HY21 Interim Results and Capital Raise

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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
Interim Report
for the six months ended
30 September 2020

This document comprises the Interim 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.
Contents
02 Highlights
04 Chair and CEO’s Report
06 COVID-19 Update
08 SPL’s Office and Retail Property Portfolio
11 Growth in Office Portfolio
12 Products
14 SPL’s Property Interests
16 Industre
19 Investore
20 Diversified
21 Glossary
22 Consolidated Interim Financial Statements
53 Corporate Directory
Stride Property GroupInterim Report for the six months ended 30 September 20201

Places
$55.2m profit
before income tax

from continuing operations
up $22.4m from HY20
$51.6m profit
after income tax

from continuing operations
up $24.6m from HY20
$21.1m
distributable profit

after current income tax
up $1.8m from HY20
29.0% loan to value ratio
as at 30 September 2020
$2.00 net tangible
assets per share

as at 30 September 2020
($1.97 as at 30 September 2019)
9.91 cents per share
combined Stride Property Group
cash dividend targeted for FY21
2
Performance
Stride’s latest Product, Industre Property
Joint Venture (Industre), commenced
operations on 1 July 2020. Since
commencement, Industre has acquired
four industrial properties for a total
purchase price of $45.5m
Investore Property Limited (Investore)
has undertaken a number of capital
management initiatives over the six months
to 30 September 2020, including a capital
raise in April/May 2020, raising $105m
gross proceeds, and the issue of $125m
of 7-year listed bonds at an interest rate
of 2.4% per annum in August 2020
Investore's property portfolio value
3

has grown strongly to $980.3m, a net
valuation increase of $83.7m or 9.4%
4

since 31 March 2020. Investore's loan
to value ratio reduced to 28.3%
5
as at
30 September 2020
Diversified NZ Property Trust (Diversified)
has continued the construction of part
of the Queensgate Shopping Centre in
Lower Hutt, which was damaged in the
2016 Kaikoura earthquake
1. See glossary on page 21.
2. Assuming no further significant restrictions or deterioration in economic activity due to
COVID-19.
3. Investore's portfolio value excludes: (1) $7.0m of seismic works to be completed by SPL on
the three large format retail properties acquired by Investore from SPL on 30 April 2020,
and the balance of the rental guarantee of $0.4m from SPL; and (2) lease liabilities. The
valuation of the property at 35 MacLaggan Street, Dunedin, remains subject to 'material
valuation uncertainty' due to the expiry of the tenant lease in July 2021.
4. Compared to Investore’s property portfolio as at 31 March 2020, and including the three
properties acquired from SPL as if those properties had been acquired as at that date,
based on the purchase price for those three properties excluding (1) the $7.0m of seismic
works to be completed by SPL on the properties, and (2) the rental guarantee of $0.5m
from SPL.
5. Investore's LVR is calculated based on independent valuations, which include seismic
works and rental underwrites to be funded by SPL in relation to the three properties
acquired by Investore from SPL and settled in April 2020. The independent valuations also
exclude lease liabilities.
6. Excludes lease liabilities. Includes Stride’s 62.4% interest in the unincorporated
component of the Industre Property Joint Venture. For more information, see note 3.2 to
the consolidated interim financial statements. Includes value of Level 12, 34 Shortland
Street, which houses Stride's head office, and is shown in the consolidated interim financial
statements as property, plant and equipment. Due to COVID-19, the investment property
valuations for five properties in the SPL directly-held portfolio 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.
7. SPL paid $66.4m for the property at 34 Shortland Street, including $2.25m for building
upgrades, and has committed to a further $0.8m for additional upgrades.
Products
All figures are for the six months ended 30 September
2020 (HY21) unless otherwise stated. Prior period figures
have been restated to be on a comparable basis given the
discontinued operation associated with the establishment
of Industre Property Joint Venture.
People
Stride’s people continue to go to great
lengths to support our tenants and the
business of Stride and its Products,
particularly during the COVID-19 period
The Stride Boards have established
a Sustainability Committee to set
sustainability initiatives and focus areas
The Stride team has undertaken a number
of events and initiatives to support
mental health during Stride’s mental
health awareness month, with each week
devoted to one of the key mental health
awareness pillars of giving, being active,
taking notice, learning, and connecting
34 Shortland Street, Auckland
SPL’s property portfolio value
6
as at
30 September 2020 is $726.3m,
representing a net valuation gain of
$21.1m or 2.9% for the six months ended
30 September 2020
SPL continues to grow its office portfolio
with two key acquisitions:
• SPL acquired an office building
at 34 Shortland Street, Auckland,
which houses Stride’s head office, for
$67.5m
7
• SPL has entered into an unconditional
agreement to acquire an office
building at 215 Lambton Quay,
Wellington, for a purchase price of
$84.5m, with settlement expected to
occur on 30 November 2020
Stride Property GroupStride Property GroupInterim Report for the six months ended 30 September 2020Interim Report for the six months ended 30 September 202023

Chair and CEO’s Report
The first half of the FY21
financial year has been a very
active time for Stride Property
Group (Stride), a period that
has seen Stride undertake a
number of transactions designed
to continue its strategy of
establishing a group of Products
in specific commercial property
sectors to provide growth in
its investment management
business.
July saw the commencement of the Industre Property Joint Venture
(Industre), Stride’s latest commercial property Product, which has
a focus on the industrial property sector in New Zealand, with a
majority weighting to the Auckland market.
Stride has focused on growing its office portfolio following the
establishment of Industre, with the acquisition of two significant
office buildings:
• In September 2020 Stride acquired a building at
34 Shortland Street, Auckland, for a purchase price of
$67.5 million, including allowances for building upgrades
1
.
• On 19 November 2020 Stride announced that it had entered
into an unconditional agreement to acquire a building at
215 Lambton Quay, Wellington (Grant Thornton House), for a
purchase price of $84.5 million.
In addition to these strategic transactions, Stride has also been
working hard over the six months to 30 September 2020 to
manage the impacts of COVID-19 on its business and that of
the Stride Products. As investors are aware, 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 means that Stride is well
positioned to manage the impact of COVID-19. We are pleased to
advise that we currently expect the financial impact of COVID-19
will be less than the levels forecast in Stride’s annual report for
FY20, and is currently expected to result in FY21 distributable
profit being lower than it otherwise would be by between ($0.2)
and ($1.9) million. More detail on the impact of COVID-19 on
Stride’s business can be found on pages 6 and 7 of this report.
Stride has worked with tenants to seek to reach agreement on
rental arrangements relating to the period impacted by COVID-19
restrictions, and in many cases has agreed reduced rental in return
for an extension on the lease term or an early renewal of the lease.
To date negotiations have been completed across approximately
81% of Stride’s office and retail shopping centre portfolios, with a
weighted average lease extension of 10 months agreed.
For the six months to 30 September 2020, Stride has delivered
positive financial results, particularly given the impact of
COVID-19. Profit before income tax from continuing operations
was up $22.4 million to $55.2 million (HY20: $32.7 million) and
profit after income tax from continuing operations up $24.6 million
to $51.6 million (HY20: $27.0 million). We note that the financial
statements for HY20 have been restated to be on a comparable
basis given the establishment of Industre during the period in
review, and the associated transfer of industrial assets to Industre.
Net rental income was $4.1 million lower than the prior
comparable period, of which $3.4 million was due to the sale of
the three large format retail assets to Investore Property Limited
(Investore) on 30 April 2020. Reduced rent receipts as a result
of COVID-19 has also contributed to this reduction in net rental
income. Offset against this reduced net rental income are savings
in corporate overheads, with total corporate expenses $0.8 million
lower than the prior comparable period, demonstrating Stride’s
efforts in reducing corporate costs to partially mitigate the
impacts of COVID-19 in FY21.
Management fee income was up $3.9 million to $13.1 million
in HY21 (HY20: $9.2 million), which has been driven by Stride's
strategy of growing its investment management business and
the growth in external assets under management during the six
months in review.
Share of profit in equity-accounted investments is materially higher
than HY20 at $22.3 million (HY20: $2.1 million), primarily as a
result of the increase in profit after income tax for Investore for
HY21, due to the revaluation movement in the Investore portfolio
and higher net rental income as a result of the additional assets
acquired from SPL.
Stride’s portfolio as at 30 September 2020 is valued at $726.3 million
2
,
or $810.8 million on a pro forma basis as at 30 September and including
the purchase price of the property at 215 Lambton Quay, Wellington
(expected to settle on 30 November 2020).
Stride’s acquisition strategy focuses on properties that have
“enduring demand”, and the Board was pleased to support the
acquisition of the properties at 34 Shortland Street and
215 Lambton Quay (Grant Thornton House), as it considers
that these properties represent the type of asset that Stride is
proud to own – well located properties near key public transport
infrastructure and with a good balance of tenants and potential for
improvements through strong management.
Stride is currently in the process of upgrading the office
property it owns at 22 The Terrace, Wellington, including seismic
strengthening works, extensive refurbishment, and installation
of a number of sustainability initiatives aimed at improving the
environmental performance of the building. Transforming this
property into a more sustainable commercial office property will
assist with this building continuing to have enduring demand.
Stride recognises that for properties to have enduring demand, it
is important they are environmentally sustainable and contribute
to the health and wellbeing of tenants. To ensure Stride continues
to meet investor and tenant expectations regarding a sustainable
business, the Stride Boards have established a Sustainability
Committee, which will have a particular focus on the environmental
performance of Stride and its portfolio.
Stride’s Products have also had an active first half of the FY21
financial year, with the portfolios of both Industre and Investore
growing strongly.
The vision for Industre is to grow a significant portfolio of high-
quality New Zealand industrial properties, and this has been
demonstrated over recent months with a number of acquisitions
and developments. Since the commencement of Industre on 1 July,
Industre has acquired four properties for a total purchase price of
$45.5 million (excluding acquisition costs). In addition, Industre
has completed two developments
3
for Waste Management – an
industrial facility at Selwood Road, Henderson, Auckland, and
a resource recovery park at Wickham Street, Hamilton. Both
properties have 25-year leases commencing on completion of
the respective development. These two facilities build on the
outstanding Waste Management Auckland headquarters delivered
by Stride for Waste Management, a property that recently won the
Property Council New Zealand Supreme Award 2020.
SIML has also completed a number of strategic initiatives on behalf
of Investore, Stride’s Product focused on the large format retail
sector, designed to position it well to continue its strategy to grow
its portfolio and secure investment opportunities that may arise.
These transactions included issuing $105 million of new shares
and $125 million of 7-year listed bonds at a fixed interest rate of
1. See footnote 7 on page 3.
2. See note 6 on page 3.
3. Practical completion for Selwood Road, Henderson, facility achieved 8 October 2020 and
practical completion for Wickham Street, Hamilton, facility achieved 4 November 2020.
4. See footnote 3 on page 3.
5. Excluding the acquisition of 20 Customhouse Quay announced by SPL on 25 November 2020.
Tim Storey
Chair,
SPL and SIML
Philip Littlewood
Chief Executive Officer,
SIML
2.4% per annum. Investore’s portfolio has also grown strongly
in the six months to 30 September 2020, through acquisitions
(Investore settled the acquisition of three properties from SPL
on 30 April 2020 for a purchase price of $140.75 million) and
revaluation movement, with Investore’s portfolio having a value
4

of $980.3 million as at 30 September 2020.
The growth in the portfolios of SPL, Industre and Investore has
seen Stride’s assets under management grow to $2.48 billion
as at 30 September 2020, and $2.67 billion once all committed
developments and acquisitions have been taken into account
5
.
Looking forward, Stride will continue to pursue growth in its
investment management business, including through the
establishment of a group of Products in specific commercial
property sectors, while also supporting the growth of its current
Products, in line with the activity seen in the first half of FY21.
Stride is pleased to have announced today, with the release
of its interim results, that it has a conditional agreement to
acquire a premium grade property at 20 Customhouse Quay,
Wellington, for $228 million. In connection with this, Stride has
also announced that it is launching a capital raise, comprising a
placement for $180 million and a Share Purchase Plan for up
to $40 million (with the ability to accept additional applications
at Stride's discretion), to partly fund this acquisition, and the
acquisition of 215 Lambton Quay, Wellington.
The Stride Boards are pleased to confirm that they currently
anticipate that the total combined cash dividends per share for
SPL and SIML for FY21 will be 9.91 cps, assuming no further
significant restrictions or deterioration in economic activity due
to COVID-19.
Thank you for your continued support of Stride Property Group.
Stride Property GroupStride Property GroupInterim Report for the six months ended 30 September 2020Interim Report for the six months ended 30 September 202045

COVID-19 Update
1 Grey Street, Wellington
Stride has worked hard to
minimise the financial impact
of COVID-19 on its business,
and, based on the financial
performance for the first six
months of FY21 as well as
estimates for the remainder of
FY21, Stride expects the financial
impact from COVID-19 to be
less than that outlined previously,
and to result in a reduction in
distributable profit
1
of between
($0.2) and ($1.9) million.
Stride has proactively sought to agree rental arrangements with
those tenants impacted by the lockdown announced in March
of this year, so as to provide a sustainable future for both Stride
and its tenants where possible. In many cases this has involved
providing rental abatements in return for an extension to the lease
term or an early renewal of the lease, thus providing benefits to
both parties.
With negotiations completed across approximately 81% of Stride’s
office and retail shopping centre portfolio, Stride expects that
the financial impact of the rent relief arrangements will be lower
than the previous estimate (as set out below). To date Stride has
benefited from these arrangements through achieving a weighted
average lease extension of 10 months across all COVID-19 deals
agreed to date.
SIML has also undertaken COVID-19 negotiations with tenants
on behalf of the Stride Products, which negotiations have sought,
where possible, to agree a lease term benefit to the Stride Product
in connection with rent abatements or deferrals provided for
the benefit of the tenant. These negotiations have resulted in a
weighted average lease extension of seven months achieved
across COVID-19 arrangements agreed on behalf of Investore,
and10 months for Diversified.
During the most recent Alert Level escalation in August 2020,
when Auckland went to Alert Level 3 and the remainder of
the country to Alert Level 2, the majority of Stride’s tenants
remained open and operational. The impacts of this lockdown
period have been included in the updated expected impacts set
out below.
Stride has also been conscious of reducing corporate costs
in FY21, as can be seen in the consolidated interim financial
results for HY21, and is on track to achieve a reduction in
corporate costs from the original FY21 budget, resulting in a
benefit to distributable profit of between $1.0 and $2.2 million.
1. See glossary on page 21.
2. Estimate set out in Stride’s FY20 annual report, released on 23 June 2020.
3. Excluding depreciation deductions on acquisitions of property since 1 April 2020.
4. 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.
Updated expected
impact on Distributable
Profit
1
Previously expected
2

impact on Distributable
Profit
Rent relief arrangements with tenants($3.7m - $4.2m)($5.8m - $8m)
Reduction in corporate costs from original FY21 budget$1.0m - $2.2m$2.2m
Re-introduction of depreciation allowances for commercial buildings
$1.1m
3
$1.1m
Lower interest and financing costs
4
$0.5m$0.5m
Lower SIML fees
($0.3m)($0.9m)
Totals($0.2m - $1.9m)($2.9m to $5.1m)
Stride Property GroupStride Property GroupInterim Report for the six months ended 30 September 2020Interim Report for the six months ended 30 September 202067

SPL’s Office and Retail
Property Portfolio
Following the sale of SPL’s remaining three large format retail
properties to Investore in April 2020 and the establishment of
Industre in July 2020, SPL currently directly owns office and
retail shopping centre assets. In addition, SPL directly holds an
interest in five industrial assets owned through the unincorporated
component of the Industre Property Joint Venture
1
; however these
assets are reported in the property metrics in this interim report as
part of the Industre Property Joint Venture.
During the six months to 30 September 2020, the SIML team
completed 11 new lettings and 34 renewals over 7,530 sqm
across the Stride office and retail shopping centre portfolio. This
transactional activity, together with the COVID-19 arrangements
agreed with tenants, has reduced the FY21 lease expiry from
13.8% of this portfolio as at 31 March 2020 to 5.6% as at
30 September 2020, with occupancy maintained at 95.9%.
1. For legal and accounting purposes an interest in these five properties owned through the unincorporated component of the
Industre Property Joint Venture is considered to be owned directly by SPL.
2. See glossary on page 21.
3. As at 30 September 2020, as if the acquisition of the property at 215 Lambton Quay, Wellington, which acquisition is
unconditional and is expected to settle on 30 November 2020 had occurred as at 30 September 2020.
4. Includes Johnsonville Shopping Centre, which is owned 50:50 by SPL and Diversified.
5. Excludes 22 The Terrace, Wellington, as this property is currently under refurbishment and not available for lease.
OfficeRetail Shopping Centre
As at
30 September 2020 including
Grant Thornton House
3
As at
30 September
2020
As at
31 March
2020
As at
30 September
2020
As at
31 March
2020
Properties (no.)9874
4
4
4

