FY24 Annual Results
IMMEDIATE – 17 May 2024
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Annual Report 2024
Contents
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
Capitalised terms have
the meaning given in the
glossary on page 98.
2Financial Overview
4Portfolio Overview
6Chair’s Letter
10Board of Directors
12Manager’s Report
14Portfolio
18Geographical Diversification
20Delivering Rental Growth
22Woolworths Waimakariri Junction
24Sustainable New Development
26Proactive Capital Management
30Financial Summary
32Consolidated Financial Statements
61Independent Auditor’s Report
65Corporate Governance
90Statutory Disclosures
98Glossary
99Corporate Directory
Investore Property LimitedAnnual Report 20241
Financial
Overview
For the 12 months ended
31 March 2024 (FY24)
1. See glossary on page 98.
2. Loan to Value Ratio (LVR) is calculated based on independent valuations, which
exclude lease liabilities and 507 Pakuranga Road, Auckland, Development
asset. See note 2.2 to the consolidated financial statements.
3. Reflects dividends reinvested for Q1 to Q3 of FY24 under the
DRP and the reduced dividend for Q3 of FY24.
Investore’s investment property portfolio continued to deliver resilient
operating earnings during FY24. The value of the portfolio continues to be
impacted by a higher interest rate environment placing upwards pressure
on property capitalisation rates. Investore remains committed to a proactive
approach to capital management, which during FY24 included the adoption
of a dividend reinvestment plan (DRP), and the revision of its dividend policy
to balance income returns for investors while retaining additional capital to
improve balance sheet resilience.
$61.2m
net rental income
primarily due to the completion of
the Woolworths Waimakariri Junction
development and rent review transactions
Up $1.0m or 1.6% from FY23
profit before other
expense and income tax
$35.1m
In line with FY23 at $35.2m
distributable profit
1
per share
8.39 cents
In line with FY23 at 8.44 cents per share
7.20 cents
per share cash dividend
for FY24
distributable profit
1
after
current income tax
$31.0m
In line with FY23 at $31.0m
loan to value ratio
2
as
at 31 March 2024
40.8%
as at 31 March 2023 primarily due to a
net investment property devaluation
Up from 36.5%
debt hedged or subject to
a fixed rate of interest as at
31 March 2024
88%
4.3%
weighted average cost of
debt as at 31 March 2024
cash retained as a result of
the adoption of the DRP and
reduced dividend
3
$8.2m
loss after income tax
$(67.1)m
Compared to a loss after
income tax of $(150.2)m for FY23
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 202423
Portfolio
Overview
As at 31 March 2024
Investore has continued to
implement its core strategic pillars
of targeted growth, portfolio
optimisation and active portfolio
management during FY24 to
strengthen and enhance the
Investore portfolio through
the following initiatives:
• Completion of the development of the Woolworths-
tenanted 5 Green Star Design rated supermarket in
Waimakariri Junction, on time and within budget at
a cost of $26.1 million (including land)
• Agreement with Woolworths to fund the expansion of
online fulfilment facilities at Woolworths Greenlane,
which will include an online room and eight new
drive-through pick up bays, delivering a 7.5%
per annum return on cost over the life of the lease
• 65 rent reviews completed across 96,000 sqm,
delivering a rental increase of 3.1% on prior rentals
The Investore portfolio is
valued
1
at $1.0 billion as at
31 March 2024, representing
a net valuation decrease of
$99 million or 9.1% from
31 March 2023. This
decrease is primarily due to
the sustained higher interest
rate environment which
has resulted in the average
portfolio
2
capitalisation rate
increasing to 6.37%, up
0.67% from 31 March 2023.
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 98.
4. 16 properties have a Green Star Performance rating
and one property has a Green Star Design rating.
Key investment portfolio metrics
2
45 properties
144 tenants
7.4 years
weighted average
lease term (WALT)
99.1%
portfolio occupancy by
area, rising to 99.4%
including leases agreed
post balance date
78%
of leases by Contract Rental
3
expiring in FY30 and beyond
of portfolio
2
by value
has a green rating
4
43%
Mitre 10 MEGA, Botany
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 202445
Chair’s
Letter
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 98.
Financial Results
Profit before other expense and income tax for FY24 was
$35.1 million, broadly in line with FY23 at $35.2 million.
Net rental income was up $1.0 million (or 1.6%) to $61.2 million,
primarily due to the completion of the development of Woolworths
Waimakariri Junction and rental increases from rent review
transactions completed during the period.
Asset management fee expense at $5.4 million was
$0.8 million lower than FY23 reflecting the lower portfolio
valuations. Net finance expense at $(18.0) million was
$1.8 million higher than FY23 and reflects the cost of debt to
fund the development of Woolworths Waimakariri Junction.
Loss after income tax attributable to shareholders of
$(67.1) million (FY23: $(150.2) million loss) was a result of a
$(98.7) million net reduction in the fair value of the investment
property portfolio over the 12 months to 31 March 2024
(FY23 $(185.2) million net reduction). The portfolio devaluation
is due to a softening of capitalisation rates across the portfolio
which is a reflection of the higher interest rate environment.
Net Tangible Assets (NTA) per share as at 31 March 2024 is
$1.57, a decrease of $0.27 from 31 March 2023 NTA per
share of $1.84, due primarily to the portfolio valuation movement.
Growth and Optimisation
of the Portfolio
Investore’s portfolio consists of large format retail properties
with a total portfolio value
1
of $1.0 billion, with a large
proportion of tenants that comprise nationally recognised
brands, and tenants that provide ‘everyday needs’ or non-
discretionary items. The portfolio continues to demonstrate
strong, attractive metrics, which support resilient underlying
earnings. These metrics include a high occupancy rate of
99.1%
2
and a WALT
3
of 7.4 years. 78% of leases by Contract
Rental
3
expire in FY30 and beyond, contributing to a secure
income stream for shareholders.
Investore has undertaken a number of projects during FY24
designed to enhance and improve its overall portfolio, including
a new sustainable supermarket development and site
improvement projects.
Dear Investors,
The Board of Directors of Investore is pleased to present the Annual Report for
the year ended 31 March 2024 (FY24). Investore continued to deliver resilient
operating earnings during FY24, due to its quality large format retail portfolio
that serves everyday needs and attracts repeat visitation. During FY24 Investore
implemented a number of capital management initiatives to proactively manage
its balance sheet given the current challenging macroeconomic environment.
The Board continues to take a proactive approach to capital management to
assist in managing the risks posed by these conditions.
Investore completed the development of a new Woolworths-
anchored supermarket at Waimakariri Junction in late 2023.
This development is a highly sustainable new building, having
achieved a 5 Green Star Design rating (which equates to ‘New
Zealand Excellence’ standard). The Woolworths supermarket
occupies part of Investore’s land at Waimakariri Junction, with the
balance of the land being held for future retail development. The
Waimakariri Junction site is located close to State Highway 1,
making it convenient for commuters from both Christchurch and
Rangiora, as well as the wider Waimakariri District.
Investore also actively seeks to optimise its current portfolio
through collaborating with key tenants to undertake capital
projects. These projects aim to enhance the overall portfolio and
improve customer experience, driving growth through increased
asset value or rentalised returns, delivering value to shareholders.
Proactive Capital Management
The Board is cognisant of the challenging current macroeconomic
environment and takes a proactive approach to capital
management. During FY24, Investore implemented a Dividend
Reinvestment Plan (DRP) providing all investors the opportunity
to reinvest some or all of their dividends to acquire shares in
Investore without paying brokerage fees. The introduction of the
DRP resulted in $6.9 million being reinvested from the first three
dividends in FY24 ($8.2 million when including the Q3 FY24
reduced dividend), which was used to fund maintenance capital
expenditure, managing leverage.
As part of Investore’s Interim Results released in November
2023, the Board announced key capital management
initiatives to manage Investore’s balance sheet. Investore
widened its dividend policy to pay between 80-100% of
distributable profit
3
(previously 90-100%) and revised its full
year cash dividend guidance for FY24 to 7.20 cents per share
(down from the previous full year cash dividend guidance of
7.90 cents per share). The FY24 cash dividend of 7.20 cents
per share represents an 86% payout of Investore’s FY24
distributable profit.
Woolworths, Mt Roskill
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 202467
Chair’s
Letter (cont)
During FY24, Investore also renegotiated its bank LVR
1
covenant, increasing the maximum LVR
1
from 52.5% to 55.0%,
providing Investore with additional balance sheet headroom.
The development of Woolworths Waimakariri Junction was
funded from available debt facilities and this, combined with
the revaluation of the portfolio, has resulted in Investore’s LVR
1
increasing to 40.8%
2
as at 31 March 2024, well within the
LVR
1
banking covenant of 55.0%.
Investore, in keeping with its proactive approach to
capital management, secured additional bank facilities
of $100 million during FY24. These additional bank facilities
were arranged well in advance of the maturity date of the IPL010
bonds in April 2024 to ensure sufficient liquidity was available
for the repayment of these bonds.
Following the maturity of the IPL010 bonds, Investore now has no
debt maturing until FY26. Investore’s weighted average maturity
of debt was 2.1 years as at 31 March 2024, which increases to
2.5 years on a pro forma basis as if the IPL010 bonds had been
repaid as at 31 March 2024. Investore’s weighted average cost
of debt was 4.3% as at 31 March 2024, a favourable metric
when compared to wholesale market interest rates and a result of
Investore’s high level of debt that is hedged or subject to a fixed
rate of interest, which, as at 31 March 2024, was 88% (reducing
to 70% on a pro forma basis as if the IPL010 bonds had been
repaid as at 31 March 2024). The weighted average cost of debt
increases to 4.8% on a pro forma basis as if the IPL010 bonds
had been repaid as at 31 March 2024.
Sustainability
The Board 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.
As Investore’s portfolio consists of properties that are large
format retail properties, many of which are single tenanted, and
the management of this portfolio has been outsourced to SIML,
Investore considers that it has very low scope 1 and 2 greenhouse
gas emissions. Investore seeks to reduce these emissions where
possible and during FY24 implemented a plan to replace air
conditioning units across its portfolio which use R22 refrigerant,
a gas that has a relatively high global warming potential.
During FY24, Woolworths Waimakariri Junction achieved a
5 Green Star Design rating and is targeting a 5 Green Star As
Built rating. The construction process was focussed on lowering
the environmental impact from the development through the
reduction of construction waste to landfill and the use of low
environmental impact materials to reduce emissions.
In addition, a number of initiatives were implemented during
the development with the aim of facilitating a reduction in the
consumption of energy and water for the life of the building,
including the installation of solar panels, energy efficient
refrigerant systems, thermal insulation, and low water use
plumbing fittings. Woolworths Waimakariri Junction is the first
Investore property to have solar panels installed.
Investore also completed the Global Real Estate Sustainability
Benchmark (GRESB) assessment in FY24, scoring 63%, an
increase of 12% from FY23. This is a significant increase given
Investore’s portfolio consists mainly of single-tenanted, existing
properties and consequently the sustainability features of these
properties are difficult for Investore to directly influence.
Investore has prepared a separate Sustainability Report
which includes reporting against the Aotearoa New Zealand
Climate Standards. This report will be available from
28 May 2024 and can be found on Investore’s website
www.investoreproperty.co.nz when released.
Governance
The Board typically conducts a full external Board performance
review biannually, to review the Board’s performance and its
engagement with SIML management. During FY24, the Board
utilised the Institute of Directors of New Zealand’s Evaluate tool,
a comprehensive Board evaluation process, to review and report
on the Board’s operations with a view to ensuring the Board is
functioning effectively through strong governance and leadership.
The review confirmed that the Board continues to have a healthy
and open dialogue, and enjoys a high level of collaboration which
promotes dynamic and insightful discussions and effective
decision making at Board meetings.
Consistent with the Board’s commitment to optimising the
operations and value of the company for the benefit of its
shareholders, the Board held a strategy day during FY24 to
review and assess the strategic direction of Investore.
In conjunction with the Stride Property Group board, the Board
also undertook a sustainability workshop during the year, in
preparation for Investore’s first mandatory climate report in
accordance with the Aotearoa New Zealand Climate Standards.
During FY24, the Board was proud to initiate a sponsorship
programme for the Graeme Dingle Foundation, a child and
youth development charity which aims to help young New
Zealanders achieve their potential. During the year in review
$35,000 was paid in sponsorship to the Foundation. The
Foundation is very effective in its objectives, with every dollar
invested yielding a $10.50 return to New Zealand’s economy
3
.
The Manager and Management Fees
Investore’s manager, SIML, has continued to provide strong
support to Investore during FY24, including managing the
successful completion of the development of Woolworths
Waimakariri Junction, which was completed on time and within
budget, as well as undertaking various other capital works
programmes and rent review transactions.
Total management fees incurred to SIML during FY24 were
$7.3 million, in line with FY23 management fees which were
$7.4 million.
