m of interest rate derivatives in connection with the Industre settlement at a cost of $9.4m based on the market value of these derivatives at 31 May 2020.
2. As at 31 March 2020, as if the acquisition of the three properties from SPL and the capital raising announced in April 2020 had completed as at that date, and as if the new $50m facility
announced on 28 April 2020 was in place as at that date.
3. JPMAM, the Industre joint venture partner, has allocated $115m of capital (in addition to the capital allocated to acquire the 12 industrial properties owned by SPL on 31 March 2020 as
part of the Industre initial portfolio) to fund near term growth initiatives, subject to meeting certain investment return and approval thresholds, such as the Wickham Street acquisition and
development. This commitment, in addition to the uncommitted portion of Industre’s $205m banking facilities, will result in Industre having capacity to fund further portfolio growth of
approximately $154m in addition to currently committed acquisition and developments.
in subscribing for additional shares in Investore since
November 2019, including $16.5m in the most recent
placement conducted in April 2020.
The Stride Boards and Management consider that Stride’s
strategy of creating an investment management business
with diversified income sources and distinct balance sheets
for each of Stride’s investment management Products,
together with clearly defined investment parameters,
means that Stride is well positioned to manage the impact of
COVID-19, and to continue its growth strategy.
SPL and other Stride Products have access to capital and
banking facility headroom, allowing them to continue to
grow their portfolios and providing financial capacity in
the current uncertain economic environment created by
COVID-19. SPL has banking facility headroom available of
over $218m and Investore has banking facility headroom
of $148m
2
, while Industre will have access to additional
committed capital
3
of $154m. In total this provides
approximately $520m of committed funding across Stride
and its Products to invest in new portfolio opportunities
(in addition to current committed acquisitions and
developments), consistent with the growth strategies of
Stride and each of these Products. When combined with
Stride’s current assets under management of $2.2bn,
this provides a pathway to grow Stride’s investment
management business to approximately $2.8bn.
Access to this level of capital puts Stride in a very positive
position in the current economic climate, and contributes to
our confidence as we look forward to the opportunities for
the future of Stride’s business.
Performance
Turning now to consider Stride’s financial performance
during FY20, Stride’s underlying operating performance
was positive, with net rental income of $59.1m for FY20,
up $1.8m from FY19 (FY19: $57.3m) due largely to
improved rental income across SPL’s portfolio. This net
rental income figure was particularly pleasing as SPL
sold the office property at Corinthian Drive, Auckland,
with effect from 1 April 2019 which contributed ($3.0m)
for the prior year, partially offset by the acquisition of the
property at The Concourse, Henderson, at the end of
June 2019, providing $0.9m income for FY20 and the
part year of rental income from the completed Waste
Management Auckland Headquarters development of
$1.2m.
Stride also achieved strong growth in its management fee
income in FY20 ($18.3m)
4
up 16.4% from FY19 ($15.7m), a
testament to its growing investment management strategy.
Administration expenses were higher during FY20 due
largely to increased corporate costs, as a result of the
full SIML executive team being in place for the whole
financial year. These costs are now stabilised with a
strong management team in place across the spectrum
from property management to development and
capital management (notwithstanding the cost saving
measures implemented for FY21 following COVID-19 of
approximately $3.0m as previously announced) and are
expected to only grow incrementally in line with growth
of the broader business.
The above factors combined contributed to profit before
other income/(expense) and income tax of $37.1m, slightly
down on FY19 ($38.0m).
In addition, SPL incurred project costs of $1.4m in
relation to adviser fees for the establishment of Industre
and a further $2.8 million on feasibility costs on projects
that did not proceed. The SPL Board is committed to
exploring opportunities that it considers will advance
its overall investment management strategy, although,
following completion of due diligence, it may not always
proceed with projects where it considers the value does
not outweigh the overall perceived risks. These feasibility
costs, which are $2.4m higher than in FY19, impacted
FY20 distributable profit, which, at $37.7m was $1.1m
lower than FY19 ($38.8m).
As indicated, the net change in the fair value of investment
properties was considerably lower for FY20 (-$1.8m)
compared with FY19 (+$36.5m). For some context, prior to
the impact of COVID-19, SPL had received draft valuations
of its investment properties which were $66.5m higher than
the final valuations (excluding the three properties that SPL
had agreed to sell to Investore). This significant movement
due to COVID-19 largely accounted for the reduced profit
before income tax of $28.7m (FY19: $81.4m).
In addition, profit before income tax was also impacted by
an $8.2m negative hedge ineffectiveness adjustment of
cashflow hedges and a $2m impairment to work in
progress related to the redevelopment options for
Johnsonville Shopping Centre. The negative hedge
ineffectiveness adjustment arose as SPL anticipates that
$120m of interest rate derivatives will be broken following
settlement of the disposal of three properties to Investore
on 30 April 2020 and following commencement of the
Industre Property Joint Venture.
Products – Delivery of strategy
FY20 saw a significant milestone for Stride in the
development of its investment management business, with
the announcement of our latest investment management
Product in September 2019, Industre. This 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 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. Stride expects that Industre
will commence operations on 30 June 2020, following receipt
of consent under the Overseas Investment Act on 3 June 2020.
Initially SPL is expected to have a 68.3% shareholding
in Industre’s $398m portfolio
5
on commencement, with
JPMAM holding the remainder. JPMAM has allocated
$115m of capital to fund near term growth initiatives,
subject to meeting certain investment return and approval
thresholds, taking JPMAM’s total equity committed
to $185m. This committed equity, together with the
uncommitted portion of Industre’s $205m banking
facilities, is expected to enable Industre to grow its
portfolio value to approximately $584m in the short to
medium term, subject to identifying suitable investment
opportunities.
The vision for Industre is to grow a significant portfolio of
high-quality New Zealand industrial properties. Over the
long term, the strategy is for JPMAM to fund this further
portfolio growth until the respective shareholdings in the
portfolio are 75%/25% (JPMAM / SPL).
Industre will commence with two properties under
development, being the industrial facility for Waste
Management which is being constructed at Selwood
Road, Henderson, Auckland, and the resource recovery
park development for Waste Management at Wickham
Street, Hamilton. These developments are both expected
6
Stride Property Group
Annual Report 2020
Chair and CEO’s ReportChair and CEO’s Report

Tim Storey
Chair,
SPL and SIML
Philip Littlewood

Chief Executive Officer,
SIML
9
to be completed prior to Christmas 2020 and Waste
Management will take a 25 year lease of each of these
sites upon completion of the respective development.
These properties will provide Industre with a pipeline of
growth from commencement.
Stride Investment Management Limited (SIML) has also been
very active in supporting the development of its established
Products, Investore and Diversified NZ Property Trust
(Diversified). Investore is a listed property vehicle and is
Stride’s Product focussed on the large format retail property
sector, while Diversified is an Australian trust owned
primarily by two Australian superannuation schemes and
owns a number of retail shopping centres in New Zealand.
Investore has undertaken a number of transactions during
the year in execution of its strategy of targeted growth:
• During FY20 Investore acquired or agreed to acquire
five properties for a total purchase price of $147.7m.
This included the acquisition of three large format retail
properties from SPL for $140.75m which settled on
30 April 2020. This transaction completed the transfer
of all large format retail properties from SPL to Investore,
consistent with Stride’s strategy of managing a group
of Products each focussed on specific commercial
property sectors.
• In connection with the acquisition of the three properties
from SPL, Investore undertook a capital raising, as
announced on 19 November 2019, raising gross
proceeds of $77.7m which were used to partially fund
the acquisition.
• Investore has also undertaken a further capital raising
post balance date to provide funding flexibility for
future growth. This capital raising comprised a
placement and share purchase plan, as announced
on 29 April 2020. Investore raised gross proceeds of
$105m from this capital raising, used to pay down debt,
reducing Investore’s loan to value ratio
1
to 30.4%.
Investore’s focus on large format retail properties, with
a large proportion of its Contract Rental
2
derived from
supermarkets, has meant that Investore is well placed to
weather the impact of COVID-19 on its portfolio.

Diversified has had another active year, with SIML
completing 278 leasing transactions on its behalf, resulting
in an increase in rentals of 1.8% over previous rentals.
Diversified’s portfolio comprises four shopping centres,
which have seen valuations decrease as a result of the
impact of COVID-19, with gross valuations declining 14.5%
or $70.5m for the 12 months to 31 March 2020. This level
of decline is broadly in line with valuation decreases at other
properties of an equivalent nature and reflects the impact of
the Alert Level 3 and 4 lockdown, which resulted in over 90%
of Diversified’s tenants being unable to trade.
Approximately 95% of Diversified’s tenants reopened for
trading within two weeks of the start of Alert Level 2, and we
know they are pleased and relieved to have returned to more
normal trading patterns.
Looking forward, the $110m redevelopment of part of the
Queensgate Shopping Centre is now well underway and
due to complete in stages, with the carpark scheduled
to open first in early 2021, and the brand new, state of
the art cinema complex scheduled to open in early 2022.
Diversified remains engaged with its insurers over its
claim for recovery for the costs of this redevelopment, and
expects the claim to progress during the course of 2020
and 2021.
Diversified also owns a 50% interest in Johnsonville
Shopping Centre with SPL. SIML has been progressing
options for the redevelopment of this centre on behalf of
Diversified and SPL, and while significant progress has been
made with this project over recent time, given the current
uncertain economic climate this project remains under
review by the owners until the market outlook is clearer.
People
During FY20 there were two Board changes, with the
appointment of Nick Jacobson on 18 July 2019 to the
Boards of SPL and SIML, and the retirement of David van
Schaardenburg on 29 August 2019. David was a director for
over 9 years and made a very valuable contribution to
the Boards and to Stride during a transformative period for
the business.
Nick Jacobson has extensive experience in real estate
advisory and capital markets across Australia, Europe
and Asia. Nick is currently Managing Director at CapStra
(formerly Pepper Property) in Sydney, Australia, advising
on significant property transactions and portfolios,
and was previously Managing Director and Head of
Investment Banking Services at Goldman Sachs in
Sydney, and Chairman of Goldman Sachs’ Real Estate
Investment Banking division. Stride will benefit from
Nick’s property and capital markets experience as it
continues with its investment management strategy.
SIML is committed to developing and engaging its people,
and this continued during FY20 with the establishment of
a leadership development programme. SIML committed
both time and resources to the leaders who attended this
externally-facilitated course, and both the participants and
the company have benefited from the positive effect this
course has had on the SIML leadership team.
Places
As at 31 March 2020 SPL’s portfolio was valued
3
at
$996.1m
4
, representing a net valuation decline of
$1.8m or 0.2% for the 12 months from 31 March 2019.
When compared with the valuations as at 30 September
2019, the decrease was $26.1m or 2.6%. SPL had
previously received draft valuations for its portfolio in
early March, and these valuations were subsequently
withdrawn by the valuers due to the impact of COVID-19.
The final valuations as at 31 March 2020 reflect changes
in the portfolio value of -$66.5m
5
from the draft March
valuations.
During the year in review Stride has undertaken a number
of transactions which have contributed to the value
of the portfolio. In particular, Stride was very proud to
deliver the Waste Management Auckland Headquarters
development at East Tamaki, Auckland, in December 2019.
This development is an extremely high-quality facility,
combining both office and industrial components, and
includes a number of sustainable features. The success
of this development was a true testament to the skill
and commitment of the SIML development team, and
the strong working relationship the SIML development
and asset management teams formed with its client,
Waste Management. This project has led to additional
development opportunities with Waste Management at
Selwood Road, Auckland and Wickham Street, Hamilton.
These sites will form part of Industre and demonstrate the
value that the combined Stride Property Group can bring to
create future investment management Products.
After the settlement of the three large format retail
properties to Investore and the commencement of
Industre, SPL’s directly-held portfolio will comprise
office and retail shopping centre assets. SPL also has an
ownership interest in the Stride Products, holding 18.8%
of Investore (as at 1 June 2020) and 2% of Diversified.
SPL will take a 68.3% ownership interest in Industre
upon commencement, which is expected to reduce over
time as this portfolio grows. Accordingly, SPL’s portfolio
is a combination of directly-held property and indirect interests
through the Stride Products. On the basis of direct property
holdings plus the ‘weighted look-through’ interest that SPL
has in the Stride Products, SPL has a well-diversified portfolio
consisting of 31% industrial, 19% office, 18% large format
retail and 32% retail shopping centres, based on asset values
as at 31 March 2020.
Outlook
Stride’s policy is to distribute between 95% and 100% of
distributable profit
2
, to support its strategy of delivering
consistent dividends, as well as long-term growth for
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 2020, bringing the full
combined FY20 cash dividend to 9.91 cents per share, in line
with guidance. This represents a payout ratio of 96.0% of
distributable profit.
The Boards confirm that they currently intend to pay quarterly
dividends for the 2021 financial year, in line with current policy.
The Boards currently anticipate that the combined dividends per
share for SPL and SIML for FY21 will be 9.91cps, although the
Boards note the recent nature of COVID-19 means there remains
uncertainty at present with regard to the FY21 full year financial
results. The Boards will keep the market updated.
Looking forward, Stride continues to target establishment of
a group of Products in specific sectors to provide growth in its
investment management business, and to achieve that it will
look to build a portfolio of assets within SPL that can be used to
establish new Products with SPL taking a cornerstone interest in
each Product. The timing and nature of the new Products will of
course be dependent on market conditions, but we believe SPL’s
low LVR will enable additional strategically aligned acquisitions
during FY21 if market conditions and opportunities allow.
Thank you for your continued support of Stride Property Group.
1. As at 31 March 2020, as if the capital raising announced on 29 April 2020 and acquisition of the three properties from SPL had completed as at that date.
2. See glossary on pages 143 and 144.
3. Due to COVID-19, SPL’s 31 March 2020 investment property valuations have been reported on the basis of ‘material valuation uncertainty’, meaning less certainty and a
higher degree of caution should be applied. The opinion of value has been determined as at the valuation date based on a certain set of assumptions, however these could
change in a short period of time due to subsequent events.
4. Excludes lease liabilities of $27.5m. The portfolio as at 31 March 2020 includes the three large format retail properties that SPL had agreed to sell to Investore for
$140.75m. These properties are classified as investment properties held for sale and are recorded at $132.2m as at 31 March 2020, after allowing for the cost of
seismic upgrade works that SPL has committed to undertake on the properties, a rental underwrite and disposal costs. This transaction settled on 30 April 2020.
5. Excluding the three large format retail properties that SPL had agreed to sell to Investore which are recorded at the net sale price of $132.2m as at 31 March 2020.
This sale settled on 30 April 2020.
8
Stride Property Group
Annual Report 2020
Chair and CEO’s Report

