FY23 Results

IMMEDIATE – 19 May 2023

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Annual Report
2023

Investore has been designated as a “Non-Standard” (NS)
issuer by NZX. A copy of the waivers granted by NZX from
NZX Listing Rules 2.2.1 to 2.8.1 and 2.10.1 in respect of
Investore’s “NS” designation can be found at
www.nzx.com/companies/IPL/documents
Contents
2 Financial Overview
4 Portfolio Overview
6 Chair’s Letter
10 Board of Directors
12 Manager’s Report
14 Portfolio
18 Enhancing the Portfolio
20 Delivering Rental Growth
22 Proactive Capital Management
27 Financial Summary
28 Consolidated Financial Statements
62 Corporate Governance
80 Statutory Disclosures
88 Glossary
89 Corporate Directory
Capitalised terms have the meaning
given in the glossary on page 88.
Investore Property LimitedAnnual Report 20231

$60.3m
net rental income
from FY22
Up $2.0m or 3%
7.90 cents
per share cash dividend
for FY23
Financial Overview
For the 12 months ended
31 March 2023 (FY23)
1. See glossary on page 88.
2. Loan to value ratio (LVR) is calculated based on
independent valuations, which exclude lease liabilities.
drawn debt hedged or subject
to a fixed rate of interest as at
31 March 2023
92%
weighted average cost of
debt as at 31 March 2023
4.0%
distributable profit per share
8.44 cents
profit before other (expense)/
income and income tax
$35.2m
from FY22
Up $0.9m or 3%
loss after income tax due to a net
investment property devaluation
of $(185.2)m in FY23
$(150.2)m
distributable profit
1
after
current income tax
$31.0m
from FY22
Up $1.2m or 4%
in FY22
Up from 8.11 cents per share
36.5%
loan to value ratio
2
as at
31 March 2023
as at 31 March 2022
Up from 29.5%
Investore’s investment property
portfolio delivered strong
operational performance in
FY23, although the value of its
portfolio has been impacted by a
higher interest rate environment
placing upwards pressure on
property capitalisation rates.
Investore continues to take a
prudent approach to capital
management which has
insulated operating earnings
from the full effects of higher
interest rates, and assists in
managing the current volatile
macroeconomic environment
Investore Property LimitedInvestore Property LimitedAnnual Report 2023Annual Report 202323

Portfolio Overview
As at 31 March 2023
Investore continues to seek
opportunities to grow and optimise
its portfolio:
• Completed the acquisition of land at Hakarau Road,
Kaiapoi, for $10.1m, and commenced construction of
a new Countdown supermarket on this site targeting a
5 Green Star rating and delivering an expected yield on
cost of 5.5%
• Acquisition of land at Countdown Papakura for $18.0m,
which was previously held as leasehold land, giving
Investore control over the whole site and improved
development options
• Agreement with Countdown to expand the customer
amenity at Countdown Rangiora, including an online room
and new pickup bays, delivering a 7.5% per annum return
on cost of up to $1.0m
• Completed 82 rent reviews during FY23 across
130,000 sqm, comprising over half of the portfolio
Contract Rental
3
, delivering a rental increase of 3.3%
on prior rentals
Key investment portfolio metrics
2
Countdown, Newtown
44 properties
143 tenants
8.1 years
weighted average
lease term (WALT)
99.5%
portfolio occupancy by area
4
The Investore portfolio is valued
1

at $1.1bn as at 31 March 2023,
representing a net valuation decrease of
$(185.2)m or (14.9%) over the
12 months from 31 March 2022. This
decrease is primarily due to the average
portfolio
2
capitalisation rate increasing to
5.7%, up 0.9% from 31 March 2022
achieved Green Star
Performance ratings in FY23
16 properties
1. Excludes lease liabilities.
2. Excludes properties categorised as “Development and Other” in note 2.2 to the consolidated financial statements.
3. See glossary on page 88.
4. Vacant tenancies with current or pending development works are excluded from occupancy statistics. At 31 March 2023
metric excluded 2,947 sqm at Bay Central, Tauranga.
Investore Property LimitedInvestore Property LimitedAnnual Report 2023Annual Report 202345

Chair’s Letter
Financial Results
Investore’s portfolio of high quality, well located large format
retail properties continues to deliver resilient operating earnings.
Profit before other (expense)/income and income tax for FY23
was $35.2 million, up $0.9 million from FY22. This increase was
primarily a result of higher net rental income, up $2.0 million to
$60.3 million, driven largely by acquisitions completed during
FY22 and FY23, and rent reviews completed during FY23
delivering higher rental income. Total corporate expenses at
$8.9 million were $1.1 million lower than FY22, as a result of
no performance fees being incurred during FY23, partly offset
by higher asset management fee expenses. Asset management
fees are calculated as a percentage of the value of Investore’s
portfolio and therefore moves with movements in the value of
Investore’s portfolio. Overall this resulted in profit before net
finance expense, other (expense)/income and income tax of
$51.4 million, which was $3.1 million higher than the prior year
(FY22: $48.3 million). However, higher net finance expenses
(FY23: $16.2 million; FY22: $14.0 million) offset some of
this movement.
Loss after income tax of $(150.2) million (FY22: $118.2 million
profit after income tax) was primarily due to a $(185.2) million
net reduction in the fair value of investment properties in
FY23, compared with a net gain in the fair value of investment
properties of $91.0 million for FY22. As noted, this portfolio
devaluation is due to a softening in capitalisation rates across
the portfolio, which is a reflection in part of the higher interest
rate environment.
Net Tangible Assets (NTA) per share as at 31 March 2023 is
$1.84, a decrease of $0.48 from 31 March 2022 where NTA
per share was $2.32, due primarily to the portfolio valuation
movement.
Growth and Optimisation
of the Portfolio
Investore’s portfolio comprises large format retail properties
with a total portfolio value of $1.1 billion. The portfolio
continues to demonstrate strong, desirable metrics, with a high
concentration of tenants focussed on everyday needs, which
continue to drive resilient underlying earnings.
Investore has continued to grow its portfolio in FY23 through
considered acquisitions which provide further growth potential
and enhance the overall portfolio, with a focus on areas which
are highly populated or which have strong population
growth potential.
Investore settled on the acquisition of a 3.3ha parcel of land
in Hakarau Road, Kaiapoi, for $10.1 million in September
2022, and has commenced construction of a new Countdown
supermarket on the site, targeting a 5 Green Star rating. This
supermarket is expected to be completed at the end of 2023.
The development has an expected yield on cost of 5.5% and the
balance of the land is being held for future retail development.
Investore also acquired the balance of the freehold land at its
existing property located at 3 Averill Street, Papakura, Auckland,
for $18.0 million in late August 2022. The acquisition of this
freehold land provides Investore with complete control of
the landholding at this site, broadening future development
opportunities.
In addition to growth through acquisitions and developments,
Investore actively seeks to optimise its existing portfolio through
portfolio improvement initiatives. Capital improvement projects
aimed at optimising the portfolio are intended to enhance the
overall customer experience, and drive growth in the existing
portfolio through increased asset value or rentalised returns
delivering value to shareholders.
Investore has agreed with Countdown to expand the customer
amenity at Countdown Rangiora, including the addition of an
online fulfilment area and five new covered pickup bays. These
improvements will deliver Investore a 7.5% per annum return on
cost of up to $1 million over the remaining term of the lease. As
part of this arrangement, Investore has also secured a four year
lease extension at Countdown Morrinsville.
Proactive Capital Management
The Board is conscious of the risks posed by the current
macroeconomic environment, and continues to take a proactive
and prudent approach to capital management. During FY23
$75 million of bank facilities were refinanced and extended for
a further two years to November 2025. Investore now has no
bank debt expiring until FY26.
As part of the refinancing, Investore also renegotiated its
banking covenants with its banking syndicate, removing
the covenant relating to the weighted average lease term of
Investore’s portfolio, and reducing the LVR
1
covenant from 65%
to 52.5%.
Having a high proportion of debt that is hedged or subject to a
fixed rate of interest helps to protect Investore against interest
rate increases over the short to medium term. As at 31 March
2023, 92% of Investore’s borrowings were hedged or subject to
a fixed rate of interest. As a consequence, Investore’s weighted
average cost of debt increased by only 24 basis points over the
previous 12 months to 4.0%. This compares favourably to the
375 basis point increase in New Zealand’s Official Cash Rate
over the same period (or 425 basis points when including the
increase in the Official Cash Rate on 5 April 2023).
$100 million of Investore’s senior secured fixed rate bonds
(IPL010 bonds) will mature in April 2024, and consistent
with Investore’s prudent and proactive approach to capital
management, Investore is pleased to confirm that, post
balance date, it has secured commitment from its lenders for
a new three year bank facility to refinance these bonds.
Investore’s FY23 acquisitions and developments were funded
from available debt facilities. This, coupled with the portfolio
devaluation, has resulted in Investore’s LVR
1
increasing
to 36.5% as at 31 March 2023. On a committed basis,
which includes the development of the Kaiapoi Countdown
supermarket and other committed projects, the LVR
1
is forecast
to increase to 38.1%.
As previously advised to the market, Investore commenced
an on-market share buyback programme of up to 5% of its
ordinary shares in July 2022. As at close of trading on
8 September 2022, when the programme was paused pending
the release of Investore’s interim results, Investore had acquired
and cancelled 632,398 shares for a total cost of $1.1 million
(including transaction costs). The Board has now resolved to
cancel the share buyback programme.
1. See glossary on page 88.
Sustainability
Sustainability is an integral part of the Board’s approach to
decision-making. Investore works closely with the Manager,
Stride Investment Management Limited (SIML), to ensure
the Investore portfolio remains sustainable for the future and
is focussed on investing in and developing high quality and
sustainable properties.
The Board targets a minimum 4 Green Star rating for all
new developments, and consistent with this target, the new
Countdown supermarket currently under construction at
Kaiapoi has been designed to achieve a 5 Green Star rating.
Dear Investors,
The Board of Directors of Investore is
pleased to present the Annual Report
for the year ended 31 March 2023
(FY23). Investore has delivered strong
operating earnings from its quality, large
format retail portfolio during FY23.
The Board is conscious of the current
volatile macroeconomic conditions and
continues to take a prudent approach to
capital management to mitigate the risks
posed by these conditions.
Investore Property LimitedInvestore Property LimitedAnnual Report 2023Annual Report 202367

Chair’s Letter (cont)
Given the nature of Investore’s portfolio and the fact that it has
outsourced management to SIML, Investore has very low scope
1 and 2 greenhouse gas emissions. Accordingly, Investore
believes it can have the most effective impact on transitioning
to a low carbon future by working with its tenants on improving
their energy efficiency and lowering their greenhouse gas
emissions (which are scope 3 emissions for Investore). Investore
remains in regular conversation with its largest tenants around
how best to support them in reducing their emissions.
Consistent with this approach, Investore has recently obtained
Green Star Performance ratings for 16 of its properties,
comprising hardware stores and standalone supermarkets.
These ratings will enable Investore to work with its tenants
to develop opportunities for energy and water improvement
initiatives to improve ratings.
To assess its overall sustainability performance, Investore
completes the Global Real Estate Sustainability Benchmark
(GRESB) assessment. The first assessment was completed
in 2022 and Investore is targeting being in the top quartile of
comparator companies over time.
For FY23 the Investore Board has elected to prepare a
separate Sustainability Report which includes reporting
against the Aotearoa New Zealand Climate Standards.
A copy of this report can be found on Investore’s website
www.investoreproperty.co.nz.
Governance
Director John Harvey retired from the Investore Board on
31 May 2022, having been a Director since Investore’s
inception as a listed company in 2016. On behalf of the
Board, I would like to thank John for his service and wish him
all the best for the future.
Investore’s Manager, SIML, appointed Director Ross Buckley
to the Board on 1 June 2022, consistent with its rights under
the Management Agreement between SIML and Investore.
The Board undertook a full skillset review when Ross joined
the Board, noting that Ross’ strong background in audit,
management and finance complemented the Board’s
current skillset.
Following the conclusion of Emma McDonald’s tenure as
a Future Director under the Institute of Director’s Future
Directors’ Programme, the Board was pleased to announce
the appointment of Erika McDonald as a future director with
the release of the FY23 Interim Results. Erika attends Board
meetings but does not vote or have any rights or obligations of
a director.
The Manager and Management Fees
Investore’s manager, SIML, has supported Investore well during
FY23, including managing the acquisition of two properties,
undertaking various capital works programmes, and concluding
82 rent review transactions which delivered an overall rental
increase of 3.3% on prior rentals.
FY23 also saw the appointment of a new Investore Fund
Manager, Adam Lilley, following the resignation of Fabio Pagano
in October 2022. Fabio had been the Investore Fund Manager
since 2018 and we wish him well in his future endeavours. Adam
has a strong background in property funds management, and
we welcome him as the new Investore Fund Manager.
In line with the Board’s policy of reviewing management
fees every two years, during the year in review the Board
commissioned an independent review of fees charged by the
Manager, to provide comfort to the Board that the fees are fair
and reasonable and consistent with fees charged for similar
services in the market. The Board is pleased to report that the
independent review concluded that, relative to scale, Investore’s
current management expense ratio is favourable to its peers,
and Investore’s current management fees are fair and consistent
with both other New Zealand listed property vehicles and
Investore’s Australian large format retail peers.
Outlook
Looking ahead, the Board will remain focussed on optimising
the portfolio through value-add initiatives and capital
expenditure programmes that enhance the portfolio, improve
customer experience and maximise returns to shareholders over
the medium to long term.
The Board is cognisant of the risks posed by macroeconomic
conditions and accordingly, has determined to implement capital
management initiatives to manage its loan to value ratio over the
near term:
• Investore will look to sell select, non-core assets of
between $25 million and $50 million, provided that
appropriate value can be realised for these assets.
The net proceeds of any such sales will be used to repay
bank debt; and
• Investore will introduce a dividend reinvestment plan,
which will enable eligible shareholders to reinvest the net
proceeds of their dividends into additional Investore shares.
Investore currently expects to pay a cash dividend of 7.90
cents per share for FY24, in accordance with its dividend
policy of paying between 90-100% of distributable profit
1
.
The Board will continue to assess progress with the asset
sales outlined above and monitor market conditions as they
develop throughout the year.
On behalf of the Board, we thank investors for their continued
support of Investore.
Mike Allen
Independent Director and Chair of the Board
1. See glossary on page 88.
McDonalds, Takanini
Investore Property LimitedInvestore Property LimitedAnnual Report 2023Annual Report 202389

Board of Directors
Mike has considerable governance
experience and is currently a director
of Taumata Plantations Limited
and Wool Research Organisation
of New Zealand, as well as Chair of
Vincent Capital Limited and Wool
Impact Limited, and Chair elect of
NZ Natural Fibres Limited. Prior
to his governance career, he had
an executive career in investment
banking and general management
experience in New Zealand and the
United Kingdom.
Gráinne has over 30 years’
experience in listed and unlisted
organisations, in highly competitive
and customer-focussed sectors,
including McDonald’s New Zealand
and SKYCITY Entertainment Group.
Gráinne is currently a director
of Tourism Holdings Limited,
Summerset Group Holdings Limited,
and Duncan Cotterill, and is Chair of
Tourism Industry Aotearoa.
Adrian is a very experienced
commercial property executive, with
over 30 years’ experience in the
property sector, including 20 years as
the General Manager of Property at
Woolworths NZ (owner of Countdown
brand supermarkets). Adrian brings
to Investore a deep knowledge
of the property industry in New
Zealand, as well as the supermarket
sector, a sector that makes up a
significant portion of Investore’s
property portfolio. Adrian has a strong
background in property, financial
planning and strategic management.
Tim has more than 30 years’ experience
across a range of business sectors, and
has practised as a lawyer in Australia
and New Zealand. Tim was a partner in
the Bell Gully partnership, having retired
in 2006, and is Chair of Stride Property
Limited, Stride Investment Management
Limited and ASX listed LawFinance
Limited.
Ross has a strong background
in auditing and management,
with 27 years as a partner at the
global accounting and consulting
firm KPMG, including nine years
as Executive Chairman of KPMG
in New Zealand. Ross currently
chairs the Auckland Branch of the
Institute of Directors, is a council
member of the Massey School of
Business Advisory Board, and is
a member of the Audit Oversight
Committee of the Financial
Markets Authority. He is also a
director of ASB Bank Limited,
Stride Property Limited and
Stride Investment Management
Limited, and Chair of Service
Foods Limited.
Erika has been appointed as
a future director of Investore.
Erika leads the Auckland office
for ENGEO, an engineering and
environmental consultancy. Erika
specialises in the assessment,
remediation and management
of contaminated land and
groundwater. Erika brings valuable
industry knowledge and
understanding to the Investore
Board, and participates in the
Investore Board but does not vote
or have any role as a director.
Mike Allen
Chair of the Board
Independent,
Non-Executive Director