Tenants (no.)957666235244
Net Lettable Area (sqm)
51,952
5
41,018
5
37,67065,35665,356
Net Contract Rental
2
($m)
21.616.613.222.722.9
WA LT
2
(years)
3.83.94.64.54.3
Occupancy Rate (% by area)
97.196.695.295.596.3
Value ($m)
343.3258.8186.1305.6302.0
Net Valuation Movement for HY21 ($m)
+7.2+$2.4
This leasing activity has led to the WALT
2
of Stride’s retail shopping
centre portfolio increasing from 4.3 years to 4.5 years as a result of
positive transactional activity across Silverdale Centre, NorthWest
Shopping Centre and Johnsonville Shopping Centre. In particular,
Stride is pleased to report that it has seen strong leasing activity
at the Silverdale Centre, with seven tenants renewing their leases
or entering into new leases, including Macpac, Noel Leeming and
Beds R Us, resulting in an improved WALT for this asset of
5.1 years (4.6 years as at 31 March 2020).
SPL’s office portfolio has grown, with the addition of two quality
buildings, in 34 Shortland Street, Auckland, and 215 Lambton
Quay, Wellington (expected to settle on 30 November 2020).
Further details of these acquisitions can be found on page 11.
Silverdale Centre, Silverdale
Stride Property GroupStride Property GroupInterim Report for the six months ended 30 September 2020Interim Report for the six months ended 30 September 202089

Key metrics on acquisition
$67.5m purchase price, including allowances for
building upgrades
2
6.3% initial passing yield on acquisition, prior to
commencement of the works, expected to be 6.0%
after capital upgrades
2.7 years WALT
3
8,128 sqm of lettable area and 73 car parks
Growth in Office Portfolio
Stride has focused on
growing its office portfolio
during the six months to
30 September 2020,
with the acquisition of
two commercial office
properties – 34 Shortland
Street, Auckland, and
215 Lambton Quay,
Wellington
1
.
Stride’s investment
strategy is to seek
properties that will have
enduring demand. These
two properties also enable
SIML, as manager, to add
value over time.
34 Shortland Street, Auckland:
SPL acquired this 17 level property on 2 September 2020 (SPL does not own levels
4 to 7, which are owned separately). SPL plans to undertake certain upgrade works to
this building, including strengthening works, building upgrades, and sustainable building
initiatives, to improve the amenities of the building and the well-being of its occupants.
Key metrics on acquisition
$84.5m purchase price 3.4 years WALT
3
6.0% initial passing yield on acquisition10,934 sqm of lettable area and 7 car parks
215 Lambton Quay, Wellington – Grant Thornton House:
SPL has an unconditional agreement to acquire this property, with settlement expected
on 30 November 2020. This building is a 16 level, grade A office building in the heart of
Wellington's CBD, with ground floor retail boasting extensive road frontage to Lambton
Quay's golden mile. With a seismic rating of 100% New Building Standard, this building is
very attractive to tenants in the Wellington market.
34 Shortland Street, Auckland
1. SPL has an unconditional agreement to acquire the
property at 215 Lambton Quay, Wellington. This
acquisition is expected to settle on 30 November 2020.
As SPL's proposed acquisition of 20 Customhouse Quay
remains conditional, the information in this interim report
excludes that property unless stated otherwise.
2. See footnote 7 on page 3.
3. See glossary on page 21.
Stride Property GroupStride Property GroupInterim Report for the six months ended 30 September 2020Interim Report for the six months ended 30 September 20201011

Products
SIML is a committed
fund manager,
specialising in creating
and managing commercial
property funds.
SIML currently manages
four property portfolios,
or Products, following
the commencement of
Industre on 1 July 2020.
SPL will continue to own
an interest in each of the
Stride Products.
1. Includes 50% of Johnsonville Shopping Centre which is owned by SPL and comprises only the office and retail shopping centre portfolios owned by SPL. Excludes SPL’s interest in the Industre
unincorporated portfolio which is reported as part of the assets of SPL in the consolidated interim financial statements (see note 3.2 for further information). These properties have been included in the
Industre portfolio reported on this page and page 13.
2. Net valuation movement for three months from settlement of the Industre transaction to 30 September 2020.
3. Includes 50% of Johnsonville Shopping Centre which is owned by Diversified.
4. Includes the acquisition of the property at 215 Lambton Quay, Wellington. SPL has an agreement to purchase this property which became unconditional post interim balance date, on 19 November
2020. The acquisition is expected to settle on 30 November 2020.
5. Includes the acquisition of the property at 215 Lambton Quay, Wellington. SPL has an agreement to purchase this property which became unconditional post interim balance date, on 19 November
2020. The acquisition is expected to settle on 30 November 2020. Stride office and retail property excludes SPL's interest in the Industre unincorporated portfolio which is reported as part of the
assets of SPL in the consolidated interim financial statements (see note 3.2 for further information). These properties have been included in the Industre portfolio reported on this page.
Stride Property Limited is an NZX listed
company which invests directly in commercial
property and also indirectly through its interests
in the Stride Products
Investore Property Limited is an NZX
listed company which has a singular and
unique focus on investing in large format
retail property
Diversified NZ Property Trust is an Australian
trust which owns retail shopping centres in
New Zealand
Industre is a joint venture between SPL and a
group of international institutional investors
advised by J.P. Morgan Asset Management
(together, JPMAM). Industre is focused on the
industrial property sector in New Zealand
As at 30 September 2020,
the number and value of
properties managed by
SIML is as follows:
As at 30 September
2020, the portfolio
composition of each of
the Stride Products by
value is as follows
5
:
$980m
$673m
$306m
$109m
$259m
$518m
$460m
$58m
$26m
$499m
$473m
office and retail
Office
Large Format Retail
Retail Shopping Centres
Industrial
Committed developments
and acquisitions
Countdown, Rotorua –
Owned by Investore Property Limited
Value of
investment
properties
Net valuation movement
for 6 months to
30 September 2020
Committed
developments and
acquisitions
Total portfolio value
/ assets under
management
SPL investment in
Stride Product
Office and Retail Portfolio
1
564+9.6m109
4
673100.0%
473+16.3
2
2649962.4%
980+83.7-98018.8%
460+19.1585182.0%
Total2,4781932,670
3
All figures are $m unless otherwise stated
Stride Property GroupStride Property GroupInterim Report for the six months ended 30 September 2020Interim Report for the six months ended 30 September 20201213

SPL’s Property Interests
Stride’s strategy is to establish a group
of Products in specific commercial
property sectors to provide growth in its
investment management business. SPL
will continue to take an ownership interest
in each of the Stride Products. The recent
establishment of Industre is an example of
Stride creating a new Product using SPL’s
industrial assets as the initial portfolio for
the new Product.
SPL’s property interests therefore
comprise a combination of directly-held
property (office and retail shopping
centres), as well as indirect property
ownership through the interests SPL
holds in the Stride Products of Investore,
Industre and Diversified.
Stride’s property interests can grow
through direct acquisitions, such as the
office buildings at 34 Shortland Street,
Auckland, and 215 Lambton Quay,
Wellington, or through the growth of the
Stride Products, as we have seen with
the growth in Investore’s portfolio over
the last year.
1. Based on valuations as at 30 September 2020 and including committed acquisitions and developments. Includes the
acquisition of the property at 215 Lambton Quay, Wellington. SPL has an agreement to purchase this property which became
unconditional post interim balance date, on 19 November 2020. The acquisition is expected to settle on 30 November 2020.
Office
31%
Retail Shopping Centre
27%
Large Format Retail
16%
Industrial
26%
Waste Management Auckland Headquarters, 318 East Tamaki Road, Auckland
Developed by Stride and owned by Industre
Property Council of
New Zealand Supreme Award
Winner 2020
On a weighted look through basis, taking into account
SPL’s directly-held portfolio and its interests in the
Stride Products, SPL’s property interests in each
commercial property sector on a pro forma basis as at
30 September 2020 can be represented as follows
1
:
Stride Property GroupStride Property GroupInterim Report for the six months ended 30 September 2020Interim Report for the six months ended 30 September 20201415

The Industre Property
Joint Venture is a joint
venture between SPL and
a group of international
institutional investors,
through a special purpose
vehicle and advised
by J.P. Morgan Asset
Management
(together, JPMAM).
Industre invests in
industrial property, with a
majority weighting to the
Auckland market.
SPL and JPMAM both have strong growth ambitions for Industre in the industrial
property sector. Since agreeing with JPMAM to establish Industre, Stride has been
very active in seeking to give effect to these growth ambitions, despite the challenging
COVID-19 environment. Recent acquisitions include:
• 1 Ross Reid Place, East Tamaki, Auckland, purchased in July 2020 for
$15.5 million. This property is leased to Facteon Intelligent Technology Limited,
a Haier Group company, and includes 2,977 sqm of vacant surplus land,
representing a development opportunity.
• 468 Rosebank Rd, Avondale, Auckland, purchased in July 2020 for $4.4 million. This
0.4ha site will be used to enhance the street access and utility of Industre’s existing
property at 460 Rosebank Road, providing yard area and full site drive around.
• 4-14 Patiki Rd, Avondale, Auckland, purchased for $21.75 million in August
2020. This property is 2.08ha and is leased to Valspar Paint Limited. This
property is a redevelopment opportunity with excellent transport connectivity.
• 7 Charann Place, Avondale, Auckland, purchased for $3.85 million in September
2020. This property is leased to ITW New Zealand Limited, a manufacturer of buckles,
fasteners, taps and fittings, and adjoins Industre's property at 460 Rosebank Road.
Industre also expects to settle the acquisition of 439 Rosebank Road, Avondale, with
a purchase price of $8 million
1
, within the next few months and has been working on
plans to improve or redevelop the existing building on this site.
In accordance with the understanding between JPMAM and Stride, JPMAM
contributed all of the equity funding for the above acquisitions. This has meant that
SPL’s shareholding in Industre has reduced from approximately 68% at establishment
to approximately 62.4% as at 30 September 2020.
As previously reported, JPMAM has allocated additional capital to fund growth
initiatives for Industre, subject to meeting certain investment return and approval
thresholds. The equity capital funded by JPMAM for the above acquisitions has been
part of this capital allocation, with a further $79 million of additional capital remaining
from this initial allocation as at 30 September 2020.
In addition, Industre has completed the development of two industrial facilities for
Waste Management – one at Selwood Road, Henderson, Auckland, and one at
Wickham Street, Hamilton, each with 25-year leases. These developments achieved
practical completion in October and November 2020 respectively. SIML and
Industre are very proud to have delivered two further exceptional facilities for Waste
Management, following on from the completion of Waste Management’s Auckland
headquarters in December 2019. Industre is very proud to own the Waste
Management Auckland headquarters, a building that recently won the Property Council
of New Zealand Supreme Award for 2020.
Stride looks forward to continuing to work with the JPMAM team to grow the Industre
portfolio over time with considered acquisitions and developments.
Selwood Road, Henderson
Industre Portfolio Growth
$398m
$46m
$14m
$16m$473m
$26m$499m
$113m$612m
Settlement on
30 June 2020
Acquisitions
completed
Capex and costs
incurred
30 September
revaluation
Portfolio
value as at
30 September
2020
Committed
acquisitions and
developments
2
Total
estimated value
30 September
2020
Total
estimated value
30 September
2020
Available
capital
3
1. A deposit of $0.4m has already been paid, leaving the balance of the purchase price of $7.6m to be paid on settlement.
2. Comprises the balance of the purchase price of 439 Rosebank Road, Auckland ($7.6m), plus remaining capital expenditure and unrealised
development profit as at 30 September 2020 for the developments at Selwood Road, Auckland and Wickham Street, Hamilton.
3. Available capital comprises the uncommitted portion of Industre's banking facilities available for future developments and acquisitions, plus the
balance of JPMAM's committed capital contribution to Industre.
Stride Property GroupStride Property GroupInterim Report for the six months ended 30 September 2020Interim Report for the six months ended 30 September 20201617

Industre Financial
Information
Investore’s strategy is
to invest in quality, large
format retail properties
throughout New Zealand,
and actively manage
investors’ capital, to
maximise distributions
and total returns over the
medium to long term.
Investore focuses 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. Investore is the only NZX
listed company with a singular focus on the large format retail property asset class.
Portfolio value
2
as at 30 September
2020 of $980.3 million, representing a
net valuation increase for the six months
to 30 September 2020 of $83.7 million
or 9.4%
3
10.2 years WALT
1
, as at 30 September
2020, compared with 10.4 years
WALT as at 31 March 2020
4
. This is an
improvement on what it would otherwise
be as a result of the effluxion of time due
in part to lease extensions negotiated
in connection with COVID-19 rent
arrangements
Financial InformationActive Portfolio Management
Capital raising undertaken in April
and May 2020, raising $105 million
gross proceeds, with net proceeds
used to pay down debt and to provide
funding flexibility to continue Investore’s
growth strategy
$125 million of 7-year listed bonds
issued in August 2020 at a fixed
interest rate of 2.4% per annum, aiding
diversification of Investore’s funding
and extending the average weighted
tenor of debt
28.3% loan to value ratio
6
as at
30 September 2020
Investore collaborated with Countdown
5

to refurbish the supermarket at Fenton
Street, Rotorua, to transform this
supermarket into an easy to access,
attractive and easy place to shop
Investore acquired a small corner
property adjacent to its existing
Countdown supermarket in Papakura,
Auckland, which it redeveloped to
provide expanded car parking amenity
and improved access and overall sight
lines for the supermarket. Investore
receives improvement rent on its
investment in these works
Continued Optimisation
of the Portfolio
Proactive Capital
Management
1. See glossary on page 21.
2. See footnote 3 on page 3.
3. See footnote 4 on page 3.
4. As at 31 March 2020, as if the acquisition of the three
properties from SPL had settled as at that date.
5. Countdown is owned by Woolworths NZ.
6. See footnote 5 on page 3.
* This information relates to the three month period from 1 July to 30 September 2020. Stride’s share in Industre reduced from 68.25% as at 30 June 2020 to 62.42% as at 30 September 2020.
Stride’s net share of Industre’s profit is calculated on the weighted average participating interest during the period.
For more information please refer to notes 6.3 Industre joint venture and 6.4 Industre joint operation in the consolidated interim financial statements.
Profit after income tax
$91.0 million, up $80.1 million
from HY20
Distributable profit
1
after current
income tax $13.7 million, up
$4.0 million from HY20
$1.93 net tangible assets per
share as at 30 September
2020, up $0.20 or 11.6%
from 31 March 2020
IndustreStride's interest
Joint Venture
Unaudited
30-Sep-20
$000
Joint Operations
Unaudited
30-Sep-20
$000
Total
Unaudited
30-Sep-20
$000
Joint Venture
Unaudited
30-Sep-20
$000
Joint Operations
Unaudited
30-Sep-20
$000
Total
Unaudited
30-Sep-20
$000
Assets
Current assets
4,4491,1805,629
2,7777363,513
Investment properties
213,660259,453473,113
133,367161,951295,318
Other non-current assets
76,611-76,611
47,820-47,820
Total Assets
294,720260,633555,353
183,964162,687346,651
Liabilities
Current liabilities
4,6181,3145,932
2,8838213,704
Borrowings
157,09376,611233,704
98,05747,820145,877
Total Liabilities
161,71177,925239,636
100,94048,641149,581
Net assets
133,009182,708315,717
83,024114,046197,070
IndustreStride's interest
Joint Venture
Unaudited
30-Sep-20
$000
Joint Operations
Unaudited
30-Sep-20
$000
Total
Unaudited
30-Sep-20
$000
Joint Venture
Unaudited
30-Sep-20
$000
Joint Operations
Unaudited
30-Sep-20
$000
Total
Unaudited
30-Sep-20
$000
Income
2,1283,5655,693
1,3892,3543,743
Expenses
(1,178)(1,448)(2,626)
(769)(933)(1,702)
Net change in fair value of investment properties
5,95010,30216,252
3,8846,36210,246
Net share of profit*
6,90012,41919,319
4,5047,78312,287
Summarised Statement of Financial Position
Summarised Statement of Financial Performance
Stride Property GroupStride Property GroupInterim Report for the six months ended 30 September 2020Interim Report for the six months ended 30 September 20201819