11
Board of Directors

Tim Storey – LLB, BA
Chair

Term of Office: Appointed to SPL on 1 April 2009 and to SIML on 16 February 2016;
last elected 2019 annual meeting
Tim was appointed Chair of Stride in 2009. He has more than 30 years’ business
experience across a range of sectors and has practised 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 a director of JustKapital Litigation Partners
Limited (ASX Listed), Investore Property Limited and a number of private companies.
David van Schaardenburg – BCom, CA, CMInstD, was a director of SPL and SIML.
David was appointed as a director of SPL on 12 May 2010 and as a director of SIML on 16 February 2016. He retired as a director of
both SPL and SIML on 29 August 2019.
John Harvey – BCom, FCA, CFInstD
Director and Chair of the Audit and Risk Committee
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 and held a number of management
and governance responsibilities. He holds a Bachelor of Commerce degree from the
University of Canterbury. He is a member of the Institute of Directors in New Zealand
(Inc) and is currently a director of Port of Napier Limited, Kathmandu Holdings Limited,
Heartland Bank Limited and Investore Property Limited.
Michelle Tierney – BA, MBA
Director
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 is the Chief
Operating Officer for SCA Property Group in Australia. She was previously the General
Manager of Business Development and Strategy for the National Australia Bank Global
Institutional Bank, Fund Manager of the $3.8 billion GPT Wholesale Shopping Centre Fund
and Head of Property & Asset Management for ASX50 company The GPT Group. Michelle is
a member of the Australian Institute of Company Directors, the Women’s Leadership Institute
Australia and is a former Associate of the Australian Property Institute.
Nick Jacobson – LLB, BCom
Director

Term of Office: Appointed to SPL and SIML on 18 July 2019; elected 2019 annual meeting
Nick has over 25 years’ experience with leading global and investment banks and global financial
services companies, specialising in real estate advisory and capital markets across Australia,
Europe and Asia. Nick is currently Managing Director at CapStra (formerly Pepper Property)
in Sydney, Australia, advising on significant property transactions and portfolios. Nick was
previously Managing Director and Head of Investment Banking Services at Goldman Sachs in
Sydney, and Chairman of Goldman Sachs’ Real Estate Investment Banking division and, prior
to joining Goldman Sachs, was Head of EMEA Real Estate and Lodging Investment Banking at
Citigroup in London for four years.
Philip Ling – MSc, MRICS, CMInstD

Director
Term of Office: Appointed to SPL and SIML on 26 June 2017; elected 2017 annual meeting
Philip brings more than 30 years of extensive experience gained within funds and property
management entities, both listed and unlisted, in senior management and CEO roles and
directorships, throughout New Zealand, Australia, the United Kingdom and Asia Pacific. Most
recently, Philip was CEO, Asia Pacific, of LaSalle Investment Management, a Chicago-based global
real estate funds manager with assets under management of $USD58 billion, Chairman of the Asia
Pacific Investment Committee and a member of LaSalle’s Global Management Committee. Philip is
a Chartered Surveyor, a Professional Member of the Royal Institution of Chartered Surveyors and a
former Fellow and President of the New Zealand Institute of Quantity Surveyors.
Jacqueline Cheyne (formerly Robertson) – BAcc, CA, CMInstD
Director
Term of Office: Appointed to SPL and SIML on 13 March 2019; elected 2019 annual meeting
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 also has a broad range of experience across the financial services, public, private
and not for profit sectors. Jacqueline is currently a Member of the External Reporting Board, a
Member of the Audit Oversight Committee of the Financial Markets Authority, a board member
of Snow Sports NZ and a director of New Zealand Green Investment Finance Limited.
10
Stride Property Group
Annual Report 2020
Board of DirectorsBoard of Directors

13
People
Leadership development
Stride believes in investing in its people. During 2019,
Stride undertook its inaugural leadership development
course, which was an externally-facilitated development
course focussed on those people at managerial level
who have a significant influence over the organisation.
The course sought to further develop the leadership
skills of our people and complement those skills that
are learned “on the job”, through a series of one day
courses conducted in locations away from the office,
enabling the participants to fully focus on their learning
and development.
During FY20, Stride undertook a number of activities and events
focussed on people, including leadership development programmes,
wellbeing initiatives, and activities designed to bring our teams
together to cement our positive, supportive, fun culture.
Pink shirt day
In May 2019 Stride held a Pink Shirt Day, to show our
commitment to creating a positive workplace environment
that is safe, welcoming and inclusive. The Pink Shirt Day
event is a national bullying prevention campaign run by the
Mental Health Foundation of New Zealand. At Stride we value
diversity and actively work to foster a culture where everyone
feels safe, valued and respected.
Rugby World Cup event
In order to celebrate the Rugby World Cup in September
and October 2019, Stride head office conducted a “Rugby
World Cup Pod Competition” whereby each group of desks
decorated their area according to a randomly selected
country participating in the World Cup. In addition, every
week two “countries” had to provide refreshments related
to “their country”. Stride people commented that the
decorations and sharing of food created a more inclusive and
collaborative environment and added an element of fun to
the office.
Pink shirt day
In May 2019 Stride held a Pink Shirt Day, to show our commitment
to creating a positive workplace environment that is safe,
welcoming and inclusive. The Pink Shirt Day event is a national
bullying prevention campaign run by the Mental Health Foundation
of New Zealand. At Stride we value diversity and actively work to
foster a culture where everyone feels safe, valued and respected.
Rugby World Cup event
In order to celebrate the Rugby World Cup in September and
October 2019, Stride head office conducted a “Rugby World Cup
Pod Competition” whereby each group of desks decorated their
area according to a randomly selected country participating in the
World Cup. In addition, every week two “countries” had to provide
refreshments related to “their country”. Stride people commented
that the decorations and sharing of food created a more inclusive
and collaborative environment and added an element of fun to the
office.
Stride culture
As a team, we participated in a number of activities during the year, for fitness, for enjoyment, for learning
and for the community, fostering a strong team culture.
Community involvement
In November 2019, a number of Stride people volunteered
their time to make lunches for “Eat My Lunch”, an
organisation which makes and sells lunches and provides
free lunches to New Zealand children. Stride encourages its
people to contribute to community initiatives, benefitting
both the volunteer and the community. Further information
on Stride’s community involvement can be found on pages
46 and 47.
Sporting events
The Stride team is an active group, and participates in
a number of sporting activities together, including the
Auckland marathon, Round the Bays Auckland, tennis
competitions and triathlons. In the first few months of 2020,
when New Zealanders were still allowed out, Stride enjoyed
the summer weather with a tennis evening and a watersports
evening. These events meant a few hours out of the office,
relaxing with our team members, cementing friendships and
establishing bragging rights.
Stride undertook a survey of people who report to
the managers involved in the leadership development
course, both before and after the course completed, and
key themes emerged which indicated that the leadership
development course was a success and will contribute
to a high-performing team culture within Stride. In
particular, survey respondents noted that, following
the course, their managers were better at discussing
how the team can improve, assisting others with their
development and ensuring their team members are
committed to the job. Most importantly, more team
members agreed that their managers behaved in a way
that is consistent with the values of Stride, and actively
seek to bring out the best in people.
12
Stride Property Group
Annual Report 2020
PeoplePeople

People
C OV I D -19
The Stride culture is built on four key behaviours:
These behaviours were clearly demonstrated in action
in our response to the COVID-19 pandemic which has
affected New Zealand since March 2020. As a team, we
were very quick to move to a 50:50 working arrangement,
where half the team worked at home and half the team
worked in the office on a week by week rotation, in order
to protect the health and wellbeing of our team and their
family members.
At the commencement of lockdown, the Stride team pulled
together as one to determine what support we could
give to our tenants, what financial exposure Stride and its
Products had as a result of the lockdown, and to ensure all
properties were secure and safe during the lockdown and
able to resume operations quickly when the country moved
out of lockdown.
Fresh Thinkers People Centred Discipline DrivenNimble Performers
Flexible working took on a new meaning as our teams
adjusted to working from home with children and pets,
and the challenge of regular daily activities such as
supermarket shopping, meaning work often had to be
arranged around other competing priorities. Through these
challenges, the Stride team managed to:
• Undertake a $105m capital raising for Investore in
exceptionally quick time – when launched on 29 April
2020, the Investore capital raise was only the fourth
equity capital raising on the NZX of more than $10m
since Government restrictions were imposed due to
the COVID-19 outbreak
• Complete $286m of bank financing across all
Stride Products
• Develop and implement a bespoke tenant risk
assessment and rent relief support framework for
over 750 tenants across the Stride Products
• Engage in detailed industry submissions to
the Government to help guide New Zealand’s
COVID-19 response and recovery as it applies to
the property industry
Despite working remotely, the Stride team feels like
COVID-19 has brought us together even more, due to the
need for everyone to “pitch in” to support our business and
tenants, and to ensure we communicate clearly and on a
timely basis with all of our stakeholders.
15
Annual Report 2020
14
Stride Property Group
People

17
Executive Team
Philip Littlewood – BProp, BCom, MBA
Chief Executive Officer

Philip joined Stride in 2014 and has 20 years’ experience in property investment
management in New Zealand and overseas. Highlights of his work history include
six years in the UK, including with Morgan Stanley’s real estate merchant banking
division, and partnership in a large private-equity real estate firm. Prior to this,
Philip held the position of Investment Manager at AMP Capital Investors.
Steve Penney – BBS, BSc, CA
General Manager Investment
Steve is responsible for Stride’s investment team, including strategy development,
property transactions, execution of all debt and equity transactions, and assessment
and execution of new funds for Stride. He has more than 15 years’ experience in
investment and asset management in New Zealand and Australia across the Real
Estate and Infrastructure sectors.
Andrew Hay – BProp, MBA
General Manager Commercial & Industrial

Andrew joined Stride in 2004 and has more than 20 years’ property industry experience.
Andrew is responsible for leading the teams that manage office and industrial assets within
Stride. Andrew led Stride’s Wellington office for 8 years before relocating to Auckland in his
current role. Andrew is currently Auckland Branch President of the Property Council.
Jennifer Whooley – CA
Chief Financial Officer

Jennifer has more than 25 years’ experience in the property industry and is responsible
for Stride’s overall financial plans and policies, ensuring the compliance of its accounting
practices. Jennifer is also responsible for the people and culture 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.
Fabio Pagano – MBA
Investore Fund Manager

Fabio joined Stride in 2018 and brings over 15 years’ international experience in retail
management. This includes at Coles Group in Australia, where he led property teams across
the country. Fabio is responsible for providing executive oversight and focus on Investore’s
business and operations. His broad experience has given him expertise across all aspects
of leasehold and freehold portfolios. Recently, he held senior roles in the New Zealand
government across property and infrastructure areas.
Louise Hill – BCom, LLB
General Manager Corporate Services
Louise has more than 20 years’ legal experience and is responsible for a range of corporate
functions within Stride, including legal, governance, compliance, health and safety and
risk. Louise’s previous roles included Head of Legal (NZ) for Fletcher Building and senior
associate in the corporate/commercial team at Bell Gully.
Roy Stansfield – ACA
General Manager Shopping Centres

Roy is responsible for the shopping centre portfolios owned and managed by
Stride. His role includes all aspects of asset management, retail leasing and
planning. Roy has 30 years’ experience in the retail shopping centre industry.
Prior to joining Stride, he was employed by Challenge Properties, St Lukes
Group and Kiwi Property.
Mark Luker – Dip.Val.Prop
General Manager Development

Mark is responsible for Stride’s development activities. He has over
25 years of experience in the property development and investment
industry, acquired through complex large-scale retail and commercial
development projects, both within New Zealand and Australia. Mark joined
Stride from Kiwi Property, where he held the roles of General Manager
Development and Project Director, Sylvia Park.
16
Stride Property Group
Annual Report 2020
Executive TeamExecutive Team

Gross income impactDistributable profit
1
impact
Rent relief arrangements with tenants($8m – $11m)($5.8m – $8m)
Reduction in corporate costs from original FY21 budget$3.0m
$2.2m
Re-introduction of depreciation allowances
for commercial buildings
–
$1.1m
Lower interest and financing costs
2
$ 0 .1m
$0.5m
Reduction in SIML fees
3
($1.2m)($0.9m)
Totals($2.9m to $5.1m)
Waste Management,
East Tamaki, Auckland
COVID -19 Update
As with all businesses, Stride has been impacted by COVID-19.
Stride currently expects the financial impact from COVID-19 to result
in a reduction in distributable profit
1
for FY21 of between $2.9m and
$5.1m. However, this is expected to be partially offset by one-off
activity based income in FY21, expected to increase distributable
profit by between $2.2m and $3.6m.
The impacts of COVID-19 were first felt in our working
environment, with staff quickly moving to remote working
arrangements, to minimise any transmission of the
virus. Stride had spent several weeks planning for and
understanding the impacts of COVID-19, which meant
that when the Government announced the Alert Level 4
lockdown on 23 March 2020, Stride was quick to put its
contingency plans into practice, including safely securing
all non-essential sites and supporting those tenants that
continued to trade as an ‘essential business’.
SPL benefits from having a diverse commercial property
portfolio, with its exposure to office, industrial and retail
tenants. Approximately 28% of SPL’s tenants by gross
rental income were classified as ‘essential businesses’
under Alert Level 4 according to the Government’s
covid19.govt.nz website and were permitted to remain
open and trading. Office and industrial tenants either
continued to operate as an essential business or
recommenced operations quickly once the lockdown
period ended.
1. See glossary on pages 143 and 144.
2. Including the tax impact of higher derivative break costs associated with the settlement of the Industre transaction as a result of lower market interest rates.
3. Including lower asset management fees associated with lower valuations, and lower activity fees for FY21, primarily through delayed development and leasing activity.
SPL is working proactively with all tenants, and in particular
its smaller retail tenants, to provide support for those tenants
adversely affected by the lack of economic activity. This
approach includes a sharing of costs between tenant and
landlord, primarily through rental abatements and rental
deferrals, which may additionally be combined into wider
lease discussions.
Stride derives management fees from its assets under
management, with property management fees expected to
be largely unaffected by COVID-19. Asset management fees
will be derived from a lower base in some cases due to the
31 March 2020 valuations, but otherwise are expected to be
largely unaffected during FY21. Activity based fees, such as
leasing, development and performance fees, may be impacted
by COVID-19, although most activity fees are expected to be
delayed due to the lockdown, rather than lost.
Based on current expectations, Stride expects the impact
of COVID-19 on its business, including mitigating actions
undertaken by Stride in response to the current economic
conditions, to be as follows (assuming no further deterioration
in economic conditions).
19
Annual Report 2020
18
Stride Property Group
COVID-19 UpdateCOVID-19 Update