Appointed 9 June 2016,
last elected 2022
Gráinne Troute
Chair of the Audit and
Risk Committee
Independent,
Non-Executive Director
Appointed 19 April 2018,
last elected 2021
Adrian Walker
Independent,
Non-Executive Director
Appointed 3 April 2020,
last elected 2020
Tim Storey
SIML Nominee and
Non-Executive Director
Ross Buckley
SIML Nominee and
Non-Executive Director
Erika McDonald
Future Director
Investore Property LimitedInvestore Property LimitedAnnual Report 2023Annual Report 20231011

Manager’s Report
On behalf of Investore, SIML was pleased to have successfully
completed the acquisition of the balance of the freehold land
at 3 Averill Street, Papakura, Auckland, and the acquisition of
the development land at Hakarau Road, Kaiapoi, during FY23,
furthering Investore’s strategy of targeted growth. SIML’s
development team is currently managing the construction of a
new Countdown-tenanted supermarket as part of Stage 1 of
the Kaiapoi development, targeting a 5 Green Star rating, with
construction due for completion at the end of 2023.
SIML was also active in undertaking a number of capital projects
to enhance Investore’s current portfolio. SIML collaborates
with tenants to add value to Investore’s existing assets through
improving customer accessibility and the overall customer
visitation experience.
As part of this strategy, SIML negotiated an arrangement
with Countdown, on behalf of Investore, to undertake
capital upgrade works at Countdown Rangiora, including
development of a new online fulfilment area and five new
pickup bays. These improvements will deliver Investore a
7.5% per annum return on cost of up to $1.0 million over the
remaining term of the lease, as well as result in a four year
lease extension at Countdown Morrinsville.
On behalf of Investore, SIML also negotiated 82 rent reviews
during the year, over more than half of Investore’s portfolio by
net Contract Rental
1
which resulted in 3.3% rental growth on
previous rentals. Of these rent reviews, 33 were CPI
1
-linked rent
reviews, delivering a 7.0% increase on previous rentals.
1. See glossary on page 88.
SIML was also pleased to have managed a number of
capital management projects on behalf of Investore during
FY23, including:
• the on-market share buyback programme, which resulted
in 632,398 shares being acquired and cancelled for a total
cost of $1.1 million (including transaction costs); and
• the refinance of $75 million of debt facilities. As a result,
Investore now has no bank debt expiring until FY26.
SIML continues to deliver on Investore’s sustainability
objectives, which are described in more detail in Investore’s
FY23 Sustainability Report. This report also includes Investore’s
first greenhouse gas inventory report, outlining key metrics
for Investore’s greenhouse gas emissions. Some of the key
activities completed during FY23 include obtaining Green
Star Performance ratings across 16 properties within the
Investore portfolio and completion of the first Global Real Estate
Sustainability Benchmarking (GRESB) assessment.
SIML looks forward to continuing to support Investore in its
strategy of enhancing and optimising its portfolio while also
seeking to manage the risks posed by the current economic
environment.
Thank you for your continued support of Investore, and SIML
as Manager.

Philip Littlewood
Chief Executive Officer
Stride Investment Management Limited
Adam Lilley
Investore Fund Manager
Stride Investment Management Limited
Dear Investors,
Stride Investment Management Limited
(SIML) is proud to manage the business of
Investore and continue to deliver projects
that optimise the Investore portfolio.
Investore Property LimitedInvestore Property LimitedAnnual Report 2023Annual Report 20231213

Portfolio
This focus on everyday needs means Investore’s tenants are
resilient in challenging macroeconomic conditions, due to
their products comprising non-discretionary categories of
expenditure for consumers.
Investore’s tenants include nationally recognised brands such
as Countdown, New World, Pak’nSave, Bunnings, Mitre 10,
Rebel Sport, Briscoes, Hunting & Fishing, Freedom Furniture,
McDonald’s, Resene, and Animates.
Hardware
16%
Everyday Needs
71%
Food and Beverage
/ Other 4%
General
Merchandise
/ Retail 9%
1. Excludes properties categorised as
“Development and Other” in note 2.2 to
the consolidated financial statements.
2. See glossary on page 88.
Portfolio Tenant
Classification by
Contract Rental
2

as at 31 March 2023
Anchor Tenant Classification by Contract Rental
2

as at 31 March 2023
Countdown64%
Bunnings13%
4%
Foodstuffs
3%
Mitre 10
3%Briscoes Group
Demand for tenant goods and services tends to be
resilient over the economic cycle
Anchor tenants draw customers to sites on a regular
basis, driving demand for associated specialty tenants,
which form a small proportion of Contract Rental
2
Lower total occupancy costs for tenants compared
with other forms of retail in New Zealand, evidenced
by average net Contract Rental
2
of $247 per sqm of
net lettable area across the portfolio
Other benefits of Large Format Retail Property:
Investore’s investment portfolio
1

comprises 44 large format retail
properties, from standalone
supermarkets to large format retail
centres, with a high concentration
of nationally recognised brands and
tenants that provide “everyday needs”
Anchor tenants represent a high proportion (87%) of Investore’s total Contract Rental
2
, providing
Investore with security of income across varying market conditions
Investore Property LimitedInvestore Property LimitedAnnual Report 2023Annual Report 20231415

1. Excludes properties categorised as “Development and Other” in note 2.2 to the consolidated financial statements.
2. See glossary on page 88.
3. Represents the scheduled expiry for each lease, excluding any rights of renewal that may be granted under each lease, for the entire portfolio as at 31 March 2023 as a
percentage of Contract Rental (see glossary on page 88 for definition).
4. Vacant tenancies with current or pending development works are excluded from occupancy statistics. At 31 March 2023 metric excluded 2,947 sqm at Bay Central, Tauranga.
5. Countdown Morrinsville lease (0.8%) has been agreed to be extended by 4 years with expiry now FY29.
6. Excludes lease liabilities.
7. Excludes: (1) seismic works ($3.0m) to be completed by Stride Property Limited (SPL) in relation to 2 Carr Road, Auckland, acquired from SPL and settled on 30 April 2020;
and (2) lease liabilities.
Portfolio (cont)
High Occupancy and Long Lease
Expiry Profile
Portfolio Metrics
The high interest rate environment has resulted in a softening of
the investment portfolio
1
market capitalisation rate by 0.9% to
5.7% as at 31 March 2023.
This capitalisation rate movement has been partially offset by
positive rental growth across the Investore portfolio. During
FY23, 82 rent review transactions were completed across
130,000 sqm of the portfolio which delivers around half of the
total portfolio Contract Rental
2
. The result of these reviews was
an increase in rental of 3.3% from prior rentals. These reviews
included 33 CPI
2
-linked reviews, which delivered an increase in
rental of 7.0%.
Investore’s portfolio
1
comprises 61 hectares of commercial
land holdings with an average site coverage of just 41%.
This low average site coverage provides scope for future site
development over the long term.
As at
31 March 2023
1
As at
31 March 2022
Number of properties4444
Number of tenants143143
Net lettable area (NLA) (sqm)249,906249,829
Net Contract Rental
2
($m)61.860.2
WA LT
2
(years)8.19.1
Market capitalisation rate (%)5.74.8
Occupancy by area (%)99.5
4
99.7
Land area (sqm)611,077611,077
Average site coverage (%)4141
Portfolio value ($m)1,033.2
6
1,201.3
7

Lease Expiry Profile
3
by Contract
Rental
2
as at 31 March 2023
Investore’s portfolio
1
continues to
demonstrate strong operating metrics,
with high occupancy, and a long
weighted average lease term (WALT) of
8.1 years, with 75% of Contract Rental
2

expiring in FY30 and beyond. This long
WALT provides Investore with certainty
of income over the medium to long term
Vacant
4
0.3%
4.8%
FY24
4.8%
FY25
5
2.8%
FY26
4.3%
FY27
6.8%
FY28
1.3%
FY29
15.3%
FY30
5.7%
FY31
18.8%
FY33
5.9%
FY34
29.1%
FY35
0.2%
FY32
WALT 8.1 years
75% of Contract Rental
2
expiring FY30 and beyond
Countdown, Greenlane
Investore Property LimitedInvestore Property LimitedAnnual Report 2023Annual Report 20231617

1. See glossary on page 88.
Enhancing the
Portfolio
Investore takes a considered approach to acquisition
and development opportunities and will pursue
opportunities that provide value to shareholders.
Investore will also consider strategic divestments to
optimise the portfolio and maintain balance sheet
capacity and optionality.
During FY23 Investore undertook a number of
acquisition and improvement projects across the
portfolio, often partnering with existing tenants
to deliver projects intended to enhance the
overall portfolio.
Countdown Rangiora
Investore has agreed with Countdown to expand the
customer amenity at Countdown Rangiora, including
180 sqm of additional NLA
1
which will be used as an
online fulfilment area and five new covered pickup bays
for online shopping. These improvement works will deliver
a 7.5% per annum return on cost over the term of the
lease and also resulted in Investore securing a four year
lease term extension at Countdown Morrinsville, extending
the final expiry date for this lease to FY29.
Hakarau Road, Kaiapoi
Investore completed the acquisition of development land
at Hakarau Road, Kaiapoi, for $10.1 million in September
2022. Works have commenced on the construction of a
new Countdown supermarket as stage 1 of the greenfield
development. Stage 1 of the development is targeting a
yield on cost of 5.5% and is on target to be completed by
late 2023. The remainder of the site, being approximately
1.6 hectares, will be developed as stage 2 and will
provide further large format retail opportunities.
Countdown Papakura
Investore acquired the balance of the freehold
land at 3 Averill Street, Papakura, Auckland, for
$18.0 million in August 2022. The site is fully occupied
by Countdown and a hospitality venue and has a current
WA LT
1
of 11.4 years. This acquisition provides Investore
with full control of the site and unlocks future development
options.
Investore’s strategic pillars
include targeted growth and
continued optimisation of the
portfolio, which are intended to
ensure ongoing enhancement
of the Investore portfolio
Countdown, Papakura
Investore Property LimitedInvestore Property LimitedAnnual Report 2023Annual Report 20231819

Delivering Rental
Growth
During FY23 Investore has continued
to focus on improving overall portfolio
performance through acquisitions,
portfolio optimisation and rent reviews.
Countdown Turnover Rental
Net Contract Rental
1
Countdown leases (which comprise 64% of portfolio Contract
Rental
1
) contain turnover-linked rental mechanisms under which
additional turnover rent is paid when moving annual turnover
(MAT) at a store exceeds a specified threshold.
There has been a continued increase in stores that are paying
turnover rent since 2018, with 30% of stores now paying
turnover rent, up from 9% in FY18. Turnover rent has also
continued to increase across the portfolio on a like-for-like
basis, to $1.4m as at 31 March 2023, up from $0.3m as at
31 March 2018.
A higher inflationary environment can help drive growth in
nominal MAT, which is positive for Investore’s turnover rental
income. In addition, historical data suggests that once stores
exceed their MAT thresholds, they typically continue to generate
turnover rental and do not dip below the threshold again.
This activity builds on the portfolio
growth initiatives completed by
Investore since 2018 that have driven
increased rentals, including acquisitions
and portfolio improvements.
1. See glossary on page 88.
2. Moving Annual Turnover (MAT) is determined by calculating the net sales over a 12 month period from April to March, with the calculation being done on a rolling basis.
3. Investore’s Countdown supermarket portfolio on a like-for-like basis between 31 March 2018 and 31 March 2023.
Countdown Supermarket Portfolio Turnover Mix (Weighted by MAT
2
)
>100%
% of turnover
threshold
80% - 100%
<80%
Mar-19
Mar-18Mar-20Mar-21Mar-22Mar-23
13%
47%
40%
9%
42%
49%
26%
37%
37%
30%
31%
39%
20%
38%
42%
23%
38%
38%
Countdown Supermarket Base and Turnover Rent (like-for-like
3
)
Turnover rent
Base rent
Mar-19
Mar-18Mar-20Mar-21Mar-22Mar-23
$34.7m
$0.3m
$34.2m
$0.3m
$34.3m
$0.5m
$34.4m
$1.0m
$35.2m
$1.0m
$35.2m
$1.4m
$35.2m
$34.4m
$36.2m
$36.6m
$34.9m
$36.1m
Note numbers may not sum due to rounding.
Acquisitions
Established
portfolio
FY19
FY18FY20FY21FY22FY23
$45.6m
$4.8m
$40.1m
$4.9m
$40.7m
$5.4m
$41.3m
$14.3m
$42.0m
$17.5m
$42.7m
$17.9m
$43.9m
$44.9m
$60.2m
$61.8m
$46.7m
$56.3m
Mitre 10, Botany
Investore Property LimitedInvestore Property LimitedAnnual Report 2023Annual Report 20232021

Investore takes a proactive and prudent approach to capital management,
carefully managing its exposure to changes in market interest rates
1. See glossary on page 88.
2. On a pro forma basis taking into account
capital commitments as at 31 March 2023.
Proactive Capital
Management
During FY23 Investore refinanced two bank facilities
totalling $75 million, extending their tenor by a further
two years. During that process, Investore negotiated
the removal of the weighted 6 year average lease term
covenant and agreed to lower the LVR
1
covenant from
65% to 52.5%.
Investore has a weighted average cost of debt of 4.0% as
at 31 March 2023, an increase of 24 basis points since
31 March 2022, which compares favourably with the
increase in New Zealand’s Official Cash Rate of 375 basis
points over the same period (or 425 basis points when
including the increase on 5 April 2023). This relatively
favourable movement in the weighted average cost of debt
is due to the significant proportion of Investore’s debt that
is hedged or subject to a fixed rate of interest.
Investore has an LVR
1
of 36.5% as at 31 March 2023,
with a committed LVR
2
of 38.1%. Commitments include
the stage 1 Countdown supermarket at Kaiapoi which is
targeting a 5 Green Star rating and other smaller capital
expenditure commitments.
$100 million of Investore’s senior secured fixed rate
bonds (IPL010 bonds) will mature in April 2024.
Consistent with Investore’s prudent and proactive
approach to capital management, Investore has secured
commitment for three year bank funding of $100 million
post balance date to refinance these bonds.
Investore commenced an on-market share buyback
programme of up to 5% of its ordinary shares in July 2022.
As at close of trading on 8 September 2022, when the
programme was paused pending the release of Investore’s
interim results, Investore had acquired and cancelled
632,398 shares for a total cost of $1.1 million (including
transaction costs). The Board has now resolved to cancel
the share buyback programme.
Weighted average cost of debt per annum
as at 31 March 2023
4.0%
Debt that is hedged or subject to a fixed rate
of interest as at 31 March 2023
92%
Weighted average maturity of debt facilities
as at 31 March 2023
3.0 years
Bank facilities extended by two years
$75m
Fixed Rate Interest Profile as at 31 March 2023
Notional fixed rate debt
(net of fixed-to-floating
hedging)
Weighted average
interest rate of fixed
rate debt (excluding
margin and line fees)
2.00%
Mar-23
$355m$355m
$280m
$250m
$125m
Mar-24Mar-25Mar-26Mar-27
2.00%
1.76%
1.63%
0.40%
Investore Property LimitedInvestore Property LimitedAnnual Report 2023Annual Report 20232223

Proactive Capital
Management (cont)
As at
31 March 2023
As at
31 March 2022
Debt facilities limit ($m)475475
Debt facilities drawn ($m)388355
Weighted average debt maturity (years)3.03.7
LVR (%) (Covenant: Mar-23: 52.5%)36.5
1
29.5
2
Weighted average cost of debt (%)4.03.8
Interest cover ratio (Covenant: 1.75x)3.2x3.7x
Drawn debt fixed (%) 92100
Weighted average fixed interest rate maturity (years)
3
3.34.0
Following the refinancing of $75m of bank debt facilities during FY23, Investore
now has no debt maturing until FY25 and no bank debt maturing until FY26
Debt Maturity Profile as at 31 March 2023
$125m$100m
Bank facilities
Retail bonds
Committed facility
(post balance date)
FY25FY24FY26FY27FY28
$125m
$100m
$125m
1. Loan to value ratio (LVR) is calculated based on independent valuations, which exclude lease liabilities.
2. Loan to value ratio (LVR) in March 2022 was calculated based on independent valuations, which included seismic works to be funded by SPL
in relation to 2 Carr Road, Auckland, acquired from SPL and settled in April 2020. The independent valuations also exclude lease liabilities.
3. Includes bonds and interest rate swaps.
Bunnings, Hamilton
Investore Property LimitedInvestore Property LimitedAnnual Report 2023Annual Report 20232425