Investore undertakes an independent review of SIML’s
management fees every two years and the Board intends to
appoint an external independent consultant to undertake a
review of the management fees in FY25 to ensure they remain
in accordance with the terms of the Management Agreement
with SIML, and to provide comfort to the Board that they remain
consistent and in line with fees charged for similar services
in the market.
Outlook
The current macroeconomic conditions remain challenging, and
external economic commentary suggests that these conditions
will continue into FY25. The rapid rise in interest rates since
August 2021 has caused an increase in capitalisation rates which
in turn has resulted in a reduced value of the Investore portfolio,
and is flowing through to a higher weighted average interest
rate on Investore’s debt. This, combined with the removal of tax
deductibility for depreciation on commercial buildings, effective
from 1 April 2024, will pose headwinds to after tax earnings in
FY25 and beyond.
The Board proactively amended the distribution policy during
FY24 to reflect these headwinds while also balancing income
returns for investors. Consistent with the reduced dividend
announced with Investore’s Interim Results in November 2023 of
6.50 cents per share on an annualised basis
4
, Investore currently
expects to pay a cash dividend of 6.50 cents per share for FY25,
in accordance with the revised dividend policy of paying between
80-100% of Investore’s distributable profit
1
.
The Board will remain focussed on proactive capital management
initiatives that actively manage Investore’s overall leverage
position to ensure balance sheet capacity and optionality.
We intend to continue our objective of optimising the portfolio,
including through collaborating with key tenants to undertake
value-add initiatives and capital expenditure programmes
that improve customer experience and maximise returns
to shareholders over the medium to long term.
The Board intends to pursue its strategy of targeted growth if
appropriate acquisition and development opportunities present
themselves and will also consider strategic divestments,
provided that appropriate value can be realised.
The Board remains committed to ensuring the Investore portfolio
will remain sustainable into the future, and this includes the
transition to a lower carbon future and the continued pursuit
of Investore’s sustainability targets and objectives.
On behalf of the Board, I would like to thank investors for their
continued support of Investore.
1. See glossary on page 98.
2. Loan to Value Ratio (LVR) is calculated based on independent valuations, which exclude lease liabilities and
507 Pakuranga Road, Auckland, Development asset. See note 2.2 to the consolidated financial statements.
3. According to a report prepared by Infometrics for the Graeme Dingle Foundation on “Updating the contribution of
the Foundation’s work to the New Zealand economy” dated February 2024.
4. Investore revised its FY24 full year cash dividend guidance for Q3 and Q4 to 6.50 cents per share on an annualised
basis resulting in a full year cash dividend guidance of 7.20 cents per share (previously 7.90 cents per share).
Mike Allen
Independent Director
and Chair of the Board
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 202489
Board of
Directors
Mike Allen
Chair of the Board
Independent,
Non-Executive Director
Appointed 9 June 2016,
last elected 2022
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 Advisory Board. 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 Troute
Chair of the Audit and Risk
Committee
Independent,
Non-Executive Director
Appointed 19 April 2018,
last elected 2021
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 and Summerset Group Holdings
Limited, Chair of Montana Group and an
independent board member of Duncan
Cotterill. Gráinne is also a member of the
NZX Corporate Governance Institute.
Adrian Walker
Independent,
Non-Executive Director
Appointed 3 April 2020,
last elected 2023
Adrian is a very experienced
commercial property executive with
a strong background in property,
financial planning and strategic
management from over 30 years’
experience in the property sector,
including 20 years as the General
Manager of Property at Woolworths
NZ. Adrian brings to Investore a deep
knowledge of the property industry
in New Zealand, as well as the
supermarket sector.
Tim Storey
SIML Nominee and Non-
Executive Director
Tim has more than 30 years of
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 and Stride
Investment Management Limited.
Ross Buckley
SIML Nominee and Non-
Executive Director
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 is a director of Stride
Property Limited, Stride Investment
Management Limited, ASB Bank
Limited, and Chair of Service Foods
NZ Limited. Ross also currently chairs
the National Board, is a National
Council Member, and Auckland Branch
Committee Member of the Institute of
Directors of New Zealand. Ross is on
the Council of Massey University, and
is the Chair of the Auditor Oversight
Committee of the Financial Markets
Authority.
Erika McDonald
Future Director
Erika was appointed as a future
director of Investore in FY23. 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.
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20241011
Manager’s
Report
FY24 has been a busy and productive year, with SIML
delivering a number of key projects for Investore designed
to enhance the portfolio.
SIML was pleased to have successfully managed the
development of the new 5 Green Star Design rated Woolworths
supermarket at Waimakariri Junction as part of Stage 1 of
the Kaiapoi development. This development was completed
within budget and on time and is New Zealand’s first newly
constructed Woolworths-branded supermarket.
SIML continues to undertake a number of projects designed
to support Investore’s sustainability objectives, such as
progressing the removal of R22 air conditioning units across
the portfolio. During FY24, Investore replaced six R22 air
conditioning units (bringing the total to 14 units since the R22
air conditioning replacement programme was introduced).
A further 38 R22 air conditioning units are planned for
replacement during FY25 and FY26.
Investore also collaborates with its tenants to improve their
energy efficiency and lower their greenhouse gas emissions
(scope 3 emissions for Investore) including through contributing
to the installation of LED lights by tenants as part of store
refurbishments. More information on these initiatives as well as
other key sustainability activities undertaken during FY24 can
be found in Investore’s FY24 Sustainability Report, which can be
found on Investore’s website and will be available from 28 May
2024.
SIML, on behalf of Investore, collaborates with tenants to
add value to Investore’s existing assets through initiatives to
improve customer amenities and the overall customer visitation
experience. During FY24, SIML was pleased to have negotiated
an agreement with Woolworths where Investore will provide
a $1.9 million capital contribution towards an expanded
online fulfilment room and eight drive-through pick up bays
at Woolworths Greenlane. These improvement works will
deliver additional rent at 7.5% per annum on cost, and are also
expected to generate additional sales, driving higher turnover
rent over time and improving the value of Investore’s portfolio.
As part of the negotiation process to fund the online expansion
works at Woolworths Greenlane, an agreement was also
reached to extend the lease of Woolworths Hamilton (Anglesea
Street) for an additional 6 years, with a further 6 year right of
renewal. This lease extension drove a 23.4% increase in the
valuation of Woolworths Hamilton as at 31 March 2024,
when compared to the 31 March 2023 valuation.
SIML also negotiated 65 rent reviews on behalf of Investore
during the period in review, which resulted in a 3.1% increase
on previous rentals. Of these 65 rent reviews, 34 were
CPI
1
-linked reviews, delivering a 6.2% increase on
prior rentals.
SIML was also pleased to have managed a number of
capital management projects on behalf of Investore during
FY24, which included:
• the introduction of a dividend reinvestment plan;
• securing $100 million of additional bank debt facilities
to ensure sufficient liquidity for the repayment of the
IPL010 bonds, which matured post balance date in
April 2024; and
• negotiating an increase in Investore’s LVR
1
bank
covenant from 52.5% to 55.0% to provide additional
balance sheet headroom.
SIML is proud to support Investore in its strategic objectives
and will continue to support Investore’s strategy of targeted
growth, together with actively managing and optimising its
portfolio in FY25 and into the future.
Thank you for your continued support of Investore
and SIML as Manager.
1. See glossary on page 98.
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 enhance and optimise the
Investore portfolio.
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20241213
Portfolio
The continued higher interest rate environment has resulted in
a further softening of the portfolio
1
market capitalisation rate to
6.37% as at 31 March 2024, up 0.67% from 31 March 2023.
This softening has resulted in Investore’s portfolio valuation
2
reducing by $99 million to $1.0 billion as at 31 March 2024.
The movement in the capitalisation rate was partially offset by
positive rental growth across the Investore portfolio with
65 rent reviews being completed across the portfolio during
FY24, delivering an increase of 3.1% on prior rentals. Of these
65 rent reviews, 34 were CPI
3
-linked reviews which delivered
an increase in rental of 6.2% on prior rentals.
Investore added an additional property to its portfolio during
FY24, due to the completion of the 5 Green Star Design rated
Woolworths supermarket at Waimakariri Junction. The portfolio
now comprises 62.8 hectares of commercial land holdings
with an average site coverage of approximately 40%, providing
scope for future site development over the long term, and
demonstrating the high proportion of land value underpinning
the portfolio.
1. Excludes properties categorised as ‘Development and Other’ in note 2.2 to the consolidated financial statements.
2. Excludes lease liabilities.
3. See glossary on page 98.
4. Excludes properties categorised as ‘Development and Other’ in note 2.2 to the consolidated financial statements for FY23.
5. Vacant tenancies with current or pending development works are excluded from occupancy statistics and, as at 31 March 2023,
metric excluded 2,947 sqm at Bay Central, Tauranga.
Investore’s portfolio
1
comprises
45 large format retail properties,
from standalone supermarkets
and hardware stores to large
format retail centres, consisting
of anchor and specialty retail
tenants with a high concentration
of nationally recognised brands
and tenants that provide
‘everyday needs’.
Benefits of Large Format Retail Property
As at 31 March 2024
1
As at 31 March 2023
4
Number of properties4544
Number of tenants144143
Net lettable area (NLA) (sqm)255,898249,906
Net Contract Rental
3
($m)63.761.8
WA LT
3
(years)7.48.1
Market capitalisation rate (%)
6.45.7
Occupancy by area (%)99.199.5
5
Land area (sqm)627,677611,077
Portfolio value
2
($m)9721,033
Lower total occupancy costs for tenants compared with other forms
of retail in New Zealand
A high concentration of tenants focussed on ‘everyday needs’ means
demand for tenants’ goods and services tends to be resilient despite
challenging macroeconomic factors
Anchor tenants draw customers to sites on a regular basis, driving
visitation for associated specialty tenants
Auckland Night Markets operates from the Woolworths underground carpark at Mt Wellington Shopping Centre every Tuesday
evening. Through the Auckland Night Markets, Investore is able to provide a place for the Auckland community to come together
and experience a wide variety of global culinary dishes and wares.
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20241415
Portfolio (cont)
Investore’s portfolio
1
continues to demonstrate strong metrics, with high
occupancy (99.1%) and a long weighted average lease expiry of 7.4 years,
with approximately 78% of Contract Rental
2
expiring in FY30 and beyond.
This high occupancy and long weighted average lease expiry profile provides
Investore with certainty of income over the medium to long term.
1. Excludes properties categorised as ‘Development and Other’ in note 2.2 to the consolidated financial statements.
2. See glossary on page 98.
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 2024 as a
percentage of Contract Rental (see glossary on page 98 for definition).Note: Numbers in charts may not sum due to rounding.
High Occupancy and Long Lease Expiry Profile
Vacant
1.0%
4.4%
FY25
2.7%
FY26
4.4%
FY27
7.2%
FY28
2.4%
FY29
18.0%
FY30
5.9%
FY31
0.3%
FY32
5.9%
FY34
27.8%
FY35
1.9%
FY36
18.1%
FY33
WALT 7.4 years
78% of Contract Rental
2
expiring FY30 and beyond
Lease Expiry Profile
3
by Contract
Rental
2
as at 31 March 2024
Portfolio Tenant Classification by Contract Rental
2
as at 31 March 2024
Everyday Needs
71%
Hardware
16%
General
Merchandise/
Retail 8%
Food &
Beverage /
Other 4%
Health &
Wellbeing 1%
Anchor tenants represent
a high proportion
(87%) of Investore’s
total Contract Rental
2
providing Investore
with security of income
across challenging
macroeconomic
conditions.
Post balance date lease
transactions reduce the
vacant space to 0.6%,
with 99.4% occupancy.
Anchor Tenant Concentration by Contract Rental
2
as at 31 March 2024
Woolworths64%
Bunnings13%
4%Foodstuffs
3%Mitre 10
3%Briscoes Group
Investore’s large format retail portfolio consists of a large
proportion of tenants that focus on everyday needs. Investore’s
tenants include nationally recognised brands such as
Woolworths, New World, Pak’nSave, Bunnings, Mitre 10,
Rebel Sport, Briscoes, Hunting & Fishing, Freedom Furniture,
Baby City, McDonald’s, Resene, and Animates. These
tenants tend to be resilient over the economic cycle due to
their products comprising non-discretionary categories of
expenditure for consumers.
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20241617
Geographical
Diversification
Investore’s portfolio is geographically diversified across New Zealand, with
the majority of the portfolio located in highly populated urban areas such as
Auckland, Wellington, Canterbury, Waikato and the Bay of Plenty.