1. Excludes lease liabilities. Due to COVID-19, the 31 March 2020 valuations have been reported on the basis of ‘material valuation uncertainty’, meaning less certainty and a higher degree
of caution should be applied. The opinion of value has been determined at the valuation date based on a certain set of assumptions, however these could change in a short period of time
due to subsequent events.
2. The portfolio as at 31 March 2020 includes the three large format retail properties that SPL had agreed to sell to Investore for $140.75m. These properties are classified as investment
properties held for sale and are recorded at $132.2m as at 31 March 2020, after allowing for the cost of seismic upgrade works that SPL has committed to undertake on the
properties, a rental underwrite and disposal costs. This transaction settled on 30 April 2020.
3. Includes Johnsonville Shopping Centre, Wellington, which is owned 50:50 by SPL and Diversified.
4. SPL owned a 19.4% interest in Investore on 31 March 2020. Following the capital raising undertaken by Investore during April and May 2020, SPL’s shareholding is 18.8%.
21
Products
Stride’s investment management Products are our managed funds.
SIML is a committed fund manager which specialises in managing
property funds. SIML currently manages three property portfolios:
Value of
investment
properties
1
($m)
Number of
investment
properties
SPL
investment
in Stride Products
996
2
26
3
–
7614019.4%
4
4144
3
2.0%
Total2 ,17 269
3
–
$186m
$302m
$132m
$376m
$996m
2
$761m
$ 414m
As at 31 March 2020, the number and value of properties managed by SIML is as follows:
Portfolio composition by value as at 31 March 2020
1
Stride Property Limited – an NZX listed company, whose shares are
stapled with those of SIML, and which invests directly in commercial property
and also indirectly through its interests in the Products managed by SIML
Investore Property Limited – an NZX listed company which has a
singular and unique focus on investing in large format retail property
Diversified NZ Property Trust – an Australian trust which owns
retail shopping centres in New Zealand

Office

Retail Shopping Centres

Large Format Retail

Industrial
20
Stride Property Group
Annual Report 2020
ProductsProducts

23
Value of
investment
properties
($m)
Committed
developments
and acquisitions
($m)
Total Assets
Under
Management

($m)
SPL investment
in Stride Products
488– 488–
895– 89518.8%
2

41482
3
4962.0%
398
4
32
5
43068.3%
Total2 ,19 5 114

2,309
$186m
$302m
$ 414m
$398m
$895m
$488m
$496m
$430m
$32m
$82m
As announced in September 2019, Stride has agreed to establish a new
Product, focussed on the industrial property sector in New Zealand, the
Industre Property Joint Venture, 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). Stride
expects Industre to commence operations on 30 June 2020.
Following balance date, the sale by SPL of three large format retail
assets to Investore (which has an investment strategy solely focussed on
large format retail properties) became unconditional. This sale settled
on 30 April 2020.
Portfolio composition by value as at 31 March 2020 post transactions
1
1. As at 31 March 2020, as if the following transactions had completed as at that date: (1) the sale of the three large format retail properties to Investore; and (2) commencement
of Industre.
2. SPL owned a 19.4% interest in Investore on 31 March 2020. Following the capital raising undertaken by Investore during April and May 2020, SPL’s shareholding is 18.8%.
3. Comprises the estimated incremental value on completion of the development at Queensgate Shopping Centre.
4. Comprises the value of the 12 industrial properties owned by SPL as at 31 March 2020, plus estimated capex incurred prior to commencement of Industre, and the value of
Wickham Street, Hamilton, which settled post balance date on 1 April 2020.
5. Comprises the estimated incremental value on completion of the developments at Selwood Road, Auckland and Wickham Street, Hamilton, plus the purchase price for the
acquisition of 439 Rosebank Road, Auckland, which is expected to settle in October 2020.
6. Stride’s revenue comprises SIML management fees and SPL revenue. SPL revenue comprises income derived from SPL’s directly-held property plus revenue derived
from its interests in the Stride Products which is calculated based on net Contract Rental on a look-through basis as at 31 March 2020 as if the transactions described in
footnotes 1, 3 and 5 on page 22 had completed as at that date. Base management fees comprise estimated FY21 management fees from Stride Products (i.e. excluding
fees from SPL) and exclude capex fees, planned maintenance fees, leasing fees, development fees, performance fees and other one-off or activity based fees.
Diversified asset management business
Stride’s strategy is to invest in places with enduring
demand, which attract the highest demand in all market
conditions. This supports our strategy of establishing a
group of Products in specific sectors to provide growth
in our investment management business.
Over time, SPL will hold an interest in each Product that
is developed and which focusses on a specific sector
or sectors, with the Products managed by SIML. SPL
will therefore have an interest in commercial property
through directly-held property and also through its
interest in the Stride Products managed by SIML.
This enables SPL to have a more diverse interest in
commercial property than if it held the property directly,
while also leveraging capital availability to continue to
grow SIML’s assets under management.
Stride’s income will then be derived in three main ways:
• Returns on its directly-held property portfolio - which
may flex over time as it establishes new Products, as can
be seen with the commencement of Industre
• Returns on its investment in the Stride Products
• Management fees earned by SIML from managing the
Stride Products. SIML’s fees comprise recurring fees,
including asset management fees related to the value of
assets under management and property management
fees, and activity based fees, including acquisitions,
disposals, developments, leasing and capital raisings
Following the commencement of Industre, Stride’s revenue
sources
6
on a ‘look-through basis’, including SPL’s holdings
in the Stride Products (Investore, Diversified and Industre),
comprise a diversified revenue base.
Stride Property Group’s revenue sources
6
Number and value of properties managed by SIML as at 31 March 2020 post transactions
1

Office

Retail Shopping Centres

Large Format Retail

Industrial
Committed developments and acquisitions
23
Base
management

fees
16%
Office

18%
Industrial
20%
Large Format
Retail

14%
Retail Shopping
Centres

32%
22
Stride Property Group
Annual Report 2020
ProductsProducts

1. Due to COVID-19, Investore’s 31 March 2020 investment property valuations have been reported on the basis of ‘material valuation uncertainty’, meaning less certainty
and a higher degree of caution should be applied. The opinion of value has been determined at the valuation date based on a certain set of assumptions, however these
could change in a short period of time due to subsequent events.
2. See glossary on pages 143 and 144.
3. As at 31 March 2020, as if the acquisition of the three properties from SPL had settled as at that date.
4. As at 31 March 2020, as if the new $50m facility and extended facility announced by Investore on 28 April 2020 had been in place at that time.
25
1. Active portfolio management
Focus on owning well-located properties with long
lease terms and high occupancy, with nationally
recognised quality tenant brands, and maintaining
strong and enduring tenant relationships that support
the portfolio
• Portfolio value of $761.4m as at 31 March 2020
1
,
representing a net valuation gain of 1.0% from 31 March
2019. Valuations were impacted by COVID-19, changing
by between 0% and -7.5% from draft valuations received
prior to the impact of COVID-19
• Following acquisition of three properties from SPL,
Investore’s portfolio is valued at $895.2m, with
10.4 years WALT
2
and 99.7% occupancy by area
• Anchor tenants contribute 87%
3
of Contract Rental
2

• 71%
3
of Investore’s portfolio by Contract Rental is
categorised as “everyday needs”, drawing customers to
the properties on a regular basis and providing a strong
tenant proposition
2. Targeted growth
Considered acquisitions and developments which
deliver growth, while continuing to enhance
geographical and/or tenant portfolio diversification,
and where appropriate, consider disposals to
maintain balance sheet capacity and optionality
• Investore acquired three large format retail properties
from SPL in April 2020 for an aggregate purchase price
of $140.75m, being Bunnings Carr Road,
Mt Wellington Shopping Centre and Bay Central
Shopping Centre, enhancing both the geographical and
tenant diversification of the portfolio
• Acquisition of Countdown New Brighton, Christchurch,
in August 2019, for $5.75m, at an initial yield of 7.2%
• Following its latest capital raising and the
acquisition from SPL, Investore has $148m of
banking facility headroom available to continue its
strategy of targeted growth
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.
Investore’s strategy is based on four principles – active portfolio
management, targeted growth, continued optimisation of the portfolio,
and proactive capital management. During FY20, Investore continued to
focus on execution of its strategy based on its four strategic pillars.
3. Continued optimisation of the portfolio
Development of existing properties to meet the
needs of tenants and the surrounding catchment,
which may include acquiring sites adjacent to
existing assets, to provide development options for
the future
• Property adjacent to existing Investore-owned
Countdown Papakura acquired in March 2020 for
$1.2m, enabling expansion of carpark and improved
customer access
• Programme of refurbishment of Countdown stores
continues, including improving pickup bays, helping
to drive increased “click and collect” orders, improve
sales and deliver customers to Countdown-anchored
centres, driving additional demand at stores within
these centres
4. Proactive capital management
Proactive capital management to maintain a
healthy and flexible balance sheet for growth, while
preserving sustainable returns to investors
• Since November 2019, Investore has raised $182.7m in
additional equity, through placements and retail offers
• Following completion of the latest capital raising and
acquisition of the three properties from SPL, Investore
has $148m in undrawn debt facilities, and LVR of
30.4%, well within the Board’s stated maximum of 48%
• $186m of bank debt refinanced since April 2019, with
a weighted average debt maturity of 3.3 years
4

Investore’s focus for the year ahead is to
continue its strategy of targeted growth to
enhance the portfolio and maximise returns
to investors over the medium to long term,
maintaining a disciplined approach to
capital management to support the
execution of this strategy. Investore will
continue to invest in refurbishment of
stores and enhancing customer visitation,
and seek to minimise the impact of
COVID-19 to its business, while also
assisting tenants to maintain profitable,
sustainable businesses.
Countdown,
Palmerston North
24
Stride Property Group
Annual Report 2020
InvestoreInvestore

The valuations of these assets have been negatively
impacted by COVID-19, with gross valuations declining
14.5% or $70.5m for the 12 months to 31 March 2020.
This level of decline is broadly in line with valuation
decreases at other properties of an equivalent nature
and reflects the impact of the Alert Level 3 and 4
lockdown, which resulted in over 90% of Diversified’s
tenants being unable to trade. The final valuations of
the Diversified portfolio as at 31 March 2020 reflect a
change of -$86.9m or -17.3% from the draft valuations
received in March.
SIML continues to actively manage the Diversified
shopping centres, completing 278 leasing transactions
during FY20, resulting in an increase in rentals of 1.8%
over previous rentals.
The $110m redevelopment of part of the Queensgate
Shopping Centre is now well underway and due
to complete in stages over the next two years. The
carpark is scheduled to open first in early 2021,
and this will significantly benefit the centre through
improved access and parking. The brand new, state

of the art cinema complex is scheduled to open in early
2022, providing a strong attraction to drive visitation to
the centre.
Diversified’s portfolio comprises four shopping centres:
• Chartwell Shopping Centre, Hamilton
• Queensgate Shopping Centre, Lower Hutt
• Remarkables Park Town Centre, Queenstown
• 50% interest in the Johnsonville Shopping Centre,
with SPL owning the remainder
Chartwell Shopping Centre,
Hamilton
Industre portfolio
on commencement
As at
31 March 2020
1
Properties (no.)
13
Value of commencement
properties
2
($m)
398
Tenant s (no.)30
Net Lettable Area (sqm)119,686
Net Contract Rental
3
($m)18.7
WALT
3
(years)9.0
Occupancy Rate (% by area)100
Properties under
Development
4
(no.)
2
Properties under Contract
for Acquisition
5
(no.)
1
Tot al
6
($m)
430
$398m
$32m
$430m
$154m$584m
Value on
commencement
2
Committed
acquisition and
incremental value
of developments
on completion
7
Total
estimated
value
Available
capital
8
Total
estimated
value
1. As at 31 March 2020, as if the acquisition of Wickham Street, Hamilton, had settled as at that date.
2. Portfolio value on commencement comprises 31 March 2020 valuations of existing properties,
including Wickham Street, Hamilton, plus estimated capex incurred prior to commencement
of Industre.
3. See glossary on pages 143 and 144.
4. Comprises the properties at Selwood Road, Auckland and Wickham Street, Hamilton which
settled on 1 April 2020.
5. Comprises 439 Rosebank Road, Auckland, which is subject to an agreement for sale and
purchase and expected to settle in October 2020.
6. Total estimated value of portfolio comprising 31 March 2020 valuations of existing properties,
including Wickham Street, Hamilton, plus estimated capex incurred prior to commencement of
Industre, plus estimated value on completion of properties under development and purchase price
of property under contract for acquisition.
7. Estimated incremental value on completion of developments at Selwood Road, Auckland and
Wickham Street, Hamilton, plus the purchase price of 439 Rosebank Road, Auckland.
8. Available capital comprises the uncommitted portion of Industre’s $205m banking facilities
available for future developments and acquisitions, plus balance of JPMAM committed
$185m contribution to Industre.
Industre – Stride’s newest Product
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 SPL is expected to have a 68.3% shareholding in Industre, with
JPMAM holding the remainder. JPMAM has allocated $115m of capital to
fund near term growth initiatives, subject to meeting certain investment
return and approval thresholds, such as the Wickham Street acquisition and
development, taking JPMAM’s total equity committed to $185m. 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).
Industre growth by gross asset value
8 Reg Savory Place,
Auckland
27
Annual Report 2020
26
Diversified
Stride Property Group
Industre

1 Grey Street,
Wellington
29
Places
Overview of SPL Portfolio
1. As at 31 March 2020, as if the sale of the three large format retail properties to Investore which settled on 30 April 2020 had settled as at that date, and Industre had commenced as at that date.
2. See glossary on pages 143 and 144.
3. Excludes lease liabilities.
4. The portfolio as at 31 March 2020 includes the three large retail properties that SPL had agreed to sell to Investore for $140.75m. These properties are classified as investment
properties held for sale and are recorded at $132.2m as at 31 March 2020, after allowing for the cost of seismic upgrade works that SPL has committed to undertake on the properties,
a rental underwrite and disposal costs. This transaction settled on 30 April 2020.
SIML completed 234 rent reviews across 150,000 sqm
within the SPL portfolio during FY20, resulting in a rental
increase of $1.2m or 3.5% on previous rentals. Over
50% of SPL’s portfolio rental was subject to review by
way of a fixed, indexed or market review during FY20.
The components that have led to the increased rental
achieved across the SPL portfolio over the FY20 financial
year are demonstrated in the diagram.
$36.9m
$35.7m
+$0.39m
+$0.51m
+$0.34m
Settled
rental
MarketFixedCPIPrevious
rental
+6.8%
+3.2%
+2 .7%
As at
31 March 2020 Pro forma
1
As at
31 March 2020
As at
31 March 2019
Properties (no.)
11
2626
Tenants (no.)
310
388381
Net Lettable Area (sqm)
103,026
259,285252,014
Net Contract Rental
2
($m)
3 6 .1
63.058 .1
WALT
2
(years)
4.4
5.84.8
Occupancy Rate (% by area)
95.9
98 .197.6
Value of Portfolio
3
($m)
4 8 8 .1
996.1
4
966.3
Annual Report 2020
28
Stride Property Group
PlacesPlaces