Financial Summary
The Five Year Financial Summary table reflects the numbers in the financial statements for each
respective year.
20232022202120202019
Five Year Financial Summary($m)($m)($m)($m)($m)
Net rental income
60.3
58.355.848.147.4
Profit before net finance expense, other (expense)/
income and income tax
1
51.4
48.346.640.641.4
Net finance expense
(16.2)
(14.0)(16.6)(13.9)(14.4)
Profit before other (expense)/income and income tax
1
35.2
34.329.926.727.0
Other (expense)/income
(185.3)
91.5139.07.717.1
(Loss)/profit before income tax
(150.1)
125.8169.034.444.1
Income tax expense
(0.1)
(7.6)(7.7)(5.8)(5.5)
(Loss)/profit after income tax
(150.2)
118.2161.328.638.6
Basic earnings per share - weighted
(40.85) cents
32.1 cents44.60 cents10.40 cents14.78 cents
Distributable profit before income tax
2
36.0
34.833.126.326.3
Distributable profit after income tax
31.0
29.929.121.120.9
Basic distributable profit after income tax per share
- weighted
8.44 cents
8.11 cents8.05 cents7.66 cents8.01 cents
Investment properties value
3
1,062.1
1,201.31,037.9761.4761.2
Drawn debt facilities and bonds
387.6
355.0280.0238.4318.5
Borrowings loan to value ratio
3
36.5%
29.5%26.8%31.3%41.8%
NTA per share
$1.84
$2.32$2.08$1.73$1.70
Adjusted NTA per share
4
$1.84
$2.32$2.08$1.74$1.71
Values in the table above are calculated based on the numbers in the financial statements for each respective financial year
and may not sum accurately due to rounding.
The Five Year Financial Summary contains certain information which is contained in the audited financial statements of each
respective year. Further information can be obtained by referring to those audited financial statements.
Investore Property Limited Annual Report 20231
Countdown, Browns Bay
1. Profit before net finance expense, other (expense)/income and income tax and Profit before other (expense)/income and income tax are non-GAAP measures and have been
presented to assist investors in understanding the different aspects of Investore’s financial performance.
2. Distributable profit is a non-GAAP measure and consists of (loss)/profit before income tax, adjusted for determined non-recurring and/or non-cash items (including non-
recurring adjustments for incentives payable to anchor tenants for lease extensions) and current tax. Further information including the calculation of distributable profit and the
adjustments to (loss)/profit before income tax, is set out in note 3.2 to the consolidated financial statements.
3. Excludes lease liabilities.
4. Excludes after tax fair value of interest rate derivatives.
Investore Property LimitedInvestore Property LimitedAnnual Report 2023Annual Report 20232627

Consolidated
Financial Statements
29 Consolidated Statement of Comprehensive Income
30 Consolidated Statement of Changes in Equity
31 Consolidated Statement of Financial Position
32 Consolidated Statement of Cash Flows
34 Notes to the Financial Statements
Consolidated Statement of Comprehensive Income
For the year ended 31 March 2023
20232022
Notes
$000$000
Gross rental income
70,987
67,923
Direct property operating expenses
(10,730)
(9,649)
Net rental income
2.1
60,257
58,274
Less corporate expenses
Asset management fee expense
4.0
(6,158)
(5,736)
Performance fee expense
-
(1,667)
Administration expenses
(2,697)
(2,561)
Total corporate expenses
(8,855)
(9,964)
Profit before net finance expense, other (expense)/income and income tax51,402
48,310
Finance income
92
167
Finance expense
(16,287)
(14,212)
Net finance expense
5.3
(16,195)
(14,045)
Profit before other (expense)/income and income tax35,207
34,265
Other (expense)/income
Net change in fair value of investment properties
2.2
(185,246)
91,017
Gain on disposal of investment property
-
576
Net change in fair value of derivative financial instruments
5.2
(33)
(52)
(Loss)/profit before income tax(150,072)
125,806
Income tax expense
7.3
(128)
(7,639)
(Loss)/profit after income tax attributable to shareholders(150,200)
118,167
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss
Movement in cash flow hedges, net of tax
5.5
302
9
Total comprehensive (loss)/income after tax attributable to shareholders
(149,898)
118,176
Basic and diluted earnings per share (cents)
3.1
(40.85)
32.10
Investore Property Limited Annual Report 202329
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.
Investore Property LimitedInvestore Property LimitedAnnual Report 2023Annual Report 20232829

Consolidated Statement of Financial Position
As at 31 March 2023
20232022
Notes
$000$000
Current assets
Cash at bank
4,802
7,229
Trade and other receivables
7.4
608
872
Prepayments
909
629
Other current assets
1,961
1,562
8,280
10,292
Non-current assets
Investment properties
2.2
1,070,451
1,219,766
Deposits, prepayment and other payments on investment properties
2.2
79
8,011
Derivative financial instruments
5.2
1,478
667
1,072,008
1,228,444
Total assets
1,080,288
1,238,736
Current liabilities
Trade and other payables
7.5
8,355
5,564
Current tax liability
622
948
Lease liabilities
2.3
75
78
Derivative financial instruments
-
134
9,052
6,724
Non-current liabilities
Borrowings
5.1
385,037
351,530
Lease liabilities
2.3
8,242
18,356
Deferred tax liability
7.3
2,219
6,958
Derivative financial instruments
5.2
718
126
396,216
376,970
Total liabilities
405,268
383,694
Net assets675,020
855,042
Share capital
557,219
558,293
Retained earnings
117,133
296,383
Reserve
5.5
668
366
Equity
675,020
855,042
For and on behalf of the Board of Directors of Investore Property Limited, dated 19 May 2023:
Mike Allen
Chair of the Board
Gráinne Troute
Chair of the Audit and Risk Committee
Investore Property Limited Annual Report 202331
The attached notes form part of and are to be read in conjunction with these financial statements.
Consolidated Statement of Changes in Equity
For the year ended 31 March 2023
Notes
Cents
per share
Number
of shares
000
Share
capital
$000
Retained
earnings
$000
Cash flow
hedge
reserve
$000
Total
$000
Balance 31 Mar 22368,135558,293296,383366855,042
Transactions with shareholders:
Q4 2022 final dividend
1.975--(7,272)-(7,272)
Q1 2023 interim dividend
1.975--(7,262)-(7,262)
Q2 2023 interim dividend
1.975--(7,258)-(7,258)
Q3 2023 interim dividend
1.975--(7,258)-(7,258)
Share buyback
5.4
(632)(1,074)--(1,074)
Total transactions with shareholders
(632)(1,074)(29,050)-(30,124)
Other comprehensive income:
Movement in cash flow hedges, net of tax
5.5
---302302
Total other comprehensive income---302302
Loss after income tax
--(150,200)-(150,200)
Total comprehensive (loss)/income
--(150,200)302(149,898)
Balance 31 Mar 23
367,503557,219117,133668675,020
Balance 31 Mar 21
368,135558,293207,024357765,674
Transactions with shareholders:
Q4 2021 final dividend1.900--(6,995)-(6,995)
Q1 2022 interim dividend1.975--(7,271)-(7,271)
Q2 2022 interim dividend1.975--(7,271)-(7,271)
Q3 2022 interim dividend1.975
--(7,271)-(7,271)
Total transactions with shareholders
--(28,808)-(28,808)
Other comprehensive income:
Movement in cash flow hedges, net of tax
5.5
---99
Total other comprehensive income
---99
Profit after income tax
--118,167-118,167
Total comprehensive income
--118,1679118,176
Balance 31 Mar 22
368,135558,293296,383366855,042
30Investore Property Limited Annual Report 2023
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.The attached notes form part of and are to be read in conjunction with these financial statements.
Investore Property LimitedInvestore Property LimitedAnnual Report 2023Annual Report 20233031

Consolidated Statement of Cash Flows (continued)
For the year ended 31 March 2023
Reconciliation of (loss)/profit after income tax attributable to shareholders to net cash flows from operating activities
20232022
Notes
$000$000
(Loss)/profit after income tax attributable to shareholders(150,200)
118,167
(Less)/add non-cash items:
Movement in deferred tax
7.3
(4,844)
2,714
Net change in fair value of investment properties
185,246
(91,017)
Gain on disposal of investment property
-
(576)
Spreading of fixed rental increases
89
(51)
Capitalised lease incentives
(346)
(267)
Lease incentives amortisation
234
194
Rental income abatement provision due to COVID-19
(54)
(24)
Movement in loss allowance
7.4
30
141
Borrowings establishment costs amortisation
940
865
Accrued interest movement in derivative financial instruments
5.2
20
(76)
Net change in fair value of derivative financial instruments
5.2
33
52
31,148
30,122
(Less)/add activities reclassified (to)/from operating activities:
Movement in working capital items relating to investing activities
(1,696)
214
Movement in borrowings/bond transaction costs classified as operating activities
(33)
(1,698)
29,419
28,638
Movement in working capital:
Decrease/(increase) in trade and other receivables
264
(421)
Increase in prepayments and other current assets
(679)
(733)
(Decrease)/increase in current tax liability
(326)
214
Increase/(decrease) in trade and other payables
2,791
(159)
Net cash provided by operating activities
31,469
27,539
Investore Property Limited Annual Report 202333
The attached notes form part of and are to be read in conjunction with these financial statements.
Consolidated Statement of Cash Flows
For the year ended 31 March 2023
20232022
Notes
$000$000
Cash flows from operating activities
Gross rent received
71,286
67,224
Interest received
92
10
Swap termination income
-
157
Operating expenses
(19,070)
(17,759)
Performance fee expenses
-
(2,297)
Interest paid
(15,508)
(13,387)
Borrowings establishment costs
(33)
(116)
Bonds issuance expenses
-
(1,582)
Income tax paid
(5,298)
(4,711)
Net cash provided by operating activities
31,469
27,539
Cash flows from investing activities
Capital expenditure on investment properties
(7,889)
(5,040)
Acquisition of investment properties
(34,138)
(78,108)
Proceeds from purchase price adjustment on acquisition of investment property
1.6
5,730
-
Acquisition of other assets
-
(278)
Proceeds from disposal of investment properties
-
10,190
Net cash applied to investing activities
(36,297)
(73,236)
Cash flows from financing activities
Drawdown of bank borrowings
35,600
85,100
Repayment of bank borrowings
(3,000)
(10,100)
Dividends paid
(29,050)
(28,808)
Lease liabilities payments
(75)
(66)
Share buyback
5.4
(1,074)
-
Proceeds from issuance of fixed rate bonds
-
125,000
Repayment of bank borrowings from bonds proceeds
-
(125,000)
Net cash provided by financing activities
2,401
46,126
Net (decrease)/increase in cash and cash equivalents held(2,427)
429
Opening cash and cash equivalents
7,229
6,800
Closing cash and cash equivalents
4,802
7,229
Cash and cash equivalents at year end comprises:
Cash at bank
4,802
7,229
Cash and cash equivalents at year end
4,802
7,229
32Investore Property Limited Annual Report 2023
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.The attached notes form part of and are to be read in conjunction with these financial statements.
Investore Property LimitedInvestore Property LimitedAnnual Report 2023Annual Report 20233233

1.0 General Information
This section sets out Investore’s accounting policies that relate to the consolidated financial statements (financial statements) as
a whole. Where an accounting policy is specific to a note, the policy is described within the note to which it relates.
1.1 Reporting entity
The financial statements presented are those of Investore Property Limited (the Parent) and its subsidiary Investore Property (Carr Road) Limited
(the Subsidiary) (together referred to as Investore). The Parent is domiciled in New Zealand and is registered under the Companies Act 1993. The
Parent is also an FMC reporting entity under Part 7 of the Financial Markets Conduct Act 2013.
Investore’s principal activity is property investment in New Zealand. Investore is managed by Stride Investment Management Limited (SIML).
The financial statements were approved for issue by the Board of Directors of the Parent (the Board) on 19 May 2023.
1.2 Basis of preparation
The financial statements have been prepared in accordance with the requirements of Part 7 of the Financial Markets Conduct Act 2013, the NZX
Main Board Listing Rules and Generally Accepted Accounting Practice in New Zealand (GAAP). The financial statements comply with New Zealand
Equivalents to International Financial Reporting Standards (NZ IFRS), other New Zealand accounting standards and authoritative notices that are
applicable to entities that apply NZ IFRS. The financial statements also comply with International Financial Reporting Standards (IFRS). Investore is a
for-profit entity for the purposes of 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.
1.3 New standards, amendments and interpretations
In October 2021, the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021 was passed. It amends the Financial
Markets Conduct Act 2013, the Financial Reporting Act 2013 and the Public Audit Act 2001, mandating certain entities to disclose climate-related
information. Entities are expected to publish climate-related statements for financial years beginning on or after 1 January 2023 based upon
climate standards issued by the External Reporting Board (XRB). Investore's first climate-related statement will be required for the year ending
31 March 2024.
On 14 December 2022, the XRB issued the following standards:
•Aotearoa New Zealand Climate Standard 1 Climate-related Disclosures (NZ CS 1);
•Aotearoa New Zealand Climate Standard 2 Adoption of Aotearoa New Zealand Climate Standards (NZ CS 2); and
•Aotearoa New Zealand Climate Standard 3 General Requirements for Climate-related Disclosures (NZ CS 3).
NZ CS 1 contains the climate-related disclosure requirements for each of the four thematic areas (Governance, Strategy, Risk Management and
Metrics and Targets) and the assurance requirements for greenhouse gas emissions disclosures. NZ CS 2 provides optional adoption provisions.
NZ CS 3 contains the principles, the underlying concepts such as materiality, and the general requirements.
At the date of approval of the financial statements, there were no relevant standards on issue but not applied.
1.4 Fair value estimation
Investore classifies its fair value measurement using a fair value hierarchy that reflects the significance of the inputs used in making measurements.
The fair value hierarchy has the following levels:
Level 1quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (as prices) or
indirectly (derived from prices); and
Level 3inputs for the asset or liability that are not based on observable market data.
Investore Property Limited Annual Report 202335
Notes to the Financial Statements
For the year ended 31 March 2023
1.0General Information
35
1.1Reporting entity35
1.2Basis of preparation35
1.3New standards, amendments and interpretations35
1.4Fair value estimation35
1.5Significant judgements, estimates and assumptions36
1.6Significant events and transactions36
1.7Non-GAAP measures36
2.0Property
37
2.1Net rental income37
2.2Investment properties38
2.3Lease liabilities44
2.4Capital expenditure commitments contracted for44
3.0Investor Returns
45
3.1Basic and diluted earnings per share (EPS)45
3.2Distributable profit45
4.0Related Party Disclosures
46
5.0Capital Structure and Funding
47
5.1Borrowings47
5.2Derivative financial instruments49
5.3Net finance expense50
5.4Share capital50
5.5Reserve50
5.6Capital risk management50
6.0Risk Management
51
6.1Financial instruments51
6.2Fair values51
6.3Financial risk management51
6.4Interest rate risk52
6.5Credit risk52
6.6Liquidity risk52
7.0Other
53
7.1Operating segments53
7.2Corporate expenses53
7.3Tax54
7.4Trade and other receivables56
7.5Trade and other payables56
7.6Investment in subsidiaries57
7.7Contingent liabilities57
7.8Subsequent events57
34Investore Property Limited Annual Report 2023
Investore Property LimitedInvestore Property LimitedAnnual Report 2023Annual Report 20233435