Geographical Location
of Investore Portfolio
by Contract Rental
1
35% of properties by
Contract Rental
1
are
located in Auckland
2
17% of properties by
Contract Rental
1
are
located in Wellington
Auckland
35%
Wellington
17%
Bay of Plenty
10%
Other North
Island 10%
Waikato
10%
Canterbury
& Otago
13%
Other
South
Island 5%
AUCKLAND
CBD
WELLINGTON
CBD
LOWER HUTT
UPPER HUTT
North Island
83%
South Island
17%
Spread of New Zealand population vs Investore properties
as at 31 March 2024
IPL properties by NLA (%)
NZ population by region (%)
Auckland
Canterbury
Wellington
Waikato
Bay of Plenty
Manawatu
Otago/
Southland
Northland
Hawkes Bay/
Gisborne
Taranaki
Other South
Island
35%
30%
25%
20%
15%
10%
5%
0%
1. See glossary on page 98.
2. Map excludes 20-26 Neville Road located in Warkworth and which is classified as an Auckland asset.
Note: Numbers in charts may not sum due to rounding.
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20241819
>100%
Delivering
Rental Growth
Woolworths leases, which comprise 64% of the Investore
portfolio by Contract Rental
1
, contain turnover-linked rental
mechanisms which entitle Investore to additional turnover
rent when moving annual turnover (MAT) at a store exceeds
a specific threshold.
High inflationary environments typically produce higher MAT
growth which in turn drives incremental turnover rental.
Investore focusses on improving portfolio
performance and overall investor returns
through maximising rental growth in its
existing portfolio. This rental growth comes
from acquisitions, developments, rent review
transactions, and turnover rental from its
Woolworths-tenanted properties.
The higher MAT at Investore’s Woolworths-tenanted
supermarkets during FY24 resulted in an additional 8% of
stores reaching the turnover threshold. 39% of stores are now
paying turnover rent as at 31 March 2024 compared with
31% of stores as at 31 March 2023. Sales at some stores
have only recently exceeded the turnover threshold, resulting
in the full benefit of the turnover rent from these stores not
being reflected in turnover rent for FY24.
Net Contract Rental
1
as at 31 March
Turnover Rental
Woolworths Portfolio Turnover Mix as at 31 March (weighted by MAT
2
)
Woolworths Supermarket Base and Turnover Rent (like-for-like
3
)
1. See glossary on page 98.
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 completed on a rolling basis.
3. Investore’s Woolworths supermarket portfolio on a like-for-like basis between 31 March 2018 and 31 March 2024.Note: Numbers in charts may not sum due to rounding.
$44.9m
$45.6m
$46.7m
$56.3m
$60.2m
$61.8m
$63.7m
Mar 18Mar 19Mar 20Mar 21Mar 22Mar 23Mar 24
$4.8m
$4.9m
$5.4m
$14.3m
$17.5m
$17.9m
$19.5m
$40.1m$40.7m$41.3m$42.0m$42.7m$43.9m$44.1m
Established Portfolio
Acquisitions and
Developments
Turnover Rent
Base Rent
80% – 100%
<80%
The percentage of
stores delivering sales
above their turnover
rent thresholds has
continued to steadily
increase from 9% in
2018 to 39% as at
31 March 2024.
Turnover rent, on a
like-for-like basis
3
, has
increased from $0.3m
in FY18 to $1.4m in
FY24. Over the past
3 years, turnover rent
has grown at a 13%
cumulative annual
growth rate.
$17.5m
Mar 18
42%
49%
9%
Mar 19
47%
40%
13%
Mar 20
38%
42%
20%
Mar 21
38%
38%
23%
Mar 22
26%
37%
37%
Mar 23
30%
39%
31%
Mar 24
39%
39%
22%
FY19FY18FY20FY21FY22FY23FY24
$0.3m
$34.3m
$34.7m
$0.3m
$34.2m
$34.4m
$0.5m
$34.4m
$34.9m
$1.0m
$35.2m
$36.1m
$35.2m
$1.0m
$36.2m
$1.4m
$35.2m
$36.6m
$35.4m
$1.4m
$36.8m
Turnover threshold
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20242021
Woolworths
Waimakariri
Junction
Investore successfully completed the development of the new
Woolworths-anchored supermarket at Waimakariri Junction in
Kaiapoi, for $26.1 million (including land) in November 2023.
This development was delivered within budget and on time as
part of Stage 1 of the development at Waimakariri Junction.
The building has achieved a 5 Green Star Design rating and
is targeting a 5 Green Star As Built rating. The sustainability
features of this development can be found on pages 24 and
25 of this Annual Report. The supermarket has been designed
to elevate and enhance the customer experience with a new
purpose-built facility consisting of eight dedicated parks for
‘Direct to Boot’, a grocery pick up service initiative by Woolworths
where customers can have their groceries loaded directly into
their boot rather than getting out of the car to collect them.
Woolworths has entered into a lease with an initial term of
12 years, and a further 23 years if all rights of renewal are
exercised.
The site is located close to State Highway 1, making it convenient
for commuters from both Christchurch and Rangiora as well
as the wider Waimakariri District. Statistics New Zealand has
forecast the Waimakariri District to be in the top decile of
New Zealand districts for population growth between
2018 and 2048
1
.
The remainder of the site, being 1.8 hectares, will be developed
as part of Stage 2 and will provide further large format retail
opportunities.
Woolworths in development, Waimakariri Junction
1. https://www.stats.govt.nz/information-
releases/subnational-population-projections-
2018base2048-update/
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20242223
Sustainable
New Development
In partnership with
Woolworths, Investore
focussed heavily on
sustainability when
designing the 5 Green Star
Design rated Woolworths
supermarket.
Use of low carbon concrete and
low embodied carbon materials
where appropriate
Reduction of typical water
consumption (when compared
to a reference building) through
the installation of low water use
plumbing fittings
Reduction of construction waste
to landfill through demolition and
construction waste being reused,
recycled or aided by low waste
prefabrication
480sqm of solar panels
installed on the roof, the first
property in the Investore portfolio to
have solar panels installed
Durable, low toxicity materials
used throughout the development
where appropriate, including
adhesives, paints, sealants, carpets,
ceiling tiles, and composite timber
board products
Energy efficient refrigeration
systems with low global warming
potential used to cool produce
Heat generated from store
fridges is recycled to regulate the
overall store temperature
End of trip facilities installed,
including dedicated bicycle
parking for staff and customer
bicycle storage facilities to
encourage cycling to the store
Thermal insulation and double
glazing installed to reduce heat
loss and gain
100% low energy LED
lighting installed
Electric vehicle chargers installed
for customer convenience
16% of parking spaces reserved
for fuel-efficient vehicles
Woolworths
Waimakariri Junction
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20242425
Proactive Capital
Management
Investore takes a proactive approach to capital
management, managing its balance sheet in response to
the challenging macroeconomic environment.
Investore’s $100 million IPL010 senior secured fixed rate
bonds matured in April 2024 and were repaid using bank
debt facilities. As at 31 March 2024, Investore’s weighted
average tenor remaining on its debt facilities was 2.1 years,
which, following the maturity of the IPL010 bonds, increased
to 2.4 years. Investore now has no debt maturing until FY26.
Investore has a weighted average cost of debt of 4.3%
as at 31 March 2024. This figure increases to 4.8% following
the IPL010 bonds maturing post balance date.
Investore negotiated an increase in its bank LVR
1
covenant
from 52.5% to 55.0% during FY24. The increase in the LVR
1
covenant provides Investore more balance sheet capacity and
flexibility to take advantage of opportunities to maximise the
value of the Investore portfolio as they arise.
As at 31 March 2024, Investore has an LVR
1
of 40.8%
2
with a committed LVR
1
of 41.4%
3
.
88%
Debt that is hedged or subject
to a fixed rate of interest
Weighted average
cost of debt
4.3%
Weighted average maturity
of debt facilities
2.1 years
All figures are as at 31 March 2024
1. See glossary on page 98.
2. LVR is calculated based on independent valuations, which
exclude lease liabilities and 507 Pakuranga Road, Auckland,
Development asset. See note 2.2 to the consolidated financial
statements.
3. Taking into account the reduced Q4 FY24 dividend and capital
commitments as at 31 March 2024. See note 2.4 to the
consolidated financial statements.
226 Great South Road, Auckland
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20242627
Proactive Capital
Management (cont)
1. See glossary on page 98.
2. Pro forma as at 31 March 2024, as if the $100m IPL010 bonds which matured on
18 April 2024, had been repaid as at that date.
3. Loan to Value Ratio (LVR) is calculated based on independent valuations, which
exclude lease liabilities and 507 Pakuranga Road, Auckland, Development asset.
See note 2.2 to the consolidated financial statements.
4. Loan to Value Ratio (LVR) is calculated based on independent valuations, which
exclude lease liabilities.
5. Includes bonds and interest rate swaps.
Pro Forma
31 March 2024
2
As at
31 March 2024
As at
31 March 2023
Facility limit ($m)475575475
Debt facilities drawn ($m)403403388
Weighted average debt maturity (years)2.52.13.0
LV R
(%) (Covenant: FY24:≤55.0%; FY23:≤52.5%)40.8
3
40.8
3
36.5
4
Weighted average cost of debt (%)4.84.34.0
Interest cover ratio (Covenant:≥1.75x)N/A2.9x3.2x
% of drawn debt fixed708892
Weighted average fixed rate maturity (years)
5
2.92.33.3
Proactive Approach to Capital Management during FY24
Dividend reinvestment
plan adopted
Dividend policy widened
to paying 80-100% of
distributable profit
1
(previously
90-100% of distributable profit)
Revised full year cash dividend
guidance for FY24 to 7.20cps
(previously 7.90cps)
Bank LVR
1
covenant increased
to 55.0% (previously 52.5%)
$100 million of additional bank
debt secured in advance of
IPL010 bond maturity date
Fixed rate interest profile as at
31 March 2024
Notional fixed rate debt (net of fixed-to-floating hedging)
Mar 24
$355m
2.00%
$280m
1.76%
Mar 25
$275m
1.83%
Mar 26
0.97%
$150m
Mar 27
Debt maturity profile as at
31 March 2024
FY26
$120m
FY27
$105m
$125m
FY28
$125m
FY25
$100m
IPL010 Bonds
(matured April
2024)
Bank FacilitiesRetail Bonds
Resene ColourShop, Takanini
Weighted average interest rate of fixed rate debt (excl.
margin and line fees)
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20242829
Financial
Summary
Financial Summary
The Five Year Financial Summary table reflects the numbers in the financial statements for each
respective year.
20232022202120202019
Five Year Financial Summary($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$1.71
Values in the table above are calculated based on the numbers in the financial statements for each respective financial year
and may not sum accurately due to rounding.
The Five Year Financial Summary contains certain information which is contained in the audited financial statements of each
respective year. Further information can be obtained by referring to those audited financial statements.
Investore Property Limited Annual Report 20231
The Five Year Financial Summary table reflects the numbers in the financial
statements for each respective year.
Values in the tables above are calculated based on the numbers in the financial statements for each respective financial year and
may not sum accurately due to rounding.
The Five Year Financial Summary contains certain information which is contained in the audited financial statements of each
respective year. Further information can be obtained by referring to those audited financial statements.
1. Profit before net finance expense, other (expense)/income and income tax and Profit before other (expense)/income and income tax are
non-GAAP measures and have been presented to assist investors in understanding the different aspects of Investore’s financial performance.
2. See glossary on page 98.
3. Excludes lease liabilities.
4. Calculated based on independent valuations, which excludes lease liabilities and 507 Pakuranga Road, Auckland, Development asset.
See note 2.2 to the consolidated financial statements.
5. Excludes after tax fair value of interest rate derivatives.
Mitre 10 MEGA, Botany
Financial Summary
The Five Year Financial Summary table reflects the numbers in the financial statements for each
respective year.
20242023202220212020
Five Year Financial Summary($m)($m)($m)($m)($m)
Net rental income
61.2
60.358.355.848.1
Profit before net finance expense, other (expense)/
income and income tax
1
53.1
51.448.346.640.6
Net finance expense
(18.0)
(16.2)(14.0)(16.6)(13.9)
Profit before other (expense)/income and income tax
1
35.1
35.234.329.926.7
Other (expense)/income
(98.8)
(185.3)91.5139.07.7
(Loss)/profit before income tax
(63.6)
(150.1)125.8169.034.4
Income tax expense
(3.5)
(0.1)(7.6)(7.7)(5.8)
(Loss)/profit after income tax
(67.1)
(150.2)118.2161.328.6
Basic earnings per share - weighted
(18.17) cents
(40.85) cents
32.10 cents
44.60 cents10.40 cents
Distributable profit before income tax
2
36.4
36.034.833.126.3
Distributable profit after income tax
31.0
31.029.929.121.1
Basic distributable profit after income tax per share
- weighted
8.39 cents
8.44 cents8.11 cents8.05 cents7.66 cents
Investment properties value
3
989.4
1,062.11,201.31,037.9761.4
Drawn debt facilities and bonds
402.8
387.6355.0280.0238.4
Borrowings loan to value ratio
4
40.8%
36.5%29.5%26.8%31.3%
NTA per share
$1.57
$1.84$2.32$2.08$1.73
Adjusted NTA per share
5
$1.57
$1.84$2.32$2.08$1.74
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.