Diversified owns four
shopping centres:
• Chartwell Shopping
Centre, Hamilton
• Queensgate Shopping
Centre, Lower Hutt
• Remarkables
Park Town Centre,
Queenstown
• 50% of Johnsonville
Shopping Centre,
with SPL owning the
remainder
The first six months of FY21 have been an active period for Diversified in managing
the impacts of COVID-19. The centres, which are managed by SIML, have been
very prompt to adjust their facilities to ensure appropriate physical distancing and
compliance with restrictions on the number of people in each area. The centres have
also provided support to tenants to assist them with operating click and collect services
safely, to enable tenants to continue to conduct their business, including during
restrictions imposed as a result of COVID-19.
SIML has also been negotiating rent arrangements with shopping centre tenants
on behalf of Diversified, to provide support to tenants affected by the COVID-19
restrictions and particularly the April and May Alert Level 4 period. SIML has taken a
tenant by tenant approach to agreeing lease arrangements, to provide more support
to smaller tenants that have less financial ability to survive closure periods. As with
other Stride Products, SIML has sought to negotiate extensions to lease terms or
early renewals with tenants, in consideration for rent abatement and deferral. With
COVID-19 rent relief arrangements now having been finalised for approximately 70%
of tenants, this has resulted in a weighted average lease extension of 10 months.
The transactions agreed to date by SIML on behalf of Diversified have also contributed
to an overall net valuation increase for the Diversified portfolio of $19.1 million or
4.6% for the six months to 30 September 2020, a very pleasing outcome in the current
environment.
The rebuild of part of the Queensgate Shopping Centre has also been progressing well,
with an impressive amount of steel being installed on site to ensure a sturdy and secure
building. Part of the centre was demolished at the request of the Hutt City Council
following the 2016 Kaikoura earthquake. Diversified is rebuilding what was lost, being
a carpark and cinema. The construction team has worked well to mitigate the impacts
of COVID-19 on the rebuild, with the carpark remaining on track to be completed in
early 2021, and the state of the art cinema due to open in early 2022.
Cinema and carpark rebuild,
Queensgate Shopping Centre, Lower Hutt
Glossary
Contract Rental
Contract Rental is the amount of rent payable by each tenant, plus
other amounts payable to SPL (or the relevant landlord) by that tenant
under the terms of the relevant lease as at the relevant date, annualised
for the 12-month period on the basis of the occupancy level for the
relevant property as at the relevant date, and assuming no default by
the tenant
Distributable profit
Distributable profit is a non-GAAP measure and consists of profit/
(loss) before income tax, adjusted for determined non-recurring and/
or non-cash items, share of profit in equity-accounted investments,
dividends received from equity-accounted investments and current tax.
Further information, including the calculation of distributable profit and
the adjustments to profit before income tax, is set out in note 4.2 to the
consolidated interim financial statements
Diversified
Diversified NZ Property Trust, a Stride Product
FY20
The financial year ended 31 March 2020
FY21
The financial year ending 31 March 2021
HY20
The six months ended 30 September 2019
HY21
The six months ended 30 September 2020
Industre
Industre Property Joint Venture, a joint venture between SPL
(through its wholly owned subsidiary, Stride Industrial Property
Limited) and JPMAM (through its special purpose vehicle, AP SG
17 Pte Ltd), which commenced on 1 July 2020 and which focuses
on owning and developing for ownership industrial property.
Industre is a Stride Product
Investore
Investore Property Limited, a Stride Product
JPMAM
A group of international institutional investors, through a special
purpose vehicle, and advised by J.P. Morgan Asset Management
LV R
Loan to Value Ratio
SIML
Stride Investment Management Limited
SPL
Stride Property Limited
Stride
Stride Property Group, comprising the stapled entities of SPL and
SIML
Stride Boards or Boards
The Boards of SPL and SIML together
WA LT
Weighted Average Lease Term
Stride Property GroupStride Property GroupInterim Report for the six months ended 30 September 2020Interim Report for the six months ended 30 September 20202021

Consolidated
Interim Financial
Statements
Contents
24 Consolidated statement of comprehensive income
25 Consolidated statement of changes in equity
26 Consolidated statement of financial position
27 Consolidated statement of cash flows
29 Notes to the consolidated interim
financial statements
Stride Property GroupInterim Report for the six months ended 30 September 202023

Notes
Unaudited
6 months
30 Sep 20
$000
Unaudited
6 months
30 Sep 19
re-presented
$000
Gross rental income
27,800
32,572
Direct property operating expenses
(7,301)
(8,021)
Net rental income3.120,499
24,551
Management fee income13,058
9,150
Less corporate expenses
Corporate overhead expenses
(7,590)
(8,457)
Administration expenses
(1,844)
(1,791)
Total corporate expenses(9,434)
(10,248)
Profit before net finance expense, other income/(expense) and income tax from
continuing operations
24,123
23,453
Finance income
19
101
Finance expense
(7,395)
(8,069)
Net finance expense5.3(7,376)
(7,968)
Profit before other income/(expense) and income tax from continuing operations16,747
15,485
Other income/(expense)
Net change in fair value of investment properties
3.216,584
15,130
Share of profit in equity-accounted investments
6.222,345
2,126
Hedge ineffectiveness of cash flow hedges
5.2(419)
-
Loss on disposal of investment properties
(78)
-
Profit before income tax from continuing operations55,179
32,741
Income tax expense
7.1(3,567)
(5,732)
Profit after income tax from continuing operations attributable to shareholders51,612
27,009
(Loss)/profit from discontinued operations
6.5(81)
10,413
Profit attributable to shareholders51,531
37,422
Other comprehensive income/(loss):
Items that may be reclassified subsequently to profit or loss
Deferred tax on share-based payment expense
172
64
Gross movement in cash flow hedges
1,629
(2,936)
Tax arising from cash flow hedges
(456)
822
Changes in cash flow hedge reserve in equity-accounted investments
(213)
(281)
Total other comprehensive income/(loss) after tax1,132
(2,331)
Total comprehensive income after tax attributable to shareholders52,663
35,091
Stride Property Limited (SPL) total comprehensive income after tax attributable to shareholders
45,029
20,824
Stride Investment Management Limited (SIML) total comprehensive income after tax attributable
to shareholders7,7153,854
Total comprehensive income after tax attributable to shareholders from continuing operations
52,744
24,678
Total SPL comprehensive (loss)/income after tax from discontinued operations
(81)
10,413
Total comprehensive income after tax attributable to shareholders 52,663
35,091
Earnings per share (EPS) from continuing operations 4.1
Basic EPS (cents)14.12
7.39
Diluted EPS (cents)14.08
7.37
EPS per share from continuing and discontinued operations4.1
Basic EPS (cents)14.10
10.24
Diluted EPS (cents)14.06
10.21
The re-presentation of six months ended 30 September 2019 is due to discontinued operations. Refer note 6.5.
Notes
Number of
shares
000
Share
capital
$000
Retained
earnings
$000
Other
reserves
$000
Total
$000
Balance at 31 Mar 20 (Audited)365,352500,749201,050(3,635)698,164
Transactions with shareholders:
Dividends paid
4.3--(18,103)-(18,103)
Share based payment expense
---169169
Total transactions with shareholders--(18,103)169(17,934)
Other comprehensive income:
Deferred tax on share-based payment expense
---172172
Movement in cash flow hedges, net of tax
---1,1731,173
Change in cash flow reserve in equity-accounted investments
---(213)(213)
Total other comprehensive income---1,1321,132
Profit attributable to shareholders
--51,531-51,531
Total comprehensive income after tax attributable to shareholders--51,5311,13252,663
Balance at 30 Sep 20 (Unaudited)365,352500,749234,478(2,334)732,893
Balance at 31 Mar 19 (Audited)
365,297500,647211,456(7,884)704,219
Transactions with shareholders:
Dividends paid
4.3
--(18,103)-(18,103)
Transfer to share capital on vesting of employee long term incentive plan55102237(339)-
Share based payment expense---224224
Total transactions with shareholders
55102(17,866)(115)(17,879)
Other comprehensive income:
Deferred tax on share-based payment expense---6464
Movement in cash flow hedges, net of tax---(2,114)(2,114)
Change in cash flow reserve in equity-accounted investments---(281)(281)
Total other comprehensive income
---(2,331)(2,331)
Profit attributable to shareholders--37,422-37,422
Total comprehensive income after tax attributable to shareholders
--37,422(2,331)35,091
Balance at 30 Sep 19 (Unaudited)
365,352500,749231,012(10,330)721,431
The attached notes form part of and are to be read in conjunction with these financial statements.The attached notes form part of and are to be read in conjunction with these financial statements.
Consolidated statement of comprehensive incomeConsolidated statement of changes in equity
For the six months ended 30 September 2020For the six months ended 30 September 2020
Stride Property GroupStride Property GroupInterim Report for the six months ended 30 September 2020Interim Report for the six months ended 30 September 20202425

Unaudited
6 months
30 Sep 20
$000
Unaudited
6 months
30 Sep 19
$000
Cash flows from operating activities
Gross rent received
29,920
38,544
Direct property operating and corporate expenses
(18,328)
(25,958)
Management fee income
10,531
9,332
Interest received
19
101
Dividends received
2
3
Interest paid
(5,387)
(7,840)
Borrowings establishment costs
(296)
-
Swap break expenses
(9,293)
-
Income tax paid
(6,336)
(4,154)
Net cash provided by operating activities832
10,028
Cash flows from investing activities
Proceeds from disposal of investment properties
346,816
50,165
Dividend income from equity-accounted investments
2,630
1,986
Acquisition of investment properties
(72,781)
(33,250)
Capital expenditure on investment properties
(10,110)
(22,409)
Investment in equity-accounted investments
(69,550)
-
Investment in other investments
(250)
-
Software expenditure
(80)
(64)
Property, plant and equipment purchased
(72)
(50)
Net cash provided by/(applied to) investing activities196,603
(3,622)
Cash flows from financing activities
Dividends paid
(18,103)
(18,103)
Drawdown on bank borrowings
119,250
66,640
Repayment of bank borrowings
(341,750)
(49,850)
Borrowings from joint venture
47,820
-
Lease liabilities payments
(1,151)
(363)
Net cash applied to financing activities(193,934)
(1,676)
Net increase in cash and cash equivalents held3,501
4,730
Opening cash and cash equivalents
12,098
5,364
Closing cash and cash equivalents15,599
10,094
Stride Property Group (Stride) presents total group cash flows including continuing and discontinued operations. See note 6.5 for cash flows of discontinued operations.
Notes
Unaudited
30 Sep 20
$000
Audited
31 Mar 20
$000
Current assets
Cash at bank
15,599
12,098
Trade and other receivables
7.35,377
3,038
Prepayments
1,646
230
Other current assets
112
120
22,734
15,486
Investment property classified as held for sale
3.2-
132,196
22,734
147,682
Non-current assets
Investment properties
3.2748,052
891,399
Deposit and other prepayments on investment property
3.22,250
1,328
Equity-accounted investments
6.2217,481
103,874
Loan to associate
3,398
3,398
Other investments
250
-
Software
1,131
1,248
Property, plant and equipment
7.46,529
1,349
979,091
1,002,596
Total assets1,001,825
1,150,278
Current liabilities
Trade and other payables
18,776
17,011
Lease liabilities
178
630
Current tax liability
3,266
4,024
Derivative financial instruments
5.2249
8,521
22,469
30,186
Non-current liabilities
Bank borrowings
5.1163,254
385,865
Borrowings {joint venture participating interest)
6.447,820
-
Lease liabilities
27,383
27,479
Deferred tax liability
4,226
4,306
Derivative financial instruments
5.23,780
4,278
246,463
421,928
Total liabilities268,932
452,114
Net assets732,893
698,164
Share capital
500,749
500,749
Retained earnings
234,478
201,050
Reserves
(2,334)
(3,635)
Equity732,893
698,164
SPL equity
722,555
692,531
SIML equity (non-controlling interest)
5.510,338
5,633
Equity732,893
698,164
For and on behalf of the Board of Directors of SPL and SIML, dated 25 November 2020:
The attached notes form part of and are to be read in conjunction with these financial statements.The attached notes form part of and are to be read in conjunction with these financial statements.
Consolidated statement of financial positionConsolidated statement of cash flows
As at 30 September 2020For the six months ended 30 September 2020
Tim Storey
Chair of the Board
John Harvey
Chair of the Audit and Risk Committee
Stride Property GroupStride Property GroupInterim Report for the six months ended 30 September 2020Interim Report for the six months ended 30 September 20202627

1.0 General Information
1.1 Reporting entity
1.2 Basis of preparation
1.3 New standards, amendments and interpretations
1.4 Significant accounting policies, estimates and judgements
1.5 COVID-19 impacts
1.6 Significant events and transactions
1.7 Non-GAAP measures
2.0 Operating Segments
3.0 Property
3.1 Net rental income
3.2 Investment properties
3.3 Capital expenditure commitments contracted for
4.0 Investor Returns
4.1 Basic and diluted earnings per share (EPS)
4.2 Distributable profit
4.3 Dividends paid and proposed
5.0 Capital Structure and Funding
5.1 Borrowings
5.2 Derivative financial instruments
5.3 Net finance expense
5.4 Share capital
5.5 SIML equity (non-controlling interest)
6.0 Equity-accounted Investments
6.1 Industre
6.2 Interests in associates and joint venture
6.3 Industre joint venture
6.4 Industre joint operation
6.5 Discontinued operations
7.0 Other
7.1 Income tax
7.2 Related party disclosures
7.3 Trade and other receivables
7.4 Property, plant and equipment
7.5 Contingent liabilities
7.6 Subsequent events
30
30
30
30
30
30
31
31
32

34
34
35
37
38

38
39
40
41

41
42
42
43
43
44

44
44
45
46
47
48
48
49
50
50
51
51
Reconciliation of profit after income tax attributable to shareholders to net cash provided by operating activities
Notes
Unaudited
6 months
30 Sep 20
$000
Unaudited
6 months
30 Sep 19
$000
Profit after income tax attributable to shareholders (including discontinued operations
note 6.5)
51,531
37,422
Add/(less) non-cash items:
Movement in deferred tax
7.1(275)
922
Income tax movement in cash flow hedges
(357)
(178)
Net change in fair value of investment properties
(21,114)
(24,800)
Loss on disposal of investment properties
4,238
-
Share of profit in equity-accounted investments
(22,345)
(2,126)
Spreading of fixed rental increases
209
(60)
Capitalised lease incentives
(322)
(147)
Lease incentives amortisation
94
571
Capitalised lease incentives - COVID-19 abatements
(2,144)
-
Lease incentives amortisation - COVID-19 abatements
373
-
Rental income abatement provision due to COVID-19
2,216
-
Movement in loss allowance
598
(230)
Share based payment expense
169
224
Depreciation
309
267
Software amortisation
197
179
Hedge ineffectiveness of cash flow hedges
1,075
-
Amortisation of swap break expenses
1,380
637
Accrued interest movement in derivative financial instruments
(303)
60
Borrowings establishment cost amortisation
185
91
15,714
12,832
Add activity reclassified to operating activities
Movement in working capital items relating to investing activities
(2,849)
(1,001)
Movement in borrowings transaction costs classified as operating activities
(9,293)-
3,572
11,831
Movement in working capital:
Increase in trade and other receivables
(2,339)
(6,641)
Increase in prepayments and other current assets
(1,408)
(818)
Increase in trade and other payables
1,765
3,155
(Decrease)/increase in tax liability
(758)
2,501
Net cash provided by operating activities832
10,028
The attached notes form part of and are to be read in conjunction with these financial statements.
Consolidated statement of cash flows (continued)Notes to the consolidated interim financial statements
For the six months ended 30 September 2020For the six months ended 30 September 2020
Stride Property GroupStride Property GroupInterim Report for the six months ended 30 September 2020Interim Report for the six months ended 30 September 20202829