2.0 Property
This section covers property assets, being large format retail properties, which generate Investore’s trading performance.
2.1 Net rental income
Accounting Policy
Investment property is leased by Investore to tenants under operating leases with rent payable monthly. Rental income from investment
properties is recognised on a straight-line basis over the lease term. Lease incentives provided in relation to letting the investment properties
are capitalised to the respective investment properties in the consolidated statement of financial position and amortised on a straight-line
basis over the non-cancellable portion of the lease to which they relate, as a reduction of rental income. Where a lease provides for fixed
rental increases over the term of the lease, they are amortised on a straight-line basis over the non-cancellable portion of the lease to which
they relate.
Income generated from service charges recovered from tenants is included in the gross rental income with the service charge expenses to
tenants shown in the direct property operating expenses. Such revenue is recognised in the accounting period the underlying expenses are
incurred in accordance with the contractual terms.
20232022
$000$000
Gross rental income
Rental income
64,067
60,846
Service charge income recovered from tenants
6,077
5,633
Ground rent income recovered from tenants
834
1,305
Spreading of fixed rental increases
(89)
51
Capitalised lease incentives
316
267
Lease incentives amortisation
(218)
(179)
Total gross rental income
70,987
67,923
Direct property operating expenses
Service charge expenses relating to tenants
(7,622)
(7,083)
Movement in loss allowance
(30)
(141)
Capitalised lease incentives
30
-
Lease incentives amortisation
(16)
(15)
Seismic strength assessment expenses
(439)
(308)
Other non-recoverable property operating expenses
(2,653)
(2,102)
Total direct property operating expenses
(10,730)
(9,649)
Net rental income
60,257
58,274
Other non-recoverable property operating expenses represent property maintenance and operating expenses not recoverable from tenants and
property leasing expenses.
Investore Property Limited Annual Report 202337
1.0 General Information (continued)
1.5 Significant judgements, estimates and assumptions
In the application of NZ IFRS, the Board and SIML are required to make judgements, estimates and assumptions about carrying values of assets and
liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on experience and other factors
that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements. Actual results may differ
from the judgements, estimates and assumptions made by the Board and SIML.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which
the estimate is revised and in any future periods affected.
Judgements made by the Board and SIML in the application of NZ IFRS that have significant effects on the financial statements and estimates
with a significant risk of material adjustments in the next year are disclosed, where applicable, in the relevant notes to the financial statements.
In particular information about significant areas of estimation uncertainty that have the most significant effect on the amount recognised in the
financial statements is disclosed in the relevant notes as follows:
• Investment properties (note 2.2);
• Lease liabilities (note 2.3);
• Derivative financial instruments (note 5.2); and
• Deferred tax (note 7.3).
1.6 Significant events and transactions
The financial position and performance of Investore was affected by the following events and transactions that occurred during the reporting period:
Acquisition of investment properties
On 31 August 2022, Investore acquired the balance of the freehold land at 3 Averill Street, Auckland, for $18.0 million. Investore previously only
held the leasehold interest and paid ground rent on this land. As a consequence of the acquisition, the right-of-use asset and lease liability of
$10.0 million have been de-recognised.
On 9 September 2022, Investore acquired a 3.3 hectare parcel of land at 6 & 21 Hakarau Road, Kaiapoi, for $10.1 million. Investore has
commenced construction of a new Countdown supermarket on a portion of this site (refer note 2.4), leaving the balance of the land for
future development.
Seismic works on investment property acquired
In April 2020, Investore purchased three large format retail properties, one being 2 Carr Road, Bunnings Warehouse, Auckland, from Stride Property
Limited (SPL). Under the sale and purchase agreement, SPL was to complete certain seismic works in relation to the property. In March 2023, SPL
agreed to pay Investore $5.7 million as a purchase price adjustment as full and final settlement of SPL's obligations to undertake the seismic works.
As at 31 March 2022, $3.0 million had been recognised as a prepayment on investment property (non-current asset).
Share buyback
On 15 July 2022, the Parent commenced an on-market share buyback programme to purchase up to 5% of its ordinary shares (being 18,406,751
ordinary shares). During the year, the Parent acquired and cancelled 632,398 shares for a cost of $1.1 million (including transaction costs). In
September 2022, Investore announced a pause to the buyback, and on 19 May 2023, the Board resolved to cancel the share buyback programme
(refer note 7.8).
Bank refinancing
In September 2022, Investore refinanced $75 million of bank debt facilities, extending these facilities for a further two years to November 2025. As
part of the refinancing process, Investore's banking covenants were revised, with the loan to value ratio covenant reducing from 65% to 52.5% and
the weighted average lease term covenant (previously 6.0 years) being removed.
Revaluation of investment properties
Investore undertook independent valuations of the entire portfolio as at 31 March 2023, which resulted in a net reduction in fair value of investment
properties of $(185.2) million (2022: $91.0 million net gain) (refer note 2.2).
1.7 Non-GAAP measures
The consolidated statement of comprehensive income includes two non-GAAP measures; Profit before net finance expense, other (expense)/
income and income tax; and Profit before other (expense)/income and income tax. These non-GAAP measures have been presented to assist
investors in understanding the different aspects of Investore’s financial performance.
Note 3.2 sets out Investore’s calculation of distributable profit and Adjusted Funds From Operations (AFFO) which are both non-GAAP measures.
Distributable profit is presented to enable investors to see an earnings measure which more closely aligns to Investore’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 tax, is adjusted to reflect cash
earnings for the period.
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.
36Investore Property Limited Annual Report 2023
Investore Property LimitedInvestore Property LimitedAnnual Report 2023Annual Report 20233637

2.0 Property (continued)
2.2 Investment properties (continued)
20232022
$000$000
Opening balance1,219,766
1,043,872
Property acquisitions
34,060
73,784
(De-recognition)/re-assessment of lease liabilities
(10,042)
3,082
Purchase price adjustment (refer note 1.6)
(5,730)
-
Recognition of deposits, prepayment and other payments on investment properties
8,011
3,476
Capital expenditure
9,609
4,411
Spreading of fixed rental increases
(89)
51
Capitalised lease incentives
346
267
Lease incentives amortisation
(234)
(194)
Net change in fair value
(185,246)
91,017
Closing balance
1,070,451
1,219,766
Comprising:
Investment properties per independent valuations
1,062,134
1,204,350
Less prepayment on investment property
-
(3,018)
1,062,134
1,201,332
Lease liabilities
8,317
18,434
Total
1,070,451
1,219,766
Deposits and other payments relating to portfolio improvement initiatives
79
4,993
Prepayment on investment property relating to seismic works
-
3,018
Deposits, prepayment and other payments on investment properties
79
8,011
Investore is conscious of the need to identify the impact of climate risk on its business and assets. The independent valuers that valued Investore’s
investment properties have considered climate risk and environmental factors and the associated impact on the value of a property. The valuers
are not climate risk experts but consider market transactional data as part of their valuation assessment and that market values may be impacted
by climate risk factors, for example, higher green rated properties or properties with sustainable features or which are less vulnerable to climate
risk potentially having higher market values than an equivalent property without such features. Accordingly, valuations can take these factors into
account as part of the overall assessment of a property's market value. Apart from the consideration of the factors above, the valuers have made no
explicit adjustment in respect of climate risks.
During the year, the seismic strength assessments for investment properties located in high or medium earthquake risk zones were updated by
external independent engineers. The investment property valuations have been updated to allow for additional seismic capital expenditure where
required. In addition, in some instances the valuer has assessed additional costs for potential works to buildings which have not been subject to a
complete Detailed Seismic Assessment.
The investment properties were valued either by CVAS (NZ) Limited (CVAS (NZ)), CVAS (WLG) Limited (CVAS (WLG)), Jones Lang LaSalle Limited
(JLL), Savills (NZ) Limited (Savills), Bayleys Valuations Limited (Bayleys) or CBRE Limited (CBRE) as indicated (each being independent registered
valuers who hold an annual practising certificate with the Valuers Registration Board and are members of the New Zealand Institute of Valuers).
All valuations are dated effective 31 March 2023. The net reduction in fair value of $(185.2) million (2022: $91.0 million net gain) includes
$0.07 million (2022: $0.07 million) in relation to the change in the value of the right-of-use assets. Properties classified as 'Development and Other'
relate to Investore's development and portfolio initiatives.
Investment property measurements are categorised as Level 3 in the fair value hierarchy. During the year, there were no transfers of investment
properties between levels of the fair value hierarchy (2022: nil transfers).
At each reporting date, SIML’s asset managers verify all major inputs to the independent valuation reports and assess property valuation movements
when compared to the prior year's valuation reports. SIML’s executive team review the valuations performed by the independent registered valuers
for financial reporting purposes. This team reports directly to the SIML Chief Executive Officer. Discussions of valuation processes and results
are held between members of the SIML executive team and the independent valuers, and the SIML Chief Executive Officer and Investore’s Audit
and Risk Committee, at least once every six months, in line with Investore’s reporting dates. This review includes review of specific independent
valuations and discussions with the independent valuers as considered necessary. Ultimately, Investore’s Directors are responsible for reviewing
and approving the investment property valuations.
The following tables provide a summary of the valuation of the individual investment properties, their net lettable area (NLA), market capitalisation
rate (cap rate), contract yield, occupancy and weighted average lease term (WALT) for the purpose of providing further detail of the assets which are
considered to be the most relevant to the operations of Investore.
The cap rate %, contract yield %, occupancy % and WALT years for the total of investment properties in the following tables are weighted averages.
The totals may not sum due to rounding. The NLA, cap rate %, contract yield %, occupancy %, and WALT are not applicable for properties classified
as 'Development and Other'.
Investore Property Limited Annual Report 202339
2.0 Property (continued)
2.1 Net rental income (continued)
Accounting Policy
Leases are classified at their inception as either an operating or finance lease based on the economic substance of the agreement so as to
reflect the risks and rewards incidental to ownership. Leases in which substantially all the risks and rewards of ownership are retained by the
lessor are classified as operating leases.
Properties leased out under operating leases are included in investment properties as separately disclosed in the consolidated statement of
financial position.
As a lessor, Investore has determined that it retains substantially all the risks and rewards of ownership of properties and has therefore classified all
leases as operating leases.
The future aggregate minimum rentals receivable under non-cancellable operating leases are as follows:
20232022
$000$000
Within one year
63,712
60,708
Between one and two years
62,473
59,259
Between two and three years
60,813
57,479
Between three and four years
57,467
54,463
Between four and five years
55,691
53,025
Later than five years
284,065
271,883
Future rentals receivable
584,221
556,817
2.2 Investment properties
Accounting Policy
Investment properties are held either to earn rental income or for capital appreciation or both. Investment property is initially stated at cost,
including related transaction costs, and then at fair value as determined at least every 12 months by an independent registered valuer.
Subsequent expenditure is capitalised to the asset's carrying amount only when it is probable that future economic benefits associated with
the item will flow to Investore and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed to the
consolidated statement of comprehensive income during the period in which they are incurred.
The fair value of an investment property represents the estimated price for which a property could be sold at the date of valuation in an orderly
transaction between willing market participants. The predominant methods for assessing the current fair value of an investment property are
the Income Capitalisation and the Discounted Cash Flow approaches.
Any gain or loss arising from a change in the fair value of the investment property is recognised in the consolidated statement of
comprehensive income within net change in fair value of investment properties.
Investment properties are de-recognised when they have been disposed of. The net gain or loss on disposal is calculated as the difference
between the carrying amount at the time of the disposal and the net proceeds on the disposal and is included in the consolidated statement of
comprehensive income in the reporting period in which the disposal occurs.
Right-of-use assets are measured on initial recognition as the initial lease liability, plus any initial indirect costs incurred, less any lease
incentives received. Right-of-use assets that meet the definition of investment property are presented within investment property at fair value.
Investment property is adjusted for cash flows relating to lease liabilities already recognised separately on the consolidated statement of
financial position and also reflected in the investment property valuations.
38Investore Property Limited Annual Report 2023
Investore Property LimitedInvestore Property LimitedAnnual Report 2023Annual Report 20233839