1Profit 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.
2Distributable 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.
3Excludes lease liabilities.
4Calculated based on independent valuations, which excludes lease liabilities and 507 Pakuranga Road, Auckland, Development asset. See note 2.2 to the consolidated financial statements.
5Excludes after tax fair value of interest rate derivatives.
Annual Report 2024
Investore Property Limited1
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20243031
34Consolidated Statement
of Comprehensive Income
35Consolidated Statement
of Changes in Equity
36Consolidated Statement
of Financial Position
37Consolidated Statement
of Cash Flows
39
Notes to the Financial Statements
61
Independent Auditor’s Report
Consolidated
Financial
Statements
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20243233
Countdown, Browns Bay
Consolidated Statement of Comprehensive Income
For the year ended 31 March 2024
20242023
Notes
$000$000
Gross rental income
72,823
70,987
Direct property operating expenses
(11,577)
(10,730)
Net rental income
2.1
61,246
60,257
Less corporate expenses
Asset management fee expense
4.0
(5,376)
(6,158)
Administration expenses
(2,759)
(2,697)
Total corporate expenses
(8,135)
(8,855)
Profit before net finance expense, other expense and income tax53,111
51,402
Net finance expense
5.2
(17,980)
(16,195)
Profit before other expense and income tax35,131
35,207
Other expense
Net change in fair value of investment properties
2.2
(98,733)
(185,246)
Net change in fair value of derivative financial instruments
(24)
(33)
Loss before income tax(63,626)
(150,072)
Income tax expense
7.3
(3,487)
(128)
Loss after income tax attributable to shareholders(67,113)
(150,200)
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss
Movement in cash flow hedges, net of tax
5.5
148
302
Total comprehensive loss after tax attributable to shareholders
(66,965)
(149,898)
Basic and diluted earnings per share (cents)
3.1
(18.17)
(40.85)
The attached notes form part of and are to be read in conjunction with these financial statements.
36Investore Property Limited
Annual Report 2024
Consolidated Statement of Changes in Equity
For the year ended 31 March 2024
Notes
Cents
per share
Number
of shares
000
Share
capital
$000
Retained
earnings
$000
Cash flow
hedge
reserve
$000
Total
$000
Balance 31 Mar 23367,503557,219117,133668675,020
Transactions with shareholders:
Q4 2023 final dividend
1.975--(7,258)-(7,258)
Q1 2024 interim dividend
1.9752,0602,465(7,258)-(4,793)
Q2 2024 interim dividend
1.9752,2922,318(7,299)-(4,981)
Q3 2024 interim dividend
1.625
1,9672,071(6,043)-(3,972)
Total transactions with shareholders
5.4
6,3196,854(27,858)-(21,004)
Other comprehensive income:
Movement in cash flow hedges, net of tax
5.5
---148148
Total other comprehensive income---148148
Loss after income tax
--(67,113)-(67,113)
Total comprehensive (loss)/income
--(67,113)148(66,965)
Balance 31 Mar 24
373,822564,07322,162816587,051
Balance 31 Mar 22
368,135558,293296,383366855,042
Transactions with shareholders:
Q4 2022 final dividend1.975--(7,272)-(7,272)
Q1 2023 interim dividend1.975--(7,262)-(7,262)
Q2 2023 interim dividend1.975--(7,258)-(7,258)
Q3 2023 interim dividend1.975--(7,258)-(7,258)
Share buyback
(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
The attached notes form part of and are to be read in conjunction with these financial statements.
Annual Report 2024
Investore Property Limited37
Consolidated Statement of Comprehensive Income
For the year ended 31 March 2024
Consolidated Statement of Changes in Equity
For the year ended 31 March 2024
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20243435
Countdown, Browns Bay
Consolidated Statement of Financial Position
As at 31 March 2024
20242023
Notes
$000$000
Current assets
Cash at bank
6,633
4,802
Trade and other receivables
7.4
558
608
Prepayments
1,048
909
Other current assets
2,287
1,961
10,526
8,280
Non-current assets
Investment properties
2.2
1,002,646
1,070,451
Deposits on investment properties
145
79
Derivative financial instruments
5.3
1,099
1,478
1,003,890
1,072,008
Total assets
1,014,416
1,080,288
Current liabilities
Borrowings
5.1
99,989
-
Trade and other payables
7.5
11,174
8,355
Current tax liability
1,262
622
Lease liabilities
2.3
100
75
Derivative financial instruments
5.3
173
-
112,698
9,052
Non-current liabilities
Borrowings
5.1
301,012
385,037
Lease liabilities
2.3
13,161
8,242
Deferred tax liability
7.3
494
2,219
Derivative financial instruments
5.3
-
718
314,667
396,216
Total liabilities
427,365
405,268
Net assets587,051
675,020
Share capital
564,073
557,219
Retained earnings
22,162
117,133
Reserve
5.5
816
668
Equity
587,051
675,020
For and on behalf of the Board of Directors of Investore Property Limited, dated 17 May 2024:
Mike Allen
Chair of the Board
Gráinne Troute
Chair of the Audit and Risk Committee
The attached notes form part of and are to be read in conjunction with these financial statements.
38Investore Property Limited
Annual Report 2024
Consolidated Statement of Cash Flows
For the year ended 31 March 2024
20242023
$000$000
Cash flows from operating activities
Gross rent received
73,024
71,286
Bank interest received
194
92
Direct property operating and corporate expenses
(20,448)
(19,070)
Interest paid
(17,693)
(15,508)
Borrowings establishment costs
(195)
(33)
Income tax paid
(4,620)
(5,298)
Net cash provided by operating activities
30,262
31,469
Cash flows from investing activities
Capital expenditure on investment properties
(20,566)
(7,889)
Acquisition of investment properties
(1,974)
(34,138)
Proceeds from purchase price adjustment on acquisition of investment property
-
5,730
Net cash applied to investing activities
(22,540)
(36,297)
Cash flows from financing activities
Drawdown of bank borrowings
20,200
35,600
Repayment of bank borrowings
(5,000)
(3,000)
Dividends paid net of dividends reinvested
(21,004)
(29,050)
Lease liabilities payments
(87)
(75)
Share buyback
-
(1,074)
Net cash (applied to)/provided by financing activities
(5,891)
2,401
Net increase/(decrease) in cash and cash equivalents held1,831
(2,427)
Opening cash and cash equivalents
4,802
7,229
Closing cash and cash equivalents
6,633
4,802
Cash and cash equivalents comprises:
Cash at bank
6,329
4,802
Cash held for retentions
304
-
Cash and cash equivalents at balance date
6,633
4,802
The attached notes form part of and are to be read in conjunction with these financial statements.
Annual Report 2024
Investore Property Limited39
Consolidated Statement of Financial Position
As at 31 March 2024
Consolidated Statement of Cash Flows
For the year ended 31 March 2024
Consolidated Statement of Financial Position
As at 31 March 2024
20242023
Notes
$000$000
Current assets
Cash at bank
6,633
4,802
Trade and other receivables
7.4
558
608
Prepayments
1,048
909
Other current assets
2,287
1,961
10,526
8,280
Non-current assets
Investment properties
2.2
1,002,646
1,070,451
Deposits on investment properties
145
79
Derivative financial instruments
5.3
1,099
1,478
1,003,890
1,072,008
Total assets
1,014,416
1,080,288
Current liabilities
Borrowings
5.1
99,989
-
Trade and other payables
7.5
11,174
8,355
Current tax liability
1,262
622
Lease liabilities
2.3
100
75
Derivative financial instruments
5.3
173
-
112,698
9,052
Non-current liabilities
Borrowings
5.1
301,012
385,037
Lease liabilities
2.3
13,161
8,242
Deferred tax liability
7.3
494
2,219
Derivative financial instruments
5.3
-
718
314,667
396,216
Total liabilities
427,365
405,268
Net assets587,051
675,020
Share capital
564,073
557,219
Retained earnings
22,162
117,133
Reserve
5.5
816
668
Equity
587,051
675,020
For and on behalf of the Board of Directors of Investore Property Limited, dated 17 May 2024:
Mike Allen
Chair of the Board
Gráinne Troute
Chair of the Audit and Risk Committee
The attached notes form part of and are to be read in conjunction with these financial statements.
38Investore Property Limited
Annual Report 2024
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20243637
Countdown, Browns Bay
Consolidated Statement of Cash Flows (continued)
For the year ended 31 March 2024
Reconciliation of loss after income tax attributable to shareholders to net cash flows from operating activities
20242023
Notes
$000$000
Loss after income tax attributable to shareholders(67,113)
(150,200)
(Less)/add non-cash items:
Movement in deferred tax
7.3
(1,773)
(4,844)
Net change in fair value of investment properties
98,733
185,246
Spreading of fixed rental increases
268
89
Capitalised lease incentives net of amortisation
126
(112)
Rental income abatement provision due to COVID-19
-
(54)
Movement in loss allowance
7.4
(125)
30
Borrowings establishment costs amortisation
959
940
Accrued interest movement in derivative financial instruments
7
20
Net change in fair value of derivative financial instruments
24
33
31,106
31,148
Less activities reclassified to operating activities:
Movement in working capital items relating to investing activities
(3,693)
(1,696)
Movement in borrowings costs classified as operating activities
(195)
(33)
27,218
29,419
Movement in working capital:
Decrease in trade and other receivables
50
264
Increase in prepayments and other current assets
(465)
(679)
Increase/(decrease) in current tax liability
640
(326)
Increase in trade and other payables
2,819
2,791
Net cash provided by operating activities
30,262
31,469
The attached notes form part of and are to be read in conjunction with these financial statements.
40Investore Property Limited
Annual Report 2024
Notes to the Financial Statements
For the year ended 31 March 2024
1.0General Information
42
1.1Reporting entity42
1.2Basis of preparation42
1.3Basis of consolidation42
1.4New standards, amendments and interpretations42
1.5Changes to accounting policies and disclosure of material accounting policies42
1.6Fair value estimation43
1.7Significant judgements, estimates and assumptions43
1.8Significant events and transactions43
1.9Non-GAAP measures43
2.0Property
44
2.1Net rental income44
2.2Investment properties45
2.3Lease liabilities50
2.4Capital expenditure commitments contracted for50
3.0Investor Returns
51
3.1Basic and diluted earnings per share (EPS)51
3.2Distributable profit51
4.0Related Party Disclosures
52
5.0Capital Structure and Funding
53
5.1Borrowings53
5.2Net finance expense54
5.3Derivative financial instruments55
5.4Share capital56
5.5Reserve56
5.6Capital risk management56
6.0Risk Management
57
6.1Financial instruments57
6.2Financial risk management57
6.3Credit risk58
6.4Interest rate risk58
6.5Liquidity risk58
7.0Other
59
7.1Operating segments59
7.2Corporate expenses59
7.3Tax59
7.4Trade and other receivables61
7.5Trade and other payables61
7.6Subsequent events62
Annual Report 2024
Investore Property Limited41
Consolidated Statement of Cash Flows (continued)
For the year ended 31 March 2024
Notes to the Financial Statements
For the year ended 31 March 2024
40
40
40
40
40
40
41
41
41
41
42
42
43
48
48
49
49
49
50
51
51
52
53
54
54
54
55
55
55
56
56
56
57
57
57
57
59
59
60
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20243839
Countdown, Browns Bay
1.0fiGeneral 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 100% owned subsidiary Investore Property
(Carr Road) Limited (the Subsidiary) (together referred to as Investore). Both companies are domiciled in New Zealand and 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 17 May 2024.
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 Accounting
Standards (IFRS Accounting Standards). 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 Basis of consolidation
The financial statements have eliminated in full all intra-group transactions and balances between group companies on consolidation.
1.4 New standards, amendments and interpretations
In December 2022, the External Reporting Board 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.
Investore is a climate reporting entity under Part 7A of the Financial Markets Conduct Act 2013 (FMCA) and accordingly is required to prepare its
first climate statement related to the financial year ended 31 March 2024. Investore will release its first climate-related disclosures as required by
Part 7A of the FMCA and in compliance with the standards described above following the release of these financial statements.
New accounting standards and interpretations that have been published, but are not mandated for the reporting year ended 31 March 2024, have
not been early adopted by Investore. These standards are not expected to have a material impact on Investore in the current or future reporting
years, or on foreseeable future transactions.
1.5 Changes to accounting policies and disclosure of material accounting policies
No changes to accounting policies have been made during the year and policies have been consistently applied to all years presented.