1.0 General Information1.0 General Information (continued)
This section sets out Stride Property Group’s accounting policies that relate to the unaudited consolidated interim 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 the 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 financial statements.
SPL is principally involved in the ownership of investment properties in New Zealand and SIML is principally involved in the management of real estate
investment entities in New Zealand. SPL and SIML are both domiciled in New Zealand, are both registered under the Companies Act 1993 and are both FMC
reporting entities under Part 7 of the Financial Markets Conduct Act 2013.
Shares of SPL and SIML are stapled and quoted on the Main Board equity securities market of NZX under the ticker code SPG.
The financial statements were approved for issue by the Board of Directors of SPL (SPL Board) and the Board of Directors of SIML (SIML Board), together the
“Boards”, on 25 November 2020.
1.2 Basis of preparation
The financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP), New Zealand International
Accounting Standard 34 (NZ IAS 34) Interim Financial Reporting and International Accounting Standard 34 (IAS 34) Interim Financial Reporting.
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.
The financial statements do not contain all the disclosures normally included in an annual financial report and should be read in conjunction with the audited
2020 annual consolidated financial statements.
Certain comparative information has been re-presented. Refer note 6.5 for more information.
1.3 New standards, amendments and interpretations
At the date of approval of the financial statements, there were no relevant standards in issue but not applied.
1.4 Significant accounting policies, estimates and judgements
The same accounting policies and methods of computation are followed in the financial statements as compared with the most recent annual consolidated
financial statements with the exception of the policy for property, plant and equipment (refer note 7.4).
1.5 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.
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. As at 30 September 2020, SPL has provided rent abatements
of $2.1 million and rent deferrals of $0.5 million. Rental abatements that have been agreed with tenants have been accounted for as lease modifications. In
addition, SPL has provided for $2.4 million rental income abatements yet to be agreed with the affected tenants.
As at 31 March 2020, the independent valuations of SPL’s portfolio were reported on the basis of ‘material valuation uncertainty’, meaning less certainty and
a higher degree of caution should be applied to the valuations. As at 30 September 2020, SPL undertook independent valuations of the entire portfolio. The
‘material valuation clause has been removed on all but five of the independent valuations (refer note 3.2).
1.6 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:
Divestment of properties to Investore Property Limited (Investore)
On 30 April 2020, SPL settled on the disposal of three large format retail properties to Investore for $140.75 million (refer note 3.2).
Acquisition of shares in Investore
On 5 May 2020, SPL paid Investore $16.5 million (refer note 7.2) to acquire 10,013,516 shares in Investore’s capital raise. Following that capital raising, SPL's
shareholding in Investore reduced from 19.4% as at 31 March 2020 to 18.8%.
Commencement of Industre Property Joint Venture (Industre)
On 1 July 2020, Industre commenced operations. Industre is a joint arrangement between SPL and a group of international institutional investors, through
a special purpose vehicle, advised by J.P. Morgan Asset Management (JPMAM). On 1 July 2020, SPL held a 68.25% interest in Industre. This reduced to
62.42% as at 30 September 2020 (refer notes 3.2 and 6.0).
Funding
Effective from 24 April 2020, SPL refinanced $135 million of debt for a further three years to 30 June 2024.
Post the settlement of the disposal of the three large format properties to Investore and the settlement of Industre, SPL repaid $206 million in total of bank
borrowings and broke $120 million of interest rate derivatives for a total cost of $9.29 million (refer note 5.2).
Acquisition of investment properties
On 1 April 2020, SPL acquired an industrial property at 16 Wickham Street, Hamilton, for a purchase price of $10 million. This property became part of
Industre (refer note 3.2).
On 2 September 2020, SPL acquired an office building at 34 Shortland Street, Auckland, for a purchase price of $66.4 million (refer note 3.2).
Revaluation of investment properties
SPL undertook independent valuations of the entire portfolio which resulted in a net change in fair value of investment properties of $21.1 million
(30 Sep 19: $24.8 million) (refer note 3.2). The investment properties held by Investore, Industre and Diversified NZ Property Trust (Diversified) were also
valued by independent valuers at 30 September 2020. SPL’s share of the valuation gains/(losses) are reflected in share of profit in equity-accounted
investments and for those properties in the Industre joint operation are reflected in net change in fair value of investment properties.
1.7 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 provide 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.
Stride Property GroupStride Property GroupInterim Report for the six months ended 30 September 2020Interim Report for the six months ended 30 September 20203031

2.0 Operating Segments2.0 Operating Segments (continued)
This section sets out how Stride’s revenue streams are reported internally, reflecting the two operating segments being SPL and SIML.
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. SPL’s revenue streams included the revenue streams earned from the
industrial investment properties divested to Industre.
SIML’s revenue streams are earned from the management of the real estate investments of Investore, Industre, Diversified and SPL. For the revenue earned
from Investore, Industre and Diversified, refer to note 7.2 on related party disclosures and 6.4 on Industre joint operation.
The following is an analysis of Stride’s results, by reportable segments.
Segment profit
SPL
$000
SPL
eliminations
$000
SIML
$000
SIML
eliminations
$000
Unaudited
6 months
30 Sep 20
$000
Net rental income21,1881,439--22,627
Management fee income--18,705(5,647)13,058
Total corporate expenses(3,656)2,489(8,274)-(9,441)
Profit before net finance expense, other income/(expense)
and income tax 17,5323,92810,431(5,647)26,244
Net finance expense(7,353)-(33)10(7,376)
Profit before other income/(expense) and income tax10,1793,92810,398(5,637)18,868
Other income/(expense)
Net change in fair value of investment properties
20,249865--21,114
Share of profit in equity-accounted investments
22,345---22,345
Hedge ineffectiveness of cash flow hedges
(1,075)---(1,075)
Loss on disposal of investment properties
(4,411)173--(4,238)
Profit before income tax 47,2874,96610,398(5,637)57,014
Income tax expense
(2,628)-(2,855)-(5,483)
Profit after income tax attributable to shareholders44,6594,9667,543(5,637)51,531
Total other comprehensive income after tax
960-172-1,132
Total comprehensive income after tax attributable to shareholders 45,6194,9667,715(5,637)52,663
Reconciliation of profit after income tax attributable to shareholders to profit after income tax from continuing operations attributable to shareholders
Segment profit
SPL
$000
SPL
eliminations
$000
SIML
$000
SIML
eliminations
$000
Unaudited
6 months
30 Sep 20
$000
Profit attributable to shareholders44,6594,9667,543(5,637)51,531
Add back loss from discontinued operations
81---81
Profit after income tax from continuing operations attributable to shareholders44,7404,9667,543(5,637)51,612
In the current period, the following expenses payable by SPL to SIML have been eliminated in the consolidated statement of comprehensive income:
• direct property operating expenses $1,439,000 (30 Sep 19: $1,103,000)
• management and accounting fees included in corporate expenses $2,489,000 (30 Sep 19: $2,740,000)
• management fees in respect of capital expenditure on investment properties $865,000 (30 Sep 19: $1,370,000) and divestment of investment
properties $173,000 (30 Sep 19: nil)
In the prior period, following the reclassification from inventory – development property to investment property, $645,000 included in the net change in fair
value of investment properties was also eliminated in the consolidated statement of comprehensive income.
Segment profit
SPL
$000
SPL
eliminations
$000
SIML
$000
SIML
eliminations
$000
Unaudited
6 months
30 Sep 19
$000
Net rental income
27,2471,103--28,350
Management fee income
--14,623(5,473)9,150
Total corporate expenses
(5,065)2,740(9,312)-(11,637)
Profit before net finance expense, other income
and income tax 22,1823,8435,311(5,473)25,863
Net finance expense
(7,943)-(25)-(7,968)
Profit before other income and income tax
14,2393,8435,286(5,473)17,895
Other income
Net change in fair value of investment properties22,7772,023--24,800
Share of profit in equity-accounted investments2,126---2,126
Profit before income tax
39,1425,8665,286(5,473)44,821
Income tax expense(5,903)-(1,496)-(7,399)
Profit after income tax attributable to shareholders
33,2395,8663,790(5,473)37,422
Total other comprehensive (loss)/income after tax(2,395)-64-(2,331)
Total comprehensive income after tax attributable to shareholders
30,8445,8663,854(5,473)35,091
Reconciliation of profit after income tax attributable to shareholders to profit after income tax from continuing operations attributable to shareholders
Segment profit
SPL
$000
SPL
eliminations
$000
SIML
$000
SIML
eliminations
$000
Unaudited
6 months
30 Sep 19
$000
Profit attributable to shareholders
33,2395,8663,790(5,473)37,422
Less profit from discontinued operations(10,413)---(10,413)
Profit after income tax from continuing operations attributable to shareholders
22,8265,8663,790(5,473)27,009
Segment assets and liabilities
SPL
$000
SPL
eliminations
$000
SIML
$000
SIML
eliminations
$000
Total
$000
Balance at 30 Sep 20 (Unaudited)
Total assets
986,946(2,302)17,181-1,001,825
Total liabilities262,089-6,843-268,932
Balance at 31 Mar 20 (Audited)
Total assets1,139,8326979,749-1,150,278
Total liabilities447,998-4,116-452,114
Stride Property GroupStride Property GroupInterim Report for the six months ended 30 September 2020Interim Report for the six months ended 30 September 20203233

3.0 Property3.0 Property (continued)
This section covers property assets which generate Stride’s trading performance.
3.1 Net rental income
Unaudited
6 months
30 Sep 20
$000
Unaudited
6 months
30 Sep 19
re-presented
$000
SPL
Gross rental income
Rental income and service charge income recovered from tenants
28,843
32,797
Spreading of fixed rental increases
(183)
(1)
Capitalised lease incentives
322
147
Lease incentives amortisation
(134)
(371)
Capitalised lease incentives - COVID-19 abatements
1,477
-
Lease incentives amortisation - COVID-19 abatements
(268)
-
Rental income abatement provision due to COVID-19
(2,257)
-
Total gross rental income from continuing operations 27,800
32,572
Direct property operating expenses
Movement in loss allowance
(598)
230
Rates and insurance
(3,068)
(3,161)
Property maintenance costs
(1,588)
(2,181)
Utilities
(611)
(684)
Other non-recoverable property operating expenses
(1,436)
(2,225)
Total direct property operating expenses from continuing operations (7,301)
(8,021)
Net rental income from continuing operations 20,499
24,551
At 30 September 2020, the loss allowance balance was increased by $0.6 million in respect of tenants adversely affected by COVID-19 and a provision of
$2.4 million ($2.3 million for continuing operations and $0.1 million for discontinued operations) for abatements yet to be finalised was provided for.
Other non-recoverable property operating expenses represent operating expenses not recoverable from tenants and property leasing expenses. Salaries and
wages costs of $0.7 million (30 Sep 19: $0.8 million) charged by SIML to SPL have been eliminated in the direct property operating expenses.
3.2 Investment properties
Accounting policy
Investment properties are de-recognised upon disposal. The net gain or loss on disposal to third parties 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. The net gain or loss on disposal to a joint arrangement or associate is recognised only to the
extent of the other investors’ participating interest in the joint arrangement or associate.
SPL
Office
$000
Retail
$000
Industrial
$000
Development
$000
Total
$000
Balance at 31 Mar 20 (Audited)197,614317,920351,44024,425891,399
Disposals
--(212,288)(30,811)(243,099)
Property acquisitions
58,409-10,000-68,409
Subsequent capital expenditure
8604927016,3868,439
Spreading of fixed rental increases
24(207)(26)-(209)
Capitalised lease incentives
322---322
Lease incentives amortisation
(88)(46)40-(94)
Capitalised lease incentives - COVID-19 abatements
3751,102667-2,144
Lease incentives amortisation - COVID-19 abatements
(85)(183)(105)-(373)
Reclassification
(11,000)--11,000-
Net change in fair value
7,2022,39011,522-21,114
Balance at 30 Sep 20 (Unaudited)253,633321,468161,95111,000748,052
Comprising:
Investment property at valuation
242,100305,550161,95111,000720,601
Lease liabilities
11,53315,918--27,451
Total253,633321,468161,95111,000748,052
As at 31 March 2020, SPL had entered into conditional contracts to divest three large format retail properties being Bunnings Mt Roskill, Auckland, Mt
Wellington Shopping Centre, Auckland, and Bay Central Shopping Centre, Tauranga, to Investore for $140.75 million. The properties were reclassified from
investment properties to investment properties classified as held for sale and were held at $132.196 million, being the contracted sales price excluding the
seismic works SPL is to complete, estimated at $7.9 million and rental guarantee costs of $0.6 million. SPL settled on the divestment of the three properties on
30 April 2020. As at 30 September 2020, the seismic works had not commenced and $0.1 million of the rental guarantee had been utilised.
On 1 April 2020, SPL settled on the acquisition of the property at 16 Wickham Street, Hamilton, for a purchase price of $10 million. This property became part
of the Industre joint venture.
On 2 September 2020, SPL acquired an office building at 34 Shortland Street, Auckland, for $66.4 million, including an allowance of $2.25 million for
building upgrades which are expected to be completed over the next 12 to 18 months. SPL has acquired the 17-level building except for levels 4-7, which
are owned by another party. Stride’s head office is located in this building and the value attributable to this floor has been recognised as property, plant and
equipment (refer note 7.4).
Included in the 30 September 2020 balance of investment property at valuation is an implicit right-of-use asset of $22.67 million (31 Mar 20: $22.67 million)
in relation to a peppercorn ground lease at 55 Lady Elizabeth Lane (previously known as 33 Customhouse Quay), Wellington, with an associated immaterial
lease liability.
The $27,451,000 lease liabilities are in respect to the ground leases at NorthWest Shopping Centre, Auckland, and 7-9 Fanshawe Street, Auckland.
The net change in fair value of $21,114,000, being $16,584,000 from continuing operations and $4,530,000 from discontinued operations (refer note 6.5),
(31 Mar 20: ($1,756,000)) includes ($33,000) (31 Mar 20: $62,000) in relation to the change in the value of the lease liabilities.
In the current period, a revaluation movement of $865,000 (31 Mar 20: $3,469,000) arising from the elimination of the fees charged by SIML to SPL (refer
note 2.0), has been reflected in the consolidated statement of financial position. Capital expenditure consists of fit-outs and other physical enhancements to
the investment properties, with ownership of such capital amounts being retained by SPL.
Stride Property GroupStride Property GroupInterim Report for the six months ended 30 September 2020Interim Report for the six months ended 30 September 20203435

3.0 Property (continued)3.0 Property (continued)
3.2 Investment properties (continued)
Valuer
Unaudited
30 Sep 20
$000
Audited
31 Mar 20
$000
Office
7 - 9 Fanshawe Street, AucklandCBRE
10,200
10,400
34 Shortland Street, AucklandSavills
58,700
-
80 Greys Avenue, AucklandColliers
20,700
20,800
21 - 25 Teed Street, AucklandCBRE
25,400
24,700
35 Teed Street, AucklandJLL
20,100
21,000
55 Lady Elizabeth Lane, WellingtonJLL
42,000
39,200
1 Grey Street, WellingtonColliers Wellington
65,000
57,600
22 The Terrace, Wellington
-
12,350
Office total242,100
186,050
Retail
61 Silverdale Street, AucklandSavills
96,500
95,000
NorthWest Shopping Centre, AucklandColliers
149,000
148,000
NorthWest Two, AucklandColliers
35,000
34,000
Johnsonville Shopping Centre, Wellington (50%)Colliers
25,050
25,000
Retail total305,550
302,000
Industrial (62.42% participating interest in Industre (joint operation) for
30 Sep 20 column refer note 6.4)
30 Airpark Drive, AucklandBayleys
21,847
32,500
20 Rockridge Avenue, AucklandSavills
12,921
18,250
25 O’Rorke Road, AucklandSavills
47,097
72,550
15 Rockridge Avenue, AucklandSavills
17,041
26,000
318 East Tamaki Road, AucklandJLL
63,045
98,000
Sub-total 161,951
247,300
Industrial (properties sold to Industre (joint venture) refer note 6.3)
22 Ha Crescent, Auckland
-
14,800
8 Reg Savory Place, Auckland
-
9,800
460 Rosebank Road, Auckland
-
19,600
415 East Tamaki Road, Auckland
-
18,250
15 Ride Way, Auckland
-
12,050
34 Airpark Drive, Auckland
-
8,490
1-3 Selwood Road and 6-12 The Concourse, Auckland
-
21,150
Sub-total-
104,140
Development (property sold to Industre (joint venture))
11 Selwood Road, Auckland
-
24,425
Industrial total161,951
375,865
Development
22 The Terrace, WellingtonColliers Wellington
11,000
-
Total 720,601
863,915
3.2 Investment properties (continued)
The investment properties were valued either by CIVAS Limited (Colliers), Colliers International (Wellington Valuation) Limited (Colliers Wellington), Jones
Lang LaSalle Limited (JLL), Savills (NZ) Limited (Savills), CBRE Limited (CBRE) or Bayleys Valuations Limited (Bayleys) as indicated. The valuations are dated
effective 30 September 2020.
As at 31 March 2020, the valuations were provided on the basis of ‘material valuation uncertainty’ meaning less certainty and a higher degree of caution
should be applied to the valuations. The inclusion and/or amendment of this clause has differed across valuation firms for the valuations undertaken as at
30 September 2020 with the ‘material valuation uncertainty’ remaining in the valuations of the following investment properties:
• 34 Shortland Street, Auckland
• 80 Greys Avenue, Auckland
• NorthWest Shopping Centre and NorthWest Two, Auckland
• Johnsonville Shopping Centre, Wellington
The valuers took into account:
• occupancy (leased area as a proportion of the total net lettable area) on individual investment properties (average is 97.0% at balance date)
(31 Mar 20: 98.1%);
• average lease term (weighted average lease term (WALT) at balance date is 5.5 years) (31 Mar 20: 6.0 years);
• discount rates (ranged from 6.50% to 9.50%) (31 Mar 20: 6.50% to 9.50%), and
• capital expenditure works of $1,508,000 including capital expenditure works of $723,000 relating to the development works at 22 The Terrace,
Wellington.
Capitalisation rates ranged from 4.63% to 9.00% (31 Mar 20: 4.75% to 9.13%).
The estimated sensitivity of the fair value of the total investment property portfolio to changes in the market capitalisation rate and discount rate, assuming the
capitalisation rate or discount rate moved equally on all the properties, is as follows:
Capitalisation rate Discount rate
-0.25%+0.25%-0.25%+0.25%
As at 30 Sep 20 (Unaudited)
Change $000
34,017(31,310)14,584(12,547)
Change %
5(4)2(2)
As at 31 Mar 20 (Audited)
Change $00030,480(25,995)15,726(16,300)
Change %3(3)2(2)
3.3 Capital expenditure commitments contracted for
As at 30 September 2020, SPL has the following commitments:
• $698,000 (31 Mar 20: $690,000) in total for various capital expenditure works to be undertaken on investment properties in this financial year.
• $19.2 million to undertake seismic and building upgrade works at 22 The Terrace, Wellington.
• $0.8 million for further building upgrades on 34 Shortland Street, Auckland.
Subsequent to balance date, SPL has committed to a further $480,000 in total for capital expenditure works to be undertaken on investment properties in this
financial year.
Stride has no other material capital commitments as at 30 September 2020.
Stride Property GroupStride Property GroupInterim Report for the six months ended 30 September 2020Interim Report for the six months ended 30 September 20203637