31
SPL Weighted Look-Through Metrics
As a result of the Stride strategy of creating a group
of sector-specific property Products managed by
SIML, with SPL holding an interest in each Product,
SPL will become both a direct owner of commercial
property and an investor in entities that themselves
own commercial property.
When SPL’s directly-held investment properties are
combined with SPL’s indirect or look-through holdings
in the Stride Products, being its expected 68.3%
holding in Industre, its 18.8% holding in Investore
2

and its 2% holding in Diversified, SPL’s look-through
portfolio shows strong investment metrics
3
, including
98.1% occupancy and a WALT of 7.1 years.
4.4
8.3
7.1
Stride
Products
SPL weighted
look-through
SPL
directly-held
1 year2–3 years4–5 years
6–10 years
+10 years
10%
31%
17%
17%
25%
Stride
Products
SPL weighted
look-through
SPL
directly-held
95.9%
98.4%
9 8 .1%
WA LT
3,4
(years)
Lease Expiry Profile by Contract Rental
3,4
Occupancy % by NLA
3,4
2. Following the capital raising undertaken by Investore during April and May 2020, SPL’s ownership interest in Investore is 18.8%. SPL’s ownership interest in Investore as at 31
March 2020 was 19.4%.
3. As at 31 March 2020, as if the following transactions had completed as at that date: (1) the sale of the three large format retail properties by SPL to Investore which settled on 30 April 2020;
(2) Industre had commenced and the committed acquisitions and developments had completed; and (3) the committed development at Queensgate Shopping Centre had completed.
4. See glossary on pages 143 and 144.
Portfolio Value
1
SPL’s Weighted Look-Through
Sector Diversification by Value
1. Values are as at 31 March 2020, excluding lease liabilities, and as if the following transactions had completed as at that date: (1) the sale of the three large format retail properties by
SPL to Investore which settled on 30 April 2020; (2) Industre had commenced and the committed acquisitions and developments had completed; and (3) the committed development at
Queensgate Shopping Centre had completed.
Stride’s stated strategy is to establish a group of Products
(or managed funds) in specific commercial property
sectors to grow its investment management business.
Aligned with this, during the year SPL agreed to sell
three large format retail properties to Investore (which
transaction settled on 30 April 2020) and agreed to
establish Industre to focus on industrial properties.
SPL will transfer its industrial properties to Industre on
commencement of the Joint Venture, expected to occur
on 30 June 2020.
Following the sale of three large format retail properties
to Investore, and following the commencement of
Industre, SPL’s directly-held property portfolio would
reduce in value to $488.1m (on the basis of 31 March
2020 valuations). In addition, SPL has an indirect interest
in commercial property through its ownership interests in
Investore (which invests exclusively in large format retail
property), Industre and Diversified (which owns four retail
shopping centres).
The chart to the right depicts SPL’s interests in each
commercial property sector, based on its directly-held
portfolio and its indirect interests in the Stride Products.
31%
32%
18%
19%
$186m$186m
$302m$302m
$895m
$430m
$496m
$960m
$1,821m
$488m
$10m
$168m
$294m
68.3%
18.8%
2.0%
SPL weighted
look-through
Stride ProductsSPL

directly-held

Office

Retail Shopping Centres

Large Format Retail

Industrial

Office

Retail Shopping Centres

Large Format Retail

Industrial
30
Stride Property Group
Annual Report 2020
PlacesPlaces

33
As at 31 March 2020, SPL’s directly-held property portfolio comprised
26 properties across the industrial, office and retail sectors.
12 Properties
28 Tenant s
7 Properties
66 Tenant s
7 Properties
294 Tenant s
Office
Retail
SPL’s Portfolio
by Sector
Industrial
22 Ha Cres,
Auckland
25 Teed Street,
Auckland
NorthWest Shopping Centre,
Auckland
32
Stride Property Group
Annual Report 2020
SPL’s Portfolio by SectorSPL’s Portfolio by Sector

35
IndustrialOffice
SPL’s industrial portfolio continues to show strong valuation
gains, with a net valuation gain of $42.7m or 14.3% for the
12 months to 31 March 2020
1
, underpinned in large part by
market rental growth of 9.6% and market capitalisation rate
compression of 41 basis points to 5.36%.
The development of a new Auckland Headquarters for Waste
Management in East Tamaki was completed in December
2019 and is valued at $98.0m as at 31 March 2020.
SPL acquired a property at The Concourse and Selwood
Road in Henderson, Auckland, with settlement in June 2019,
following which SPL has commenced development of a part
of the property as an industrial facility for Waste Management.
The development is expected to be completed late 2020.
SPL agreed to acquire a property at Wickham Street in
Hamilton for a purchase price of $10m during FY20, with
part of the property to be developed as a resource recovery
park for Waste Management. This acquisition was settled
on 1 April 2020 and work on the development has now
commenced. The development is expected to be completed
during the 2020 calendar year.
WALT
2
increased from 4.4 years (31 March 2019) to
9.0 years, primarily as a result of the new 25 year lease to
Waste Management at 318 East Tamaki Road commencing
in December 2019. The completion of the Selwood Road and
Wickham Street developments for Waste Management in late
2020 is expected to add a further 2.5 years to the WALT of the
industrial portfolio.
The industrial portfolio has a very strong lease expiry profile,
with less than 1% of gross rental expiring within the next
financial year and 13.4% expiring in FY22.
16 rent reviews were completed within the industrial portfolio
over 89,263 sqm with an increase of 3.6% on an annualised
basis, while three market reviews were completed with an
increase of 7.5% on an annualised basis.
As with nearly all commercial property, the impacts of
COVID-19 affected the valuation of SPL’s office portfolio.
Overall, the value of SPL’s office portfolio remained
relatively stable with a gross valuation decline from
31 March 2019 of $0.8m or 0.4% and a net valuation
decline of $3.8m or 2.1%. These valuations were 6.3%
down on the initial draft valuations received in early
March and prior to the impact of COVID-19.
Overall, the market capitalisation rate for SPL’s office
portfolio compressed by 26 basis points to 6.65%.
During FY20 SIML settled rent reviews across
12,443 sqm of office space at a 4.3% increase to
previous rentals. Market rent reviews equated to 29%
of all rent reviews and were settled at an annualised
increase of 2.4% from previous rentals and a 3.0%
premium to the 2019 valuation rentals.
During the year in review the lease to Heartland Bank
at 35 Teed Street, Auckland, was renewed to November
2029, and as a result the WALT for this property
increased from 5.1 years (31 March 2019) to 7.7 years
at balance date.
As at 31 March 2019, the building at 80 Greys Ave,
Auckland, was 60.0% occupied. During FY20 further
leasing resulted in the building being 86.6% occupied
as at 31 March 2020.
The occupancy rate for the office portfolio as at
31 March 2020 was 95.2%.
As at
31 March
2020
As at
31 March
2019
Properties (no.)
7
8
Tenant s (no.)
66
70
Net Lettable Area
(sqm)
37,670
48,606
Net Contract
Rental
2
($m)
13.2
15.7
WALT
2
(years)
4.6
4.9
Occupancy Rate
(% by area)
95.2
95.5
Value of Office
Properties ($m)
18 6 .1
236.9
Net Valuation
Movement ($m)
-3.8
9.1
As at
31 March
2020
As at
31 March
2019
Properties (no.)
12
11
Tenant s (no.)
28
21
Net Lettable Area
(sqm)
118 , 5 6 9
10 0,919
Net Contract
Rental
2
($m)
18.5
12 . 2
WALT
2
(years)
9.0
4.4
Occupancy Rate
(% by area)
100
100
Value of Industrial
Properties ($m)
375.9
262.5
Net Valuation
Movement
1
($m)
42.7
24 .1
1. Includes the development property at Selwood Road, Auckland. As announced in September 2019, SPL has agreed to transfer its industrial properties to Industre. Upon
commencement of Industre, SPL expects to own 68.3% of the interests in the joint venture. SPL has agreed to sell the industrial assets to Industre at a determined price. Upon
commencement of Industre, Industre will recognise the assets at the then market price. If that market price was the same as the 31 March 2020 valuations, there would be a
$2.9m valuation gain attributable to JPMAM.
2. See glossary on pages 143 and 144.
15 Rockridge Avenue,
Auckland
7 Fanshaw Street,
Auckland
34
Stride Property Group
Annual Report 2020
IndustrialOffice

37
Retail
On 31 March 2020 SPL owned three large format retail
properties and four retail shopping centres. SPL agreed
to sell the large format retail properties to Investore on
19 November 2019, consistent with Stride’s strategy of
managing sector-specific commercial property funds.
This sale settled on 30 April 2020, and accordingly SPL
no longer has a direct ownership interest in large format
retail properties, although it maintains an indirect interest
through its ownership interest in Investore.
SPL’s shopping centre portfolio valuation was
negatively impacted by COVID-19 with a net valuation
decline of $38.5m or 11.4% for the 12 month period
to 31 March 2020. This was down 12.1% on the initial
draft valuations received in early March and prior to the
impact of COVID-19.
SPL owns four retail shopping centre assets, being the
centres at Silverdale and NorthWest (which includes
NorthWest Shopping Centre and NorthWest Two), both
in Auckland and both wholly owned, as well as a 50%
interest in the Johnsonville Shopping Centre in Wellington.
SPL considers that each of these retail centres has unique
characteristics that demonstrate their value proposition
within the diversified SPL portfolio.
Silverdale Centre
Silverdale Centre comprises predominantly major and
mini-major tenants and is located in a fast-growing suburb
in Auckland.
Major and mini-major tenants represent 61% of the
Contract Rental
1
for the centre, and accordingly the
valuation impact from COVID-19 was not as significant as
with other retail centres.
Silverdale Centre’s main trade areas include Silverdale,
Millwater, Orewa, Stillwater, the Whangaparaoa Peninsula,
and the growth area of Milldale. Statistics NZ forecasts
average annual population growth of 5.9% within the
primary catchment over the years 2020 – 2023
2
, and 3.3%
population growth within the main trade area of Silverdale
Centre over the same period.
In addition, the retail demand in Silverdale Centre’s main
trade area is forecast
2
to grow strongly at 5.6% per annum
from 2020 to 2033. These forecasts were before the
impact of COVID-19, but still represent a strong proposition
for retail in the area and are consistent with the sales
growth that Silverdale Centre has experienced.
While sales data for March 2020 is not representative due
to COVID-19, Moving Annual Turnover
1
at Silverdale Centre
3

for the 12 months to 29 February 2020 was up 9.1%.

Retail Shopping CentreLarge Format Retail
As at
31 March 2020
As at
31 March 2019
As at
31 March 2020
As at
31 March 2019
Properties (no.)4433
Tenant s (no.)2442415049
Net Lettable Area (sqm)65,35665,28437,6 9 037, 205
Net Contract Rental
1
($m)22.922.28.58 .1
WALT
1
(years)4.34.94.64.9
Occupancy Rate (% by area) 96.3 94.798.499.1
Value of Retail Properties ($m)302.0338.0132.2128 .9
Net Valuation Movement ($m)-38.5-3 .1-2 .16.5
NorthWest Shopping Centre
NorthWest Shopping Centre is a mixed use centre, with a
significant amount of office tenancies within NorthWest
Two, which forms part of the overall NorthWest Shopping
Centre. The centre is located in a growth region of
Auckland, an area the Auckland Council has marked for
future growth and development.
The primary trade area population for the NorthWest
Shopping Centre is forecast
2
to grow by 4.5% per year on
average over the period 2020 to 2023, increasing to 5.4%
average annual growth over the period 2023 to 2028.
As with Silverdale Centre, sales data for the month
of March is not representative of true demand due to
COVID-19. Over the 12 months to 29 February 2020,
NorthWest Shopping Centre recorded Moving Annual
Turnover
1
of $136.5m, representing growth of 8.3%,
with strong growth developing over the six months to
29 February 2020.
Johnsonville Shopping Centre
SPL owns 50% of Johnsonville Shopping Centre, with
the remainder owned by Diversified. SIML has been
progressing options for the redevelopment of this centre,
and while significant progress has been made with this
project over recent time, given the current uncertain
economic climate this project remains under review. Until
redevelopment plans are more certain, SIML continues to
operate this shopping centre to maximise its value.
Major

Mini-major
Specialty
Office
Ground lease
1%
20%
8%
62%
9%
SPL Retail Tenant Diversification by
Contract Rental
1,4

Major and specialty
breakdown$m
% of
Contract
Rental
1
Department stores and
discount department stores
3.812%
Supermarkets2.68%
Home and leisure2 .16%
Health and wellbeing0.72%
Fashion and accessories5.317 %
Meals and fast foods4.715%
Retail services5.216%
General 2 .16%
1. See glossary on pages 143 and 144.
2. Based on research prepared by Macroplan Holdings Pty Ltd as commissioned by Stride Property Limited. Macroplan figures rely on information from Statistics NZ.
3. Sales data is not collected for all tenants at Silverdale Centre as not all tenants are obliged to provide this information under the terms of their lease.
4. As at 31 March 2020, as if the sale of the three large format retail assets by SPL to Investore had settled on that date. This sale settled on 30 April 2020.
NorthWest Shopping Centre,
Auckland
20%
62%
36
Stride Property Group
Annual Report 2020
RetailRetail