The New Zealand Accounting Standards Board amended NZ IAS 1 Presentation of Financial Statements (NZ IAS 1) to require entities to disclose
their material rather than their significant accounting policies, effective for periods commencing on or after 1 January 2023. The amendments
define what is ‘material accounting policy information’ and explain how to identify when accounting policy information is material. The Board and
SIML have performed an assessment, and based on their judgement, removed certain policies and retained only the material accounting policies in
accordance with NZ IAS 1.
42Investore Property Limited
Annual Report 2024
1.0 General Information (continued)
1.6 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.
The Board and SIML review significant unobservable inputs and valuation adjustments. If third party information is used to measure fair values, then
the Board and SIML assess the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of
NZ IFRS, including the level of the fair value hierarchy in which such valuations should be classified.
1.7 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 5.3); and
•Deferred tax (note 7.3).
1.8 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:
Bank debt refinancing
Investore increased its bank debt facilities by $100.0 million. These additional facilities are due to mature on 31 May 2026 (refer note 5.1).
Dividend reinvestment plan (DRP)
On 28 June 2023, the Parent approved the adoption of a DRP. During the period 6,319,023 shares were issued in accordance with the DRP
(refer note 5.4).
Revised dividend policy and dividend guidance
On 16 November 2023, the Board refined the dividend policy to pay out between 80%-100% of distributable profit (previously between
90%-100%) and revised its full year cash dividend guidance for the year ended 31 March 2024 to 7.20 cents per share (down from the previous full
year cash dividend guidance of 7.90 cents per share).
Completion of development at 6 & 21 Hakarau Road, Kaiapoi
In November 2023, the construction of a new Woolworths supermarket on a portion of the site at 6 & 21 Hakarau Road, Kaiapoi, achieved
practical completion.
1.9 Non-GAAP measures
The consolidated statement of comprehensive income includes two non-GAAP measures: Profit before net finance expense, other expense and
income tax; and Profit before other expense 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.
Annual Report 2024
Investore Property Limited43
1.0 General Information1.0 General Information (continued)
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20244041
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2.0fiProperty
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.
20242023
$000$000
Gross rental income
Rental income
65,826
64,067
Service charge income recovered from tenants
6,695
6,077
Ground rent income recovered from tenants
678
834
Spreading of fixed rental increases
(268)
(89)
Capitalised lease incentives
116
316
Lease incentives amortisation
(224)
(218)
Total gross rental income
72,823
70,987
Direct property operating expenses
Service charge expenses relating to tenants
(8,490)
(7,622)
Movement in loss allowance
125
(30)
Capitalised lease incentives
-
30
Lease incentives amortisation
(18)
(16)
Seismic strength assessment expenses
(134)
(439)
Other non-recoverable property operating expenses
(3,060)
(2,653)
Total direct property operating expenses
(11,577)
(10,730)
Net rental income
61,246
60,257
Other non-recoverable property operating expenses represent property maintenance and operating expenses not recoverable from tenants and
property leasing expenses.
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:
2024
Restated
2023
$000$000
Within one year
63,063
61,237
Between one and two years
60,704
59,363
Between two and three years
59,010
56,587
Between three and four years
54,221
54,887
Between four and five years
51,101
50,410
Later than five years
193,176
227,668
Future rentals receivable
481,275
510,152
The future rental receivable for the year ended 31 March 2023 has been restated to present only future non-cancellable rentals. This resulted in a
decrease to future rentals receivable of $74.1 million ($584.2 million to $510.2 million).
44Investore Property Limited
Annual Report 2024
2.0 Property (continued)
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 for at the date of valuation in an
orderly transaction between willing market participants. 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.
20242023
$000$000
Opening balance1,070,451
1,219,766
Property acquisitions
3,729
34,060
Re-measurement/(de-recognition) of lease liabilities (refer note 2.3)
5,031
(10,042)
Purchase price adjustment
-
(5,730)
Recognition of deposits, prepayment and other payments on investment properties
79
8,011
Capital expenditure
22,483
9,609
Spreading of fixed rental increases
(268)
(89)
Capitalised lease incentives net of amortisation
(126)
112
Net change in fair value
(98,733)
(185,246)
Closing balance
1,002,646
1,070,451
Comprising:
Investment properties per valuations or at cost
989,385
1,062,134
Lease liabilities (refer note 2.3)
13,261
8,317
Total
1,002,646
1,070,451
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 2024. The net reduction in fair value of $(98.7) million (2023: $(185.2) million net reduction) includes
$0.1 million (2023: $0.1 million) in relation to the change in the value of the lease liabilities.
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 (2023: nil transfers).
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. Properties classified as 'Development and Other' relate to Investore's
development and portfolio initiatives.
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 years are not applicable for properties
classified as 'Development and Other'.
Annual Report 2024
Investore Property Limited45
2.0 Property2.0 Property (continued)
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20244243
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2.0fiProperty (continued)
2.2 Investment properties (continued)
NLACap rate
Contract
yieldOccupancyWALT
As at 31 Mar 24Valuerm
2
$000%%%years
Auckland
24 Anzac RoadJLL4,382
23,200
5.635.70100.010.9
326 Great South RoadCVAS (NZ)4,641
30,250
5.635.97100.010.9
35A St Johns RoadJLL4,538
21,000
6.135.4598.210.7
507 Pakuranga RoadCBRE4,812
16,100
6.507.45100.010.9
3 Averill StreetCVAS (NZ)5,435
32,500
6.006.64100.010.4
Cnr Church & Selwyn StreetsBayleys2,011
10,650
6.256.30100.00.9
Cnr Te Irirangi Drive & Bishop Dunn PlaceSavills12,205
34,500
5.635.71100.06.7
112 Stoddard RoadCVAS (NZ)4,200
22,500
6.386.51100.03.9
226 Great South RoadBayleys7,362
35,500
7.137.50100.05.7
20-26 Neville StreetBayleys3,816
24,250
6.256.1698.18.0
2 Carr RoadJLL11,693
38,500
5.636.85100.03.2
4 Carr RoadJLL5,332
26,000
5.755.66100.07.4
295 Penrose RoadSavills9,014
42,000
7.005.7487.72.6
Waikato
66-76 Studholme Street, MorrinsvilleJLL1,724
6,250
7.758.79100.04.9
Cnr Anglesea & Liverpool Streets, HamiltonBayleys5,265
7,900
11.0012.46100.05.8
Cnr Bridge & Anglesea Streets, HamiltonBayleys4,200
18,000
7.007.47100.09.1
Cnr Hukanui & Thomas Roads, HamiltonBayleys4,506
15,600
6.506.94100.07.7
446 Te Rapa Road, HamiltonCVAS (NZ)12,763
33,600
5.635.76100.05.9
Bay of Plenty
230-240 Fenton Street, RotoruaBayleys5,172
20,450
6.255.62100.06.4
26-48 Old Taupo Road, RotoruaCVAS (NZ)13,940
33,200
5.635.78100.05.9
65 Chapel Street, TaurangaSavills17,360
50,000
7.507.1099.73.0
Wellington
45-49 Jackson StreetCVAS (WLG)4,605
25,750
6.006.6397.88.2
47 Bay RoadBayleys3,460
12,000
6.256.40100.010.9
91 Johnsonville RoadCVAS (WLG)6,312
21,750
6.256.87100.010.0
13-19 Queen Street, Upper HuttJLL3,427
15,000
6.006.55100.010.9
14 Russell Street, Upper HuttCVAS (NZ)3,037
10,000
6.507.73100.00.9
261 High Street, Lower HuttCVAS (NZ)5,078
19,500
6.256.37100.010.9
Cnr Hanson Street, John Street &
Adelaide RoadSavills4,881
27,500
6.136.16100.07.9
3 Main RoadSavills4,200
17,000
6.506.90100.09.0
Other North Island
Cnr Butler & Kerikeri Roads, KerikeriCVAS (NZ)3,887
20,000
6.256.21100.08.7
53 Leach Street, New PlymouthBayleys8,567
31,700
6.005.81100.05.5
9 Gloucester Street, NapierCVAS (WLG)4,386
17,750
6.005.98100.05.5
Cnr Fernlea Avenue & Roberts Line,
Palmerston NorthSavills3,611
13,300
7.007.10100.07.5
Cnr Tremaine Avenue & Railway Road,
Palmerston NorthCBRE13,730
28,900
6.756.50100.05.9
Canterbury & Otago
87-97 Hilton Street, KaiapoiCVAS (NZ)3,025
11,500
7.007.83100.010.9
6 & 21 Hakarau Road, KaiapoiSavills5,992
21,570
6.006.83100.011.5
219 Colombo Street, ChristchurchBayleys3,976
17,900
6.256.78100.010.9
Cnr Victoria & Browne Streets, TimaruCVAS (NZ)4,032
12,000
6.506.5178.011.0
40-50 Ivory Street, RangioraCVAS (NZ)3,786
15,000
6.757.23100.08.7
Cnr Rolleston & Masefield Drives, RollestonCVAS (NZ)4,251
20,250
6.256.75100.08.7
24 Brighton Mall, ChristchurchSavills2,207
7,300
7.007.17100.04.4
309 Cumberland Street, DunedinCVAS (NZ)4,123
21,500
5.755.99100.010.9
Other South Island
Cnr Putaitai Street & Main Road, NelsonSavills2,659
10,600
7.507.75100.08.7
51 Arthur Street, BlenheimJLL3,136
9,700
7.258.11100.010.9
172-186 Tay Street, InvercargillCBRE5,161
22,500
7.507.47100.09.6
Development and Other
6 & 21 Hakarau Road, Kaiapoi (Land)Savills
5,340
507 Pakuranga Road, Auckland
(Development asset)n/a
1,160
Other propertiesJLL
10,965
Total255,898989,3856.376.5599.17.4
46Investore Property Limited
Annual Report 2024
2.0 Property (continued)
2.2 Investment properties (continued)
NLACap rate
Contract
yieldOccupancyWALT
As at 31 Mar 23Valuerm
2
$000%%%years
Auckland
24 Anzac RoadJLL4,38226,2505.005.00100.011.9
326 Great South RoadCVAS (NZ)4,64135,5005.005.06100.011.9
35A St Johns RoadJLL4,53822,5005.755.7398.211.9
507 Pakuranga RoadCBRE4,81218,3006.256.04100.011.9
3 Averill StreetCVAS (NZ)5,43536,0005.135.93100.011.4
Cnr Church & Selwyn StreetsBayleys2,01112,7005.255.17100.01.9
Cnr Te Irirangi Drive & Bishop Dunn PlaceBayleys12,20538,9005.005.05100.07.7
112 Stoddard RoadCVAS (NZ)4,20025,2505.505.63100.04.9
226 Great South RoadBayleys7,36240,3006.386.51100.06.5
20-26 Neville StreetBayleys3,81627,8005.385.43100.09.1
2 Carr RoadCBRE11,69336,5005.507.05100.04.2
4 Carr RoadSavills5,33230,0005.004.76100.08.4
295 Penrose RoadCBRE9,01440,3006.506.1896.83.0
Waikato
66-76 Studholme Street, MorrinsvilleJLL1,7247,0006.507.30100.01.9
Cnr Anglesea & Liverpool Streets, HamiltonBayleys5,2656,40010.0012.65100.00.8
Cnr Bridge & Anglesea Streets, HamiltonBayleys4,20020,5006.386.51100.010.1
Cnr Hukanui & Thomas Roads, HamiltonBayleys4,50617,9506.005.93100.08.2
446 Te Rapa Road, HamiltonBayleys12,76336,8005.005.09100.06.9
Bay of Plenty
230-240 Fenton Street, RotoruaBayleys5,17222,7505.685.00100.07.4
26-48 Old Taupo Road, RotoruaBayleys13,94035,4005.005.25100.06.9
65 Chapel Street, TaurangaJLL17,36050,5007.386.1983.03.7
Wellington
45-49 Jackson StreetSavills4,60532,5005.005.22100.09.0
47 Bay RoadBayleys3,46014,0005.505.41100.011.9
91 Johnsonville RoadCVAS (WLG)6,31222,5005.966.37100.010.9
13-19 Queen Street, Upper HuttJLL3,42715,5005.756.03100.011.9
14 Russell Street, Upper HuttCVAS (NZ)3,03712,0005.886.61100.01.9
261 High Street, Lower HuttCVAS (NZ)5,07823,2505.385.50100.011.9
Cnr Hanson Street, John Street &
Adelaide RoadSavills4,88124,5005.255.4997.29.0
3 Main RoadSavills4,20016,6005.506.03100.010.0
Other North Island
Cnr Butler & Kerikeri Roads, KerikeriCVAS (NZ)3,88721,2505.385.59100.09.7
53 Leach Street, New PlymouthBayleys8,56733,6005.255.34100.06.5
9 Gloucester Street, NapierCVAS (WLG)4,38618,7505.505.49100.06.5
Cnr Fernlea Avenue & Roberts Line,
Palmerston NorthSavills3,61115,0006.006.08100.08.7
Cnr Tremaine Avenue & Railway Road,
Palmerston NorthCBRE13,73030,5006.005.87100.06.9
Canterbury & Otago
87-97 Hilton Street, KaiapoiCVAS (NZ)3,02513,0006.006.89100.011.9
219 Colombo Street, ChristchurchBayleys3,97619,5005.756.17100.011.9
Cnr Victoria & Browne Streets, TimaruCVAS (NZ)4,03214,2505.885.3585.011.2
40-50 Ivory Street, RangioraCVAS (NZ)3,78618,2505.755.81100.09.7
Cnr Rolleston & Masefield Drives, RollestonCVAS (NZ)4,25123,2505.255.21100.09.7
24 Brighton Mall, ChristchurchSavills2,2077,9006.256.15100.05.4
309 Cumberland Street, DunedinCVAS (NZ)4,12324,0005.135.23100.011.9
Other South Island
Cnr Putaitai Street & Main Road, NelsonSavills2,65911,8006.506.61100.09.7
51 Arthur Street, BlenheimJLL3,13610,5006.757.41100.011.9
172-186 Tay Street, InvercargillCBRE5,16123,2006.886.82100.010.5
Development and Other
6 & 21 Hakarau Road, KaiapoiSavills18,764
Other propertiesJLL
10,170
Total
249,9061,062,1345.705.8198.48.1
Annual Report 2024
Investore Property Limited47
2.0 Property (continued)2.0 Property (continued)
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20244445
Countdown, Browns Bay
2.0fiProperty (continued)
Investore is conscious of the need to identify the impact of climate risk on its business and assets. During the year, Investore committed to and
invested in various sustainability initiatives which includes the replacement of six R22 heating, ventilation and cooling (HVAC) units, installation of
LED lights as part of several store refurbishments, and the completion of the new 5 Green Star Design rated supermarket at 6 & 21 Hakarau
Road, Kaiapoi. The cost of these sustainability initiatives is included in capital expenditure for the year ended 31 March 2024. For the years ending
31 March 2025 and 31 March 2026 Investore is targeting the replacement of a further thirty eight R22 HVAC units at an expected cost of
$0.8fimillion.