2.0 Property (continued)
2.2 Investment properties (continued)
NLACap rate
Contract
yieldOccupancyWALT
As at 31 Mar 22Valuerm
2
$000%%%years
Auckland
24 Anzac RoadJLL4,38231,6004.004.15100.012.9
326 Great South RoadCVAS (NZ)4,64144,5004.004.04100.012.9
35A St Johns RoadJLL4,45727,5004.884.7898.212.6
507 Pakuranga RoadCBRE4,81224,7004.634.48100.012.9
3 Averill StreetCVAS (NZ)5,43517,7507.508.26100.012.2
Cnr Church & Selwyn StreetsBayleys2,01114,0004.684.73100.02.9
Cnr Te Irirangi Drive & Bishop Dunn PlaceBayleys12,20546,3004.134.25100.08.7
112 Stoddard RoadSavills4,20031,1004.504.64100.05.9
226 Great South RoadSavills7,36244,0005.505.81100.07.5
20-26 Neville StreetSavills3,81633,0004.254.33100.010.0
2 Carr RoadCBRE11,69355,8004.004.50100.05.2
4 Carr RoadSavills5,33236,2504.004.01100.09.4
295 Penrose RoadCBRE9,01444,5005.506.10100.04.1
Waikato
66-76 Studholme Street, MorrinsvilleJLL1,7248,0006.006.01100.02.9
Cnr Anglesea & Liverpool Streets, HamiltonSavills5,2659,50010.0010.03100.01.8
Cnr Bridge & Anglesea Streets, HamiltonSavills4,20023,2005.004.90100.011.1
Cnr Hukanui & Thomas Roads, HamiltonSavills4,50620,1005.255.40100.09.7
446 Te Rapa Road, HamiltonBayleys12,76343,1004.254.25100.07.9
Bay of Plenty
230-240 Fenton Street, RotoruaSavills5,17225,0004.754.56100.08.4
26-48 Old Taupo Road, RotoruaBayleys13,94040,9004.254.44100.010.0
65 Chapel Street, TaurangaJLL17,36054,0006.386.8999.73.6
Wellington
45-49 Jackson StreetSavills4,60538,0004.384.41100.010.0
47 Bay RoadBayleys3,46017,2504.254.45100.012.9
91 Johnsonville RoadCVAS (WLG)6,31626,0004.925.43100.011.7
13-19 Queen Street, Upper HuttJLL3,42715,7504.755.95100.012.9
14 Russell Street, Upper HuttCVAS (NZ)3,03711,0005.386.48100.02.9
261 High Street, Lower HuttCVAS (NZ)5,07830,0004.384.32100.012.9
Cnr Hanson Street, John Street &
Adelaide RoadCVAS (WLG)4,88231,2504.545.40100.010.0
3 Main RoadJLL4,20025,0004.634.68100.010.9
Other North Island
Cnr Butler & Kerikeri Roads, KerikeriSavills3,88724,3004.884.90100.010.7
53 Leach Street, New PlymouthBayleys8,56739,3004.504.47100.07.5
9 Gloucester Street, NapierCVAS (WLG)4,38622,7504.504.43100.07.5
Cnr Fernlea Avenue & Roberts Line,
Palmerston NorthCVAS (WLG)3,61117,7505.135.25100.010.0
Cnr Tremaine Avenue & Railway Road,
Palmerston NorthCBRE13,73036,7004.634.76100.07.9
Canterbury & Otago
87-97 Hilton Street, KaiapoiCVAS (NZ)3,02514,7505.256.07100.012.9
219 Colombo Street, ChristchurchBayleys3,97622,9505.005.29100.012.9
Cnr Victoria & Browne Streets, TimaruCVAS (NZ)4,03215,5005.254.6278.011.5
40-50 Ivory Street, RangioraSavills3,78620,8005.005.18100.010.7
Cnr Rolleston & Masefield Drives, RollestonSavills4,25128,0004.884.71100.010.7
24 Brighton Mall, ChristchurchCVAS (NZ)2,2076,6005.756.03100.06.4
309 Cumberland Street, DunedinCVAS (NZ)4,12328,0004.254.39100.012.9
Other South Island
Cnr Putaitai Street & Main Road, NelsonCBRE2,65915,6005.005.22100.010.7
51 Arthur Street, BlenheimJLL3,13613,1005.755.94100.012.9
172-186 Tay Street, InvercargillCBRE
5,16129,2005.255.20100.011.5
Total
249,8291,204,3504.814.9999.79.1
Investore Property Limited Annual Report 202341
2.0 Property (continued)
2.2 Investment properties (continued)
NLACap rate
Contract
yieldOccupancyWALT
As at 31 Mar 23Valuerm
2
$000%%%years
Auckland
24 Anzac RoadJLL4,382
26,250
5.005.00100.011.9
326 Great South RoadCVAS (NZ)4,641
35,500
5.005.06100.011.9
35A St Johns RoadJLL4,538
22,500
5.755.7398.211.9
507 Pakuranga RoadCBRE4,812
18,300
6.256.04100.011.9
3 Averill StreetCVAS (NZ)5,435
36,000
5.135.93100.011.4
Cnr Church & Selwyn StreetsBayleys2,011
12,700
5.255.17100.01.9
Cnr Te Irirangi Drive & Bishop Dunn PlaceBayleys12,205
38,900
5.005.05100.07.7
112 Stoddard RoadCVAS (NZ)4,200
25,250
5.505.63100.04.9
226 Great South RoadBayleys7,362
40,300
6.386.51100.06.5
20-26 Neville StreetBayleys3,816
27,800
5.385.43100.09.1
2 Carr RoadCBRE11,693
36,500
5.507.05100.04.2
4 Carr RoadSavills5,332
30,000
5.004.76100.08.4
295 Penrose RoadCBRE9,014
40,300
6.506.1896.83.0
Waikato
66-76 Studholme Street, MorrinsvilleJLL1,724
7,000
6.507.30100.01.9
Cnr Anglesea & Liverpool Streets, HamiltonBayleys5,265
6,400
10.0012.65100.00.8
Cnr Bridge & Anglesea Streets, HamiltonBayleys4,200
20,500
6.386.51100.010.1
Cnr Hukanui & Thomas Roads, HamiltonBayleys4,506
17,950
6.005.93100.08.2
446 Te Rapa Road, HamiltonBayleys12,763
36,800
5.005.09100.06.9
Bay of Plenty
230-240 Fenton Street, RotoruaBayleys5,172
22,750
5.685.00100.07.4
26-48 Old Taupo Road, RotoruaBayleys13,940
35,400
5.005.25100.06.9
65 Chapel Street, TaurangaJLL17,360
50,500
7.386.1983.03.7
Wellington
45-49 Jackson StreetSavills4,605
32,500
5.005.22100.09.0
47 Bay RoadBayleys3,460
14,000
5.505.41100.011.9
91 Johnsonville RoadCVAS (WLG)6,312
22,500
5.966.37100.010.9
13-19 Queen Street, Upper HuttJLL3,427
15,500
5.756.03100.011.9
14 Russell Street, Upper HuttCVAS (NZ)3,037
12,000
5.886.61100.01.9
261 High Street, Lower HuttCVAS (NZ)5,078
23,250
5.385.50100.011.9
Cnr Hanson Street, John Street &
Adelaide RoadSavills4,881
24,500
5.255.4997.29.0
3 Main RoadSavills4,200
16,600
5.506.03100.010.0
Other North Island
Cnr Butler & Kerikeri Roads, KerikeriCVAS (NZ)3,887
21,250
5.385.59100.09.7
53 Leach Street, New PlymouthBayleys8,567
33,600
5.255.34100.06.5
9 Gloucester Street, NapierCVAS (WLG)4,386
18,750
5.505.49100.06.5
Cnr Fernlea Avenue & Roberts Line,
Palmerston NorthSavills3,611
15,000
6.006.08100.08.7
Cnr Tremaine Avenue & Railway Road,
Palmerston NorthCBRE13,730
30,500
6.005.87100.06.9
Canterbury & Otago
87-97 Hilton Street, KaiapoiCVAS (NZ)3,025
13,000
6.006.89100.011.9
219 Colombo Street, ChristchurchBayleys3,976
19,500
5.756.17100.011.9
Cnr Victoria & Browne Streets, TimaruCVAS (NZ)4,032
14,250
5.885.3585.011.2
40-50 Ivory Street, RangioraCVAS (NZ)3,786
18,250
5.755.81100.09.7
Cnr Rolleston & Masefield Drives, RollestonCVAS (NZ)4,251
23,250
5.255.21100.09.7
24 Brighton Mall, ChristchurchSavills2,207
7,900
6.256.15100.05.4
309 Cumberland Street, DunedinCVAS (NZ)4,123
24,000
5.135.23100.011.9
Other South Island
Cnr Putaitai Street & Main Road, NelsonSavills2,659
11,800
6.506.61100.09.7
51 Arthur Street, BlenheimJLL3,136
10,500
6.757.41100.011.9
172-186 Tay Street, InvercargillCBRE5,161
23,200
6.886.82100.010.5
Development and Other
6 & 21 Hakarau Road, KaiapoiSavills
18,764
Other propertiesJLL
10,170
Total249,9061,062,1345.705.8198.48.1
40Investore Property Limited Annual Report 2023
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2.0 Property (continued)
2.2 Investment properties (continued)
Predominant valuation methods used:
•Income Capitalisation approach - is based on the current contract and market rental and an appropriate market yield or return for the
particular investment property. Adjustments are then made to the value to reflect under or over renting, pending capital expenditure, and
upcoming expiries, including allowances for lessee incentives and leasing expenses.
•Discounted Cash Flow approach - adopts a ten-year investment horizon and makes appropriate allowances for rental income growth and
leasing expenses on expiries, with an estimated terminal value at the end of the investment period. The terminal yield is used to derive the
terminal value. Terminal yield rate estimates are based on comparable transaction data and also consider matters such as building age and
the market environment at the end of the investment period. The present value reflects the market based rental and expenditure projections,
discounted at a rate of return referred to as a discount rate. In selecting the discount rate many factors are considered, including the degree of
apparent risk, market attitudes toward future inflation, the prospective rates of return for alternative investments and the rates of return earned
by comparable properties in the past.
In deriving a market value under each approach, all assumptions are based, where possible, on market based evidence and transactions for
properties with similar locations, construction detail and quality of lessee covenant. The adopted market value is a combination of both the Income
Capitalisation and the Discounted Cash Flow approaches.
The development at 6 & 21 Hakarau Road, Kaiapoi, has been fair valued utilising the Residual approach, calculating what the property is expected
to be worth on completion of the works on the property and deducting all expected costs to complete the works.
The key inputs used to measure fair value of investment properties, along with their sensitivity to significant increase or decrease, are stated below:
Fair value measurement sensitivity
to significant:
Significant inputDescription
Increase
in input
Decrease
in input
Valuation
method
Cap rateThe cap rate is applied to the market rental to assess
an investment property’s value. It is derived from detailed
analysis of factors such as comparable sales evidence and
leasing transactions in the open market taking into account
location, tenant covenant - lease term and conditions,
WALT, size and quality of the investment property.
DecreaseIncreaseIncome
Capitalisation
Discount rateThe discount rate is applied to future cash flows of
an investment property to provide a net present value
equivalent. The discount rate adopted takes into account
recent comparable market transactions, prospective rates
of return for alternative investments and apparent risk.
DecreaseIncreaseDiscounted Cash
Flow
Gross market rentalThe valuer’s assessment of gross market rental for both
occupied and vacant areas of the investment property.
IncreaseDecreaseIncome
Capitalisation
and Discounted
Cash Flow
Rental growth rateThe rental growth rate applied to the market rental in the
10-year cash flow projection.
IncreaseDecreaseDiscounted Cash
Flow
Terminal yieldThe rate used to assess the terminal value of the property.DecreaseIncreaseDiscounted Cash
Flow
When calculating fair value using the Income Capitalisation approach, the gross market rental has a strong interrelationship with the adopted
cap rate, given the methodology involves assessing the total gross market rental receivable from the investment property and capitalising this in
perpetuity to derive a capital value. An increase in the gross market rent and an increase (softening) in the adopted cap rate could potentially offset
the impact to the fair value. A decrease in the gross market rental and a decrease (tightening) in the adopted cap rate could also potentially offset
the impact to fair value. A directionally opposite change in the gross market rental and the adopted cap rate could potentially magnify the impact to
the fair value.
When assessing a discounted cash flow, the adopted discount rate and adopted terminal yield have a strong interrelationship in deriving a fair value,
given the discount rate will determine the rate at which the terminal value is discounted to the present value. An increase (softening) in the adopted
discount rate and a decrease (tightening) in the adopted terminal yield could potentially offset the impact to the fair value. A decrease (tightening)
in the adopted discount rate and an increase (softening) in the adopted terminal yield could also potentially offset the impact to fair value. A
directionally similar change in the adopted discount rate and the adopted terminal yield could potentially magnify the impact to the fair value.
Investore Property Limited Annual Report 202343
2.0 Property (continued)
20232022
Breakdown of valuations by valuer$000$000
CBRE
148,800
206,500
CVAS (NZ)
246,000
168,100
CVAS (WLG)
41,250
97,750
JLL
142,420
174,950
Savills
157,064
333,250
Bayleys
326,600
223,800
Investment properties per independent valuations
1,062,134
1,204,350
A valuation is determined based on a range of unobservable inputs which are not freely available or explicit in the market and are developed by
analysing transactional data. Key unobservable inputs are the cap rate, discount rate, gross market rental, rental growth rate and terminal yield. The
following table details the key unobservable inputs and the ranges adopted (excluding properties classified as Development and Other).
Cap
rate
Discount
rate
Gross
market
rental
Rental
growth
rate
Terminal
yield
%%$/m
2
%%
As at 31 Mar 235.00-10.005.38-11.00167-4970.14-2.864.75-10.25
As at 31 Mar 22
4.00-10.003.00-8.50148-4740.18-2.954.00-11.00
The estimated sensitivity of the fair value of the total investment property portfolio to changes in the cap rate and discount rate, assuming the cap
rate or discount rate moved equally on all the properties, is provided below (excluding properties classified as Development and Other). The metrics
chosen are those where movements are likely to have the most significant impact on fair value.
Cap rate %Discount rate %
-0.25+0.25-0.25+0.25
As at 31 Mar 23
Change $000
47,378(43,398)38,571(35,858)
Change %
5(4)4(4)
As at 31 Mar 22
Change $00068,662(59,997)34,496(29,574)
Change %6(5)3(3)
2.2 Investment properties (continued)
42Investore Property Limited Annual Report 2023
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3.0 Investor Returns
This section sets out Investore’s earnings per share, and how distributable profit is calculated. Distributable profit is a non-GAAP
measure and is used by Investore to calculate profit available for distribution to shareholders by way of dividends
3.1 Basic and diluted earnings per share (EPS)
Accounting Policy
Basic and diluted earnings per share amounts are calculated by dividing (loss)/profit after income tax attributable to shareholders by the
weighted average number of shares on issue.
The movement in the weighted average number of shares in the current year reflects the 632,398 shares acquired and cancelled under the share
buyback programme (refer note 1.6).
20232022
$000$000
(Loss)/profit after income tax attributable to shareholders(150,200)
118,167
Weighted average number of shares for purpose of basic and diluted EPS
367,723
368,135
Basic and diluted EPS - weighted (cents)(40.85)
32.10
3.2 Distributable profit
Accounting Policy
Investore’s dividend policy is to target a cash dividend to shareholders that is between 90% and 100% of its distributable profit. Distributable
profit is presented to enable investors to see an earnings measure which more closely aligns to Investore’s underlying and recurring earnings
from its operations. Distributable profit is a non-GAAP measure and consists of (loss)/profit before income tax, adjusted for determined
non-recurring and/or non-cash items (including non-recurring adjustments for incentives payable to anchor tenants for lease extensions) 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 investors to see the cash generating ability of the business.
20232022
$000$000
(Loss)/profit before income tax(150,072)
125,806
Non-recurring, non-cash and other adjustments:
Net change in fair value of investment properties
185,246
(91,017)
Reversal of right-of-use assets movement in net change in fair value of investment properties
(75)
(66)
Gain on disposal of investment property
-
(576)
Net change in fair value of derivative financial instruments
33
52
Spreading of fixed rental increases
89
(51)
Capitalised lease incentives net of amortisation
(112)
(73)
Borrowings establishment costs amortisation
940
865
Swap termination income
-
(157)
Distributable profit before current income tax36,049
34,783
Current income tax(4,972)
(4,925)
Adjusted for:
Tax expense on capitalised interest
(59)
-
Distributable profit after current income tax
31,018
29,858
Adjustments to funds from operations
Maintenance capital expenditure
(2,400)
(3,671)
Adjusted Funds From Operations (AFFO)
28,618
26,187
Weighted average number of shares for purpose of basic and diluted distributable profit per share (000)
367,723
368,135
Basic and diluted distributable profit after current income tax per share - weighted (cents)8.44
8.11
AFFO basic and diluted distributable profit after current income tax per share - weighted (cents)7.78
7.11
Investore Property Limited Annual Report 202345
2.0 Property (continued)
2.3 Lease liabilities
Accounting Policy
Lease liabilities are measured based on the present value of the fixed and variable lease payments, less any cash lease incentives receivable.
Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit or loss over the lease period so as
to produce a constant rate of interest on the remaining balance of the liability for each period.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally
the case for leases in Investore, the lessee's incremental borrowing rate is used, being the rate that the individual lessee would have to pay to
borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms,
security and conditions.
Investore is committed under ten (2022: eleven) leases where Investore is the lessee:
•Corner of Anglesea and Liverpool Streets, Hamilton (seven);
•Corner of Bridge and Anglesea Streets, Hamilton (one);
•70 Studholme Street, Morrinsville (one); and
•51 Arthur Street, Blenheim (one).
The leases relate to ground rent on leasehold properties and contain renewal and termination options exercisable only by Investore. In determining
the lease term, Investore considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a
termination option. Extension options are only included in the lease term if the lease is reasonably certain to be extended (or not terminated).
The lease term is reassessed if an option is actually exercised (or not exercised) or Investore becomes obliged to exercise (or not exercise) it.
The assessment of reasonable certainty is only revised if a significant event or a significant change in circumstances occurs, which affects this
assessment, and that is within the control of the lessee.
20232022
Right-of-use assets$000$000
Opening balance18,434
15,418
Re-assessment on rent review
-
3,082
De-recognition of right-of-use asset (refer note 1.6)
(10,042)
-
Depreciation
(75)
(66)
Closing balance
8,317
18,434
Lease liabilities
Opening balance18,434
15,418
Re-assessment on rent review
-
3,082
De-recognition of lease liability (refer note 1.6)
(10,042)
-
Cash lease payments
(859)
(1,397)
Finance lease interest
784
1,331
Closing balance
8,317
18,434
Current liabilities
75
78
Non-current liabilities
8,242
18,356
Total lease liabilities
8,317
18,434
2.4 Capital expenditure commitments contracted for
As at 31 March 2023, Investore has committed to $28.0 million (2022: $55.3 million) in total for capital expenditure works:
•Stage 1 development at 6 & 21 Hakarau Road, Kaiapoi, with the remaining work expected to cost approximately $15.3 million;
•$8.0 million towards the redevelopment and store refurbishment at 507 Pakuranga Road, Auckland, including new parking areas, improved
customer access and a dedicated online pick-up area with an associated improvements rental;
•$1.1 million towards a dedicated online pick-up area expansion of Countdown Rangiora, of which $1.0 million delivers a 7.5% per annum
return on cost; and
•$3.6 million for various other capital expenditure to be undertaken.
Investore has no other material capital commitments as at 31 March 2023.
44Investore Property Limited Annual Report 2023
Investore Property LimitedInvestore Property LimitedAnnual Report 2023Annual Report 20234445