1. As at 31 March 2020, as if the following transactions had completed as at that date: (1) the sale of the three large format retail properties to Investore which settled on 30 April 2020;
(2) the refinancing of $135m of bank facilities for three years announced on 1 May 2020; (3) the subscription by SPL for $16.5m of additional shares in Investore’s capital raising
announced on 29 April 2020; and (4) the Industre Property Joint Venture had commenced, including the expected cost of breaking $120m of interest rate derivatives at an estimated
cost of $9.4m based on the market value of these derivatives as at 31 May 2020.
2. Including breaking $120m of interest rate derivatives in connection with the Industre settlement.
3. Investore banking facility headroom as at 31 March 2020, as if the acquisition of the three properties from SPL and the capital raising announced in April 2020 had completed as at that
date, and as if the new $50m facility announced on 28 April 2020 was in place as at that date.
4. Available capital comprises the uncommitted portion of Industre’s $205m banking facilities available for future developments and acquisitions, plus balance of JPMAM committed
$185m contribution to Industre.
Available Growth for Stride Products
Potential AUM
$496m
$1,043m
$584m
$496m
$706m
$2,829m
$488m
$218m
1
$895m
$148m
3
$430m
$154m
4
39
Capital
Management
Stride takes an active approach to capital
management, which has meant that,
following the settlement of the three
properties sold to Investore, the subscription
by SPL for $16.5m of additional shares in
Investore as part of the capital raising
announced by Investore on 29 April 2020, and
commencement of Industre
2
, SPL’s loan to
value ratio will be the lowest it has been since
listing as a stapled entity in 2016.
17. 8%
loan to value ratio
1
SPL loan to value ratio
Pro forma LVR
1
Industre
completion
2
Participation in
Investore capital
raise
Sale of three
assets to
Investore
(13 .1%)
As at 31 March
2020
3 9 .1%
17. 8%
(10 .1%)
+1.9%
Post balance date, SPL has refinanced $135m of debt
for a further three years to June 2024. As at 31 March
2020 on a pro forma basis
1
, SPL had $87m of drawn
debt, leaving $218m of undrawn debt from total available
facilities of $305m, and a weighted average debt maturity
of 3.3 years with no facilities expiring until August 2022.
SPL’s available funding could be used to acquire
commercial property directly to support the growth of
SPL’s portfolio and establish a base for a future Stride
Product to be developed, or it could be used to provide
capital to Stride’s Products. By way of example, SPL
used some of its available bank facilities to subscribe
for additional shares in Investore during the Investore
As at
31 March 2020
Pro forma
1
As at
31 March 2020
As at
31 March 2019
Banking facility limit$305m
$505m$400m
Debt facilities drawn$87m
$386m$333m
Weighted average maturity
of debt facilities
3.3 years
1.8 years2.8 years
LVR (Covenant: ≤ 50%)17. 8 %
39.1%34.4%
placement announced on 29 April 2020. SPL has
elected to subscribe for its pro rata share of new
equity issued by Investore in each of its placements
undertaken in November 2019 and April 2020,
investing $29.5m in subscribing for additional shares
in Investore. SPL considers that maintaining its
proportionate shareholding in Investore is a valuable
use of its available funds.
In addition to SPL, other Stride Products have access
to capital and banking headroom, allowing them
to continue to grow their portfolios and providing
financial capacity in the current uncertain economic
environment created by COVID-19.
38
Stride Property Group
Annual Report 2020
Capital ManagementCapital Management

1. Includes the value of the property at Wickham Street, Hamilton, the acquisition of which settled on 1 April 2020.
2. Calculated as the sum of the value of the property at 318 East Tamaki Road, together with the “as if complete” values of the Selwood Road and Wickham Street
properties, as at 31 March 2020.
41
Enduring Demand –
Waste Management
Stride is very proud to partner with Waste Management NZ Limited
(Waste Management) across a number of developments within
Auckland and the Waikato, including the recently completed
Auckland Headquarters at East Tamaki.
The successful delivery of Waste Management’s
Auckland Headquarters at East Tamaki has led to
Stride partnering with Waste Management on two
further projects – the development of an industrial
facility at Selwood Road in Henderson, Auckland,
and the development of a resource recovery park at
Wickham Street, Hamilton. Both the Selwood Road
site and the Wickham Street site were identified by
Stride as providing the potential to develop a facility
that could meet Waste Management’s business
needs in each area. Accordingly, before acquiring
each site Stride had a committed agreement to
lease with Waste Management, enabling Stride to
acquire and develop the site while also providing
Waste Management with a solution to its business
needs through a trusted partner.
Stride has formed a positive working
relationship with Waste Management
through the development of their Auckland
Headquarters, and has worked collaboratively
with Waste Management and the designers
to produce a bespoke building that meets
Waste Management’s needs. As a result of
the project, Stride people understand Waste
Management’s needs and have been able to
assist them to meet their business objectives
through developments at the sites at Selwood
Road, Auckland, and Wickham Street, Hamilton
The East Tamaki site was previously
the Lion bottling facility, which had
reached the end of its useful life. Stride
considered options for the site, and
agreed to redevelop the whole site
as the Auckland Headquarters for
Waste Management, enabling Waste
Management to consolidate its depot,
industrial maintenance and office facilities
on the one site
The three properties have a combined value

as at 31 March 2020
1
of $136.9m, and a
forecast value on completion
2
of all three
facilities of $168.5m. Waste Management
has taken a 25 year lease of the East Tamaki
property, and will take a 25 lease upon
completion of each of the facilities at Selwood
Road and Wickham Street
The Waste Management Auckland
Headquarters, together with the Selwood
Road development, were a key part of the
industrial portfolio that led to the creation
of Industre. The commitment of JPMAM to
contribute additional capital and support
developments encouraged Stride to commit
to develop part of the Wickham Street site
for Waste Management
These three developments are evidence of Stride’s four strategic pillars in action:
Performance
PeoplePlaces
Products
Waste Management’s East Tamaki
Auckland Headquarters – Key Metrics
25 year lease
commencing December 2019
5.24
hectare site
8,242 sqm development
comprising 3,674 sqm office and 4,568 sqm
workshop facilities plus 16,250 sqm of sealed yard
$98.0m
valuation as at 31 March 2020, compared with a site
valuation of $20m as at 31 March 2017 prior to the
arrangement with Waste Management being agreed
40
Stride Property Group
Annual Report 2020
Enduring Demand - Waste ManagementEnduring Demand - Waste Management

43
Development of Auckland Headquarters
The Waste Management Auckland Headquarters at
318 East Tamaki Road (formerly known as 11 Springs
Road) was previously leased to Lion as a bottling facility.
With the lease expiring on 30 September 2017, Stride
explored options for the redevelopment of the tired site.
Stride agreed with Waste Management to redevelop the
site as a purpose-built facility, including an operational
facility and office from which Waste Management can
service the Auckland market and oversee their national
operations.
Before agreeing to embark on the project, Waste
Management undertook a carbon footprint impact
study, which included the effect of moving trucks from
their existing sites to this consolidated facility. Overall
decreased travel distances have allowed for positive
economies to be achieved.
Sustainability
Sustainability was a priority for both Stride and
Waste Management. The project team has been
careful throughout planning and design to ensure the
development improves the environment. The design
incorporates a more conscientious use of natural
resources and a commitment to sustainable principles.
The project was designed using an integrated design
process in which Stride as owner, Waste Management as
tenant, and the entire consultant team were involved from
the very start to ensure the most efficient and effective
design from the outset, while also being a beautiful building.
This included ensuring site layout, building locations,
orientations and form achieved the best operational and
sustainable design outcomes within the constraints of the
project budget. The building is a successful combination of
beauty, function and sustainability.
The East Tamaki facility comprises both commercial office
and industrial components. Waste Management was the
first waste company in New Zealand to begin transitioning
its fleet to electric vehicles. Waste Management took a
pioneering approach at this new facility to undertake their
own truck conversions, and as a result, the new site has a
purpose-built electric vehicle workshop allowing Waste
Management to employ and train staff in skills that will
benefit them into the future.
Many Waste Management staff have commented on a
significant improvement in their work environment with
the new Auckland Headquarters, with a marked reduction
in absenteeism which Waste Management attributes to
the location being closer to home and a result of greater
wellbeing associated with the facility.
Some of the key sustainable features of the
development include:
• The office building is designed with a large atrium to
encourage good air distribution and provide an area
where hot stale air can rise to a high level and
be exhausted
• The site includes numerous electric car and truck
charging facilities
• Building orientation, façade design (including concrete
sandwich panels with an insulating layer between the
outer concrete layers), building layout and incorporation
of thermal mass were designed to reduce energy use,
provide good natural light, reduce glare and improve
occupant comfort
• The office provides a 100% improvement on Building
Code requirements for fresh air rates, improving indoor
air quality and occupant health and productivity
• The inclusion of green spaces and swales on a large
industrial site with specific operational requirements,
where space was at a premium, assists with storm
water runoff, ecological aspects and the overall
amenity of the site
• Low VOC paints, sealants and adhesives contribute
to improved air quality and overall health of
occupants
• All fixtures have been chosen to reduce water use
• The site has a calculated 50% reduction in
greenhouse gas emissions relative to a benchmark
building
Sustainability was also a key consideration during
development. The project targeted maximum waste
diversion from landfill, and at the beginning of the
project it was hoped that 90% of the waste by weight
could be diverted. The site had a large proportion
of demolition waste which was mainly concrete.
This was crushed and used as aggregate and was
therefore diverted from landfill. In the end 99.5% of
demolition waste was diverted from landfill and 76%
of construction waste was diverted from landfill. On
weight, this equates to 99% of waste diversion for the
project overall.
Enduring Demand - Waste ManagementEnduring Demand - Waste Management
Former development
New development –
Waste Management Auckland Headquarters
42
Stride Property Group
Annual Report 2020

45
Sustainability
at Stride
During the year in review, developing Stride’s sustainability approach
has been a key focus.
We have built on the gap analysis and sustainability materiality
assessment undertaken during FY19 and have developed
a sustainability strategic plan which provides direction for
improving sustainability across Stride to achieve our long-
term strategy. The strategic plan specifies key objectives
and goals across the topics of importance to Stride and our
stakeholders.
Our sustainability objectives and goals link to Stride’s strategy
of seeking to develop places with ‘enduring demand’. Our
sustainability strategy aims to contribute to ensuring places
are always in demand in all market conditions, and ensuring
our places provide the best environment for our people,
our communities and our planet to thrive now and for future
generations.
Our sustainability strategic plan specifies certain objectives
for each of the three pillars, and in the table on page 45 we
show how each of those pillars and objectives links to the
material sustainability issues identified in the materiality
matrix and gap analysis undertaken in FY19, as well as our
achievements for FY20 and next steps.
Stride’s sustainability strategy links the four key strategic
pillars underpinning its overall strategy to the three
sustainability pillars of people, planet and prosperity:
Stride believes that all the UN Sustainable Development
Goals are important, however the ones we feel most
closely align to our material issues and objectives are:
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

PeoplePlacesPerformance
& Products
Material issues
for Stride
• Health, safety & wellbeing
• Stride is a great place to work
• Diversity
• Communication
• Community involvement &
engagement
• Tenant relationships
• Carbon & climate change –
including asset resilience
• Waste & recycling
• Green buildings
• Energy efficiency
• Public transport – encouraging
use/proximity
• Asset quality
• Profitability
• Social licence
• Attracting investors
• Anticipating & responding to
societal trends
• Industry leadership
• Governance
Objectives
• To ensure health, safety and
wellbeing is our top priority
• We engage with and support our
communities to drive positive social
outcomes
• We will partner with our tenants to
achieve mutually beneficial outcomes
for tenant wellbeing
We will:
• Reduce our carbon footprint and
resource consumption across our
portfolio
• Minimise our waste and move towards
a circular economy
• Improve the resilience of our assets
against climate change
• We are profitable and maintain
returns for our investors
• We are honest, ethical and
accountable in all our activities
• Through working with our
suppliers, we will raise standards
across the industry
FY20
achievements
• The Boards continue to closely
monitor the management of health
and safety risks within the SIML
business and regularly assess
performance against key health
and safety indicators. An external
audit of performance against the
health and safety strategic plan was
completed during FY20
• SIML has continued to support the
community in a variety of ways, as
described on pages 46 and 47
• SIML has been engaging with tenants
to understand their sustainability
priorities and strategies and seeks
to collaborate with tenants on
sustainability projects
• Stride has commenced monitoring
and measurement of carbon
emissions in order to determine its
baseline, which will enable Stride to
develop achievable and measurable
reduction targets
• As noted on page 43, reducing
waste to landfill from the Waste
Management Auckland Headquarters
development at East Tamaki was a
priority for both Stride and Waste
Management, with 99% of waste (on
weight) diverted from landfill for the
project overall
• SIML has established an
employee sustainability
committee to ensure that
sustainability is a consideration in
every asset decision
• Stride continues to monitor
and report on its sustainability
activities in its reports to
shareholders
• On behalf of Diversified, SIML is in
the second year of completing the
GRESB real estate sustainability
benchmarking assessment
Next steps
• Continue health and safety practice
improvement in line with our health
and safety strategic plan
• Enhance our employee wellbeing
programme and continue to provide
learning opportunities for staff
• Continue to support local
communities and sponsor key
organisations
• Engage more widely with tenants and
contractors to encourage sustainable
practices and combine efforts
to achieve efficient and effective
outcomes
• Complete baseline carbon emission
calculation, and develop reduction
targets
• Investigate and set waste reduction
targets
• Promote recycling from operations
and construction
• Pursue industry green ratings –
NABERSNZ and Green Star
• Assess impact of climate risk to
assets and operations
• Integrate sustainability into the
planning and budgeting process
• Establish metrics for measuring
sustainability through relevant
benchmarking
• Report to stakeholders on
sustainability practices and
achievements
• Work collaboratively with supply
chain partners to raise standards
of sustainability
44
Stride Property Group
Annual Report 2020
Sustainability at StrideSustainability at Stride