4.0 Investor Returns4.0 Investor Returns (continued)
This section sets out Stride’s earnings per share and how distributable profit is calculated. Distributable profit is a non-GAAP measurement and is
used by Stride to calculate profit available for distribution to shareholders by way of dividends.
4.1 Basic and diluted earnings per share (EPS)
Basic and diluted EPS amounts are calculated by dividing profit after income tax attributable to shareholders by the weighted average number of shares
on issue.
Weighted average number of shares for the purpose of diluted EPS has been adjusted for 1,488,630 (30 Sep 19: 1,187,838) rights issued under SPL’s long-
term share incentive schemes.
Unaudited
6 months
30 Sep 20
$000
Unaudited
6 months
re-presented
30 Sep 19
$000
Profit after income tax from continuing operations attributable to shareholders 51,612
27,009
Weighted average number of shares for the purpose of basic EPS (000)
365,352
365,336
Basic EPS - SPL
12.06
6.35
Basic EPS - SIML
2.06
1.04
Basic EPS - weighted (cents)14.12
7.39
Weighted average number of shares for the purpose of diluted EPS (000)
366,579
366,540
Diluted EPS - SPL
12.02
6.34
Diluted EPS - SIML
2.06
1.03
Diluted EPS - weighted (cents)14.08
7.37
(Loss)/profit after income tax attributable to shareholders - discontinued operations (81)
10,413
Weighted average number of shares for the purpose of basic EPS (000)
365,352
365,336
Basic EPS - SPL
(0.02)
2.85
Basic EPS - SIML
-
-
Basic EPS - weighted (cents)(0.02)
2.85
Weighted average number of shares for the purpose of diluted EPS (000)
366,579
366,540
Diluted EPS - SPL
(0.02)
2.84
Diluted EPS - SIML
-
-
Diluted EPS - weighted (cents)(0.02)
2.84
Profit attributable to shareholders from continuing and discontinued operations51,531
37,422
Weighted average number of shares for the purpose of basic EPS (000)
365,352
365,336
Basic EPS - SPL
12.04
9.20
Basic EPS - SIML
2.06
1.04
Basic EPS - weighted (cents)14.10
10.24
Weighted average number of shares for the purpose of diluted EPS (000)
366,579
366,540
Diluted EPS - SPL
12.00
9.18
Diluted EPS - SIML
2.06
1.03
Diluted EPS - weighted (cents)14.06
10.21
4.2 Distributable profit
Accounting policy
Stride’s dividend policy is to target a cash dividend to shareholders that is between 95% and 100% of its distributable profit. Distributable profit is
presented to enable investors to see an earnings measure which more closely aligns to Stride’s underlying and recurring earnings from its operations.
Distributable profit is a non-GAAP measure and consists of profit/(loss) before income tax, adjusted for determined non-recurring and/or non-cash
items, share of profits in equity-accounted investments, dividends received from equity-accounted investments and current tax.
Adjusted Funds From Operations (AFFO) is also a non-GAAP measure and is intended as a supplementary measure of operating performance.
Although there is no standard meaning or measure per GAAP, AFFO has been determined based on guidelines established by the Property Council of
Australia. 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 enable the investors to see the cash generating ability of the business.
Unaudited
6 months
30 Sep 20
$000
Unaudited
6 months
30 Sep 19
$000
Profit before income tax (including discontinued operations note 6.5) 57,014
44,821
Non-recurring, non-cash, and other adjustments:
Net change in fair value of investment properties
(21,114)
(24,800)
Reversal of the lease liabilities movement in investment properties
(33)
(203)
Loss on disposal of investment properties
4,238
-
Disposal fee income eliminated in SIML
704
253
Acquisition fee eliminated in SIML
801
-
Development fee income eliminated in SIML
237
1,378
Share of profit in equity-accounted investments
(22,345)
(2,126)
Dividend income from equity-accounted investments
2,630
1,986
Project costs
-
1,364
Spreading of fixed rental increases
209
(60)
Capitalised lease incentives - rent free
-
(142)
Lease incentives amortisation - rent free
74
381
Capitalised lease incentives - cash incentives
(322)
(5)
Lease incentives amortisation - cash incentives
20
190
Capitalised lease incentives - COVID-19 abatements
(2,144)
-
Lease incentives amortisation - COVID-19 abatements
373
-
Share based payment expense
169
224
Depreciation
309
267
Lease liabilities for head office
(196)
(160)
Elimination of gain on acquisition on head office lease liabilities and assets
(12)
-
Software amortisation
197
179
Finance expense - swap break expense
1,380
637
Hedge ineffectiveness of cash flow hedges
1,075
-
Borrowings establishment costs amortisation
185
91
Distributable profit before current income tax23,449
24,275
Current tax expense (5,758)
(6,477)
Adjusted for:
Tax expense on bank borrowings capitalised interest
(50)
(152)
Tax expense on depreciation recovered on disposal of investment properties
3,814
1,785
Income tax movement in cash flow hedges
(387)
(178)
Distributable profit after current income tax21,068
19,253
Adjustments to funds from operations:
Maintenance capital expenditure
(1,042)
(3,788)
Adjusted Funds From Operations (AFFO)20,026
15,465
Stride Property GroupStride Property GroupInterim Report for the six months ended 30 September 2020Interim Report for the six months ended 30 September 20203839

4.0 Investor Returns (continued)5.0 Capital Structure and Funding
4.2 Distributable profit (continued)
Unaudited
6 months
30 Sep 20
$000
Unaudited
6 months
30 Sep 19
$000
Weighted average number of shares for the purpose of basic distributable profit per share (000)
365,352
365,336
Basic distributable profit after current income tax per share - weighted (cents)5.77
5.27
AFFO basic distributable profit after current income tax per share - weighted (cents)5.48
4.23
Weighted average number of shares for the purpose of diluted distributable profit per share (000)
366,579
366,540
Diluted distributable profit after current income tax per share - weighted (cents)5.75
5.25
AFFO diluted distributable profit after current income tax per share - weighted (cents)5.46
4.22
4.3 Dividends paid and proposed
Unaudited
6 months
30 Sep 20
$000
Unaudited
6 months
30 Sep 19
$000
The following dividends were declared and paid by SPL during the period:
Q4 2020 final dividend 2.1575 cents (Q4 2019 2.2075 cents)
7,882
8,065
Q1 2021 interim dividend 1.9275 cents (Q1 2020 2.1575 cents)
7,042
7,883
Total dividends paid - SPL14,924
15,948
The following dividends were declared and paid by SIML during the period:
Q4 2020 final dividend 0.32 cents (Q4 2019 0.27 cents)
1,169
986
Q1 2021 interim dividend 0.55 cents (Q1 2020 0.32 cents)
2,010
1,169
Total dividends paid - SIML3,179
2,155
Total dividends paid - Stride18,103
18,103
Stride's capital structure includes debt and equity, comprising shares and retained earnings as shown in the consolidated statement of financial
position. This section sets out how Stride manages its capital structure, funding exposure to interest rate risk and related financing costs.
5.1 Borrowings
Unaudited
30 Sep 20
$000
Audited
31 Mar 20
$000
Non-current
Bank facility drawn down
163,740
386,240
Unamortised borrowing costs
(486)
(375)
Total net borrowings163,254
385,865
Total bank facility available304,938
505,000
Bank facility drawn down
163,740
386,240
Undrawn bank facility available
141,198
118,760
Facility A
170,000
200,000
Facility B
134,938
200,000
Facility C
-
105,000
Total bank facility available304,938
505,000
Bank facility expiry dates
Facility A
31 Aug 2022
31 Aug 2022
Facility B
30 Jun 2024
9 Jun 2021
Facility C
-
6 Nov 2021
Weighted average interest rate for drawn debt
(inclusive of current interest rate derivatives, margins and line fees) at balance date4.44%3.61%
SPL’s bank borrowings are via syndicated senior secured facilities with ANZ Bank New Zealand Limited (ANZ), Commonwealth Bank of Australia and Westpac
New Zealand Limited.
Effective from 24 April 2020, SPL refinanced $135 million of debt for a further three years to 30 June 2024. As a part of this refinancing, SPL chose to reduce
its total available facilities post the settlement of the disposal of the three large format properties to Investore and the settlement of Industre to $305 million.
Key changes to SPL’s facility agreement, which took effect from the completion of Industre, are as follows:
• the entities involved in Industre, and their properties, fall outside the guaranteeing group for the SPL facility.
• margins and line fees vary depending on the mix of assets held by SPL. Lower margins and fees will apply where SPL’s asset and tenant mix is sufficiently
diversified to allow improved capital treatment from its lenders’ perspective.
The bank security on the facilities is managed through a security agent who holds a first registered mortgage on all the investment properties owned by SPL
and a registered first ranking security interest under a General Security Deed over substantially all the assets of SPL. SPL has been compliant with bank
covenants during the respective periods.
SIML does not have any bank borrowings (31 Mar 20: nil) however, it does have a $3 million overdraft facility with ANZ, which has not been utilised during the
current period.
Stride Property GroupStride Property GroupInterim Report for the six months ended 30 September 2020Interim Report for the six months ended 30 September 20204041

5.0 Capital Structure and Funding (continued)5.0 Capital Structure and Funding (continued)
5.2 Derivative financial instruments
SPL
Unaudited
30 Sep 20
$000
Audited
31 Mar 20
$000
Total active interest rate derivative contracts75,000
195,000
Interest rate derivative liabilities - current
249
8,521
Interest rate derivative liabilities - non-current
3,780
4,278
Fair values of interest rate derivatives4,029
12,799
Fixed interest rates ranges
2.92% - 3.59%
2.70% - 3.59%
Weighted average interest rate
3.25%
3.00%
Percentage of drawn debt hedged
46%
50%
Following the disposal of the three large format properties to Investore and the settlement of Industre:
• interest rate derivative contracts with a notional value of $120 million were broken on 30 June 2020 for a cost of $9,293,000. The banking
syndicate has agreed for SPL to exclude the $9,293,000 from the interest times cover covenant. Of the total swap break costs incurred, $1,075,000
(31 Mar 2020: $8,218,000) ($419,000 from continuing operations and $656,000 from discontinued operations (refer to note 6.5)) has been
recognised as hedge ineffectiveness in the current year.
• $1,380,000 has been expensed to finance expense - swap break expense in the consolidated statement of comprehensive income relating to swap
break costs recognised in equity as other reserves as at 31 March 2020. This expense related to interest rate derivative contracts, with a notional value
of $100 million, that were broken between 24 and 30 April 2018 for a cost of $4,058,000 and have been expensed in the current period as the hedged
future cash flows are no longer expected to occur.
As at 30 September 2020, the fair value of the interest rate derivatives was determined using valuation techniques classified as Level 2 in the fair value
hierarchy (31 Mar 20: Level 2).
5.3 Net finance expense
SPL
Unaudited
6 months
30 Sep 20
$000
Unaudited
6 months
30 Sep 19
$000
Finance income19
101
Finance expense
Bank borrowings interest
(5,111)
(6,710)
Finance expense - swap break expense (note 5.2)
(1,380)
(637)
Finance expense - lease liabilities
(904)
(722)
Total finance expense(7,395)
(8,069)
Net finance expense from continuing operations(7,376)
(7,968)
5.4 Share capital
There is only one class of shares, being ordinary shares, and they rank equally with each other. All issued shares are fully paid and have no par value.
5.5 SIML equity (non-controlling interest)
Notes
Total
$000
Balance 31 Mar 20 (Audited)5,633
Transactions with shareholders:
Dividends paid
4.3(3,179)
Other movements in reserves
169
Total transactions with shareholders(3,010)
Total other comprehensive income172
Profit after income tax
7,543
Total comprehensive income7,715
Balance 30 Sep 20 (Unaudited)10,338
Balance 31 Mar 19 (Audited)
2,516
Transactions with shareholders:
Dividends paid
4.3
(2,155)
Other movements in reserves236
Total transactions with shareholders
(1,919)
Total other comprehensive income
64
Profit after income tax3,790
Total comprehensive income
3,854
Balance 30 Sep 19 (Unaudited)
4,451
Stride Property GroupStride Property GroupInterim Report for the six months ended 30 September 2020Interim Report for the six months ended 30 September 20204243

6.0 Equity-Accounted Investments
This section sets out how the equity accounted investments held by SPL are accounted for in Stride.
6.1 Industre
Effective from 1 July 2020, Industre commenced operations. Industre owns and develops for long term income producing purposes industrial property in
New Zealand, primarily located in the Auckland region. SPL contributed all its industrial properties to Industre, including the property at 16 Wickham Street,
Hamilton, that SPL acquired on 1 April 2020.
Initially JPMAM committed approximately $70 million to the establishment of Industre and has additionally allocated a further $115 million of capital to fund
near term growth initiatives, subject to meeting certain investment return and approval thresholds, taking JPMAM’s total equity committed to $185 million.
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).
The agreement between SPL and JPMAM in relation to their co-ownership requires unanimous consent from both parties for all relevant activities. The
accounting for the arrangements by SPL is a combination of a joint operation (proportionate share of assets, liabilities, revenue and expenses) and joint venture
(equity accounted). SIML is the manager of the joint arrangement.
6.2 Interests in associates and joint venture
Accounting policy
Interests in associates and the joint venture are accounted for using the equity method and are stated in the consolidated statement of financial position
at cost, adjusted for the movement in SPL’s share of their net assets and liabilities. Under this method, SPL’s share of profits and losses after tax of
associates and profit and loss before tax of the joint venture are included in SPL’s profit before taxation. Adjustments to the carrying amount are also
made for SPL’s share of changes in the associates’ and the joint venture’s other comprehensive income. SPL’s accounting policy is not to take account
of the effects of transactions recorded directly in equity outside profit or loss and other comprehensive income.
Under the equity method, gain or loss resulting from transfer of investment properties to associates and the joint venture in exchange for cash or shares
is recognised only to the extent of the other investors’ interest in the associates or the joint venture, however when cash and shares are received, the
portion of the gain or loss relating to cash is recognised in full.
Set out below is a summary of the associates of SPL as at 30 September 2020, which, in the opinion of the directors, are material to SPL.
Unaudited
30 Sep 20
$000
Audited
31 Mar 20
$000
Equity-accounted investments – carrying amount
Investore
134,347
103,428
Diversified
1,081
446
Industre joint venture
82,053
-
217,481
103,874
Unaudited
6 months
30 Sep 20
$000
Unaudited
6 months
30 Sep 19
$000
Share of profit in equity-accounted investments
Investore
17,224
2,012
Diversified
617
114
Industre joint venture
4,504
-
22,345
2,126
6.0 Equity-Accounted Investments (continued)
6.3 Industre joint venture
Industre joint venture comprises of Industre Property Tahi Limited (Tahi), Industre Property Rua Limited (Rua) and Industre Property Finance Limited
(FinCo). SPL has rights to the net assets of these entities, and consequently, these entities are classified as a joint venture.
Tahi and Rua hold legal and beneficial ownership of certain properties (as denoted in note 3.2). FinCo is a funding vehicle established to obtain bank
borrowings and on-lend the funds to Tahi, Rua and Industre joint operation, which are financial guarantors in the funding arrangement. As at 30 September
2020, the value of the financial guarantee was nil.
Tahi and Rua are eligible and have elected to be multi-rate PIEs of which the income tax liability arises to the investors. Accordingly, SPL recognises current
and deferred tax as part of its taxes in note 7.1 (rather than as part of the investment in the joint venture).
Summarised financial information for Industre joint venture
Unaudited
30 Sep 20
$000
SPL’s share in carrying percentages 62.42%
Opening carrying amount -
Initial investment on 30 June 2020
67,816
Share of profit from investment in Industre joint venture
4,504
Deemed equity contribution with a corresponding reduction in SPL’s interest in Industre joint operation
9,857
Disposal of investment
(124)
Closing carrying amount82,053
The table below summarises SPL’s share of assets, liabilities, revenues and expenses in Industre joint venture:
Unaudited
30 Sep 20
100%
$000
Unaudited
30 Sep 20
participating
interest
$000
Assets
Current assets
4,4492,777
Investment properties
213,660133,367
Other non-current assets
76,61147,820
294,720183,964
Liabilities
Current liabilities
4,6182,883
Borrowings
157,09398,057
161,711100,940
Net assets133,00983,024
Loss on sale of properties in exchange for cash received from Industre joint venture
(971)
Closing carrying amount82,053
Income
2,1281,389
Expenses
(1,178)(769)
Net change in fair value of investment properties
5,9503,884
Net share of profit*6,9004,504
* This information relates to the three month period from 1 July to 30 September 2020. SPL’s share in the Industre joint venture reduced from 68.25%
as at 30 June 2020 to 62.42% as at 30 September 2020. SPL’s net share of the Industre joint venture’s profit is calculated on the weighted average
participating interest during the period.
Stride Property GroupStride Property GroupInterim Report for the six months ended 30 September 2020Interim Report for the six months ended 30 September 20204445