5.0 Capital Structure and Funding
Investore'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 Investore's funding exposure to interest rate risk and related
financing costs.
5.1 Borrowings
Accounting Policy
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost;
any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the consolidated statement of
comprehensive income over the period of the borrowings using the effective interest method. Borrowings are classified as current liabilities
unless Investore has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.
20232022
$000$000
Non-current
Bank facility drawn down
37,600
5,000
Fixed rate bonds
350,000
350,000
Unamortised borrowings establishment costs
(2,563)
(3,470)
Total net borrowings
385,037
351,530
Weighted average cost of debt (inclusive of current interest rate derivatives, bonds, bank margins and line
fees) at balance date
4.01%
3.77%
Total
amount
Undrawn
facility
Drawn
amount
Fair
value
31 Mar 23Issue dateExpiry dateInterest rate$000$000$000$000
Bank Facility A30 Nov 2025Floating
70,00037,40032,60032,600
Bank Facility D16 Apr 2025Floating
50,00045,0005,0005,000
Bank Facility F30 Nov 2025Floating
5,0005,000--
Bonds IPL01018 Apr 201818 Apr 20244.40%
100,000-100,00097,709
Bonds IPL02031 Aug 202031 Aug 20272.40%
125,000-125,000106,155
Bonds IPL03025 Feb 202225 Feb 20274.00%
125,000-125,000114,731
475,00087,400387,600356,195
31 Mar 22
Bank Facility A31 Aug 2023Floating70,00065,0005,0005,000
Bank Facility D16 Apr 2025Floating50,00050,000--
Bank Facility F3 Nov 2023Floating5,0005,000--
Bonds IPL01018 Apr 201818 Apr 20244.40%100,000-100,000100,427
Bonds IPL02031 Aug 202031 Aug 20272.40%125,000-125,000111,905
Bonds IPL03025 Feb 202225 Feb 20274.00%
125,000-125,000122,159
475,000120,000355,000339,491
Investore Property Limited Annual Report 202347
4.0 Related Party Disclosures
This section sets out the transactions that have occurred during the relevant periods between Investore and SIML, as manager
of Investore, and SPL, which owns a cornerstone shareholding in Investore. The shares in each of SIML and SPL are stapled
securities and together they comprise the Stride Property Group.
20232022
The following transactions with a related party took place$000$000
SIML
Asset management fee expense
(6,158)
(5,736)
Performance fee expense
-
(1,667)
Building management fee expense
(440)
(438)
Accounting fee expense
(250)
(250)
Leasing fee expense
(46)
(92)
Project management fee expense
(430)
(157)
Other fee expenses
(97)
(315)
Total
(7,421)
(8,655)
SPL
Dividends paid
(5,467)
(5,415)
Consideration received as a purchase price adjustment on the acquisition of 2 Carr Road, Auckland
5,730
-
The following balance was payable to a related party
SIML
(258)
(31)
Other fee expenses include maintenance, disposal and sustainability fees (2022: maintenance, disposal, sustainability and bond issuance fees).
Investore has appointed SIML as its exclusive provider of ongoing real estate investment management services. Investore does not have any
employees, and accordingly, there are no senior managers of Investore who have a relevant interest in the shares of Investore.
The performance fee expense is calculated and payable on a quarterly basis as 10% of the actual increase in shareholder returns (being share
price, adjusted for dividend, and other changes in capital structure), which is above 2.5% and under 3.75% in a quarter. Where shareholder returns
exceed 3.75% in a quarter, no payment is due for the actual amount of the return above 3.75% but the amount of the return above 3.75% is
carried forward and added to the calculation of shareholder returns in the next seven quarters. However, if shareholder returns are less than 2.5%
in a quarter, the deficit is carried forward and subtracted from the calculation of shareholder returns in the next seven quarters. Additionally, the
performance fee for any twelve month period is capped at 0.2% of the value of Investore’s portfolio value, and any excess performance fee is
carried forward into the following quarter.
SIML did not receive a performance fee for the year ended 31 March 2023 (2022: $1.7 million). The carried forward return for the performance fee
calculation for the quarter ending 30 June 2023 is a 44.6% deficit (2022: quarter ended 30 June 2022 16.4% deficit) which has been calculated in
accordance with the management agreement.
As at 31 March 2023, SPL's shareholding in the Parent is 18.8%, being 69.2 million shares (2022: 18.8%, being 69.2 million shares).
In the current year, Directors in total received dividends of $14,477 (2022: $14,766). Directors' fees recognised in administration expenses
comprise the following:
20232022
$000$000
Directors' fees
208
203
Chair's fees
95
92
303
295
No other benefits have been provided by Investore to a Director for services as a Director or in any other capacity, other than those amounts
disclosed above.
46Investore Property Limited Annual Report 2023
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5.0 Capital Structure and Funding (continued)
5.2 Derivative financial instruments
Accounting Policy
Interest rate derivatives (derivative financial instruments) are initially recognised at fair value on the date a derivative contract is entered
into and are subsequently measured at their fair value at each reporting date. Fair value of over-the-counter derivatives, such as interest
rate swaps, is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on
entity-specific estimates.
Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments
to ensure that an economic relationship exists between the hedged item and hedging instrument.
Hedge ineffectiveness for interest rate swaps may occur due to:
•the credit value/debit value adjustment on the interest rate swaps which is not matched by the loan; and
•differences in critical terms between the interest rate swaps and loans.
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in the cash
flow hedge reserve within equity. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss, within the
consolidated statement of comprehensive income.
When a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity
and is recognised when the forecast transaction is ultimately recognised in profit or loss.
20232022
$000$000
Interest rate derivative contracts - fixed rate payer start dates commenced
30,000
30,000
Interest rate derivative contracts - fixed rate payer forward starting
-
30,000
Interest rate derivative contracts - fixed rate receiver
25,000
25,000
Total notional principal value of interest rate derivative contracts
55,000
85,000
Interest rate derivative assets - non-current
1,478
667
Interest rate derivative liabilities - current
-
(134)
Interest rate derivative liabilities - non-current
(718)
(126)
Fair value of interest rate derivative contracts
760
407
Fixed interest rates payer (including forward starting interest rate derivatives)
2.84%
2.38%-2.84%
Fixed interest rate receiver
4.40%
4.40%
Weighted average fixed interest rate (excluding margins, including forward starting interest rate derivatives)
2.00%
2.03%
Percentage of drawn debt fixed
92%
100%
Investore enters into interest rate swaps that have similar critical terms as the hedged item, such as reference rate, reset dates, payment dates,
maturities and notional amount. As all critical terms matched during the period, the economic relationship was 100% effective, with the exception
of a $25 million fixed rate receiver interest rate swap. On 21 March 2018, Investore entered into a $25 million fixed rate receiver swap for the
duration of the fixed rate bonds with the effect of converting a portion of the IPL010 $100 million fixed rate bonds to floating interest rate.
The life to date ineffective portion on the receiver swap, due to the misalignment to the fixed rate bonds as a result of the bonds commencing
on 18 April 2018, is a fair value loss of $129,000 (2022: fair value loss of $96,000), resulting in a fair value loss movement of $33,000
(2022: fair value loss movement of $52,000) being recognised in the consolidated statement of comprehensive income.
The fair values of interest rate derivatives are determined from valuations prepared by independent treasury advisors using valuation techniques
classified as Level 2 in the fair value hierarchy (2022: Level 2). These are based on the present value of estimated future cash flows based
on the terms and maturities of each contract and the current market interest rates as at balance date. Fair values also reflect the current
creditworthiness of the derivative counterparties. The valuations were based on market rates at 31 March 2023 of between 5.23%, for the 90-day
BKBM, and 4.30%, for the 10-year swap rate (2022: 1.61% and 3.41%, respectively). There were no changes to these valuation techniques
during the reporting period. As at 31 March 2023, the fair value of the interest rate derivatives includes an accrued interest asset of $11,550
(2022: accrued interest asset $31,672).
The following sensitivity analysis represents the change in fair value of the interest rate derivatives and shows the effect on equity if the floating
interest rates on the interest rate swaps had been 0.25% higher or lower, with other variables remaining constant.
20232022
Gain/(loss) on
+0.25%
Gain/(loss) on
-0.25%
Gain/(loss) on
+0.25%
Gain/(loss) on
-0.25%
$000$000$000$000
Impact on equity155(156)
227(230)
Impact on profit(60)60
(120)121
Investore does not hold derivative financial instruments for trading purposes.
Investore Property Limited Annual Report 202349
5.0 Capital Structure and Funding (continued)
5.1 Borrowings (continued)
Bank borrowings
Investore’s bank borrowings are via syndicated senior secured facilities with ANZ Bank New Zealand Limited, China Construction Bank Corporation,
New Zealand Branch, Industrial and Commercial Bank of China Limited, Auckland Branch, and Westpac New Zealand Limited.
Fixed rate bonds
The fixed rate bonds are quoted on the NZX Debt Market and their fair value is based on their listed market price as at balance date. The fair
value disclosure for bonds IPL020 and IPL030 as at 31 March 2022 has been restated to correct a misstatement. There was no impact to the
consolidated statement of comprehensive income or the consolidated statement of financial position.
Interest on the 6 year fixed rate bonds issued in 2018 (IPL010) is payable quarterly in April, July, October and January in equal instalments, whilst
interest on the 7 year fixed rate bonds issued in 2020 (IPL020) and the 5 year fixed rate bonds issued in 2022 (IPL030) are payable quarterly in
August, November, February, and May, also in equal instalments.
The IPL010 fixed rate bonds are due to mature in April 2024. Subsequent to balance date, Investore's banks have committed to providing Investore
with an additional $100.0 million of bank facilities to provide liquidity for the IPL010 fixed rate bonds maturity. The facilities will be available for three
years (refer to note 7.8).
Security
The bank borrowings and fixed rate bonds are managed through a security agent who holds a first registered mortgage on all the investment
properties owned by the Parent and the Subsidiary and a registered first ranking security interest under a General Security Deed over substantially
all the assets of the Parent and the Subsidiary.
Net debt reconciliation
Below sets out an analysis of net debt and the movements in net debt.
20232022
$000$000
Cash and cash equivalents
4,802
7,229
Borrowings - non-current
(385,037)
(351,530)
Lease liabilities
(8,317)
(18,434)
Net debt
(388,552)
(362,735)
Liabilities from financing activities
BorrowingsLeasesSub-totalCashTotal
$000$000$000$000$000
As at 31 Mar 21
(277,363)(15,418)(292,781)6,800(285,981)
Cash flows(75,000)1,397(73,603)429(73,174)
Re-assessment-(3,082)(3,082)-(3,082)
Other changes
833(1,331)(498)-(498)
As at 31 Mar 22(351,530)(18,434)(369,964)7,229(362,735)
Cash flows
(32,600)859(31,741)(2,427)(34,168)
De-recognition
-10,04210,042-10,042
Other changes
(907)(784)(1,691)-(1,691)
As at 31 Mar 23
(385,037)(8,317)(393,354)4,802(388,552)
48Investore Property Limited Annual Report 2023
Investore Property LimitedInvestore Property LimitedAnnual Report 2023Annual Report 20234849