Community
Involvement
Stride seeks to work closely with community organisations in those
areas where its properties, and in particular shopping centres, are
located to support the local community. Key projects undertaken
during the year are described below.
Chartwell Shopping Centre partnered with The Fairfeld
Project by providing the Project a space to showcase
their project, community gardens and working bees.
The Fairfield Project is a unique community-led project
on 12 hectares of land near Chartwell Shopping Centre.
The land is bordered on three sides by the Kukutaaruhe
Gully. The gully features significant biodiversity and the
surrounding stream is home to many native species
including the giant kokopu. The project seeks to develop
the site to include an environmental educational facility
for youth, community gardens, nurseries, and a full
gully restoration programme. Community gardens
have provided kai for the community and the project is
working with tertiary institutions and secondary schools
to inspire students to learn about environmental, energy
efficiency and sustainable living skills, a legacy for future
generations.
All shopping centres provide Christmas gift wrapping
stations and consumables, with volunteers manning the
stations and the proceeds of the gift wrapping services
being donated to charity. Donations from Chartwell
Shopping Centre amounted to over $8,000, provided to
Taku Wairua, a local personal development programme
designed to provide guidance and development to
disadvantaged youth. The money donated by Chartwell
Shopping Centre will go towards digital services for
Taku Wairua. For the second year in a row, Queensgate
Shopping Centre partnered with The Storytime
Foundation for their Christmas gift wrapping donations.
The Storytime Foundation strengthens vulnerable
young children and their families by enhancing the
bond between parent and child early in life through
reading. Queensgate donated $13,410 to The Storytime
Foundation through gift wrapping contributions, which
enabled The Storytime Foundation to extend their work
into the wider Hutt Valley region.
NorthWest Shopping Centre supported The Salvation Army
with their 2019 Christmas gift wrapping service, donating
over $9,000 to support Westgate families and individuals
in need.
In July, Queensgate Shopping Centre created a
Community Library, using a vacant space to create an
area for the community to come and relax and swap
books. A local artist was commissioned to create a mural
throughout the opening week, allowing customers to
come along and watch the artist bring the artwork to life.
The Community Library space has been well received
by the community, and the shelves are always stocked
with books donated by customers. NorthWest Shopping
Centre was proud to host the “Everyday Heroes” event
in September, where the community could meet and
celebrate their local emergency services, and kids of all
ages had the opportunity to sit in the driver’s seat of an
emergency vehicle.
All shopping centres provide spaces for community
organisations and charities. Chartwell hosts three Justices
of the Peace every week, providing services to their local
community, as well as hosting the chARTwell community
art space, which provides a space for schools and
community groups to showcase their artwork. In addition,
Chartwell was very pleased to host local choirs providing
Christmas performances in the centre. Queensgate
Shopping Centre provided a free space for over 50
organisations during FY20, including Te Omanga Hospice,
Wellington City Mission and SPCA, with each one always
returning due to the success of their visits. NorthWest
Shopping Centre hosted a school art exhibition,
showcasing the work of local artists from over 20 local
primary and secondary schools.
NorthWest Shopping Centre also hosts a series of free outdoor
summer events designed for the whole family, including a market
weekend, “music in the square” with over 13 local music acts
performing, and “movies in the square”.
Our shopping centres provide free activities for children during the
school holidays. Queensgate Shopping Centre held a number of
school holiday activities throughout the year, including a science
lab, a virtual reality experience for children, and a joint initiative with
the local Council to promote the Council’s annual Highlight Festival.
Queensgate Shopping Centre also sponsored an installation at the
Highlight Festival. All of the school holiday initiatives focus on ‘edu-
tainment’, providing entertainment for families within the community
while also incorporating a learning experience for children.
SIML seeks to support a number of community and charity
organisations, through giving of their time as well as resources.
Both Chartwell and Queensgate shopping centres support the
charity “Dress for Success”, a charity which assists women to
re-enter the workforce. Chartwell Shopping Centre is a collection
point for the community to donate clothes to Dress for Success,
and in addition the centre donated $600 from lost property monies
to the organisation. During 2019 Dress for Success had a pop-up
store in Queensgate Shopping Centre where they sold excess
clothing to raise funds for the organisation, an initiative that was
very well supported by the local community.
Stride also sponsors a number of community organisations, with a
focus on education and development, including the Graeme Dingle
Foundation and Keystone New Zealand Property Education Trust.
Queensgate Shopping Centre
Highlight Festival
Queensgate Shopping Centre
Community Library
NorthWest Shopping Centre
Outdoor Summer Event
47
Annual Report 2020
46
Stride Property Group
Community InvolvementCommunity Involvement

Financial
Statements
Consolidated Statement of Comprehensive Income 50
Consolidated Statement of Changes in Equity 51
Consolidated Statement of Financial Position 52
Consolidated Statement of Cash Flows 53
Notes to the Consolidated Financial Statements 55
Independent Auditor's Report 102
49
48
Stride Property Group Annual Report 2020Financial StatementsFinancial Statements

The attached notes form part of and are to be read in conjunction with these consolidated financial statements.
The attached notes form part of and are to be read in conjunction with these consolidated financial statements.
Notes
Number
of shares
000
Share
capital
$000
Retained
earnings
$000
Other
reserves
$000
Total
$000
Balance 1 Apr 18364,989500,205171, 4 3 8(4,495)667,148
Transactions with shareholders:
Dividends paid4.2––(36 ,173)–(36 ,173)
Transfer to share capital on vesting of
employee long term incentive plan5.5308442–(442)–
Share based payment expense5.5
–––478478
Total transactions with shareholders308442(36 ,173)36(35,695)
Total other comprehensive income5.5–––(3,425)(3,425)
Profit after income tax
––76 ,191–76 ,191
Total comprehensive income––76 ,191(3,425)72,766
Balance 31 Mar 19
365,297500,647211, 4 5 6(7,884)704,219
Transactions with shareholders:
Dividends paid4.2––(36,207)–(36,207)
Transfer to share capital on vesting of employee
long term incentive plan
5.555102–(102)–
Lapsed long term incentive rights
5.5––482(482)–
Forfeited long term incentive rights
5.5–––(246)(246)
Share based payment expense5.5
–––459459
Total transactions with shareholders55102(35,725)(371)(35,994)
Total other comprehensive income5.5–––4,6204,620
Profit after income tax
––25,319–25,319
Total comprehensive income––25,3194,62029,939
Balance 31 Mar 20
365,352500,749201,050(3,635)6 9 8 ,16 4
Notes
2020
$000
2019
$000
Gross rental income76,76776,727
Direct property operating expenses
(17,685)(19,430)
Net rental income3 .1
59,08257, 297
Management fee income18,27915,707
Less corporate expenses
Corporate overhead expenses(16,657)(16,010)
Administration expenses(5,675)(3,301)
Project costs1.8
(1,443)–
Total corporate expenses
8.2
(23,775)(19 , 311)
Profit before net finance expense, other income/(expense) and
income tax
53,58653,693
Finance income210302
Finance expense(13,556)(14,631)
Finance expense – swap break expense5.2(1,274)(1,403)
Finance expense – lease liabilities3.3
(1,832)–
Net finance expense5.3(16,452)(15,732)
Profit before other income/(expense) and income tax37,13 437,961
Other income/(expense)
Net change in fair value of investment properties3.2(1,756)36,506
Impairment of work in progress3.5(2,007)–
Share of profit in associates7.43,5036,633
Hedge ineffectiveness of cashflow hedges5.2(8,218)–
Other expense – insurance recoveries–(17 )
Gain on disposal of investment properties–342
Loss on disposal of other investments
–(35)
Profit before income tax
28,65681,390
Income tax expense8.1
(3,337)(5 ,199)
Profit after income tax attributable to shareholders
25,31976 ,191
Other comprehensive loss:
Items that may be reclassified subsequently to profit or loss
Deferred tax on share based payment expense5.51745
Gross movement in cash flow hedges 5.56,351(4,098)
Tax arising from cash flow hedges 5.5(1,778)1,147
Changes in cash flow hedge reserve in associates5.5
30(519)
Total other comprehensive loss after tax4,620(3,425)
Total comprehensive income after tax attributable to shareholders
29,93972,766
Stride Property Limited (SPL) total comprehensive income after tax
attributable to shareholders
22,55467, 872
Stride Investment Management Limited (SIML) total comprehensive income
after tax attributable to shareholders
7, 3854,894
Total comprehensive income after tax attributable to shareholders
29,93972,766
Earnings per share 4.1
Basic earnings per share (cents)6.9320.86
Diluted earnings per share (cents)6.9120.81
Consolidated Statement of Changes in Equity
For the year ended 31 March 2020
Consolidated Statement of Comprehensive Income
For the year ended 31 March 2020
51
50
Stride Property Group Annual Report 2020Financial StatementsFinancial Statements

The attached notes form part of and are to be read in conjunction with these consolidated financial statements.
The attached notes form part of and are to be read in conjunction with these consolidated financial statements.
Notes
2020
$000
2019
$000
Current assets
Cash at bank12,0985,364
Trade and other receivables8.53,0383,059
Prepayments 230232
Other current assets120646
Deposit on investment property–1,750
Inventory – development property
–35,436
15,48646,487
Investment properties classified as held for sale3.6
13 2 ,19 650,082
147,6 8296,569
Non-current assets
Investment properties3.2891,399880,735
Deposit and other prepayments on investment property3.41,328400
Work in progress3.5-1,656
Other investments7.4103,87491,368
Loan to associate7.33,3983,397
Software1,2481,482
Property, plant and equipment
1,349822
1,002,596979,860
Total assets1,15 0 , 2 7 81,076,429
Current liabilities
Trade and other payables8.617,01117, 9 5 4
Lease liabilities3.3630–
Current tax liability4,0241,638
Derivative financial instruments5.2
8,521628
3 0 ,18 620,220
Non-current liabilities
Bank borrowings5.1385,865332,399
Lease liabilities 3.327, 479–
Deferred tax liability8.14,30610,618
Derivative financial instruments5.2
4,2788,973
421,928351, 99 0
Total liabilities4 5 2 ,114372,210
Net assets
6 9 8 ,16 4704,219
Share capital500,749500,647
Retained earnings201,050211, 4 5 6
Reserves5.5
(3,635)( 7, 884)
Equity
6 9 8 ,16 4704,219
SPL equity692,531701,703
SIML equity (non-controlling interest)5.6
5,6332 , 516
Equity
6 9 8 ,16 4704,219
For and on behalf of the Board of Directors of SPL and SIML, dated 23 June 2020:

Tim Storey John Harvey
Chair of the Board Chair of the Audit and Risk Committee
Notes
2020
$000
2019
$000
Cash flows from operating activities
Gross rent received7 7, 38776,746
Management fee income17, 98 915,205
Interest received210302
Other income received - insurance recoveries–325
Dividends received43
Interest paid(13,486)(14,388)
Direct property operating and corporate expenses(43,975)(38,706)
Income tax paid
(9,009)(6,327)
Net cash provided by operating activities2 9,12 033 ,16 0
Cash flows from investing activities
Proceeds from disposal of investment properties5 0 ,16 5–
Dividend income from associates7.44,0954,230
Acquisition of investment properties(33,250)–
Capital expenditure on investment properties(44,403)(23,880)
Deposits on investment property paid3.4(500)(2,150)
Inventory – development property expenditure–(121)
Investment in associate7.4(12,944)–
Software expenditure(128)(767)
Property, plant and equipment purchased(133)(185)
Proceeds from disposal of investments
–459
Net cash applied to investing activities(37,0 98)(22 ,414)
Cash flows from financing activities
Dividends paid 4.2(36,207)(36 ,173)
Drawdown on bank borrowings111, 24 025 ,15 0
Repayment of bank borrowings(57, 850)–
Lease liabilities payments(2,356)–
Borrowings establishment costs(115 )(307)
Swap break expense
–(4,058)
Net cash provided by/(applied to) financing activities14,712(15,388)
Net increase/(decrease) in cash and cash equivalents held6,734(4,642)
Opening cash and cash equivalents
5,36410,006
Closing cash and cash equivalents
12,0985,364
Cash and cash equivalents at year end comprises:
Cash at bank
12,0985,364
Cash and cash equivalents at year end
12,0985,364
Consolidated Statement of Financial Position
As at 31 March 2020
Consolidated Statement of Cash Flows
For the year ended 31 March 2020
53
52
Stride Property Group Annual Report 2020Financial StatementsFinancial Statements

The attached notes form part of and are to be read in conjunction with these consolidated financial statements.
Notes to the Consolidated Financial Statements
For the year ended 31 March 2020
Reconciliation of profit after income tax attributable to shareholders to net cash provided by operating activities
Notes
2020
$000
2019
$000
Profit after income tax attributable to shareholders25,31976 ,191
(Less)/add non-cash items:
Movement in deferred tax 8.1( 7,716)(2,360)
Income tax movement in cash flow hedges8.1(357)74 3
Net change in fair value of investment properties1,756(36,506)
Gain on disposal of investment properties–(342)
Share of profit in associates(3,503)(6,633)
Loss on disposal of other investments–35
Hedge ineffectiveness of cash flow hedges8,218–
Work in progress impairment2,007–
Capitalised lease incentives(349)(972)
Lease incentives amortisation1,0641,199
Spreading of fixed rental increases (224)(4 41)
Movement in loss allowance8.510555
Share based payment expense459478
Forfeited long term incentive rights(246)–
Depreciation 694221
Software amortisation362294
Finance expense – swap break expense 5.21,2741,403
Accrued interest movement in derivative financial instruments5.257(53)
Borrowings establishment cost amortisation
191191
2 9,11133,503
Add activities classified as investing activity:
Movement in working capital items relating to investing activities
(1,878)(2,643)
27, 23330,860
Movement in working capital:
Decrease/(increase) in trade and other receivables(84)(1,228)
Decrease/(increase) in prepayments and other current assets528(470)
(Decrease)/increase in trade and other payables(943)3,504
Increase in current tax liability
2,386494
Net cash provided by operating activities
2 9,12 033 ,16 0
Consolidated Statement of Cash Flows (continued)
For the year ended 31 March 2020
1.0 General information 56
1.1 Reporting entity 56
1.2 Basis of preparation 56
1.3 Adoption of new standard - NZ IFRS 16 Leases 57
1.4 New standards, amendments and interpretations 57
1.5 Fair value estimation 58
1.6 Significant accounting policies, estimates and judgements 58
1.7 COVID-19 impacts 59
1.8 Other significant events and transactions 60
1.9 Non-GAAP measures 61

2.0 Operating segments 62

3.0 Property 64
3.1 Net rental income 64
3.2 Investment properties 66
3.3 Lease liabilities 75
3.4 Capital expenditure commitments contracted for 76
3.5 Work in progress 77
3.6 Investment properties classified as held for sale 77

4.0 Investor returns 78
4.1 Basic and diluted earnings per share 78
4.2 Dividends paid and proposed 79
4.3 Distributable profit 80

5.0 Capital structure and funding 81
5.1 Borrowings 81
5.2 Derivative financial instruments 82
5.3 Net finance expense 84
5.4 Share capital 84
5.5 Reserves 85
5.6 SIML equity (non-controlling interest) 86
5.7 Capital risk management 86

6.0 Financial instruments and risk management 87
6.1 Financial assets at amortised cost 88
6.2 Financial liabilities at amortised cost 88
6.3 Fair values 88
6.4 Financial risk management 88
6.5 Interest rate risk 89
6.6 Credit risk 90
6.7 Liquidity risk 90

7.0 Interest in associates and joint arrangement 91
7.1 Interest in associates 91
7.2 Investore 91
7.3 Diversified 91
7.4 Summarised financial information for associates 92
7.5 Interest in joint arrangement 93

8.0 Other 94
8.1 Tax 94
8.2 Corporate expenses 96
8.3 Remuneration 96
8.4 Related party disclosures 98
8.5 Trade and other receivables 99
8.6 Trade and other payables 100
8.7 Investment in subsidiaries 100
8.8 Contingent liabilities 101
8.9 Subsequent events 101
55
Annual Report 2020Financial Statements
54
Stride Property Group Financial Statements

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 and consequently SIML's equity is presented as the
non-controlling interest in the consolidated statement of financial performance.
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 23 June 2020.
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.
Stride notes that NZX issued replacement waivers dated 28 May 2020 from the NZX Main Board Listing Rules dated 1 January
2020. These waivers are of the same effect as the previous waivers.
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 standard – NZ IFRS 16 Leases
Stride has adopted NZ IFRS 16 Leases (NZ IFRS 16) from 1 April 2019 which has replaced the previous guidance in NZ IAS 17
Leases (NZ IAS 17).
As a lessor of investment property leased to customers, NZ IFRS 16 has resulted in no changes to the recognition and
measurement of leases as compared to existing accounting policies.
Where Stride is a lessee it is required to recognise a lease liability reflecting future lease payments and a right-of-use asset applying
the fair value model given the ground lease is held solely for the purpose of holding the related investment property building. Stride
applied NZ IFRS 16 using the simplified retrospective approach. Under this approach, SPL recognised a right-of-use asset within the
fair value of investment property and a corresponding lease liability within interest bearing liabilities in relation to leases which had
previously been classified as operating leases under the principles of NZ IAS 17. Stride recognised lease liabilities of $28,633,000
as at 1 April 2019, representing the present value of the remaining lease cash flows (refer note 3.3) and recognised $1,832,000
interest on lease liabilities in the consolidated statement of comprehensive income for the year ended 31 March 2020. The prior
period comparatives have not been restated, nor has an adjustment been made to equity, as permitted under the specific transitional
provisions in the standard.