6.0 Equity-Accounted Investments (continued)
6.5 Discontinued operations
Industrial investment properties were considered a major portfolio (sector) of SPL’s operations and were distinguished operationally and for financial
purposes from the other sectors. Discontinued operations refer to a core part of an entity’s operation that has been divested.
The financial performance and cash flow information for the discontinued operations are for the period ended 30 June 2020 (30 Sep 20 column) and the
six months ended 30 September 2019.
Only JPMAM special purpose vehicle’s participating interest has been treated as discontinued in respect of the joint operation as SPL retained a partial
direct ownership interest in the properties. 100% of the Industre joint venture has been treated as discontinued.
SPL
Unaudited
6 months
30 Sep 20
$000
Unaudited
6 months
30 Sep 19
$000
Gross rental income
2,529
4,389
Direct property operating expenses
(401)
(590)
Net rental income2,128
3,799
Less corporate expenses
Administration expenses
(7)
(25)
One-off project costs
-
(1,364)
Total corporate expenses(7)
(1,389)
Profit before other income/(expense) and income tax 2,121
2,410
Other income/(expense)
Net change in fair value of investment properties (note 3.2)
4,530
9,670
Hedge ineffectiveness of cash flow hedges (note 5.2)
(656)
-
Loss on disposal of investment properties
(4,160)
-
Profit before income tax 1,835
12,080
Income tax expense (note 7.1)
(1,916)
(1,667)
(Loss)/profit after income tax from discontinued operations
(81)10,413
Net cash (outflow)/inflow from operating activities(456)
743
Net cash inflow/(outflow) from investing activities142,234
(33,453)
Net cash (outflow)/inflow from financing activities(196,450)
33,340
6.0 Equity-Accounted Investments (continued)
6.4 Industre joint operation
SPL holds a 62.42% interest in a joint arrangement with JPMAM relating to the investment properties as denoted in note 3.2. The Industre joint operation
holds the beneficial ownership of certain properties. SPL recognises its direct right to the jointly held assets, liabilities, revenues and expenses of the joint
operation as described below.
Summarised financial information for Industre joint operation
The table below summarises the assets, liabilities, revenues and expenses of Industre joint operation, and represent SPL’s share included in the
financial statements:
Unaudited
30 Sep 20
100%
$000
Unaudited
30 Sep 20
participating
interest
$000
Assets
Current assets
1,180736
Investment properties
259,453161,951
260,633162,687
Liabilities
Current liabilities
1,314821
Borrowings
76,61147,820
77,92548,641
Net assets
182,708114,046
Income
3,5652,354
Expenses
(1,448)(933)
Net change in fair value of investment properties
10,3026,362
Net share of profit*
12,4197,783
* This information relates to the three month period from 1 July to 30 September 2020. SPL’s share in the Industre joint operation reduced from 68.25%
as at 30 June 2020 to 62.42% as at 30 September 2020. The average ownership interest for the period has been used to recognise SPL’s net share of
the Industre joint operation’s profit.
SPL’s portion of the borrowings in the Industre joint operation are with Finco, which is in the Industre joint venture. This loan is on the same terms as the
banking facility with Finco.
The below fee income was earned from the Industre joint operation. It represents the participating interest held by the participant AP SG 17 Pte. Limited.
The management fees paid from SPL to SIML are eliminated in the consolidated statement of comprehensive income.
Unaudited
6 months
30 Sep 20
$000
Unaudited
6 months
30 Sep 19
$000
Acquisition fee income
376
-
Asset management fee income
88
-
Performance fee income
24
-
Building management fee income
8
-
Maintenance fee income
1
-
497
-
Stride Property GroupStride Property GroupInterim Report for the six months ended 30 September 2020Interim Report for the six months ended 30 September 20204647

7.0 Other (continued)
7.2 Related party disclosures
Unaudited
6 months
30 Sep 20
$000
Unaudited
6 months
30 Sep 19
$000
The following transactions with a related party took place:
Diversified
Asset management fee income
1,298
1,507
Salaries and wages recovery
1,103
1,188
Building management fee income
691
975
Project management fee income
1,074
865
Leasing fee income
696
454
Accounting fee income
88
88
Licensing fee income
35
33
Total fee income4,985
5,110
Rent paid
(58)(67)
Distribution income
-
163
Interest income
-
70
Investore
Asset management fee income
2,383
2,045
Performance fee income
1,446
1,008
Leasing fee income
408
45
Building management fee income
217
201
Accounting fee income
125
125
Capital raising fee income
89
-
Project management fee income
22
42
Maintenance fee income
19
11
Disposal fee income
-
97
Total fee income4,709
3,574
Dividend income
2,630
1,986
Consideration paid for shares
(16,522)
-
Consideration received for the disposal of investment properties
140,750
-
Industre joint venture
Acquisition fee income
1,266
-
Asset management fee income
176
-
Performance fee income
332
-
Building management fee income
17
-
Leasing fee income
168
-
Project management fee income
608
-
Maintenance fee income
4
-
Total fee income2,571
-
Consideration received for the disposal of investment properties
206,066
-
Consideration paid for shares
(53,028)
-
Interest expense
(365)
-
7.0 Other
This section contains additional information to assist in understanding the financial performance and position of Stride.
7.1 Income tax
Unaudited
6 months
30 Sep 20
$000
Unaudited
6 months
30 Sep 19
$000
Profit before income tax (including discontinued operations note 6.5)57,014
44,821
Prima facie income tax using the company tax rate of 28% (15,964)
(12,550)
Decrease/(increase) in income tax due to:
Net change in fair value of investment properties
5,671
6,377
Non-taxable income
4,661
655
Assessable income
(64)
(10)
Depreciation
1,799
1,209
Depreciation recovered on disposal of investment properties
(3,814)
(1,785)
Non-deductible expenses
(561)
(824)
Expenditure deductible for tax
2,689
291
Temporary differences
(175)
160
Current tax expense(5,758)
(6,477)
Investment property depreciation
(2,058)
(884)
Other
2,333
(38)
Deferred tax charged to profit or loss
275(922)
Income tax expense per the consolidated statement of comprehensive income from
continuing and discontinued operations
(5,483)(7,399)
Income tax expense from continuing operations
(3,567)
(5,732)
Income tax expense from discontinued operations
(1,916)
(1,667)
Income tax expense per the consolidated statement of comprehensive income from
continuing and discontinued operations
(5,483)(7,399)
In the current period, the income tax expense arising from the swap break expense in the cash flow hedges has been shown in other comprehensive
income of ($387,000) (30 Sep 19: ($178,000)). Income tax expense arising from the Industre joint venture (Tahi and Rua) is ($52,000) (30 Sep 19: nil).
As part of its COVID-19 support package the New Zealand Government has reintroduced a 2% diminishing value depreciation deduction for commercial
properties, starting in April 2020 for SPL. This is estimated to provide a reduction in current tax to SPL of approximately $1.1 million for the year ending
31 March 2021, excluding depreciation deductions on any investment property acquisitions from 1 April 2020.
Stride Property GroupStride Property GroupInterim Report for the six months ended 30 September 2020Interim Report for the six months ended 30 September 20204849

7.0 Other (continued)7.0 Other (continued)
7.2 Related party disclosures (continued)
Unaudited
30 Sep 20
$000
Audited
31 Mar 20
$000
The following balances were receivable from/(payable to) a related party
Investore - related party receivable
737
617
Diversified - related party receivable
397
547
Diversified - interest-bearing loan
3,398
3,398
Industre joint venture (Tahi/Rua/Finco) - payable
(960)
-
Industre joint venture (Finco) - borrowings
(47,820)
-

7.3 Trade and other receivables
Unaudited
30 Sep 20
$000
Audited
31 Mar 20
$000
Current
Trade and other receivables
2,9392,472
Less loss allowance
(1,196)(598)
Accrued income receivable from AP SG17 Pte. Limited
2,500-
Related party receivable (note 7.2)
1,1341,164
5,3773,038
Included in 30 September 2020 trade and other receivables balance is $2,500,000 (31 Mar 2020: nil) accrued income expected to be received from
AP SG 17 Pte. Limited, a participant in the Industre joint operation. The income is a result of The Concourse Development Profit as contemplated under the
arrangements between the two participants.
7.4 Property, plant and equipment
Accounting policy
Land and buildings are recognised at fair value as determined at least every 12 months by an independent registered valuer. A revaluation surplus is
credited to other reserves in shareholders’ equity. All other property, plant and equipment is recognised at historical cost less depreciation.
Unaudited
30 Sep 20
$000
Audited
31 Mar 20
$000
Property, plant and equipment
6,5291,349
On 2 September 2020, SPL acquired an office building at 34 Shortland Street, Auckland. Stride’s head office is located in this building and the value
attributable to this floor of $5.7 million has been recognised as property, plant and equipment.
7.5 Contingent liabilities
Stride has no contingent liabilities at balance date (31 Mar 2020: nil).
7.6 Subsequent events
On 19 November 2020, SPL declared unconditional an agreement to acquire the property at 215 Lambton Quay, Wellington, for $84.5m. Settlement is
expected to occur on 30 November 2020.
On 24 November 2020, SPL entered into a conditional agreement to acquire the investment property at 20 Customhouse Quay, Wellington, for $228 million.
This agreement is conditional upon completion of due diligence and successful completion of the $180 million placement announced on 25 November 2020.
In connection with this acquisition, Stride announced on 25 November 2020 that it is launching a capital raise, comprising a placement for $180 million
and a Share Purchase Plan for up to $40 million (with the ability to accept additional applications at Stride's discretion), to partly fund this acquisition and the
acquisition of 215 Lambton Quay, Wellington. SPL has also signed a commitment letter for an additional $100 million three year debt facility to support growth
of the office and retail portfolios. This facility will become available subject to the settlement of 20 Customhouse Quay and finalisation of facility documentation.
On 25 November 2020, Stride announced that it intends to declare a combined cash dividend of 2.4775 cents per share on 30 November 2020.
There have been no other material events subsequent to 30 September 2020.
Stride Property GroupStride Property GroupInterim Report for the six months ended 30 September 2020Interim Report for the six months ended 30 September 20205051

Independent auditor’s review report
To the shareholders of Stride Property Group
Report on the consolidated interim financial statements
Our conclusion
We have reviewed the consolidated interim financial statements of Stride Property Group, which consists of Stride Property Limited (SPL) and Stride
Investment Management Limited (SIML) (together “Stride”) on pages 24 to 51 which comprise the consolidated statement of financial position as at
30 September 2020, and the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated
statement of cash flows for the six months ended on that date, and significant accounting policies and other explanatory information.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial statements do not
present fairly, in all material respects, the financial position of Stride as at 30 September 2020, and its financial performance and cash flows for the period then
ended, in accordance with International Accounting Standard 34 Interim Financial Reporting (IAS 34) and New Zealand Equivalent to International Accounting
Standard 34 Interim Financial Reporting (NZ IAS 34).
Basis for conclusion
We conducted our review in accordance with the New Zealand Standard on Review Engagements 2410 (Revised) Review of Financial Statements Performed
by the Independent Auditor of the Entity (NZ SRE 2410 (Revised)). Our responsibilities are further described in the Auditor’s responsibilities for the review of
the consolidated interim financial statements section of our report.
We are independent of Stride in accordance with the relevant ethical requirements in New Zealand relating to the audit of the annual financial statements, and
we have fulfilled our other ethical responsibilities in accordance with these ethical requirements. In addition to our role as auditor, our firm carries out other
services for Stride in the areas of assurance services for Stride over tenancy marketing and operating expenses. The provision of these other services has not
impaired our independence.
Emphasis of matter – material uncertainty related to investment property
As discussed in note 1.5 and note 3.2 of the consolidated interim financial statements, the independent registered valuers have included a material valuation
uncertainty clause in five of their valuation reports which equates to $288.45 million or 40% of the total investment property value of $720.6 million. This
clause highlights that less certainty, and consequently a higher degree of caution, should be attached to the point estimate valuation as a result of the
COVID-19 pandemic. This represents an increase in the significant estimation uncertainty in the valuation of investment property. Our opinion is not modified in
respect of this matter.
Directors responsibility for the consolidated interim financial statements
The Directors of SPL and SIML respectively are responsible on behalf of Stride for the preparation and fair presentation of these consolidated interim financial
statements in accordance with IAS 34 and NZ IAS 34 and for such internal control as the Directors determine is necessary to enable the preparation and fair
presentation of consolidated interim financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s responsibility for the review of the consolidated interim financial statements
Our responsibility is to express a conclusion on the consolidated interim financial statements based on our review. NZ SRE 2410 (Revised) requires us to
conclude whether anything has come to our attention that causes us to believe that the consolidated interim financial statements, taken as a whole, are not
prepared in all material respects, in accordance with IAS 34 and NZ IAS 34. A review of consolidated interim financial statements in accordance with NZ SRE
2410 (Revised) is a limited assurance engagement. We perform procedures, primarily consisting of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review procedures.
The procedures performed in a review are substantially less than those performed in an audit conducted in accordance with International Standards on
Auditing and International Standards on Auditing (New Zealand) and consequently does not enable us to obtain assurance that we might identify in an audit.
Accordingly, we do not express an audit opinion on these consolidated interim financial statements.
Who we report to
This report is made solely to the shareholders of SPL and SIML, as a body. Our review work has been undertaken so that we might state to the shareholders of
SPL and SIML those matters which we are required to state to them in our review report and for no other purpose. To the fullest extent permitted by law, we do
not accept or assume responsibility to anyone other than Stride and the shareholders of SPL and SIML, as a body, for our review procedures, for this report, or
for the conclusion we have formed.
The engagement partner on the review resulting in this independent auditor’s review report is Karen Shires.
For and on behalf of:
Chartered Accountants Auckland
25 November 2020
Corporate Directory
Board of Directors
Tim Storey (Chair)
John Harvey
Michelle Tierney
Philip Ling
Nick Jacobson
Jacqueline Cheyne
Registered Office
Level 12, 34 Shortland Street, Auckland 1010
PO Box 6320, Victoria Street West, Auckland 1142
New Zealand
T +64 9 912 2690
W strideproperty.co.nz
Auditor
PricewaterhouseCoopers
PricewaterhouseCoopers Tower
15 Customs Street West, Auckland 1010
Private Bag 92162, Auckland 1142
Share Registrar
Computershare Investor Services Limited
Level 2, 159 Hurstmere Road, Takapuna
Private Bag 92119, Victoria Street West, Auckland 1142
T +64 9 488 8777
F +64 9 488 8787
E enquiry@computershare.co.nz
Legal Adviser
Bell Gully
Level 21, Vero Centre, 48 Shortland Street, Auckland 1010
PO Box 4199, Auckland 1140
Bankers
ANZ Bank New Zealand Limited
Commonwealth Bank of Australia
Westpac New Zealand Limited
Stride Property GroupStride Property GroupInterim Report for the six months ended 30 September 2020Interim Report for the six months ended 30 September 20205253

Stride Property Group
Level 12, 34 Shortland Street, Auckland 1010
PO Box 6320, Victoria Street West, Auckland 1142
New Zealand
T +64 9 912 2690
W strideproperty.co.nz

---

Stride Property Group Interim Results for the six months ended 30 September 2020 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
1
Stride Property Group
Interim Results
for the six months ended 30 September 2020
and Capital Raising