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 prior 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 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.
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 a review of specific independent
valuations and discussions with the independent valuers as considered necessary. Ultimately, the Board is responsible for reviewing and approving
the investment property valuations.
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 245.63-11.005.50-10.75159-5630.00-2.955.25-12.50
As at 31 Mar 23
5.00-10.005.38-11.00167-4970.14-2.864.75-10.25
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 24
Change $000
39,533(36,547)33,760(31,566)
Change %
4(4)3(3)
As at 31 Mar 23
Change $00047,378(43,398)38,571(35,858)
Change %5(4)4(4)
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 lease 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.
The adopted market value is a combination of both the Income Capitalisation and the Discounted Cash Flow approaches, other than as
described following.
2.2 Investment properties (continued)
48Investore Property Limited
Annual Report 2024
2.0 Property (continued)
2.2 Investment properties (continued)
In August 2023, Investore acquired the title to land adjacent to Investore's property at 507 Pakuranga Road, Auckland, from General Distributors
Limited (GDL). Investore is committed to reimburse GDL for the costs of the development of a new car park and other related works on this land up
to an amount of $7.5 million (refer note 2.4), and GDL will pay improvements rental on this contribution. This property has been fair valued utilising
the Residual approach, calculating what the property is expected to be worth on completion of the works and deducting all expected costs to
complete the works, including the $7.5 million commitment to GDL payable on completion of the works. As at 31 March 2024, the acquired land has
been valued at $1.9 million and a corresponding liability has been recognised. In addition, a $1.2 million development asset has been recognised
at cost within 'Development and Other' representing development works completed by GDL with a corresponding liability recognised. As a result, a
total liability of $3.1 million has been included in trade and other payables (refer note 7.5) as at 31 March 2024.
The property at 6 & 21 Hakarau Road, Kaiapoi, has been fair valued utilising two valuation approaches. For Stage one of the development, whilst
the Woolworths supermarket has been completed, the Residual approach has been utilised to account for the works remaining on a separate
specialty unit. The residual land pertaining to Stage two of the development has been fair valued utilising the Land approach which involves direct
comparison with other property transactions and has been disclosed within 'Development and Other'.
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.
Annual Report 2024
Investore Property Limited49
2.0 Property (continued)2.0 Property (continued)
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20244647
Countdown, Browns Bay
2.0fiProperty (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, 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 (2023: ten) 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 re-assessed 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.
One of the lease liabilities at Corner of Anglesea and Liverpool Streets, Hamilton, has been re-measured due to a market rent review on
23 January 2024.
20242023
Lease liabilities$000$000
Opening balance8,317
18,434
Re-measurement/(de-recognition) of lease liabilities
5,031
(10,042)
Cash lease payments
(782)
(859)
Finance lease interest
695
784
Closing balance
13,261
8,317
Current
100
75
Non-current
13,161
8,242
Total lease liabilities
13,261
8,317
2.4 Capital expenditure commitments contracted for
As at 31 March 2024, Investore has committed to the below capital expenditure works:
•$1.1 million (2023: $15.3 million) to complete Stage one development at 6 & 21 Hakarau Road, Kaiapoi;
•$4.9 million (2023: $8.0 million) towards the redevelopment and store refurbishment at 507 Pakuranga Road, Auckland, including a car park,
improved customer access and a dedicated online pick-up area. The total cost of the development is $8.0 million, including $7.5 million that
Investore has committed to reimburse GDL for the costs incurred by GDL in developing these works and Investore will receive an associated
improvements rental on the amount reimbursed to GDL. Of the total development costs, $3.1 million has been recognised as a payable
(refer note 7.5) in the consolidated statement of financial position;
•$3.0 million towards dedicated online pick-up areas at 326 Great South Road, Auckland, of $1.9 million (2023: $nil), and 40-50 Ivory Street,
Rangiora, of $1.1 million (2023: $1.1 million); and
•$1.2 million (2023: $3.6 million) for various other capital expenditure.
Investore has no other material capital commitments as at 31 March 2024.
50Investore Property Limited
Annual Report 2024
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 (refer note 1.9) 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)
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 6.32 million shares
issued under the DRP (refer note 1.8).
20242023
$000$000
Loss after income tax attributable to shareholders(67,113)
(150,200)
Weighted average number of shares for the purpose of basic and diluted EPS
369,320
367,723
Basic and diluted EPS - weighted (cents)(18.17)
(40.85)
3.2 Distributable profit
Accounting Policy
Investore’s dividend policy is to target a cash dividend to shareholders that is between 80% 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.
20242023
$000$000
Loss before income tax(63,626)
(150,072)
Non-recurring, non-cash and other adjustments:
Net change in fair value of investment properties
98,733
185,246
Reversal of lease liabilities movement in net change in fair value of investment properties
(87)
(75)
Net change in fair value of derivative financial instruments
24
33
Spreading of fixed rental increases
268
89
Capitalised lease incentives net of amortisation
126
(112)
Borrowings establishment costs amortisation
959
940
Distributable profit before current income tax36,397
36,049
Current income tax(5,260)
(4,972)
Adjusted for:
Tax expense on capitalised interest
(137)
(59)
Distributable profit after current income tax
31,000
31,018
Adjustments to funds from operations
Maintenance capital expenditure
(3,741)
(2,340)
Seismic works
(2,306)
-
Incentives and associated landlord works
(382)
(60)
Adjusted Funds From Operations (AFFO)
24,571
28,618
Weighted average number of shares for the purpose of basic and diluted distributable profit per share (000)
369,320
367,723
Basic and diluted distributable profit after current income tax per share - weighted (cents)8.39
8.44
AFFO basic and diluted distributable profit after current income tax per share - weighted (cents)6.65
7.78
Annual Report 2024
Investore Property Limited51
2.0 Property (continued)3.0 Investor Returns
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20244849
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4.0fiRelated Party Disclosures
This section sets out the transactions that have occurred during the relevant periods between Investore and SIML, as manager of
Investore, and Stride Property Limited (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.
20242023
The following transactions with a related party took place$000$000
SIML
Asset management fee expense
(5,376)
(6,158)
Building management fee expense
(443)
(440)
Accounting fee expense
(250)
(250)
Leasing fee expense
(257)
(46)
Project management fee expense
(776)
(430)
Other fee expenses
(224)
(97)
Total
(7,326)
(7,421)
SPL
Dividends paid net of DRP
(3,940)
(5,467)
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
(103)
(258)
Other fee expenses include maintenance, sustainability and share buyback fees related to the share buyback programme that ended in May 2023
(2023: maintenance, disposal and sustainability 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.
SIML did not receive a performance fee for the year ended 31 March 2024 (2023: $nil). The carried forward return for the performance fee
calculation for the quarter ending 30 June 2024 is a 41.7% deficit (2023: quarter ended 30 June 2023 44.6% deficit) which has been calculated in
accordance with the management agreement.
As at 31 March 2024, 1.2 million ($1.3 million) shares were issued to SPL under the DRP. As at 31 March 2024, SPL's shareholding in the Parent is
18.8%, being 70.4 million shares (2023: 18.8%, being 69.2 million shares).
In the current year, Directors in total received dividends net of DRP of $13,728 (2023: $14,477). Directors' fees recognised in administration
expenses comprise the following:
20242023
$000$000
Directors' fees
222
208
Chair's fees
104
95
326
303
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.
52Investore Property Limited
Annual Report 2024
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.
Cashflows as a result of transfers between existing bank facilities are presented net within the consolidated statement of cash flows.
20242023
$000$000
Current
Fixed rate bonds
100,000
-
Unamortised borrowings establishment costs
(11)
-
Total current
99,989
-
Non-current
Bank facility drawn down
52,800
37,600
Fixed rate bonds
250,000
350,000
Unamortised borrowings establishment costs
(1,788)
(2,563)
Total non-current
301,012
385,037
Total net borrowings
401,001
385,037
Weighted average cost of debt (inclusive of current interest rate derivatives, bonds, bank margins and line
fees) at balance date
4.34%
4.01%
Total
amount
Undrawn
facility
Drawn
amount
Fair
value
31 Mar 24Issue dateExpiry dateInterest rate$000$000$000$000
Bank Facility A30 Nov 2025Floating
70,00057,20012,80012,800
Bank Facility D16 Apr 2025Floating
50,00050,000--
Bank Facility F31 May 2026Floating
40,000-40,00040,000
Bank Facility G31 May 2026Floating
65,00065,000--
Bonds IPL01018 Apr 201818 Apr 20244.40%
100,000-100,00099,893
Bonds IPL02031 Aug 202031 Aug 20272.40%
125,000-125,000108,499
Bonds IPL03025 Feb 202225 Feb 20274.00%
125,000-125,000116,498
575,000172,200402,800377,690
31 Mar 23
Bank Facility A30 Nov 2025Floating70,00037,40032,60032,600
Bank Facility D16 Apr 2025Floating50,00045,0005,0005,000
Bank Facility F30 Nov 2025Floating5,0005,000--
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
Annual Report 2024
Investore Property Limited53
4.0 Related Party Disclosures5.0 Capital Structure and Funding
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20245051
Countdown, Browns Bay
5.0fiCapital 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.
During the year, Investore's banks have provided an additional $100.0 million of bank facilities which were used to repay the IPL010 fixed rate
bonds which matured in April 2024 (refer note 7.6). Investore's Loan to Value Ratio banking covenant was also increased from 52.5% to 55.0%.
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.
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.
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.
Below sets out the summary of net debt.
20242023
$000$000
Cash and cash equivalents
6,633
4,802
Borrowings - current
(99,989)
-
Borrowings - non-current
(301,012)
(385,037)
Lease liabilities
(13,261)
(8,317)
Net debt
(407,629)
(388,552)
5.2 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 interest costs charged on borrowings are recognised as incurred. Costs associated with the establishment of borrowings are amortised
over the term of the relevant borrowings.
20242023
$000$000
Finance income
Bank interest income
194
92
Total finance income
194
92
Finance expense
Bank borrowings interest
(5,579)
(3,312)
Bank borrowings interest capitalised
490
209
Fixed rate bonds interest
(12,390)
(12,400)
Lease liabilities interest
(695)
(784)
Total finance expense
(18,174)
(16,287)
Net finance expense
(17,980)
(16,195)
In the current year, $0.5 million (2023: $0.2 million) of bank borrowing interest expense has been capitalised using an average capitalisation rate of
3.95% (2023: 5.92%).
54Investore Property Limited
Annual Report 2024
5.0 Capital Structure and Funding (continued)
5.3 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
derivatives, 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.
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.