Adjustments recognised on adoption of NZ IFRS 16
SIML recognised a right-of-use asset within property, plant and equipment and a corresponding lease liability within interest
bearing liabilities in relation to its lease of its head office.
A reconciliation between SPL’s operating lease commitments disclosed as at 31 March 2019 and the lease liabilities recognised
on adoption of NZ IFRS 16 on 1 April 2019 is provided below. The commitments shown as at 31 March 2019 reflected amounts
payable under current signed lease contracts up until the next rent review, at which time the terms of the leases may be
renegotiated.
SPL
$000
SIML
$000
Total
$000
Operating lease commitments disclosed as at 31 March 201913,608–13,608
Operating lease commitments from next review to final lease expiry113 , 3 8 7–113 , 3 8 7
Operating lease commitments to final lease expiry on property, plant and equipment–1,15 41,15 4
Discounted at the date of initial application
(99,450)(66)(99,516)
Lease liabilities recognised as at 1 April 2019
27, 5451,08828,633
Of which were:
Current lease liabilities62462524
Non-current lease liabilities
27,48362628 ,10 9
Lease liabilities recognised as at 1 April 2019
27, 5451,08828,633
Lease liabilities recognised as at 1 April 2019 differs to that reported as at 30 September 2019 due to management revisiting
the estimated maturity of the ground lease at 7-9 Fanshawe Street, Auckland, and incorporating the carpark leases that are
aligned with the operating lease for SIML’s head office. As a result of this, the revised lease liabilities and right-of-use asset at
30 September 2019 would have been approximately $28.4 million, an increase of $5.3 million from that previously reported.
The impact on the reported lease liabilities interest and depreciation of the right-of-use asset for the period ended 30 September
2019 was not material.
1.4 New standards, amendments and interpretations
At the date of approval of the financial statements, there were no relevant standards in issue but not applied.
57
56
Stride Property Group Annual Report 2020Financial StatementsFinancial Statements

1.0 General Information (continued)1.0 General Information (continued)
1.5 Fair value estimation
Stride 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 as follows:
• Investment properties (note 3.2);
• Treatment of the properties comprising Industre (note 1.8);
• Investment properties classified as held for sale (note 3.6);
• Derivative financial instruments (note 5.2); and
• Deferred tax (note 8.1).
1.7 COVID-19 impacts
The global COVID-19 pandemic and resulting impacts on credit and property markets has increased the level of uncertainty
around certain estimates in these financial statements. An assessment of the impact of COVID-19 on Stride’s consolidated
statement of comprehensive income and consolidated statement of financial position is set out in the following table, based on the
information available at the time of preparing these financial statements.
ItemCOVID-19 assessment
Notes
Rental incomeThe New Zealand government announced in June 2020 that it will be amending the
Property Law Act to imply a new contractual term into existing commercial leases
that will give some – but not all – tenants the right to seek a fair reduction in rent
where the business has suffered a loss of revenue due to COVID-19. It is expected
that the legislation will be implemented in June 2020 and apply for a period of six
months from the date the amendments were announced, being 4 June 2020. Stride
has previously stated to the market that it has made allowances to provide its tenants
with rental support as a result of COVID-19, with an expected cost to SPL in aggregate
of between $8 million and $11 million for the year ending 31 March 2021. It is not
currently expected that the implementation of this legislation will require SPL to amend
these allowances.
Management fee incomeIt is expected Stride will continue to receive recurring fees, such as asset and
building management fees. Some activity based fees, such as leasing, development
and performance fees, may be impacted by the shutdown. In this case, it is expected
that receipt of most activity fees would be delayed, rather than lost.
Investment propertiesDue to the uncertainty related to the COVID-19 pandemic leading to a reduction
in the number of real estate transactions and impacting the availability of market
data relating to conditions as at 31 March 2020, the independent valuations of
SPL’s portfolio as at 31 March 2020 have been reported on the basis of ‘material
valuation uncertainty’, meaning less certainty and a higher degree of caution should
be applied. The opinion of value has been determined at the valuation date based on
a certain set of assumptions used by the valuers, however these could change in a
short period of time due to subsequent events.
SPL had received draft valuations of its portfolio in early March 2020, and these
valuations were subsequently withdrawn by the valuers due to the impact of
COV I D -19.
3.2, 8.9
Work in progressDue to COVID-19 and the current uncertain economic climate, the development
opportunity at Johnsonville Shopping Centre, Wellington, remains under review and
as a consequence the work in progress costs of $2 million have been impaired as at
31 March 2020.
3.5
Derivative financial
instruments
COVID-19 has impacted interest rate derivatives through the drop in interest rates
and an increase in SPL’s own credit risk spread.
5.2
Trade and other
receivables,
prepayments and other
current assets
SPL has increased the expected credit loss allowance in trade and other
receivables by $0.2 million following a credit risk assessment on its debtors that
were not an essential service.
8.5
Right-of-use assets and
lease liabilities
SIML has an operating lease for its head office where SIML is the lessee.
Subsequent to balance date, a 50% reduction of the operating lease expense
equivalent to the Levels 4 and 3 time period has been agreed with the lessor as a
result of COVID-19 and will be accounted for in the year ending 31 March 2021.
SPL had four ground leases as at 31 March 2019 where SPL was the lessee. SPL is
not currently seeking any rent relief from the lessors or considered any changes to
extension of leases within the lease portfolio resulting from COVID-19.
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Stride Property Group Annual Report 2020Financial StatementsFinancial Statements

1.0 General Information (continued)1.0 General Information (continued)
1.8 Other 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:
Sale of 33 Corinthian Drive, Auckland
On 1 April 2019, SPL sold its commercial property tenanted by ASB Bank Limited at 33 Corinthian Drive, Albany, Auckland, for
$50.5 million gross before transaction costs.
Reclassification from inventory – development property to investment properties of NorthWest Two, Auckland
In April 2019, SPL reclassified NorthWest Two, Auckland, from inventory – development property to investment properties (note 3.2).
Acquisition and development of industrial property, Auckland
On 27 June 2019, SPL acquired a four-hectare industrial property at 1-11 Selwood Road and 6-12 The Concourse, Auckland for
$35 million excluding transaction costs. The property includes an area of development land, at 11 Selwood Road, at which SPL
has agreed to develop an industrial facility for Waste Management NZ Limited (Waste Management) which 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. As at 31 March 2020, the scope of the expansion works
has not been finalised.
Divestment of properties to Investore
On 19 November 2019, SPL entered into conditional contracts to divest three large format retail properties to Investore for
$140.75 million gross before transaction costs. The properties subject to the contracts are:
• Bunnings Mt Roskill, Auckland;
• Mt Wellington Shopping Centre, Auckland; and
• Bay Central Shopping Centre, Tauranga.
Under the sale and purchase agreements, SPL is to complete certain seismic works, which SPL has estimated to be $7,859,000,
and has provided a rental guarantee of $558,000.

As at balance date, the divestment remained subject to consent under the Overseas Investment Act (OIA). On Friday 24 April 2020,
OIA consent was received and SPL settled on the divestment of the three properties on 30 April 2020. Refer note 8.9.
Establishment of Industre Property (Industre)
On 5 September 2019, Stride announced the establishment of Industre, an 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. 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 SIML.
Initially JPMAM will commit approximately $70 million to the commencement of Industre and SPL will contribute its
12 industrial properties.
JPMAM has committed to a further $115 million of capital to fund near term growth initiatives, subject to meeting certain
investment return and approval thresholds, such as the property at 16 Wickham Street, Hamilton, which SPL settled on 1 April
2020 (note 8.9), taking JPMAM’s total equity committed to $185 million. Over the long term, the strategy is for JPMAM to fund
further portfolio growth until the respective economic contributions to the portfolio are 75% / 25% (JPMAM / SPL).
1.8 Other significant events and transactions (continued)

Establishment of Industre Property (Industre) (continued)

While initial agreements have been signed, the commencement of the joint venture was subject to a number of substantive
conditions, as at 31 March 2020, the material ones being:
• Consent under OIA;
• 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
Stride Industrial Property Limited (SIPL) (a subsidiary of SPL) and JPMAM; and
• Finalising the terms of investment by SPL in the JPMAM Special Purpose Vehicle (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.
Due to the material conditions not being met as at 31 March 2020 and the OIA assessment process not progressed far enough to
determine whether it was highly probable to receive OIA consent as at 31 March 2020, the properties comprising Industre have
not been recorded as ‘investment properties classified as held for sale’.
Subsequent to balance date, OIA consent was received on 3 June 2020. If the remaining outstanding conditions are met the
parties expect the transaction to settle and Industre to commence operations on 30 June 2020 (note 8.9).
The accounting for the arrangements by SPL will be a combination of a joint venture (equity accounted) and a joint operation
(proportionate share of assets and obligations).
SPL has incurred $1,433,000 project costs in relation to advisor fees for the establishment of Industre.
1.9 Non-GAAP measures
The consolidated statement of comprehensive income includes two non-GAAP measures; Profit before net finance expense, other
income/(expense) and income tax; and Profit before other income/(expense) and income tax. These non-GAAP measures have
been presented to assist investors in understanding the different aspects of Stride’s financial performance.
Note 4.3 sets out Stride’s calculation for distributable profit and Adjusted Funds From Operations (AFFO) which are both non-
GAAP measures. Distributable profit is presented to enable investors to see an earnings measure which more closely aligns
to Stride’s underlying and recurring earnings from its operations. AFFO is intended as a supplementary measure of operating
performance. Cash spent during the period on capital expenditure as part of maintaining a building’s grade / quality, but not
expensed as part of distributable profit after current income tax, is adjusted to reflect cash earnings for the year.
These non-GAAP measures do not have a standard meaning prescribed by GAAP and therefore may not be comparable to
information presented by other entities.
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Stride Property Group Annual Report 2020Financial StatementsFinancial Statements

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, 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
2020
$000
Net rental income56,7262,356––59,082
Management fee income––28,682(10,403)18,279
Less corporate expenses
Corporate overhead expenses––(16,657)–(16,657)
Administration expenses(9,859)5,690(1,506)–(5,675)
Project costs
(1,443)–––(1,443)
Total corporate expenses(11,302)5,690(18,163)–(23,775)
Profit before net finance expense,
other income/(expense) and income tax
45,4248,04610,519(10,403)53,586
Finance income206–4–210
Finance expense(13,533)–(23)–(13,556)
Finance expense – swap break expense(1,274)–––(1,274)
Finance expense – lease liabilities
(1,774)–(58)–(1,832)
Net finance expense(16,375)–(77)–(16,452)
Profit before other income/(expense) and income tax
29,0498,04610,442(10,403)37,13 4
Other income/(expense)
Net change in fair value of investment properties(5,225)3,469––(1,756)
Impairment of work in progress(2,007)–––(2,007)
Share of profit in associates3,503–––3,503
Hedge ineffectiveness of cash flow hedges
(8,218)–––(8,218)
Profit before income tax
17,10 211, 51510,442(10,403)28,656
Income tax expense
(263)–(3,074)–(3,337)
Profit after income tax attributable to shareholders
16,83911, 5157, 36 8(10,403)25,319
Total other comprehensive income/(loss) after tax
4,603–17–4,620
Total comprehensive income after tax attributable to
shareholders
21,44211, 5157, 385(10,403)29,939
The following expenses payable by SPL to SIML have been eliminated in the consolidated statement of comprehensive income:
• direct property operating expenses included in net rental income $2,356,000 (2019: $2,176,000)
• management and accounting fees included in corporate expenses $5,690,000 (2019: $5,465,000)
• management fees in respect of capital expenditure on investment properties $2,042,000 (2019: $1,071,000), development
expenditure on work in progress $78,000 (2019: $30,000), life to date management fees at NorthWest Two, Auckland,
following the reclassification from inventory – development property to investment property $645,000 (2019: nil), disposal
fees of $704,000 (2019: $253,000), are included in the net change in fair value of investment properties.
In the prior year, the following expenses payable by SPL to SIML were also eliminated in the consolidated statement of
comprehensive income: refinancing fees $25,000 and development expenditure on inventory – development property $15,000.
Segment profit
SPL
$000
SPL
eliminations
$000
SIML
$000
SIML
eliminations
$000
2019
$000
Net rental income55 ,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
(7,077)5,465(1,689)–(3,301)
Total corporate expenses( 7,0 69)5,465(17,707 )–(19 , 311)
Profit before net finance expense,
other income/(expense) and income tax
48,0527,6 416,777(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 properties35 ,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 ,199)
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
Segment assets and liabilities
SPL
$000
SPL
eliminations
$000
SIML
$000
SIML
eliminations
$000
Total
$000
Balance at 31 Mar 20
Total assets1,13 9, 8 3 26979,749–1,15 0 , 2 7 8
Total liabilities447,998–4 ,116–4 5 2 ,114
Balance at 31 Mar 19
Total assets1,071,796 (667)5,300–1,076,429
Total liabilities369,679(253)2,784–372,210
As at 31 March 2020, Stride had assets of $107,272,000 (2019: $94,765,000) relating to other investments and loan to associates
(notes 7.1, 7.3) which increased by $12,507,000 from the prior year (2019: $1,390,000 increase).
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Stride Property Group Annual Report 2020Financial StatementsFinancial Statements