Stride Property Group Interim Results for the six months ended 30 September 2020 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
2
This presentation has been prepared by Stride Property Limited (SPL) and Stride Investment Management Limited (SIML) (SPL
and SIML together, Stride Property Group or Stride) in relation to: (1) the interim results of Stride for the six months ended 30
September 2020; and (2) an offer of new stapled securities of Stride Property Group, each comprising one ordinary share in SPL
and one ordinary share in SIML (New Stapled Securities) by way of: (a) a placement to eligible institutional and other selected
investors (Placement); and (b) a share purchase plan to existing eligible securityholders of Stride Property Group with a
registered address in New Zealand (Share Purchase Plan), in reliance on clause 19 of Schedule 1 to the Financial Markets
Conduct Act 2013 (FMCA) and in reliance on a class waiver and ruling issued by NZX Regulation dated 30 September 2020 (the
Placementand the Share Purchase Plan, together, are the Offer).
Information: This presentation contains summary information about Stride and its activities that is current as of the date of this
presentation. The information in this presentation is of a general nature and does not purport to be complete nor does it contain
all the information which a prospective investor may require in evaluating a possible investment in Stride or that would be
required in a product disclosure statement for the purposes of the FMCA. Stride is subject to disclosure obligations under the
NZX listing rules that require it to notify certain material information to NZX Limited (NZX). This presentation should be read in
conjunction with Stride's other periodic and continuous disclosure announcements released to NZX (which are available at
www.nzx.com/companies/SPG). No information set out in this presentation will form the basis of any contract.
Interim Results: The information in this presentation is intended to constitute a summary of certain information relating to the
performance of Stride Property Group for the six months ended 30 September 2020. Please refer to Stride Property Group's
Interim Report 2020 for further information in relation to the six months ended 30 September 2020.
Financial data: This presentation includes certain financial measures that are "non-GAAP financial information" under Guidance
Note 2017: 'Disclosing non-GAAP financial information' published by the New Zealand Financial Markets Authority. Non-GAAP
financial information does not have a standardised meaning prescribed by GAAP and therefore may not be comparable to similar
financial information presented by other entities.
NZX: The New Stapled Securities will be quoted on the NZX Main Board following completion of allotment procedures. However,
NZX accepts no responsibility for any statement in this presentation. NZX is a licensed market operator, and the NZX Main Board
is a licensed market under the FMCA.
Non-Standard designation: Stride has been designated as a "Non-Standard" (NS) issuer by NZX due to its stapled structure.
Further details of the waivers from the NZX Listing Rules that have been granted by NZX to give effect to that stapled structure
and the implications of investing in stapled securities of Stride Property Group are included on pages 140 to 142 of Stride's
Annual Report for the financial year ended 31 March 2020.
Not financial product advice: This presentation does not constitute legal, financial, tax, financial product advice or investment
advice or a recommendation to acquire stapled securities in Stride, and has been prepared without taking into account the
objectives, financial situation or needs of individuals. Before making an investment decision, prospective investors should
consider the appropriateness of the information having regard to their own objectives, financial situation and needs and consult
an NZX Firm or solicitor, accountant or other professional advisor if necessary. In making an investment decision, investors must
rely on their own examination of Stride Property Group, including the merits and risks involved. Investors should consult with their
own legal, tax, business and/or financial advisors in connection with any acquisition of securities.
Investment risk: An investment in stapled securities in Stride is subject to investment and other known and unknown risks, some
of which are beyond the control of Stride. The Key Risks section on pages 37 to 41 of this presentation ("Key Risks") includes a
non-exhaustive summary of certain key risks associated with Stride and the Offer. Stride does not guarantee any particular rate
of return or its performance.
Not an offer: This presentation is not a prospectus or product disclosure statement or other offering document under New
Zealand law or any other law (and will not be lodged with the Registrar of Financial Service Providers). This presentation isfor
information purposes only and is not an invitation or offer of securities for subscription, purchase or sale in any jurisdiction. Any
decision to purchase New Stapled Securities in the Share Purchase Plan must be made on the basis of all information provided
in relation to the Offer, including information to be contained or referred to in a separate offer document which will be available
following its release via NZX (Offer Document).
Any eligible securityholder who wishes to participate in the Share Purchase Plan should consider the Offer Document in deciding
to apply under that offer. Anyone who wishes to apply for New Stapled Securities under the Share Purchase Plan will need to
apply in accordance with the instructions contained in the Offer Document and the application form. This presentation does not
constitute investment or financial advice (nor tax, accounting or legal advice) or any recommendation to acquire New Stapled
Securities and does not and will not form any part of any contract for the acquisition of New Stapled Securities.
Restrictions on distribution: This presentation is not for distribution or release in the United States. This presentation does not
constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States. The distribution of this
presentation outside New Zealand may be restricted by law. Any recipient of this presentation who is outside New Zealand must
seek advice on and observe any such restrictions. Refer to the section "International Offer Restrictions" of this presentation for
information on restrictions on eligibility criteria to participate in the Offer.
Disclaimer: None of SPL, SIML, Goldman Sachs New Zealand Limited or their related companies and affiliates including, in
each case, their respective shareholders, directors, officers, employees, affiliates, agents or advisors, as the case may be
(Specified Persons), have independently verified or will verify any of the content of this presentation and none of them are under
any obligation to you if they become aware of any change to or inaccuracy in the information in this presentation.
To the maximum extent permitted by law, each Specified Person disclaims and excludes all liability whatsoever for any loss, damage or other
consequence (whether foreseeable or not) suffered by any person from the use of the content of this presentation, from refraining from acting
because of anything contained in or omitted from this presentation or otherwise arising in connection therewith (including for negligence, default,
misrepresentation or by omission and whether arising under statute, in contract or equity or from any other cause). To the maximum extent
permitted by law, no Specified Person makes any representation or warranty, either express or implied, as to the accuracy, completeness or
reliability of the information contained in this presentation. You agree that you will not bring any proceedings against or holdor purport to hold any
Specified Person liable in any respect for this presentation and content of this presentation and waive any rights you may otherwise have in this
respect.
Past performance: Past performance information provided in this presentation is given for illustrative purposes only, should not be relied upon
and may not be a reliable indication of future performance. No guarantee of future returns is implied or given.
Forward-looking statements: This presentation may contain certain forward-looking statements with respect to the financial condition, results of
operations and business of Stride. Forward-looking statements can generally be identified by the use of words such as 'project','foresee', 'plan',
'expect', 'aim', 'intend', 'anticipate', 'believe', 'estimate', 'may', 'should', 'will' or similar expressions. This also includes statements regarding the
timetable, conduct and outcome of the Offer and the use of proceeds thereof, statements about the plans, objectives and strategies of the
management of Stride, and statements about the future performance of Stride's business. Any indications of, or guidance or outlook on, future
earnings or financial position or performance and future distributions are also forward-looking statements. All such forward-looking statements
involve known and unknown risks, significant uncertainties, assumptions, contingencies, and other factors, many of which are outside the control
of Stride, which may cause the actual results or performance of Stride to be materially different from any future results or performance expressed
or implied by such forward-looking statements. Such forward-looking statements speak only as of the date of this presentation. Except as
required by law or regulation (including the NZX Listing Rules), Stride undertakes no obligation to update these forward-lookingstatements for
events or circumstances that occur subsequent to such dates or to update or keep current any of the information contained herein. Any estimates
or projections as to events that may occur in the future (including projections of revenue, expense, net income and performance)are based upon
the best judgement of Stride from the information available as of the date of this presentation. A number of factors could causeactual results or
performance to vary materially from the projections, including the risk factors set out in this presentation. Investors should consider the forward-
looking statements in this presentation in light of those risks and disclosures. You are strongly cautioned not to place undue reliance on any
forward-looking statements, particularly in light of the current economic climate and the significant volatility, uncertainty and disruption caused by
the outbreak of COVID-19.
Lead Manager and Underwriter: In connection with the bookbuild to be conducted in respect of the Placement (Bookbuild), one or more
investors may elect to acquire an economic interest in the New Stapled Securities (Economic Interest), instead of subscribing for or acquiring
the legal or beneficial interest in those stapled securities. Goldman Sachs New Zealand Limited or its affiliates may, for their own account, write
derivative transactions with those investors relating to the New Stapled Securities to provide the Economic Interest, or otherwise acquire stapled
securities of Stride in connection with the writing of such derivative transactions in the Bookbuild and/or the secondary market. As a result of such
transactions, Goldman Sachs New Zealand Limited or its affiliates may be allocated, subscribe for or acquire New Stapled Securities or stapled
securities of Stride in the Bookbuild and/or the secondary market, including to hedge those derivative transactions, as well as hold long or short
positions in such shares. These transactions may, together with other stapled securities of Stride acquired by Goldman SachsNew Zealand
Limited or its affiliates in connection with its ordinary course sales and trading, principal investing and other activities,result in Goldman Sachs
New Zealand Limited or its affiliates disclosing a substantial holding and earning fees.
Goldman Sachs New Zealand Limited and its affiliates are full service financial institutions engaged in various activities, which may include
trading, financing, corporate advisory, financial advisory, investment management, investment research, principal investment,hedging, market
making, brokerage and other financial and non-financial activities and services. Goldman Sachs New Zealand Limited and its affiliates have
provided, and may in the future provide, financial advisory, financing services and other services to Stride and to persons and entities with
relationships with Stride, for which they received or will receive customary fees and expenses. In the ordinary course of its various business
activities, Goldman Sachs New Zealand Limited and its affiliates may purchase, sell or hold a broad array of investments and actively trade
securities, derivatives, loans, commodities, currencies, credit default swaps and other financial instruments for their own account and for the
accounts of their customers, and such investment and trading activities may involve or relate to assets, securities and/or instruments of Stride,
and/or persons and entities with relationships with Stride. Goldman Sachs New Zealand Limited and its affiliates may also communicate
independent investment recommendations, market colour or trading ideas and/or publish or express independent research views in respect of
such assets, securities or instruments and may at any time hold, or recommend to clients that they should acquire, long and/or short positions in
such assets, securities and instruments.
General: For the purposes of this Disclaimer and Important Notice, "presentation" shall mean the slides, any oral presentation of the slides by
Stride, any question-and-answer session that follows that oral presentation, hard copies of this document and any materials distributed at, or in
connection with, that presentation. The information and opinions contained in this presentation are provided as at the date of this presentation
and are subject to change without notice. Stride reserves the right to withdraw, or vary the timetable for, the Placement orthe Share Purchase
Plan, without notice.
Acceptance: By attending or reading this presentation, you agree to be bound by the foregoing limitations and restrictions and, in particular, will
be deemed to have represented, warranted, undertaken and agreed that: (i) you have read and agree to comply with the contents of this
Disclaimer and Important Notice; (ii) you are permitted under applicable laws and regulations to receive the information contained in this
presentation; (iii) you will base any investment decision solely on information released by Stride via NZX (including, in thecase of the Share
Purchase Plan, the Offer Document); and (iv) you agree that this presentation may not be reproduced in any form or further distributed to any
other person, passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose.
Disclaimer and Important Notice

Stride Property Group Interim Results for the six months ended 30 September 2020 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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Capitalised and technical terms are defined in the glossary on page 53.
4
Execution of Strategy
9
HY21 Highlights
22
COVID-19 Update
23
Sustainability
24
Interim Results
29
Capital Management
32
Capital Raise
42
Conclusion
44
Appendices
52
Glossary
Contents

Stride Property Group Interim Results for the six months ended 30 September 2020 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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Execution of Strategy

Stride Property Group Interim Results for the six months ended 30 September 2020 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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Stride’s strategy is to invest in places with enduring demand, which attracts strong demand in all market
conditions. This supports our strategy of establishing a group of investment management products (or Stride
Products) in specific commercial property sectors to provide growth in our investment management business
Over time, Stride Property Limited (SPL) will hold an interest in each Stride Product that is developed and
which focuses on a specific sector or sectors, with the Stride Products managed by Stride Investment
Management Limited (SIML). SPL and SIML together form the stapled group, Stride Property Group (Stride)
Stride will:
•Build portfolios of assets within SPL that can be used to establish new sector-specific investment
management products, with SPL taking a cornerstone interest
•Continue to support and grow our existing products, Investore, Diversified and the latest product, Industre
Property Joint Venture
•Evaluate opportunities in markets adjacent to core commercial property sectors
Stride’s strategy is built
on four strategic pillars:
Strategy

Stride Property Group Interim Results for the six months ended 30 September 2020 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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Commencement and growth of Industre
Stride’s latest investment management product, Industre Property Joint Venture (Industre), commenced
on 1 July 2020. Since then, Industre has acquired four industrial properties for a total price of
$45.5m, taking the total Industre portfolio value to $473m as at 30 September 2020. Industre continues
to be active in the industrial investment and development markets
Growth in Office Portfolio
Stride has stated that it will acquire property to support its strategy of establishing a group of investment
management products in specific sectors. Following settlement of the acquisitions outlined below, SPL’s
office portfolio value will increase to $571m as at 30 September 2020 (pro forma
1
and excluding
committed works at 34 Shortland Street, Auckland, and 22 The Terrace, Wellington), an increase of
$385m since 31 March 2020, including revaluation movement. This increase is due primarily to three
completed and contracted acquisitions:
•34 Shortland Street, Auckland –$67.5m(including allowance for capital upgrades
2
) –settled
2 September 2020
•215 Lambton Quay, Wellington (Grant Thornton House) –$84.5m –unconditional agreement,
expected to settle 30 November 2020
•20 Customhouse Quay, Wellington –$228m –conditional agreement, if the acquisition proceeds,
expected to settle on or before 21 December 2020
During the six months to 30 September 2020, SPL has
undertaken a number of transformative transactions, which
significantly advance its strategy
1.As at 30 September 2020, as if the acquisition of the properties at 215 Lambton Quay, Wellington (which acquisition is unconditional and
expected to settle on 30 November 2020) and 20 Customhouse Quay, Wellington (which acquisition remains conditional on completionof due
diligence and successful completion of the Placement announced today, and, if the acquisition proceeds, is expected to settleonor before
21 December 2020) had settled as at that date.
2.SPL paid $66.4m for the property at 34 Shortland Street, including $2.25m for building upgrades, and has committed to a further $0.8m for
additional upgrades.
Execution of strategy
34 Shortland Street, Auckland

Stride Property Group Interim Results for the six months ended 30 September 2020 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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1.Conditional on completion of due diligence and successful completion of the Placement announced today.
2.Capital raise comprises a $180m underwritten placement and a $40m non-underwritten Share Purchase Plan (with the ability to accept additional applications at Stride’s discretion).
3.As at 30 September 2020, as if the following transactions had completed as that date: (1) the capital raise, assuming gross proceeds to SPL of $215m (with SIML receiving $5m gross proceeds); settlement of the contracted acquisitions
(comprising the acquisition of 215 Lambton Quay, Wellington, which acquisition is unconditional and expected to settle on 30 November 2020 and the acquisition of 20 Customhouse Quay, Wellington, which acquisition remains conditional
on completion of due diligenceand successful completion of the Placement announced today); and (3) a new bank facility of $100m which was secured in November 2020 was in place as at that date.
4.Comprising the value of SPL’s office portfolio as at 30 September 2020 and including acquisitions and committed developments at 34 Shortland Street, Auckland, and 22 The Terrace, Wellington.
5.Assets Under Management comprise the value of the portfolios of SPL, Investore Property Limited, Industre Property Joint Ventureand Diversified NZ Property Trust as at 30 September 2020 and including acquisitions and committed
developments.
Capital raise and acquisitions
Acquisition of Grant Thornton House,
Wellington
•$84.5m
•Unconditional agreement, settlement expected
30 November 2020
•Grade A office building
•100% NBS seismic rating
Acquisition of 20 Customhouse Quay,
Wellington
•$228m
•Conditional agreement
1
, if conditions satisfied
settlement expected 21 December 2020
•Premium grade, 5 Green Star NZ –Office Design
completed in 2018
•Base isolated, >100% NBS seismic rating (IL2)
•12.6 years WALT
Capital raise to partly fund acquisitions
•Capital raise
2
launched today for $220m
•Additional $100m bank facility arranged
•$139m bank debt facility available pro forma
3
, and
$115m available after committed developments at
34 Shortland Street, Auckland, and 22 The Terrace,
Wellington
Outcomes
•Post acquisitions, SPL’s office portfolio will be valued at
$595m
4
, and SIML’s total AUM will be $2.90b
5
•SPL’s office and retail portfolio will comprise 66%
office and 34% retail (by value) with a 5.8 year WALT
•Pro forma LVR
3
expected to be 30.3%
•FY21 dividend guidance 9.91cpscombined cash
dividend for SPL and SIML, assuming no further
significant economic deterioration due to COVID-19

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$980m $980m
-
$980m
$196m
6
$1,176m
$473m
$26m
1
$499m
-
$499m
$113m
5
$612m
$460m
$58m
$518m
-
$518m
$518m
$564m
2
$337m
3
$901m
$115m
4
$1,016m
$1,914m
$1,997m
$2,898m
$3,322m
External AUM as at
Sep-20
Industre
developments and
committed
acquisitions
Diversified
Queensgate
development
Pro forma external
AUM
Stride office and
retail (Sep-20)
Acquisitions and
committed
developments
Total pro forma
AUM
Available capitalTotal pro forma
AUM plus available
capital
1.Comprises the purchase price of 439 Rosebank Road, Auckland, plus remaining capital expenditure as at30 September 2020 for the developments at Selwood Road, Auckland and Wickham Street, Hamilton.
2.Includes value of Level 12, 34 Shortland Street, which houses Stride’s head office, and is shown in the consolidated interim financial statements as property, plant and equipment.
3.Comprises contracted acquisitions and committed developments at 34 Shortland Street and 22 The Terrace. Contracted acquisitions comprise 215 Lambton Quay, Wellington, which acquisition is unconditional, as well as the acquisition of
20 Customhouse Quay, Wellington, which remains conditional on completion of due diligence and successful completion of the Placement announced today.
4.Available capital comprises SPL’s uncommitted banking facilities available for future developments and acquisitions, calculated as at30 September 2020, as if the additional $100m bank facility committed post that date had been in place
as at30 September 2020.
5.Available capital comprises Industre’suncommitted banking facilities available for future developments and acquisitions, plus balance of JPMAM’s committed capital contribution to Industre.
6.Available capital comprises Investore’suncommitted banking facilities available for future developments and acquisitions, calculated as at30 September 2020, as if the additional $30m bank facility committed post that date had been in
place as at30 September 2020.
SIML assets under management