20242023
$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
25,000
-
Interest rate derivative contracts - fixed rate receiver
25,000
25,000
Total notional principal value of interest rate derivative contracts
80,000
55,000
Interest rate derivative assets - non-current
1,099
1,478
Interest rate derivative liabilities - current
(173)
-
Interest rate derivative liabilities - non-current
-
(718)
Fair value of interest rate derivative contracts
926
760
Fixed interest rates payer (including forward starting interest rate derivatives)
2.84%-3.83%
2.84%
Fixed interest rate receiver
4.40%
4.40%
Weighted average fixed interest rate (excluding margins, including forward starting interest rate derivatives)
2.12%
2.00%
Percentage of drawn debt fixed
88%
92%
An interest rate derivative contract with a notional value of $25.0 million was entered into in the current year with an effective date of 31 December
2025 and termination date of 31 December 2027.
Investore enters into interest rate derivatives 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 $25.0 million fixed rate receiver interest rate derivative. On 21 March 2018, Investore entered into a $25.0 million fixed rate receiver derivative
for the duration of the fixed rate bonds with the effect of converting a portion of the IPL010 $100.0 million fixed rate bonds to floating interest rate.
The life to date ineffective portion on the receiver derivative, 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 $0.2 million (2023: fair value loss of $0.1 million). Investore does not hold derivative financial instruments for
trading purposes.
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 (2023: 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 2024 of between 5.64%, for the 90-day BKBM, and
4.37%, for the 10-year swap rate (2023: 5.23% and 4.30%, respectively). There were no changes to these valuation techniques during the
reporting period.
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 derivatives had been 0.25% higher or lower, with other variables remaining constant.
20242023
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 equity198(200)
155(156)
Impact on profit--
(60)60
Annual Report 2024
Investore Property Limited55
5.0 Capital Structure and Funding (continued)5.0 Capital Structure and Funding (continued)
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20245253
Countdown, Browns Bay
5.0fiCapital Structure and Funding (continued)
5.4 Share capital
There is only one class of shares, being ordinary shares, and they rank equally with each other. All issued shares are fully paid and have no par value.
On 19 May 2023, the Board resolved to cancel the share buyback programme that had operated in the prior year.
During the current year, 6.32 million ordinary shares were issued in accordance with the DRP (refer note 1.8). Investore had 373,821,658 shares on
issue as at 31 March 2024 (2023: 367,502,635).
5.5 Reserve
20242023
Cash flow hedge reserve$000$000
Opening balance668
366
Movement in fair value of interest rate derivatives
194
374
Tax on fair value movement
(48)
(105)
Transferred to profit or loss
2
33
Closing balance
816
668
Gains and losses recognised in the cash flow hedge reserve in equity, on interest rate derivative contracts as at 31 March 2024, 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, operate a dividend reinvestment plan, 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 facilities and its fixed rate bonds. 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.
56Investore Property Limited
Annual Report 2024
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
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.
Classification is determined at initial recognition and this designation is re-evaluated at every reporting date.
The carrying values of all financial assets and liabilities in the consolidated statement of financial position approximate their estimated fair values,
apart from the fixed rate bonds (refer note 5.1).
The following financial assets and liabilities that potentially subject Investore to financial risk have been recognised in the financial statements:
20242023
Summary of financial instruments$000$000
Financial assets at amortised cost
Cash at bank
6,633
4,802
Trade and other receivables
558
608
NZX bond
75
75
Total financial assets at amortised cost
7,266
5,485
Derivative financial instruments
Used for hedging
1,099
1,478
Total financial assets
8,365
6,963
Financial liabilities at amortised cost
Trade and other payables
11,174
8,355
Lease liabilities
13,261
8,317
Borrowings
401,001
385,037
Total financial liabilities at amortised cost
425,436
401,709
Derivative financial instruments
Used for hedging
171
685
Held at fair value through profit and loss
2
33
Total financial liabilities
425,609
402,427
6.2 Financial risk management
Investore’s activities expose it to a variety of financial risks: credit risk, interest rate 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.
Annual Report 2024
Investore Property Limited57
5.0 Capital Structure and Funding (continued)6.0 Risk Management
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20245455
Countdown, Browns Bay
6.0fiRisk Management (continued)
6.3 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, 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 Woolworths (formerly 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 derivative 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.
6.4 Interest rate risk
As Investore has no significant interest bearing assets, its operating income is 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. Investore's 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 5.3. At balance date, the total drawn debt was 88% hedged (2023: 92% 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:
20242023
Interest rates applicable at balance date$000$000
Cash at bank
2.30%
1.85%
Bank borrowings
6.65%
6.18%
Weighted average cost of debt (inclusive of current interest rate derivatives, bonds, bank margins and
line fees)
4.34%
4.01%
Trade and other receivables and trade and other payables are interest free and have settlement dates within one year. All other assets and liabilities
are non-interest bearing.
6.5 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 by the Manager on a regular basis and is reviewed
quarterly by the Board to ensure compliance with internal policies and covenants per Investore’s banking facilities 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
facilities available to cover potential shortfalls (refer note 5.1).
The following table outlines Investore’s liquidity profile, as at 31 March, based on contractual undiscounted cash flows.
Total0-6 mths6-12 mths1-2 yrs2-5 yrs>5 yrs
$000$000$000$000$000$000
31 Mar 24
Trade and other payables
11,17411,174----
Bank borrowings
57,9781,8421,77116,27638,089-
Fixed rate bonds
374,984104,2204,0008,000258,764-
Lease liabilities
16,6364984609572,85211,869
Derivative financial instruments
3,0143904265231,675-
463,786118,1246,65725,756301,38011,869
31 Mar 23
Trade and other payables8,3558,355----
Bank borrowings45,3781,5101,5103,03839,320-
Fixed rate bonds387,3846,2006,200108,220266,764-
Lease liabilities8,2793222475322,6214,557
Derivative financial instruments
1,2256363815284-
450,62116,4508,020112,605308,9894,557
58Investore Property Limited
Annual Report 2024
7.0 Other
This section contains additional information to assist in understanding the financial performance and position of Investore.
7.1 Operating segments
Investore is reported as a single operating segment, being large format retail properties, which is consistent with the internal reporting provided
to the chief operating decision-maker, identified as the Board. Investore’s revenue streams are earned from investment properties owned in New
Zealand, with no specific exposure to geographical risk. Two tenants contributed more than 10% to Investore’s portfolio contract rental as at
31 March 2024, GDL (Woolworths (formerly Countdown)), contributes 64% (2023: 64%) and Bunnings Limited contributes 13% (2023: 13%).
7.2 Corporate expenses
20242023
$000$000
Administration expenses includes:
Auditor's remuneration
Audit and review of financial statements
192
183
Other assurance services - operating expense audits
18
17
Total Auditor's remuneration
210
200
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.
20242023
Income tax$000$000
Current tax expense
(5,260)
(4,972)
Deferred tax benefit
1,773
4,844
Income tax expense per the consolidated statement of comprehensive income
(3,487)
(128)
Loss before income tax(63,626)
(150,072)
Prima facie income tax using the company tax rate of 28%17,815
42,020
(Increase)/decrease in income tax due to:
Net change in fair value of investment properties
(27,645)
(51,869)
Reversal of lease liabilities movement in investment properties
24
21
Movement in fair value of derivative financial instruments
(7)
(9)
Non-taxable income
11
36
Other permanent differences
277
433
Depreciation
4,209
4,264
Non-deductible expenses
(168)
(73)
Expenditure deductible for tax
137
59
Temporary differences
32
(22)
Losses utilised
-
176
Prior year adjustment
55
(8)
Current tax expense
(5,260)
(4,972)
Investment properties depreciation
1,722
5,014
Other
51
(170)
Deferred tax credited to profit or loss
1,773
4,844
Income tax expense per the consolidated statement of comprehensive income
(3,487)
(128)
Imputation credits available for use in subsequent reporting periods
1,325
666
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.
Annual Report 2024
Investore Property Limited59
6.0 Risk Management (continued)
7.0 Other
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20245657
Countdown, Browns Bay
7.0fiOther (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 derivatives.
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.
20242023
$000$000
Deferred tax assets
Derivative financial instruments
10
178
Other temporary differences
131
80
141
258
Deferred tax liabilities
Depreciation on investment properties
(367)
(2,089)
Derivative financial instruments
(268)
(388)
(635)
(2,477)
Net deferred tax liability
(494)
(2,219)
60Investore Property Limited
Annual Report 2024
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.
20242023
$000$000
Current
Trade and other receivables
686
861
Less loss allowance
(128)
(253)
558
608
Less than 30 days due
385
251
Over 30 days due
173
357
Carrying amount
558
608
Movement in loss allowance
Opening balance(253)
(223)
Movement in loss allowance
36
(34)
Bad debts written off
89
4
Closing balance
(128)
(253)
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.
20242023
$000$000
Current
Unsecured liabilities
Trade payables
73
491
Related party payables (refer note 4.0)
103
258
Development and capital expenditure payables and accruals
6,212
3,121
Retention accruals
304
160
Interest expense accruals
1,728
1,709
Other accruals and payables
2,754
2,616
11,174
8,355
Certain comparatives amounts have been reclassified to conform with the current year's presentation.
Development and capital expenditure payables and accruals include a $3.1 million commitment to GDL (2023: $nil) (refer note 2.4).
Other accruals and payables include Goods and Services Tax, tenant deposits, direct property operating expense accruals and other corporate
expense accruals.
Annual Report 2024
Investore Property Limited61
7.0 Other (continued)7.0 Other (continued)
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20245859
Countdown, Browns Bay
7.0fiOther (continued)
7.6 Subsequent events
On 18 April 2024, the IPL010 fixed rate bonds of $100.0 million matured and were repaid with bank debt.
On 17 May 2024, the Parent declared a cash dividend for the period 1 January 2024 to 31 March 2024 of 1.625 cents per share, to be paid on
6 June 2024 to all shareholders on the Parent’s register at the close of business on 27 May 2024. This dividend will carry imputation credits of
0.354547 cents per share. This dividend has not been recognised in the financial statements.
On 17 May 2024, the Parent resolved that the DRP will not operate for the dividend for the period 1 January 2024 to 31 March 2024.
There have been no other material events subsequent to balance date.
60Investore Property Limited
Annual Report 2024
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 2024, 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 Accounting Standards (IFRS Accounting Standards).
What we have audited
The Group's consolidated financial statements comprise:
•the consolidated statement of financial position as at 31 March 2024;
•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, comprising material accounting policy information 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 other
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.
PricewaterhouseCoopers, 15 Customs Street West, Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000, F: +64 9 355 8001, pwc.co.nz
Annual Report 2024
Investore Property Limited63
7.0 Other (continued)Independent auditor’s report
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20246061
Countdown, Browns Bay
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) and the Sustainability Report and Climate-Related Disclosures
to be published at a later date. Other than the Sustainability Report and Climate-Related Disclosures which we will receive at a later date, we have
received all the other information expected to be included in the Annual Report.
Our opinion on the consolidated financial statements does not cover the other information and we do not and will 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.
When we read the Sustainability Report and Climate-Related Disclosures, if we conclude that there is a material misstatement therein, we are
required to communicate the matter to the Directors and use our professional judgement to determine the appropriate action to take.
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 Accounting Standards, 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
17 May 2024
Annual Report 2024
Investore Property Limited65
Independent auditor’s report (continued)Independent auditor’s report (continued)
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) and the Sustainability Report and Climate-Related Disclosures
to be published at a later date. Other than the Sustainability Report and Climate-Related Disclosures which we will receive at a later date, we have
received all the other information expected to be included in the Annual Report.
Our opinion on the consolidated financial statements does not cover the other information and we do not and will 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.
When we read the Sustainability Report and Climate-Related Disclosures, if we conclude that there is a material misstatement therein, we are
required to communicate the matter to the Directors and use our professional judgement to determine the appropriate action to take.
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 Accounting Standards, 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
17 May 2024
Annual Report 2024
Investore Property Limited65
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 $1,003 million (excluding lease liabilities) which
represents the majority of the assets held by the Group as
at 31 March 2024.
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 and considering the
significance of investment property to the Group, this is a key
audit matter.
The valuations were performed by independent registered
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
predominantly 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 $37.2 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.
For properties that require seismic strengthening works,
the valuation incorporates an additional seismic capital
expenditure and a profit and risk allowance (where applicable).
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 2024.
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.
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. For property held as development,
we audited the estimated costs to completion.
With regards to the impact of climate-related risks on the property valuations,
while the Valuers confirmed in our discussions that these were considered, the
Valuers made no explicit adjustments to their valuations as at 31 March 2024 in
respect of climate-related matters.
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 bias in determining significant
assumptions in individual valuations and found no evidence of bias.
We considered the appropriateness of disclosures made in the
financial statements.
Our audit approach
Overview
Overall Group materiality: $1,700,000, which represents approximately 5% of profit before income tax excluding the 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.