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
Investment property is leased by SPL to tenants under operating leases with rent payable monthly. 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 or investment property
classified as held for sale 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 SIML managed entities are included in the gross rental income with the
employee related costs shown in corporate overhead expenses.
SPL
2020
$000
2019
$000
Gross rental income
Rental income63,36263,072
Service charge income recovered from tenants13,53413 ,14 4
Capitalised lease incentives342752
Lease incentives amortisation(695)(682)
Spreading of fixed rental increases
2244 41
Total gross rental income76,76776,727
Direct property operating expenses
Rates and insurance( 7,018)(6,822)
Property maintenance costs(4,843)(4,969)
Ground and office rent–(1,895)
Utilities(1,381)(1,367)
Other non-recoverable property operating expenses
(4,443)(4,377)
Total direct property operating expenses(17,685)(19,430)
Net rental income
59,08257, 297
Other non-recoverable property operating expenses represents operating expenses not recoverable from tenants and property
leasing expenses. Salaries and wages costs of $1,541,000 (2019: $1,530,000) charged by SIML to SPL have been eliminated in
the direct property operating expenses above.
With the implementation of NZ IFRS 16 from 1 April, ground and office rent are shown in the interest on lease liabilities recognised
in consolidated statement of comprehensive income.
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:
2020
$000
2019
$000
Within one year6 3 , 91160, 313
Between one and two years52,87654,347
Between two and three years44,65642,626
Between three and four years35,75434,410
Between four and five years2 9,12 527,091
Later than five years
170,63688,529
Future rentals receivable
396,958307, 316
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Stride Property Group Annual Report 2020Financial StatementsFinancial Statements

3.0 Property (continued)3.0 Property (continued)
3.2 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.
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 where available;
• 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.
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.
SPL leases various property under non-cancellable operating lease agreements. At the inception of a contract, SPL
assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the
right to control the use of an identified asset for a period of time in exchange for consideration.
Right-of-use assets are measured on initial recognition as the initial lease liability, plus any initial indirect costs
incurred, less any lease incentives received. Right-of-use assets that meet the definition of investment property are
presented within investment property. SPL applies the fair value model to investment property, including right-of-use
assets that meet the definition of investment property.
Investment property is adjusted for cash flows relating to lease liabilities already recognised separately on the
consolidated statement of financial position and also reflected in the investment property valuations.
3.2 Investment properties (continued)
SIML does not hold investment properties, but provides management services over SPL’s investment property portfolio.
During the year, SPL:
• settled on the sale of 33 Corinthian Drive, Auckland, on 1 April 2019, for $50.5 million gross.
• advised Westgate Town Centre Limited (WTCL) on 29 April 2019 that the option period held by WTCL to acquire SPL’s
NorthWest Two development had come to an end and SPL acquired the land that had been subject to a ground lease. The
property was reclassified from inventory - development property to investment properties.
• acquired a four-hectare industrial property on 27 June 2019 at 1-11 Selwood Road and 6-12 The Concourse, Auckland, for $35 million.
• reclassified the properties at corner Mt Wellington Highway & Penrose Road, Auckland, and 65 Chapel Street, Tauranga, from
retail to large format retail.
• entered into conditional contracts to divest three large format retail properties to Investore for $140.75 million gross. Under the
sale and purchase agreements, SPL is to complete certain seismic works, which SPL has estimated to cost $7,859,000, and
has provided a rental guarantee of $558,000.
Office
$000
Industrial
$000
Retail
$000
Large
Format
Retail
$000
Development
$000
Total
$000
Balance 31 Mar 18
223,550195,70 0382,86042,75021,10 0865,960
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 properties
classified as held for sale
(50,082)––––(50,082)
Net change in fair value
9,12617, 579(1,159)4,4846,47636,506
Balance 31 Mar 19
186,800214,075384,16047, 30 048,400880,735
Initial add back of lease liabilities11,6 2 2–15,922––27, 54 4
Acquisition –16,020––18,98035,000
Subsequent capital expenditure3,0177916,3022,05534,96247,12 7
Capitalised lease incentives22921972–349
Lease incentives amortisation (253)(366)(445)––(1,064)
Spreading of fixed rental increases53134(137)–174224
Reclassification––(86,000)86,000––
Transfers from work in progress–97, 50 0––(97,500)–
Transfers from inventory––35,436––35,436
Transfer to investment properties classified
as held for sale
–––(132,196)–(132,196)
Net change in fair value
(3,854)23,265(37, 415)( 3 ,161)19,409(1,756)
Balance 31 Mar 20
197,614351,440317, 920–24,425891,399
Comprised of
Investment property at valuation
186,050351,440302,000–24,425863,915
Lease liabilities
11, 5 6 4–15,920––27,484
Balance 31 Mar 20
197,614351,440317, 920–24,425891,399
The net change in fair value of ($1,756,000) (2019: $36,506,000) includes ($62,000) (2019: N/A) in relation to the change in the
value of lease liability.
In the current year, a revaluation movement of $3,469,000 (2019: $1,369,000), arising from the elimination of the fees charged by
SIML to SPL (refer note 2.0), 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.
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Stride Property Group Annual Report 2020Financial StatementsFinancial Statements

3.0 Property (continued)3.0 Property (continued)
3.2 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.
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 a 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.
SPL had received draft valuations of its portfolio in early March 2020 which were withdrawn by the valuers due to the impact of
COVID-19. The valuers reassessed a number of their inputs and assumptions to take account of:
• rental rebates for tenancy occupancy disruption;
• softening of market capitalisation rates and discount rates;
• lower market rental growth rates in the near term;
• increases in both vacancy and let up allowances; and
• lower market rentals.
Due to the uncertainty related to COVID-19 that has led to a reduction in the number of real estate transactions and has impacted
the availability of market as at 31 March 2020, the independent valuations of SPL’s portfolio as at 31 March 2020 have been
reported on the basis of ‘material valuation uncertainty’, meaning less certainty and a higher degree of caution should be applied
to the valuations. The opinion of value has been determined at the valuation date based on a certain set of assumptions used
by the valuers, however these could change in a short period of time due to subsequent changes in the property market when
transactional activity resumes.
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 (2019: nil transfers).
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.
3.2 Investment properties (continued)
As at 31 Mar 20Valuer
Net
lettable
area
m
2
Value
$000
Cap
rate
%
Contract
yield
%
Occupancy
%
WALT
years
Office
7-9 Fanshawe Street, AucklandCBRE4,81710,4009.1311. 6 4100.02.7
80 Greys Avenue, AucklandColliers
1
5,45020,8007.0 06.7786.61.7
21-25 Teed Street, AucklandCBRE4,08824,7006.256 .1190.92.5
35 Teed Street, AucklandJLL2 , 87421,0005.506 .1493.07.7
33 Customhouse Quay, WellingtonJLL5 , 21739,2006.006.40100.08.9
1 Grey Street, WellingtonColliers
2
10,44357,6 0 06.887.12100.04 .1
22 The Terrace, WellingtonColliers
2
4,78112,3507.759.2589.32.0
Office total37,670186,0506.657.0 895.24.6
Industrial
30 Airpark Drive, AucklandBayleys15,77632,5005.384.84100.04.7
22 Ha Crescent, AucklandColliers
1
7, 38014,8005.755.53100.01.3
8 Reg Savory Place, AucklandBayleys4,0259,8005.255.00100.03.4
20 Rockridge Avenue, AucklandSavills8 ,67418,2505.505.25100.04.5
460 Rosebank Road, AucklandJLL12 ,19319,6006.386 .15100.03.7
15 Rockridge Avenue, AucklandSavills9 ,11326,0005 .135.22100.05.4
25 O’Rorke Road, AucklandSavills27,07272,5505.385.43100.03.7
415 East Tamaki Road, AucklandBayleys9,65518,2506 .136.54100.01.1
15 Ride Way, AucklandCBRE5,02712,0505.385.34100.03.4
34 Airpark Drive, AucklandCBRE–8,4906.255.01100.07.8
318 East Tamaki Road, AucklandJLL9,75598,0004.754.73100.024.8
1-3 Selwood Road & 6-12
The Concourse, Auckland
JLL9,89921,15 06 .136.00100.03.6
*Industrial total118 , 5 6 9351,4405.365.27100.09.0
Retail
Johnsonville Shopping Centre,
Wellington (50%)
Colliers
1
6,96625,0007.576.8577.02.5
61 Silverdale Street, AucklandSavills22,94895,0006.386.7899.14.6
NorthWest Shopping Centre, AucklandColliers
1
27, 542148,0006.758.2599.04.3
NorthWest Two, AucklandColliers
1
7,90 034,0006.507.4395.64.8
Retail total65,356302,0006.677. 5896.34.3
Development
*11 Selwood Road, AucklandJLL
–24,425––––
Total
221,595863,9156 .126.509 8 .16.0
The investment property at 11 Selwood Road, Auckland, is currently under 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.
*Refer to note 1.8 Other significant events and transactions - Establishment of Industre Property (Industre).
69
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Stride Property Group Annual Report 2020Financial StatementsFinancial Statements

3.0 Property (continued)3.0 Property (continued)
3.2 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 07.05100.04.3
22 The Terrace, WellingtonColliers
2
4,78119,7507.256.98100.02.8
Office total37,670186,80 06.916.7994.24.5
Industrial
30 Airpark Drive, AucklandColliers
1
13,73328,3005.885.06100.05.7
22 Ha Crescent, AucklandBayleys8,75714, 50 06.005.48100.02.3
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
27,08666,6005.755.70100.04.8
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 total10 0,919214,075 5.86 5.69100.04.4
Retail
Cnr Mt Wellington Highway &
Penrose Road, Auckland
Colliers
1
9 , 01136,5006.756 .7496 .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 total82,98838 4 ,16 06.666.7297.14.2
Large Format Retail
2 Carr Road, Auckland Colliers
1
11, 6 0147, 30 05.004.94100.07.9
Development
318 East Tamaki Road, AucklandColliers
1
–48,4005.25–––
Total
23 3 ,178880,7356.356.3798.04.5
The investment property at 318 East Tamaki Road, Auckland, was under development and consequently the net lettable area,
contract yield %, occupancy % and WALT were 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.
3.2 Investment properties (continued)
Breakdown of valuation by valuer
2020
$000
2019
$000
CIVAS Limited (Colliers
1
)242,600358,010
Jones Lang LaSalle Limited (JLL)223,375229,350
CBRE Limited (CBRE)55,640190,375
Colliers International (Wellington Valuation) Limited (Colliers
2
)69,95076,950
Bayleys Valuations Limited (Bayleys)60,55026,050
Savills (NZ) Limited (Savills)
211, 8 0 0–
863,915880,735
A valuation is determined based on a range of unobservable inputs. They are unobservable as they are not freely available or
explicit in the market and are developed by analysing transactional data. Key unobservable inputs are the capitalisation rate,
discount rate, terminal yield, market rent and growth rates. The following table details the key unobservable inputs and the ranges
adopted across the various investment property classes:
Cap rate
%
Discount
rate
%
Gross
market
rental
$/m
2
Rental
growth rate
%
Terminal
yield
%
As at 31 Mar 20
Office5.50-9.137. 25 - 9. 50349-6332.11-2.735 . 6 3 - 9.13
Industrial4.75- 6.386.50-9.00102-1922.09-2.465.00-6.63
Retail
6 . 38 -7. 577.63-9.24336-6081. 5 3 -2 .156 . 25 -7.79
Total portfolio
4.75-9.136.50-9.50102-6331.53-2.735 . 0 0 - 9.13
As at 31 Mar 19
Office
6 . 0 0 -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 . 0 0 -10 . 256.50 -9.75116 - 6 2 21.38-2.905 . 5 0 -10 . 25
71
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Stride Property Group Annual Report 2020Financial StatementsFinancial Statements

3.0 Property (continued)3.0 Property (continued)
3.2 Investment properties (continued)

In addition to the above key unobservable inputs, due to COVID-19 the valuers also made assumptions around rental rebates for
tenancy occupancy disruption. The following table details the rental rebate allowances that have been adopted in the valuations
across the various investment classes:
COVID-19 Rental rebates
$000
As at 31 Mar 20
Office (2,803)
Industrial (1,705)
Retail
(10,744)
Total portfolio
(15,252)
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 provided below. The metrics
chosen are those where movements are likely to have the most significant impact on fair value.

Cap rate
Impact on fair value- 0.75%-0.50%-0.25%+0.25%+0.50%+0.75%
As at 31 Mar 20
Change $000138,300 85,710 30,480 (25,995) (71,490) (103,535)
Change %16 10 3 (3) (8) (12)
As at 31 Mar 19
Change $000N/AN/A36 ,170(33,502)N/AN/A
Change %N/AN/A4(4)N/AN/A
Discount rate
Impact on fair value- 0.75%-0.50%-0.25%+0.25%+0.50%+0.75%
As at 31 Mar 20
Change $00049,207 32,544 15,726 (16,300) (31,883) (47,18 6 )
Change %6 4 2 (2) (4) (5)
As at 31 Mar 19
Change $000N/AN/A16,302(15,891)N/AN/A
Change %N/AN/A2(2)N/AN/A
As a result of COVID-19, SPL has increased the range in the above sensitivities provided for the current year which has resulted in
some comparatives not being able to be provided (shown as 'N/A' in the tables above).
3.2 Investment properties (continued)
The following tables are additional sensitivities that have been provided as a result of COVID-19. These sensitivities are not
available for the prior year.
Gross market rental
Impact on fair value-10.0%-5.0%+5.0%+10.0%
As at 31 Mar 20 (change $000)
Office(20,220)(10,150)10,34021,070
Industrial (25,860)(13, 20 0)15,96531,590
Retail
(26,500)(12,500)15,00029,500
Total
(72,580)(35,850)41,3058 2 ,16 0
As at 31 Mar 20 (change %)
Office(11)(5)511
Industrial (7)(3)48
Retail
(9)(4)510
Weighted average total
(8)(4)59
COVID-19 Rental rebates
Impact on fair value-75.0%-50.0%+50.0%+75.0%
As at 31 Mar 20 (change $000)
Office2 ,1021,401(1,401)(2,102)
Industrial 1,279853(853)(1,279)
Retail
8,0585,372(5,372)(8,058)
Total
11, 4 3 97,626( 7,626)(11, 4 3 9)
As at 31 Mar 20 (change %)
Office11(1)(1)
Industrial 0000
Retail
32(2)(3)
Weighted average total
11(1)(1)
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 terminal
yield is used to derive the terminal value. Terminal yield rate estimates are based on comparable transaction data and also
consider matters such as building age and the market environment at the end of the investment period (10 years). 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 prior year, in the case of Bay Central Shopping Centre, 65 Chapel Street, Tauranga,the adopted market value included a 50:50
weighting for the Discounted Cash Flow and the Stratum Estates Capitalisation approach. The 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 Selwood Road, Auckland, is being developed for Waste Management. The property has been fair valued by calculating
what the property is expected to be worth on completion and deducting all costs expected to complete the development, being the
Residual approach.
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72
Stride Property Group Annual Report 2020Financial StatementsFinancial Statements