Stride Property Group Interim Results for the six months ended 30 September 2020 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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HY21 Highlights

Stride Property Group Interim Results for the six months ended 30 September 2020 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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Stride Property Group (Stride) -Consolidated
Earnings
•Net rental income of $20.5m (HY20: $24.6m), down $4.1m, of which $3.4m relates to the sale of three
large format retail assets to Investore Property Limited on 30 April 2020
•Management fee income $13.1m (HY20: $9.2m), up $3.9m
•Profit before income tax from continuing operations of $55.2m (HY20: $32.7m), up $22.4m
•Profit after income tax from continuing operations of $51.6m (HY20: $27.0m), up $24.6m
•Distributable profit
1
after current income tax of $21.1m (HY20: $19.3m), up $1.8m
•Combined 9.91cps total combined cash dividend forecast for Stride for FY21
2
Profit after income tax from
continuing operations
$51.6m
Distributable profit
1
after current income tax
$21.1m
NTA per share as at 30 September 2020
$2.00
LVR as at 30 September 2020
29.0%
Portfolio growth
•Total portfolio value
3
of $726.3m as at 30 September 2020, a net valuation increase of $21.1m or 2.9%
from 31 March 2020. Five of the portfolio valuations remain subject to ‘material valuation uncertainty’ as a
result of COVID-19. See Property valuation risk statement on page 39
•SPL office and retail portfolio value of $564.4m as at 30 September 2020, a net valuation increase of
$9.6m or 1.7%, from 31 March 2020
•Net Tangible Assets (NTA) per share of $2.00 as at 30 September 2020, expected to be $2.01 on a pro
forma basis
4
following the capital raise and acquisition of the two Wellington office properties
1.See glossary on page 53.
2.Assuming no further significant restrictions or deterioration in economic activity due to COVID-19.
3.Excludes lease liabilities. Includes Stride’s 62.4% interest in the unincorporated component of the Industre Property Joint Venture. For more information, see note 3.2 to the consolidated interim financial statements. Includes value of
Level 12, 34 Shortland Street, which houses Stride's head office, and is shown in the consolidated interim financial statements as property, plant and equipment. Due to COVID-19, the investment property valuations for five properties in the SPL
portfolio 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.
4.Assuming $220m of additional equity at an issue price of $2.10, being the floor price of the Placement, equating to an additional 104.8m stapled securities issued. Assumes total estimated costs of the capital raising of 2.1% of gross proceeds.
5.See footnote 3 on page 7.
Capital management
•Capital raise launched today, comprising an underwritten placement of $180mand a Share Purchase Plan
(not underwritten) seeking to raise $40m, with the ability to accept additional applications at Stride’s
discretion
•Following the capital raise and contracted acquisitions, the Loan to Value Ratio (LVR) is expected to be
30.3%
5
and SPL is expected to have $139m of undrawn bank facilities available
5
or $115m after
committed developments at 34 Shortland Street, Auckland, and 22 The Terrace, Wellington
Performance

Stride Property Group Interim Results for the six months ended 30 September 2020 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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Stride Property Limited (SPL)
Office Acquisitions
•34 Shortland Street, Auckland –acquired in September 2020 for $67.5m
(including an allowance of between $3-$3.5m for certain capital upgrades
1
)
•215 Lambton Quay, Wellington (Grant Thornton House) -SPL has an
unconditional agreement to purchase this office building at 215 Lambton
Quay, Wellington for $84.5m, with settlement expected to occur on
30 November 2020
•20 Customhouse Quay, Wellington -SPL has a conditional agreement
2
to
acquire this building for $228m, and if the acquisition proceeds, it is expected
to settle on or before 21 December 2020
Divestments
•Sale of three large format retail properties to Investore for $140.75m,
settled 30 April 2020
Refurbishment and Upgrade
•22 The Terrace, Wellington -SPL is upgrading its existing office building on
The Terrace, including undertaking seismic strengthening work, refurbishment
of all floors and amenities, and installation of green building initiatives
•34 Shortland Street, Auckland -a number of capital upgrades and
improvement projects are planned over the short to medium term to add value
to this recent acquisition
Places
34 Shortland Street, Auckland
1.See footnote 2 on page 6.
2.Conditional on completion of due diligence and successful completion of the Placement announced today.

Stride Property Group Interim Results for the six months ended 30 September 2020 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
12
•SPL has an unconditional agreement to acquire a quality office asset
located at 215 Lambton Quay, Wellington, with settlement expected to
occur 30 November 2020
•Grant Thornton House is a 16-level, grade A office building in the heart of
Wellington’s CBD with ground floor retail boasting extensive road frontage
to Lambton Quay’s golden mile
•Recently refurbished with a strong tenant base and 100% NBS seismic
rating
•The transaction aligns with Stride’s office strategy to grow assets within the
core Auckland and Wellington CBD markets
Key metrics
Purchase price
$84.5m
Net income
$5.0m
Initial Yield
6.0%
WALT
1
3.4 years
Net Lettable Area
10,934 sqm
Occupancy (by area)
99.0%
Key tenants
ANZ, Grant Thornton, NZIER, NZ Government
departments
Acquisition overview
215 Lambton Quay, Wellington (Grant Thornton House)
215 Lambton Quay, Wellington (Grant Thornton House)
1.See glossary on page 53.

Stride Property Group Interim Results for the six months ended 30 September 2020 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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Key metrics
Purchase price
$228m
Net income
$10.2m
Initial Yield
4.5%
WALT
3
12.6 years
Net Lettable Area
17,359 sqm
Occupancy (by area)
100.0%
Key tenants
Deloitte, IAG, Kiwibank
1.Conditional on completion of due diligence and successful completion of the Placement announced today.
2.Calculated taking into accountSPL’s directly owned properties plus its indirect interest through its shareholding in each
of the Stride Products, Industre, Investore and Diversified.
3.See glossary on page 53.
Acquisition overview
20 Customhouse Quay, Wellington
•SPL has a conditional agreement
1
to acquire a premium grade office asset located
at 20 Customhouse Quay, Wellington
•The building was completed in 2018, and is a unique office building, being base
isolated, located in a prime central location, with a 5 Green Star NZ –Office Design
•The transaction aligns with Stride’s office strategy to grow assets within the core
Auckland and Wellington CBD markets
•Following the acquisition of this property and Grant Thornton House:
•SPL’s office portfolio WALT
3
increases from 3.9 to 6.6 years
•SPL’s office and retail portfolio will be weighted (by value) 66% to office and
34% to retail shopping centres
•SPL’s portfolio exposure on a look through basis
2
by value is 42% office,
22% industrial, 23% retail shopping centres and 13% large format retail
20 Customhouse Quay, Wellington. Photo by Thomas Seear-Budd

Stride Property Group Interim Results for the six months ended 30 September 2020 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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•Stride has established a Sustainability Committee that reports to
the Stride Boards to set sustainability initiatives and focus areas
•Stride’s people continue to go to great lengths to support our
tenants and the business of Stride and its Products, particularly
during COVID-19
•During the six months to 30 September 2020, Stride undertook a
review of benefits provided to staff, and as a result has increased
annual leave by one week per year and, from 1 April 2021,
employer KiwiSavercontributions will increase to 5%, when
matched by employee contributions. These benefits are designed
to ensure Stride attracts and retains the best people
•The Stride team has undertaken a number of events and initiatives
to support wellbeing during Stride’s mental health awareness
month, with each week devoted to one of the key mental health
awareness pillars of giving, being active, taking notice, learning and
connecting
People
Foodbank donations and LOUD shirt day

Stride Property Group Interim Results for the six months ended 30 September 2020 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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$259m
$306m
$460m
$473m
$337m
$58m
$26m
$901m
$980m
$518m
$499m
Office
Retail Shopping Centres
Large Format Retail
Industrial
Committed developments and acquisitions
Portfolio composition by value as at 30 September 2020
1
Since 31 March 2020, Stride’s Assets Under Management (AUM) has grown from $2.17b to $2.48b ($2.90b following completion of contracted acquisitions and
committed developments), with external AUM increasing from $1.18b to $1.91b. SPL will continue to own an interest in each of the Stride Products.
Products
Stride Property Limited is an NZX listed
company which invests directly in
commercial property and also indirectly
through its interests in the Stride
Products
Investore Property Limited is an NZX
listed company which has a singular and
unique focus on investing in large format
retail property
Diversified NZ Property Trust is an
Australian trust which owns retail
shopping centres in New Zealand
Industre is a joint venture between SPL and a
group of international institutional investors
advised by JPMAM. Industre is focused on the
industrial property sector in New Zealand
SPL investment in Stride Product:18.8%2.0%62.4%
3
Office and Retail
2
1.As at 30 September 2020. Committed developments and acquisitions include: (1) Stride: the acquisition of 215 Lambton Quay, Wellington (which acquisition is unconditional and is expected to settle on 30 November 2020); the acquisition of
20 Customhouse Quay, Wellington, which acquisition remains conditional on completion of due diligence and successful completion of the Placement announced today; and committed developments at 34 Shortland Street, Auckland, and 22 The
Terrace, Wellington; (2) Industre: the acquisition of 439 Rosebank Road, Auckland and committed developments and (3) Diversified: the committed development at Queensgate Shopping Centre.
2.Stride office and retail property excludes SPL's interest in the Industre unincorporated portfolio which is reported as part of the assets of SPL in the consolidated interim financial statements (see note 3.2 to the consolidated interim financial
statements for further information). These assets are reported as part of the Industreportfolio on this page.
3.SPL expects its participating interest in Industrewill reduce over time as the strategy is for JPMAM to fund further portfolio growth until the respective shareholdings in theportfolio are 75% / 25% (JPMAM / SPL).

Stride Property Group Interim Results for the six months ended 30 September 2020 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
16
Active Portfolio Management
•WALT
1
of 10.2 years
•57 lease extensions and renewals completed, including COVID-19 related deals, with a
weighted average lease extension of seven months across all COVID-19 deals
Targeted Growth
•Portfolio valued
2
at $980.3m, a 9.4% net revaluation gain
3
for HY21
•6-month total shareholder return
4
to 30 September 2020 of 36.2% (24.6% in the nine months
since 31 December 2019), outperforming gross S&P/NZX 50 and gross All Real Estate index by
16.3% and 15.4% respectively (or 22.3% and 28.3% respectively in the nine months since 31
December 2019)
Continued Optimisation of the Portfolio
•Property adjacent to Countdown Papakura acquired in March 2020 for $1.2m enabling
expansion of carpark and improved customer access
•Collaboration with Countdown on redevelopment of the Rotorua supermarket including full
internal store refurbishment, parking amenity, new energy efficient heating and ventilation
systems
Proactive Capital Management
•$105m equity raised in April / May 2020, with net proceeds used to repay bank debt
•$125m 7-year listed bonds issued in August 2020 at a 2.4% interest rate
•New $50m, 5-year facility secured and $101m existing facility extended for three additional
years, with additional 3-year $30m facility agreed post-balance date, introducing ICBC into the
banking group
•Loan to value ratio (LVR) as at 30 September 2020 of 28.3%
5
, compared to 31.3% as at
31 March 2020
1.See glossary on page 53.
2.Portfolio value excludes: (1) $7.0m of seismic works to be completed by SPL on the three large format retail properties acquiredfrom SPL on 30 April 2020, and the balance of the rental guarantee of $0.4m from SPL; and (2) lease liabilities. The
valuation of the property at 35 MacLagganStreet, Dunedin, remains subject to ‘material valuation uncertainty’ due to the expiry of the tenant lease in July 2021.
3.Compared to Investore’s property portfolio as at 31 March 2020, and including the three properties acquired from SPL as if thoseproperties had been acquired as at that date, based on the purchase price for those three properties excluding
(1) the $7.0m of seismic works to be completed by SPL on the properties, and (2) the rental guarantee of $0.5m from SPL.
4.Total shareholder return calculated as cumulative share price and dividend returns.
5.LVR is calculated based on independent valuations, which include seismic works and rental underwrites to be funded by SPL in relation to the three properties acquired from SPL and settled in April 2020. The independent valuations also exclude
lease liabilities.
Products
Countdown, Rotorua

Stride Property Group Interim Results for the six months ended 30 September 2020 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
17
•Total portfolio value of $460.2m,
representing a $19.1m or 4.6% net valuation
increase for HY21
•COVID-19 rental relief arrangements
completed for approximately 70% of tenants
resulting in a weighted average lease
extension of 10 months across all COVID-19
relief arrangements
•The redevelopment of part of the
Queensgate Shopping Centre is progressing
well and the construction team has worked
hard to mitigate the impacts of COVID-19,
with the carpark remaining on track to open
in early 2021 and the state of the art cinema
complex scheduled to open in early 2022
Products
Cinema and carpark rebuild, QueensgateShopping Centre, Lower Hutt

Stride Property Group Interim Results for the six months ended 30 September 2020 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
18
•Stride’s latest product, Industre, commenced
operations from 1 July 2020. Industreis a joint
venture between SPL and a group of international
institutional investors, through a special purpose
vehicle and advised by J.P. Morgan Asset
Management (together, JPMAM)
•SPL and JPMAM have strong growth ambitions for
Industre. Since commencement, the joint venture
has acquired four additional industrial properties for
a net purchase price of $45.5m, with 439 Rosebank
Road, Avondale ($8m) settlement expected to occur
in the next few months
•Industre has completed the development of two
industrial facilities for Waste Management -
Selwood Road, Henderson, Auckland (October
2020) and Wickham Street, Hamilton (November
2020), each with 25-year leases
•JPMAM contributed all of the equity amounts in
relation to the above acquisitions and accordingly
Stride’s shareholding in Industre has reduced from
approximately 68.3% at establishment of Industre,
to approximately 62.4% as at 30 September 2020
•SPL expects its participating interest in Industrewill
reduce over time as JPMAM funds further portfolio
growth until the respective shareholdings in the
portfolio are 75% / 25% (JPMAM / SPL)
1.Comprises the purchase price of 439 Rosebank Road, Auckland, plus remaining capital expenditure as at 30 September 2020 for the developments at Selwood Road, Auckland and Wickham Street, Hamilton.
2.Available capital comprises the uncommitted portion of Industre’sbanking facilities available for future developments and acquisitions, plus balance of JPMAM’s committed capital contributionto Industre.
6
Products
2
1
2
1
2
Waste Management Facility, Selwood Road, Henderson, Auckland

Stride Property Group Interim Results for the six months ended 30 September 2020 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
19
Overview
Pro forma
1
as at
30 Sept 20
As at
30 Sept 20
Pro forma
2
as at
31 Mar 20
As at
31 Mar 20
Properties (no.)
14121126
Tenants (no.)
343311310388
Net Lettable Area (sqm)
134,667106,374 103,026 259,285
Net Contract Rental
3
($m)
54.639.3 36.1 63.0
WALT
3
(years)
5.84.3 4.4 5.8
Occupancy (% by area)
96.795.995.998.1
Portfolio Valuation
4
($m)
876.9
5
564.4
5
488.1996.1
6
Excluding COVID-19 negotiations, SIML completed 141 lease
transactions for SPL during the six months ended 30 September 2020:
•96 rent reviews over 27,248 sqm for a total annual rental of $14.5m. All of the reviews
completed were CPI or fixed and equated to an annualised increase of +3.2%
•34 lease renewals over 4,470 sqm for a total annual rental of $1.8m
•11 new lettings completed over 3,060 sqm for a total annual rental of $1.1m
1.As at 30 September 2020, as if the acquisition of the properties at 215 Lambton Quay, Wellington (which acquisition is unconditional and expected to settle on 30 November 2020) and 20 Customhouse Quay, Wellington (which acquisition remains
conditional on completion of due diligence and successful completion of the Placement announced today, and, if the acquisition proceeds, is expected to settle on or before 21 December 2020) had settled as at 30 September 2020. Excludes
committed developments and SPL's interest in the Industre unincorporated portfolio which is reported as part of the assets of SPL in the consolidated interim financial statements (see note 3.2 to the interim consolidated financial statements for
further information).
2.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; and (2) the commencement of Industre.
3.See glossary on page 53.
4.Excludes lease liabilities.
5.Includes value of Level 12, 34 Shortland Street, which houses Stride's head office, and is shown in the consolidated interim financial statements as property, plant and equipment.
6.The portfolio as at 31 March 2020 includes the three large format retail properties that SPL agreed to sell to Investore for $140.75m. These properties were classified as investment properties held for sale and were recorded at $132.2m as at
31 March 2020, after allowing for the cost of certain 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.
SPL Location
1
by Contract Rental
3
●56% Auckland
●44% Wellington
SPL Sector
1
by Contract Rental
3
●57% Office
●43% Retail Shopping Centre
SPL office and retail portfolio
14%
22%
16%
6%
23%
15%
4%
18%
12%
FY21FY22FY23
SPL Lease Expiry Profile
3
by Contract Rental
3
31-Mar-20 Pro forma
30-Sep-20
30-Sep-20 Pro forma