6.0 Risk Management
This section sets out Investore's exposure to financial assets and liabilities that potentially subject Investore to financial risk and
how Investore manages those risks.
6.1 Financial instruments
Accounting Policy
A financial instrument is recognised if Investore becomes a party to the contractual provisions of the instrument. Financial assets are
de-recognised if Investore’s contractual rights to the cash flows expire, or if Investore transfers them without retaining control or substantially
all risks and rewards of the asset. Financial liabilities are de-recognised if Investore’s obligations specified in the contract are extinguished.
Investore classifies its financial assets and financial liabilities in the following measurement categories:
•those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss); and
•those to be measured at amortised cost.
Depending on the purpose for which the assets were acquired, Investore classifies its assets as financial assets at fair value through profit
or loss and financial assets at amortised cost. Classification is determined at initial recognition and this designation is re-evaluated at every
reporting date.
Financial assets at amortised cost are those assets with fixed or determinable payments that are not quoted in an active market. They
are included in current assets, except for those with maturities greater than 12 months after balance date, which are classified as non-
current assets.
On initial recognition of a financial asset, Investore assesses on a forward-looking basis the expected credit loss associated with its financial
assets carried at amortised cost. At each reporting date, the credit risk on a financial asset, apart from trade receivables, is assessed to
determine whether there has been a significant increase in the credit risk by considering both forward-looking information and the financial
history of counterparties to assess the probability of default or likelihood that full settlement is not received.
Financial liabilities at amortised cost are those liabilities measured at amortised cost and include borrowings and trade and other payables.
20232022
Summary of financial instruments$000$000
Financial assets at amortised cost
Cash at bank
4,802
7,229
Trade and other receivables
608
872
NZX bond
75
75
Total financial assets at amortised cost
5,485
8,176
Derivative financial instruments
Used for hedging
1,478
667
Total financial assets
6,963
8,843
Financial liabilities at amortised cost
Trade and other payables
8,355
5,564
Lease liabilities
8,317
18,434
Borrowings
385,037
351,530
Total financial liabilities at amortised cost
401,709
375,528
Derivative financial instruments
Used for hedging
685
208
Held for trading at fair value through profit and loss
33
52
Total financial liabilities
402,427
375,788
6.2 Fair values
The carrying value of the following financial assets and liabilities approximate their fair value: cash at bank, trade and other receivables, other current
assets, deposits, prepayment and other payments on investment properties, trade and other payables, lease liabilities, and bank borrowings. The fair
value of the fixed rate bonds is disclosed in note 5.1.
6.3 Financial risk management
Investore’s activities expose it to a variety of financial risks: interest rate risk, credit risk and liquidity risk. Investore’s overall risk management
strategy focuses on minimising the potential negative economic impact of unpredictable events on its financial performance.
Risk management is the responsibility of the Board. The Board identifies and evaluates financial risks in close co-operation with SIML management.
The Board provides written principles for overall risk management, as well as written policies covering specific areas, such as interest rate risk,
credit risk, use of derivative financial instruments and non-derivative financial instruments, and investing excess liquidity.
Investore Property Limited Annual Report 202351
5.0 Capital Structure and Funding (continued)
5.3 Net finance expense
Accounting Policy
Interest income is recognised on a time-proportional basis using the effective interest rate.
Where Investore borrows funds specifically for the purpose of obtaining a qualifying asset, the amount of borrowing costs capitalised are the
actual borrowing costs incurred on that borrowing, less any investment income on the temporary investment of those borrowings. A qualifying
asset is one that takes six months or longer to prepare for its intended use or sale. Where Investore borrows funds generally and uses them
to fund a qualifying asset, the amount of borrowing costs capitalised is determined by applying a capitalisation rate to the expenditure on that
asset. The capitalisation rate is the weighted average of the borrowing costs applicable to the borrowings that are outstanding during the
period, other than borrowings made specifically for the purpose of funding a qualifying asset.
Other borrowing costs are expensed when incurred and are recognised using the effective interest rate.
20232022
$000$000
Finance income
Bank interest income
92
10
Swap termination income
-
157
Total finance income
92
167
Finance expense
Bank borrowings interest
(3,312)
(4,990)
Bank borrowings interest capitalised
209
-
Fixed rate bonds interest
(12,400)
(7,891)
Lease liabilities interest
(784)
(1,331)
Total finance expense
(16,287)
(14,212)
Net finance expense
(16,195)
(14,045)
In the current year, $0.2 million (2022: $nil) of bank borrowing interest expense was capitalised using an average capitalisation rate of 5.92%
(2022: nil).
5.4 Share capital
Accounting Policy
Shares are classified as equity when there is no obligation to transfer cash or other assets. Incremental costs directly attributable to the issue
of new shares are shown in equity as a deduction, net of tax, from the proceeds.
There is only one class of shares, being ordinary shares, and they rank equally with each other. All issued shares are fully paid and have no par value.
Investore had 367,502,635 shares on issue as at 31 March 2023 (2022: 368,135,033).
During the year, through an on-market share buyback programme, the Parent acquired 632,398 of its own ordinary shares at an average price of
$1.66 for a total consideration of $1.1 million. All shares acquired were subsequently cancelled. Incremental costs of $0.03 million incurred were
deducted from equity. On 19 May 2023, the Board resolved to cancel the share buyback programme (refer note 7.8).
5.5 Reserve
20232022
Cash flow hedge reserve$000$000
Opening balance366
357
Movement in fair value of interest rate derivatives
374
(60)
Tax on fair value movement
(105)
17
Transferred to profit or loss
33
52
Closing balance
668
366
Gains and losses recognised in the cash flow hedge reserve in equity, on interest rate derivative contracts as at 31 March 2023, will be reclassified
in the same period in which the hedged forecast cash flows affect profit or loss, until the repayment of the underlying borrowings.
5.6 Capital risk management
Investore’s objectives when managing capital are to safeguard Investore’s ability to continue as a going concern in order to provide returns for
shareholders, and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, Investore
may adjust the amount of dividends paid to shareholders, return capital to shareholders, buy back shares, issue new shares or sell assets to reduce
borrowings. As part of its capital risk management, Investore is required to comply with covenants imposed under its banking facility and its fixed
rate bonds (refer note 5.1). The Board regularly monitors these covenants and provides six monthly compliance certificates to the banks and the
Bond Supervisor as part of this process. Investore has complied with these covenants during the relevant periods.
50Investore Property Limited Annual Report 2023
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7.0 Other
This section contains additional information to assist in understanding the financial performance and position of Investore.
7.1 Operating segments
Accounting Policy
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker, identified
as the Board, as it makes all key strategic resource allocation decisions.
Investore is reported as a single operating segment, being large format retail properties. Investore’s revenue streams are earned from investment
properties owned in New Zealand, with no specific exposure to geographical risk. One tenant, General Distributors Limited (Countdown),
contributes 64% of Investore’s portfolio contract rental as at 31 March 2023 (2022: 63%).
7.2 Corporate expenses
20232022
$000$000
Administration expenses includes:
Auditor's remuneration
Audit and review of financial statements
183
171
Other assurance services - operating expense audits
17
19
Total Auditor's remuneration
200
190
Investore Property Limited Annual Report 202353
6.0 Risk Management (continued)
6.4 Interest rate risk
As Investore has no significant interest bearing assets, its income and operating cash flows are substantially independent of changes in market
interest rates. Investore’s interest rate risk arises from bank borrowings (refer note 5.1) which are issued at variable rates and expose Investore to
cash flow interest rate risk. The long term interest rate hedging policy provides bands that are applied on a rolling basis, which provide for both a
high level of fixed interest rate cover over the near term, as well as a lengthy period of known fixed interest rate cover for a portion of term debt.
Investore manages its cash flow interest rate risk by predominately using floating to fixed interest rate derivatives which have the economic effect of
converting bank borrowings from floating to fixed rates.
As Investore holds interest rate derivatives, there is a risk that their economic value will fluctuate because of changes in market interest rates. The
value of interest rate derivatives is disclosed in note 5.2. At balance date, the total drawn debt was 92% hedged (2022: fully hedged).
Investore’s exposure to variable interest rate risk and the weighted average interest rate for interest bearing financial assets and liabilities is
as follows:
20232022
Interest rates applicable at balance date$000$000
Cash at bank
1.85%
0.15%
Bank borrowings
6.18%
2.21%
Weighted average interest rate for drawn debt (inclusive of current interest rate derivatives, margins and line
fees) of the bank borrowings
4.01%
3.77%
Trade and other receivables and payables are interest free and have settlement dates within one year. All other assets and liabilities are
non-interest bearing.
6.5 Credit risk
Investore incurs credit risk from trade receivables and transactions with financial institutions including cash balances and interest rate derivatives.
The risk associated with trade receivables is managed with a credit policy which includes performing credit evaluations on customers requiring
credit and ensures that only those customers with appropriate credit histories are provided with credit. In addition, receivable balances are
monitored on an ongoing basis, with the result that Investore’s exposure to bad debts is not significant.
As Investore’s tenant, General Distributors Limited (GDL), contributes most of Investore’s portfolio contract rental, Investore is exposed to a
significant concentration of credit risk. GDL is a large national retailer, the operator of Countdown supermarkets in New Zealand and an ultimate
subsidiary of Woolworths Group Limited.
The risk from financial institutions is managed by placing cash and deposits with high credit quality financial institutions only. Investore has placed its
cash and deposits with Westpac New Zealand Limited, which is AA- rated (Standard & Poor’s).
With respect to the credit risk arising from interest rate swap agreements, there is limited risk as all counterparties are registered banks in New
Zealand whose credit ratings are all AA- (Standard & Poor’s).
Investore is not exposed to any other concentrations of credit risk. The maximum exposure to credit risk is the carrying amount of each class of
financial assets as reported in note 6.1.
6.6 Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit
facilities, and the ability to close out market positions. Investore’s liquidity position is monitored on a regular basis and is reviewed quarterly by the
Board to ensure compliance with internal policies and covenants per Investore’s banking facility and fixed rate bonds.
Investore generates sufficient cash flows from its operating activities to meet its obligations arising from its financial liabilities and has the bank
facility available to cover potential shortfalls (refer note 5.1).
The following table outlines Investore’s liquidity profile, as at 31 March, based on contractual non-discounted cash flows.
Total0-6 mths6-12 mths1-2 yrs2-5 yrs>5 yrs
$000$000$000$000$000$000
31 Mar 23
Trade and other payables
8,3558,355----
Bank borrowings
45,3781,5101,5103,03839,320-
Fixed rate bonds
387,3846,2006,200108,220266,764-
Lease liabilities
8,2793222475322,6214,557
Derivative financial instruments
1,2256363815284-
450,62116,4508,020112,605308,9894,557
31 Mar 22
Trade and other payables5,5645,564----
Bank borrowings7,5205005006,092428-
Fixed rate bonds402,3536,2006,20012,400124,220253,333
Lease liabilities53,4836436051,2125,87345,150
Derivative financial instruments
1,759402024041,113-
470,67912,9477,50720,108131,634298,483
52Investore Property Limited Annual Report 2023
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7.0 Other (continued)
7.3 Ta x (continued)
Accounting Policy
Deferred tax is provided, using the liability method, on all temporary differences between the tax base of assets and liabilities and their carrying
amounts for financial reporting purposes. Temporary differences include:
•tax liability arising from accumulated depreciation claimed on investment properties, where applicable;
•tax asset arising from loss allowance;
•tax liability arising from certain prepayments and other assets; and
•tax asset/liability arising from the unrealised gains/losses on the revaluation of interest rate swaps.
For deferred tax liabilities or assets arising on investment property measured at fair value, it is assumed that the carrying amounts of the
investment property will be recovered through sale. Investment properties are independently valued each year and the valuation includes a
split between the land and building components. Deferred tax is provided on the depreciation claimed to date on the building component of
the investment properties and this places reliance on the valuation split provided by the valuers.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset and when the deferred tax assets and liabilities
relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an
intention to settle the balances on a net basis.
2022
Recognised in
profit or loss
Recognised in
other
comprehensive
income2023
$000$000$000$000
Deferred tax assets
Derivative financial instruments
62-116178
Other temporary differences
250(170)-80
312(170)116258
Deferred tax liabilities
Depreciation on investment properties
(7,103)5,014-(2,089)
Derivative financial instruments
(167)-(221)(388)
(7,270)5,014(221)(2,477)
(6,958)4,844(105)(2,219)
20212022
$000$000$000$000
Deferred tax assets
Derivative financial instruments335-(273)62
Other temporary differences
46(75)279250
381(75)6312
Deferred tax liabilities
Depreciation on investment properties(4,464)(2,639)-(7,103)
Derivative financial instruments
(457)-290(167)
(4,921)(2,639)290(7,270)
(4,540)(2,714)296(6,958)
Investore Property Limited Annual Report 202355
7.0 Other (continued)
7.3 Ta x
Accounting Policy
The Parent is a listed Portfolio Investment Entity (PIE) for the purposes of the Income Tax Act 2007 and is required to pay tax to Inland Revenue
as required by the Income Tax Act 2007.
20232022
Income tax$000$000
Current tax expense
(4,972)
(4,925)
Deferred tax benefit/(expense)
4,844
(2,714)
Income tax expense per the consolidated statement of comprehensive income
(128)
(7,639)
(Loss)/profit before income tax(150,072)
125,806
Prima facie income tax using the company tax rate of 28%42,020
(35,226)
(Increase)/decrease in income tax due to:
Net change in fair value of investment properties
(51,869)
25,485
Gain on disposal of investment property
-
161
Reversal of lease liabilities movement in investment properties
21
18
Movement in fair value of derivative financial instruments
(9)
(15)
Non-taxable income
36
83
Other permanent differences
433
101
Depreciation
4,264
4,461
Non-deductible expenses
(73)
(53)
Expenditure deductible for tax
59
-
Temporary differences
(22)
(40)
Losses utilised
176
100
Prior year adjustment
(8)
-
Current tax expense
(4,972)
(4,925)
Investment properties depreciation
5,014
(2,639)
Other
(170)
(75)
Deferred tax credited/(charged) to profit or loss
4,844
(2,714)
Income tax expense per the consolidated statement of comprehensive income
(128)
(7,639)
Imputation credits available for use in subsequent reporting periods
666
1,220
Imputation credits available for use in subsequent reporting periods are based on a rate of 28% and represent the balance of the imputation
account as at the end of the reporting period, adjusted for imputation credits arising from provisional income tax paid.
54Investore Property Limited Annual Report 2023
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7.0 Other (continued)
7.6 Investment in subsidiaries
Accounting Policy
A subsidiary is an entity controlled by the Parent whereby the Parent has power over the investee, is exposed to, or has rights to, variable
returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
The Parent has a 100% owned Subsidiary, Investore Property (Carr Road) Limited. It has a 31 March balance date, and owns a large format retail
property at 4 Carr Road, Auckland, which is presented as part of the Parent's investment property.
The financial statements of the Subsidiary are included in the financial statements of the Parent from the date that control commences until the
date that control ceases. The Subsidiary applies the same accounting policies as the Parent. The acquisition method of accounting has been
used to consolidate the Subsidiary of the Parent. All intra-group transactions and balances between group companies have been eliminated
on consolidation.
7.7 Contingent liabilities
Investore has no contingent liabilities at balance date (2022: $nil).
7.8 Subsequent events
On 17 May 2023, Investore's banks committed to providing Investore with an additional $100.0 million of bank facilities to provide liquidity for the
IPL010 fixed rate bonds which are due to mature in April 2024. The bank facilities will be available for three years.
On 19 May 2023, the Board resolved to cancel the share buyback programme.
On 19 May 2023, the Parent declared a cash dividend for the period 1 January 2023 to 31 March 2023 of 1.975 cents per share, to be paid on
6 June 2023 to all shareholders on the Parent’s register at the close of business on 29 May 2023. This dividend will carry imputation credits of
0.181151 cents per share. This dividend has not been recognised in the financial statements.
There have been no other material events subsequent to balance date.
Investore Property Limited Annual Report 202357
7.0 Other (continued)
7.4 Trade and other receivables
Accounting Policy
Trade and other receivables are recognised at their fair value and subsequently measured at amortised cost using the effective interest rate
method. Investore has applied the simplified approach to measuring expected credit loss as prescribed by NZ IFRS 9 Financial Instruments,
which uses a lifetime expected loss allowance. A loss allowance is made when there is objective evidence (such as the probability of insolvency
or significant financial difficulties of the debtor) that Investore will not be able to collect all of the amounts due under the original terms of
the invoice.
20232022
$000$000
Current
Trade and other receivables
861
1,095
Less loss allowance
(253)
(223)
608
872
Less than 30 days overdue
251
388
Over 30 days overdue
357
484
Carrying amount
608
872
Movement in loss allowance
Opening balance(223)
(82)
Additional loss allowance
(34)
(165)
Reduction in loss allowance
-
24
Bad debts written off
4
-
Closing balance
(253)
(223)
7.5 Trade and other payables
Accounting Policy
Trade and other payables represent unsecured liabilities for goods and services provided to Investore prior to the end of the financial period
which are unpaid. Trade and other payables are usually paid within 30 days of recognition. The carrying amounts of trade and other payables
are assumed to be the same as their fair values, due to their short-term nature.
20232022
$000$000
Current
Unsecured liabilities
Trade payables
491
401
Related party payables (refer note 4.0)
258
31
Capital expenditure payables and accruals
3,281
1,327
Interest expense accruals
1,709
1,666
Other accruals and payables
2,616
2,139
8,355
5,564
Other accruals and payables include Goods and Services Tax, tenant deposits, direct property operating expense accruals and other corporate
expense accruals.
56Investore Property Limited Annual Report 2023
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Independent auditor’s report (continued)
Description of the key audit matterHow our audit addressed the key audit matter
Valuation of investment properties
As disclosed in Note 2.2 of the consolidated financial
statements, the valuation of the Group’s investment properties
totalled $1,062.1 million (excluding lease liabilities) which
represents majority of the assets held by the Group as at
31 March 2023.
The valuation of the Group’s property portfolio is inherently
subjective due to, amongst other factors, the individual nature of
each property, location and the expected future rental income
for each property. A relatively small percentage difference in
any one of the key individual assumptions used in the property
valuations, as disclosed in Note 2.2, when aggregated, could
result in a material misstatement of the overall valuation of
investment properties.
The valuations were performed by independent registered
valuers Bayleys Valuations Limited, CBRE Limited, CVAS (NZ)
Limited, CVAS (WLG) Limited, Jones Lang LaSalle Limited
and Savills (NZ) Limited (the Valuers), as engaged by Stride
Investment Management Limited (the Group’s Manager).
The Valuers engaged by the Manager are reputable and
experienced in the markets in which the Group operates and
are rotated for individual properties on a three-yearly cycle.
In determining a property’s valuation, the Valuers generally
used two approaches to determine the fair value of an
investment property: the Income Capitalisation approach and
the Discounted Cash Flow approach to arrive at a range of
valuation outcomes, from which the Valuers derive a point
estimate. Investment property totalling $18.8 million that is held
as development is valued using the Residual approach, where
the Valuer estimates the expected value on completion of the
works and deducts all expected costs to complete them.
For each property, the Valuers take into account property-
specific information such as the current tenancy agreements
and rental income earned by the asset as well as recent
comparable transactions where available. They then apply
assumptions in relation to capitalisation rate, discount rate,
gross market rental, rental growth rate and terminal yield.
Due to the unique nature of each property, the assumptions
applied take into consideration the individual property
characteristics at a granular tenant-by-tenant level, as well as
the qualities of the property as a whole.
The valuation of investment properties is inherently subjective given that there
are alternative assumptions and valuation methods that may result in a range
of values.
We held discussions with the Group’s Manager to understand the movements
in the Group’s investment property portfolio, changes in the condition of each
property and the controls in place over the valuation process.
In assessing the individual valuations, we read the valuation reports for all
properties. We also held separate discussions with each of the Valuers in order to
gain an understanding of the assumptions and estimates used and the valuation
methodology applied. We also sought to understand and consider restrictions
imposed on the valuation process (if any) and the market conditions at the
balance date.
We confirmed that the valuation approach for each property was in accordance
with accounting standards and suitable for use in determining the fair value of
investment properties at 31 March 2023.
Our work over the assumptions focused on the properties in the portfolio where
the assumptions used and/or year-on-year fair value movement suggested a
possible outlier versus market data. In particular, we obtained an understanding
of the key inputs in the valuation, agreed contractual rental and lease terms to
lease agreements with tenants, considered whether seismic assessments and/or
capital maintenance requirements had been taken into account in the valuations
with reference to supporting documentation and if climate change matters were
considered as part of the valuation process. For property held as development,
we audited the estimated costs to completion.
We engaged our own in-house valuation specialist to critique and independently
assess the work performed and assumptions used by the Valuers on a
sample basis.
We considered whether or not there was a bias in determining significant
assumptions in individual valuations and found no evidence of bias.
We also assessed the Valuers’ qualifications, expertise and their objectivity and
we found no evidence to suggest that the objectivity of any Valuer, in their
performance of the valuations, was compromised.
It was also evident from our discussions with the Group’s Manager and the
Valuers and from our review of the valuation reports that close attention had
been paid to each property’s individual characteristics and its overall quality,
geographic location and desirability as a whole.
We considered the appropriateness of disclosures made in the
financial statements.
Our audit approach
Overview
Overall Group materiality: $1,750,000, which represents approximately 5% of profit before income tax excluding net change
in fair value of investment properties.
We chose profit before income tax excluding net change in fair value of investment properties as the benchmark because,
in our view, it is the benchmark against which the performance of the Group is most commonly measured by users, and is a
generally accepted benchmark.
As reported above, we have one key audit matter, being:
•Valuation of investment properties.
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the consolidated financial statements.
In particular, we considered where management made subjective judgements; for example, in respect of significant accounting estimates that
involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of
management override of internal controls, including among other matters, consideration of whether there was evidence of bias that represented a
risk of material misstatement due to fraud.
Investore Property Limited Annual Report 202359
Independent auditor’s report
To the shareholders of Investore Property Limited
Our opinion
In our opinion, the accompanying consolidated financial statements of Investore Property Limited (the Company), including its controlled entities
(the Group), present fairly, in all material respects, the financial position of the Group as at 31 March 2023, its financial performance and its
cash flows for the year then ended in accordance with New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS) and
International Financial Reporting Standards (IFRS).
What we have audited
The Group's consolidated financial statements comprise:
•the consolidated statement of financial position as at 31 March 2023;
•the consolidated statement of comprehensive income for the year then ended;
•the consolidated statement of changes in equity for the year then ended;
•the consolidated statement of cash flows for the year then ended; and
•the notes to the consolidated financial statements, which include significant accounting policies and other explanatory information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)) and International Standards on Auditing
(ISAs). Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the consolidated financial
statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group in accordance with Professional and Ethical Standard 1 International Code of Ethics for Assurance Practitioners
(including International Independence Standards) (New Zealand) (PES 1) issued by the New Zealand Auditing and Assurance Standards Board and
the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics
Standards Board for Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements.
Our firm carries out other services for the Group in the area of assurance services over operating expense statements. The provision of these
services has not impaired our independence as auditor of the Group.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial
statements of the current year. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
58Investore Property Limited Annual Report 2023
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Independent auditor’s report (continued)
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance about whether
the consolidated financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered
material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the
consolidated financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall Group materiality for the
consolidated financial statements as a whole as set out above. These, together with qualitative considerations, helped us to determine the scope of
our audit, the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually and in aggregate, on
the consolidated financial statements as a whole.
How we tailored our group audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the consolidated financial statements as
a whole, taking into account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates.
Other information
The Directors are responsible for the other information. The other information comprises the information included in the annual report, but does not
include the consolidated financial statements and our auditor's report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of audit opinion or
assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated. If, based on the work we have performed on the other information that we obtained prior to the date of
this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing
to report in this regard.
Responsibilities of the Directors for the consolidated financial statements
The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of the consolidated financial statements in
accordance with NZ IFRS and IFRS, and for such internal control as the Directors determine is necessary to enable the preparation of consolidated
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Directors are responsible for assessing the Group’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to
liquidate the Group or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements, as a whole, are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with ISAs (NZ) and ISAs will always detect a material misstatement when
it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
A further description of our responsibilities for the audit of the consolidated financial statements is located at the External Reporting Board’s
website at:
https://www.xrb.govt.nz/assurance-standards/auditors-responsibilities/audit-report-1/
This description forms part of our auditor’s report.
Who we report to
This report is made solely to the Company’s shareholders, as a body. Our audit work has been undertaken so that we might state those matters
which we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company and the Company’s shareholders, as a body, for our audit work, for this report or for the
opinions we have formed.
The engagement partner on the audit resulting in this independent auditor’s report is Philip Taylor.
For and on behalf of:
Chartered AccountantsAuckland
19 May 2023
60Investore Property Limited Annual Report 2023
Countdown, Rototuna
Investore Property LimitedInvestore Property LimitedAnnual Report 2023Annual Report 20236061

Corporate Governance
Corporate
Governance
The Investore Board has established a
framework of policies, practices, and
processes as part of its governance
framework that are intended to ensure
that Investore implements best practice
standards of corporate governance. The
Board sets the strategic direction and
objectives for the business, identifies and
manages risks, and strives to continuously
improve performance.
This section of the Annual Report provides
an overview of those corporate governance
policies, practices and processes adopted
and followed by Investore. This statement
is current as at 1 M
ay 20
23.
Overview of Investore
Investore is a New Zealand incorporated company, whose
fully paid ordinary shares are quoted on the NZX Main
Board equity securities market under the ticker code ‘IPL’,
with a ‘non-standard’ (NS) designation. Investore has a
‘non-standard’ designation due to certain waivers that
have been granted from the Listing Rules, which reflect
the nature and operations of Investore. These waivers are
described on page 87.
Investore was established by SPL as a separate listed
company in 2016 to invest in large
format retail property
throughout New Zealand. In August 2021, Investore
acquired all of the shares in Investore Property (Carr
Road) Limited, which owns the property at 4 Carr Road,
Mt Roskill, Auckland. This Corporate Governance section
refers to Investore and its subsidiary, Investore Property
(Carr Road) Limited.
Investore is a listed Portfolio Investment Entity (PIE) for
taxation purposes.
Investore’s assets and operations are externally managed
by SIML, a real estate investment management business
that is
part of the NZX listed stapled group, Stride Property
Group (Stride). SIML, as Manager, has appointed two
Directors to the Investore Board.
Investore does not have any employees and has appointed
SIML as the manager of Investore’s portfolio and its
business pursuant to a Management Agreement. Under
this Management Agreement, SIML is responsible for the
management and maintenance of Investore’s property
portfolio and its business, negotiating the acquisition
and disposal of property, development management,
treasu
ry and capital management, and ensuring Investore
meets its financial, reporting, and other statutory and
regulatory obligations.
Corporate Governance
The Board has adopted a corporate governance framework
that it considers is appropriate for the size and nature of
Investore’s operations. The Board reviews and assesses
Investore’s governance structures and processes to ensure
they remain appropriate and effective and are consistent
with best practice standards. This section of the Annual
Report provides an overview of Investore’s corporate
governance framework and includes commentary on
Investore’s compliance with each of the eight corporate
governance principles and recommen
dations of the NZX
Code for the year ended 31 March 2023, together with
other legal and regulatory disclosures. These disclosures
report against the version of the Code dated 17 June 2022,
as that was the version that applied during the year ended
31 March 2023.
Investore Property Limited Annual Report 20231
Investore’s corporate governance framework and practices
are materially consistent with the NZX Code, subject to the
following exceptions, which are consistent with practices
reported in previous years’ Annual Reports:
•A Remuneration Committee has not been established
(NZX Code Recommendation 3.3) and a Remuneration
Policy has not been adopted (NZX Code
Recommendation 5.2), as Investore does not have
any employees. Director remun
eration is considered
by the Board as a whole and then recommended to
shareholders for
approval.
•A Nomination Committee has not been established
to recommend Director appointments (NZX Code
Recommendation 3.4), as this function is assumed by
the Board as a whole.
•As there is no Chief Executive of Investore,
the requirement to disclose the remuneration
arrangements in place for the Chief Executive does not
apply (NZX
Code Recommendation 5.3).
Investore’s Website:
For additional information on Investore’s key
corporate governance documents and policies,
please refer to the Investore website at
www.investoreproperty.co.nz
2Investore Property Limited Annual Report 2023
Diagram 1: Governance Framework
External Stakeholders
External Auditor
Investore Board of Directors


ShareholdersBondholders
Management Agreement
Audit and Risk Committee
Risk Management
/Internal Controls
Delegations of Authority
Other SIML
Managed Fund
Other SIML
Managed Fund
(3x Independent and
2x SIML Nominee Directors)
SIML/Manager
SIML CEO/Management
Appointment
of Directors
Accountability
Risk Management Framework
SPL 18.8%
(as at 31 March 2023)
Other SIML
Managed Fund
Investore
Large Format Retail
Investore Property LimitedInvestore Property LimitedAnnual Report 2023Annual Report 20236263

Principle 1: Code of
Ethical Behaviour

“Directors should set high standards of
ethical behaviour, model this behaviour
and hold management accountable for
these standards being followed throughout
the organisation.”
The Board sets a standard of ethical behaviour
for the conduct of Investore’s business and adopts
an ethics-based approach to Investore’s operations
and decision-making.
Code of Ethics
Investore has adopted a Code of Ethics which sets the
standard expected by Investore of its Directors and of the
employees of the Manager when conducting the business
of Investore.
This ethics-based approach to Investore’s operations
and decision-making is reinforced through a number of
policies in addition to the Code of Ethics, including the
Securities Trading Policy and Market Disclosure Policy (see
Principle 4: Report
ing and Disclosure for a description of
the Market Disclosure Policy), as well as the Manager’s
Conflict
s Policy. Investore does not have a whistleblower
policy, as it has no employees.
Diagram 2: Key principles underpinning Investore’s
Code of Ethics

Conflicts of Interest
Investore and the Board are very aware of the risks
posed by actual or perceived conflicts of interest, and
the management of conflicts of interest is an integral
feature of Investore’s day to day governance practices.
This is particularly pertinent given the relationship between
Investore, Stride, and other entities managed by SIML.
The principles that govern the management of conflicts
of interest are addressed in a numb
er of Investore’s
governance documents, including the Constitution, the
Board Charter, the Code of Ethics, and a range of inter
nal
policies of SIML, the Manager. SIML has adopted a Conflicts
Policy which Investore has approved, and which guides
SIML in identifying and managing conflicts of interest in its
operations, including its management of the business of
Investore and other entities managed by SIML.
Securities Trading Policy
The Board has adopted a Securities Trading Policy which
contains processes and procedures governing trading in
Investore securities. The Securities Trading Policy raises
awareness of the insider trading provisions within the
Financial Markets Conduct Act 2013 and reinforces those
legislative requirements with additional internal compliance
requirements. Directors of Investore and directors and
employees of SIML who wish to
trade in quoted financial
products of Investore must comply with the Securities
Trading Policy. This policy
imposes limited trading windows
and requires that all persons to whom the policy applies,
obtain approval prior to trading. Speculative trading is
not permitted. A minimum hold period of six months for
any securities acquired is imposed, except in exceptional
circumstances and only with the prior approval of the
Company S
ecretary of SIML, the Manager.
Investore Property Limited Annual Report 20233
Protect Investore’s
assets and
resources, including
its confidential or
sensitive information
Act with honesty
and integrity and
demonstrate
respect for others
Make every effort to
protect the reputation
of Investore and avoid
a conflict between
an individual’s private
financial activities and
the business activities
of Investore
Adhere to all legal
and compliance
obligations
Principle 2: Board Composition
and Performance

“To ensure an effective board, there should
be a balance of independence, skills,
knowledge, experience and perspectives.”
The Board is responsible for overseeing the effective
management and operation of Investore. The Board’s role
is to represent the interests of Investore’s stakeholders and
ensure that the operations of Investore are managed in a
way that is consistent with the achievement of Investore’s
strategy and busine
ss objectives, within a framework of
regulatory and ethical compliance.
The Board’s roles and responsibilities are
formalised in its
Board Charter, which is available in the Governance section
of Investore’s website, www.investoreproperty.co.nz.
The Board Charter outlines the functions that are solely
reserved for the Board and those that are formally
delegated to SIML, as Manager. The Board reviews the
Board Charter an
nually, to ensure it remains consistent
with the Board’s objectives and responsibilities and ensures
an appropriate balance between governance matters for
which the Board retains responsibility, and ope
rational
matters which have been delegated to SIML, as Manager.
The Board retains responsibility for setting the strategic
direction of Investore, overseeing the performance of
Investore and communications to the market. The Boar
d
delegates the day to day management of Investore’s
business to SIML, as Manager, by way of a Management
Agreement and ensures appropriate operating parameters
through formal delegations of authority.
The relationship between the Board and SIML and
their respecti
ve roles and responsibilities is depicted in
Diagram 3.
Diagram 3: Board and Manager Roles and Responsibilities
4Investore Property Limited Annual Report 2023
Board oversees operations of
Investore and implementation
of strategic objectives
• Ensures Investore has
adequate resources to meet
its objectives and obligations
• Reviews and approves
budgets, business plans,
dividend policy and
financial forecasts and
oversees Investore’s capital
management
• Monitors the financial
performance of Investore
• Implements effective audit
and risk management systems
• Reviews and approves market
communications
SIML implements Board’s
strategy and follows approved
policies and procedures
• Oversees day to day operations
of Investore’s portfolio and
assets
• Ensures Investore is meeting
its legal, regulatory, financial
reporting and other statutory
obligations
• Makes recommendations to the
Board on company strategy and
initiatives
• Reports to the Board
on Investore’s operating
performance; prepares budgets
and business plans for Board
approval
• Manages business risk in
accordance with the risk appetite
adopted by the Board
• Implements health and safety
policies and procedures
Board sets strategic
direction and operating
frameworks
• Adopts policies, processes
and systems to ensure
the business of Investore
is operated in an honest,
ethical, safe and responsible
manner
• Adopts an appropriate risk
management framework
• Delegates day to day
operations to SIML within
a formal delegation of
authority
Investore Property LimitedInvestore Property LimitedAnnual Report 2023Annual Report 20236465

Composition of the Board and Director Independence
Investore’s Constitution requires the Board to have no less
than four and no more than five Directors at any one time.
The Board must comprise:
•At least two Directors who are ‘Independent of the
Manager’ where the Board is comprised of four
Directors. If the Board is comprised of five Directors,
at least three Directors must be 'Independent of
the Manager'.
•A non-executive Chair who is ‘Independent of
the Manager’ where SIML
has (or is deemed to
have) appointed two Directors. Where the Chair is
‘Independent o
f the Manager’, the Chair holds a casting
vote in respect of Board resolutions in the case of an
equality of votes.
•At least two Directors who are ordinarily resident in
New Zealand.

‘Independent of the Manager’ means, in respect
of a Director, that:
•The Director is not an ‘Associated Person’
(as defined in the Listing Rules) of SIML,
any person who holds or controls more than
25% of the ordinary shares of SIML, or any
related company of a person who holds or
controls more than 25% of the ordinary
shares of SIML;
•The Director was not appointed by
SIML under its appointment rights in the
Investore Constitution;
•The Director is not an exe
cutive officer of
SIML and has no ‘Disqualifying Relationship’
(as defined in the Listing Rules) with SIML
; or
•Pur
suant to any NZX Regulation ruling or
other written consent of NZX, the Director is
to be treated as being independent of SIML.
SIML, as Manager, has the right to appoint and remove
two Directors. The independent Directors (being both
‘Independent of the Manager’ and ‘Independent Directors’
pursuant to the Listing Rules) are appointe
d and subject
to removal in the normal manner by Investore shareholders
who are not associated with SIML. This means that SPL,
as a shareholder of Investore, is not eligible to vote on the
appointment of
independent Directors.

As at 1 May 2023, the Investore Board comprised:
Mike Allen
Independent Director
Independent of the Manager
Chair of the Board
Subject to retirement and election by
shareholders in the usual manner
Gráinne Troute
Independent Director
Independent of the Manager
Chair of the Audit and
Risk Committee
Subject to retirement and election by
shareholders in the usual manner
Adrian Walker
Independent Director
Independent of the Manager
Subject to retirement and election by
shareholders in the usual manner
Tim Storey
SIML-appointed Director
Appointed by SIML to the Investore
Board and accordingly is not
required to stand for election
by shareholders
Ross Buckley
SIML-appointed Director
Appointed by SIML to the Investore
Board and accordingly is not
required to stand for election
by shareholders
Investore Property Limited Annual Report 20235
The Board has reviewed the status of each of the Directors
and confirms that, as at the date of release of this
Annual Report, Directors Mike Allen, Gráinne Troute and
Adrian Walker are Independent Directors (as defined in the
Listing Rules), on the basis that none of these Directors
have any current or prior relationship with Investore or
any substantial product holder of Investore (other than
his or her role as a Director of Investore), and none of
these Directors has been a Director of Investore
for a
length of time that may compromise their independence.
Accordingly, as at the date of this Annual Report,
Investore’s Board comprises a majority of Independent
Directors, consistent with the recommendation in the
NZX Code.
In addition, the Chair of the Board and the Chief Executive
Officer of the Manager are independent of each other. The
Company Secretary of Investore is an employee of SIML, as
Investore has no employees. The Company Secretary has
direct access to the Chair of the Board and the
Chair of
the Audit and Risk Committee, and vice versa, to ensure
matters can be raised as appropriate.
Further information on the Directors of Investore who held
the office of Director as at 31 March 2023, their status
and (in the case of the Independent Directors) date of
appointment, expertise, and experience, is set out on pages
10 and 11. A record of attendance at Board and Committee
meetings for all those who held the office of Director during
the 12 months to 31 March 2023 is set out
on page 72.
Appointment of Independent Directors
Potential candidates for appointment as an independent
Director are either nominated by the Board or Investore
shareholders and are voted on by the shareholders of
Investore. If a vacancy on the Board exists, then the
Board may appoint a Director to fill that casual vacancy,
however that Director is required to retire and stand for
election at the first Annual Shareholder Meeting after
their appointment.
To be eligible for selection, candidates must demonstrate
the appropriate qualities and
experience for the role
of a Director of Investore and will be selected on a
range of factors, including property industry knowledge,
business acumen, financial markets and governance
experience. Other relevant factors may include background,
qualifications, and professional expertise, and these will be
considered against the Board’s assessment of its needs
at the time, including any perceived gaps in skills and
experience that the Board identifies having regard to the
strategy of Investore.
Before appointing a new Director, the Board
undertakes
appropriate pre-appointment checks, including
background checks on education, employment experience,
criminal history, and bankruptcy.
All new non-executive Directors are appointed by way of a
formal letter of appointment setting out the key terms and
conditions of their appointment, including expected time
commitment, remuneration entitlements and indemnity and
insurance arrangements. New Directors are provided with
an induction pack containing key governance information,
policies, and relevant information ne
cessary to prepare
new Directors for their role. New Directors also meet each
of the key members of SIML management as part of an
induction programme. The induction programme has been
designed to provide new Directors with an overview of
Investore, its strategy and operations, and the market in
which it operates.
Director Ross Buckley was appointed by SIML, the
Manager, in accordance with SIML's right to appoint up
to two directors under Investore's constitution, effective
from 1 June 2022, following the retirement of John
Harvey,
SIML's previously appointed Director, on 31 May 2022. No
other directors were appointed during FY23.
Directors’ Skills and Experience
The Board regularly reviews its skills and experience
against the Board’s perceived skill requirements given
Investore’s business and strategic requirements. Directors’
skills and experience are also closely considered when
appointing a new Director, so that an appropriate mix of
skills can be retained.
The Board is conscious to ensure that it collectively has
an appropriate mix of skills, knowledge, experience, and
diversity to enable the Board to meet its responsibilities
and contribute varying perspectives to Board
discussions.
An appropriate balance is sought between Directors with
experience and knowledge of the property sector, the
history and operations of Investore, and new Directors who
bring fresh thinking, different perspectives, and diverse
skills and experience.
Set out in Diagram 4 is a summary of the identified mix of
skills and experience among Directors that the Board has
identified. This skills matrix takes account of the nature of
Investore’s business interests and its strategic principles.
In
dividual Director profiles are also set out on the Investore
website and on pages 10 and 11 of this Annual Report. The
Board considers the current mix of skills and experience
is appropriate for the responsibilities and requirements of
governing Investore.
6Investore Property Limited Annual Report 2023
Investore Property LimitedInvestore Property LimitedAnnual Report 2023Annual Report 20236667

Professional Development
The Board conducts continuing professional development
for Directors, which includes briefings from senior
SIML managers and industry experts, and site visits
to properties owned by Investore. This is intended to
enable Directors to maintain the knowledge and skill set
required for the role as a Director of Investore, and is
particularly focussed on knowledge specific to the property
industry, macroeconomic factors, and new regulatory
and governance practices, all of which may impact on
Investore’s business an
d operations. The Board also
regularly schedules presentations from external industry
experts as part of their Board meetings, intended to ensure
Directors remain current on factors affecting Investore’s
business. Presenters may include valuers, investors and
tenants. In addition, all Directors undertake appropriate
training to remain informed on how to best perform their
duties as Directors.
Board Review
Directors typically conduct a full external Board
performance review biannually to review the Board’s
performance and its engagement with SIML management.
Following the appointment of Director Ross Buckley on
1 June 2022 and the retirement of former Director John
Harvey on 31 May 2022, the Board concluded it would
be appropriate to conduct an internal review this financial
year and undertake an external Board review in FY24.
The internal review consisted of separate interviews with
each Director and key members of SIML management
to ensure
it was functioning efficiently and to assess
the implementation of the recommendations made by the
independent consultant engaged in FY21. The internal
review concluded that processes implemented following
the FY21 external Board review and the FY22 internal
Board review had benefitted the Board and its operations.
Diagram 4: Board Skills Matrix
Investore Property Limited Annual Report 20237
Risk
management
Setting
corporate
strategy
Financial
reporting
Independent
Non-
Independent
Female
Male
Legal
80%
60%
40%
20%
100%
57 years



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k
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s

a
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n
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i
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s
04 years
Legal
Retail
Property
Capital markets
2
1
5
5
4
4
5
5
Governance
and leadership





















































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Diversity
The Investore Board understands that different
perspectives contribute to a more successful business
and recognises the value in diversity of thinking and
skills. Investore is committed to promoting diversity on
its Board by attracting, developing, and retaining high
calibre Directors from a diverse pool of individuals and skill
sets. The Board also monitors the diversity and inclusion
practices of the manager, SIML.
The
Board has adopted a Diversity Policy, which applies to
the Board, given that Investore has no emplo
yees.
Investore’s Diversity Policy is available on its website.
Investore aligns its Diversity Policy with SIML’s Diversity
Policy. For more information on the Manager’s diversity
strategy, refer to the FY23 Annual Report of Stride Property
Group (when available) at www.strideproperty.co.nz.
The Investore Board notes that SIML
, as Manager, has
undertaken a number of initiatives during FY23 intended
to improve its diversity practices, including establishing an
employee Diversity, Equity and Inclusion Committee. The
Diversity, Equity an
d Inclusion Committee aims to assist
SIML in its diversity practices through establishing diversity,
equity and inclusion strategic priorities and implementing
diversity and inclusion-related initiatives.
Investore has
conducted a review of its Diversity Policy and
the performance of Investore against its annual objectives
for the year in review, and notes its progress towards
achieving its objectives in Table 1. In addition, Investore
continued to promote diversity during FY23 through the
appo
intment of Erika McDonald as a future director, and
the work of the Board in mentoring and supporting Erika
through this appointment.

Gender Composition of the Board of Investore
As at
31 March 2023
As at
31 March 2022
Male4 (80%)4 (80%)
Female1 (20%)1 (20%)
Table 1: Diversity Objectives and Progress FY23
ObjectiveProgress as at 31 March 2023
Recruitment
Ensure recruitment procedures provide for a wide range of
potential Director candidates to be considered at Board level
When conducting a search for a new Director, Investore
considers diversity as one of the factors for consideration
and encourages applications from a diverse range of Director
candidates and utilises a variety of recruitment channels.
No new independent Directors were appointed during FY23.
Director Ross Buckley was appointed to the Board by SIML, the
Manager, on 1 June 2023 upon the retirement of the previous
SIML-appointed Director John Harvey. Eri
ka McDonald was also
appointed as a future director during FY23.
Reporting
SIML will report periodically to the Board on diversity related
matters within its business, including diversity of employees
Investore has adopted a Diversity Policy to apply to the Board
which is aligned with SIML’s Diversity Policy. The Investore
Board takes an active approach to oversight of the Manager’s
diversity practices. SIML reported to the Investore Board on
progress in its diversity objectives, a summary of which can be
found in the Stride Annual Report for FY23 (when available).
8Investore Property Limited Annual Report 2023
Investore Property LimitedInvestore Property LimitedAnnual Report 2023Annual Report 20236869