We performed a full scope audit over the consolidated financial information of the Group.
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.
64Investore Property Limited
Annual Report 2024
Materiality
Group
scoping
Key Audit
Matters
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 $989 million (excluding lease liabilities) which
represents the majority of the assets held by the Group as
at 31 March 2024.
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 and considering the
significance of investment property to the Group, this is a key
audit matter.
The valuations were performed by independent registered
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
predominantly 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 $37.2 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.
For properties that require seismic strengthening works,
the valuation incorporates an additional seismic capital
expenditure and a profit and risk allowance (where applicable).
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 2024.
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.
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. For property held as development,
we audited the estimated costs to completion.
With regards to the impact of climate-related risks on the property valuations,
while the Valuers confirmed in our discussions that these were considered, the
Valuers made no explicit adjustments to their valuations as at 31 March 2024 in
respect of climate-related matters.
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 bias in determining significant
assumptions in individual valuations and found no evidence of bias.
We considered the appropriateness of disclosures made in the
financial statements.
Our audit approach
Overview
Overall Group materiality: $1,700,000, which represents approximately 5% of profit before income tax excluding the 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.
We performed a full scope audit over the consolidated financial information of the Group.
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.
62Investore Property Limited
Annual Report 2024
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 $1,003 million (excluding lease liabilities) which
represents the majority of the assets held by the Group as
at 31 March 2024.
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 and considering the
significance of investment property to the Group, this is a key
audit matter.
The valuations were performed by independent registered
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
predominantly 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 $37.2 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.
For properties that require seismic strengthening works,
the valuation incorporates an additional seismic capital
expenditure and a profit and risk allowance (where applicable).
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 2024.
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.
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. For property held as development,
we audited the estimated costs to completion.
With regards to the impact of climate-related risks on the property valuations,
while the Valuers confirmed in our discussions that these were considered, the
Valuers made no explicit adjustments to their valuations as at 31 March 2024 in
respect of climate-related matters.
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 bias in determining significant
assumptions in individual valuations and found no evidence of bias.
We considered the appropriateness of disclosures made in the
financial statements.
Our audit approach
Overview
Overall Group materiality: $1,700,000, which represents approximately 5% of profit before income tax excluding the 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.
We performed a full scope audit over the consolidated financial information of the Group.
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.
64Investore Property Limited
Annual Report 2024
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20246263
Corporate
Governance
Bunnings, Rotorua
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20246465
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 May 2024.
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 97.
Investore was established by Stride Property Limited (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, treasury
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 regularly
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
recommendations of the NZX Code for the year ended
31 March 2024, together with other legal and regulatory
disclosures. These disclosures report against the version
of the NZX Code dated 1 April 2023.
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 Policy has not been adopted
(NZX Code Recommendation 5.2), as Investore
does not have any employees. Director remuneration
is considered by the Board as a whole and then
recommended to shareholders for approval.
• 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).
Corporate Governance
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 2024)
Other SIML
Managed Fund
Investore
Large Format Retail
Investore’s Website:
For additional information on Investore’s corporate
governance framework or to obtain a copy of
Investore’s key policies and charters, please refer
to the Investore website at
www.investoreproperty.co.nz
Investore Property LimitedAnnual Report 202467Investore Property LimitedAnnual Report 202466
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.
Recommendation 1.1 – The board should
document minimum standards of ethical behaviour
to which the issuer’s directors and employees are
expected to adhere (a 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 business on
behalf 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, Market Disclosure Policy (see
Principle 4: Reporting and Disclosure for a description
of the Market Disclosure Policy), Human Rights Policy,
Modern Slavery Policy, and the Manager’s Conflicts
Policy. Employees of the Manager can access Investore’s
Code of Ethics, together with other supporting policies,
on the SIML intranet, and are regularly provided
with training in relation to the Code of Ethics and its
supporting policies.
The Board reviews the Code of Ethics at least every two
years to ensure it remains appropriate and continues
to set the standard of ethical behaviour expected
by Investore of its Directors and of the employees of
the Manager when conducting business on behalf of
Investore. The Code of Ethics was last reviewed by the
Investore Board in March 2024.
Key principles underpinning Investore’s
Code of Ethics
Recommendation 1.2 – An issuer should have a
financial product dealing policy which applies to
employees and directors.
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 Secretary of SIML,
the Manager.
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 number of Investore’s
governance documents, including the Constitution, the
Board Charter, the Code of Ethics, and internal 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.
Protected Disclosures Policy
Investore does not have a whistleblower policy, as it has
no employees. SIML has a Protected Disclosures Policy
which provides a safe process for SIML employees
to make an allegation of serious wrongdoing within
Investore, Stride and other entities managed by SIML.
Act with honesty and integrity and
demonstrate respect for others
Protect Investore’s assets and resources, including
its confidential or sensitive information
Adhere to all legal and compliance obligations
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
Make health and safety a priority
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20246869
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 business objectives, within a
framework of regulatory and ethical compliance.
Recommendation 2.1 – The board of an issuer
should operate under a written charter which sets
out the roles and responsibilities of the board.
The board charter should clearly distinguish and
disclose the respective roles and responsibilities of
the board and management.
The Board’s roles and responsibilities are formalised in its
Board Charter, which is available in the Investor Centre on
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 annually, to ensure it remains consistent
with the Board’s objectives and responsibilities and to
ensure it maintains an appropriate balance between
governance matters for which the Board retains
responsibility, and operational matters which have been
delegated to SIML, as Manager.
The Board retains responsibility for setting the strategic
direction of Investore and overseeing the performance of
Investore and communications to the market. The Board
delegates the day-to-day management of Investore’s
business to SIML, as Manager, by way of a Management
Agreement. The Management Agreement ensures SIML
has appropriate operating parameters through formal
delegations of authority. The relationship between
the Board and SIML and their respective roles and
responsibilities is depicted in Diagram 2.
Diagram 2: Board and Manager Roles and Responsibilities
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, major capital
expenditure, business
plans, dividend policy and
financial forecasts and
oversees Investore’s capital
management
Monitors the financial
performance of Investore
and oversees accounting and
reporting systems (including
external audit)
Implements effective audit
and risk management
systems
Reviews and approves market
communications
SIML implements
the 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, operating
frameworks and
overall governance
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 2024Annual Report 20247071
Recommendation 2.2 – Every issuer should have a
procedure for the nomination and appointment of
directors to the board.
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, diversity, 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.
Shareholders are provided with key information about a
candidate to help in their decision-making on whether to
elect or re-elect them (this includes any material adverse
information the checks described above have revealed
and if the candidate is standing for re-election, information
about the term of office served by that candidate).
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 and any
perceived gaps in skills can be fulfilled.
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 3 is a summary of the 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.
Individual Director profiles are also set out on Investore’s
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.
Recommendation 2.3 – An issuer should
enter into written agreements with each newly
appointed director establishing the terms of their
appointment.
All new non-executive Directors are appointed by way
of a formal letter of appointment, including their term of
appointment, expectations of the Directors in their role,
expected time commitment, remuneration entitlements
and indemnity and insurance arrangements. The letter
of appointment also requires Directors to comply with
all corporate policies and charters, including the Board
Charter, Audit and Risk Committee Charter, Code of
Ethics, Securities Trading Policy, and Market Disclosure
Policy, advises Directors of their right to access corporate
information, and sets out ongoing confidentiality
obligations. As part of their appointment process, new
Directors are also asked to advise of their interests so
they may be entered into the Board’s interests register,
and are advised of Investore’s approach to conflicts of
interest.
New Directors are provided with an induction pack
containing key governance information and other relevant
information necessary 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.
No new Directors were appointed during FY24.
Diagram 3: Board Skills Matrix
Risk
managemen
t
Setting
corporate
strategy
Financial
reporting
Independe
nt
Non-
Independen
t
Female
Male
Legal
80%
60%
40%
20%
100%
5 8
years
T
e
n
u
r
e
G
e
n
d
e
r
D
i
v
e
r
s
i
t
y
S
k
i
l
l
s
a
n
d
C
o
m
p
e
t
e
n
c
i
e
s
0 4
years
Legal
Re
tail
Property
Capital mark
ets
2
1
5
5
4
4
5
5
Governance
and leadership
C
o
m
p
o
s
i
t
i
o
n
Recommendation 2.4 – Every issuer should disclose
information about each director in its annual report
or on its website, including (a) a profile of experience,
length of service, and ownership interests; (b) the
director’s attendance at board meetings; and (c) the
board’s assessment of the director’s independence,
including a description as to why the board has
determined the director to be independent if one of
the factors listed in table 2.4 applies to the director,
along with a description of the interest, relationship
or position that triggers the application of the
relevant factor.
Director biographies can be found on Investore’s website.
In addition, an overview of each of the Directors of
Investore who held the office of Director as at 31 March
2024, 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 FY24 is set out on page 75.
Disclosures of interest made by Directors during FY24
are shown in Table 8 on page 91.
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20247273
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 of 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 executive officer of SIML and
has no ‘Disqualifying Relationship’ (as defined in the
Listing Rules) with SIML; or
• pursuant 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 appointed
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.
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
Table 1: Composition of the Investore Board
As at 1 May 2024, the Investore Board comprised:
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), taking into account the relevant
factors set out in the NZX Code.
Board and Committee Meetings and Attendance
The Board schedules a minimum of six meetings per
year, at which Directors receive written reports and
presentations from SIML’s Chief Executive Officer and
senior management covering a review of operations
and financial results for the period in review, matters for
Board approval including major capital expenditure, an
outline of key health, safety and sustainability matters,
and, as appropriate, risk and governance reports. The
Board regularly considers performance against strategy,
sets strategic plans, and approves initiatives to meet
Investore’s strategic objectives.
The number of Board and Committee meetings held
during the year and details of Directors’ attendance at
those meetings are disclosed in Table 2.
Directors also attend briefings with senior managers of
SIML on an ad hoc basis and attend investor briefings
in connection with their roles as Directors of Investore.
These attendances are not included in the disclosure
in Table 2 below but comprise an important element
of Director responsibilities. In addition to the Board
meetings outlined in Table 2, a strategy day was held
during FY24 to review and reassess the Company’s
strategic priorities. A sustainability workshop was also
held in conjunction with the Stride board of directors
during FY24 to prepare for climate reporting. All
Directors attended both the strategy day and the
sustainability workshop.
BoardAudit and Risk Committee
Number of Meetings in FY24
84
Mike Allen84
Gráinne Troute84
Adrian Walker84
Tim Storey84
Ross Buckley84
Table 2: Board and Committee Meeting Attendance for Period 1 April 2023 to 31 March 2024
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20247475
Recommendation 2.5 – An issuer should
have a written diversity policy which includes
requirements for the board or a relevant committee
of the board to set measurable objectives for
achieving diversity (which, at a minimum, should
address gender diversity) and to assess annually
both the objectives and the entity’s progress in
achieving them
1
. An issuer should disclose its
diversity policy or a summary of it.
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 employees.
Investore’s Diversity Policy is available in the Investor
Centre on its website www.investoreproperty.co.nz.
Investore aligns its Diversity Policy with SIML’s
Diversity Policy. For more information on the Manager’s
Diversity Policy, refer to the FY24 Annual Report
of Stride Property Group (when available) at
www.strideproperty.co.nz.
The Investore Board notes that SIML has an employee
Diversity, Equity and Inclusion Committee which aims to
assist SIML in its diversity practices through establishing
diversity, equity and inclusion strategic priorities and
implementing diversity and inclusion-related initiatives.
The Investore Board 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 4. In
addition, Investore continued to promote diversity during
FY24 through continuing to mentor and support Erika
McDonald, who was appointed as a future director in
FY23.
Table 3: Gender Composition of the Board
of Investore
As at
31 March 2024
As at
31 March 2023
Male4 (80%)4 (80%)
Female1 (20%)1 (20%)
1. Note that recommendation 2.5 also includes specific requirements for issuers within the NZX 20 Index, but this does not apply to Investore.
Table 4: Diversity Objectives and Progress FY24
ObjectiveProgress as at 31 March 2024
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 Directors were appointed during FY24.
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 FY24 (when available).
Recommendation 2.6 – Directors should undertake
appropriate training to remain current on how to
best perform their duties as directors of an issuer.
The Board conducts continuing professional
development for Directors, which includes site visits to
properties owned by Investore, briefings from senior
managers of SIML and presentations from external
industry experts. This is intended to enable Directors
to maintain the knowledge and skill set required for the
role as a Director of Investore, and ensure Directors
remain current on factors affecting Investore’s business.
Presentations from external industry experts are
regularly scheduled as part of Board meetings and
are focussed on knowledge specific to the property
industry, capital markets, macroeconomic factors,
sustainability issues and new regulatory and governance
practices, all of which may impact on Investore’s business
and operations. In addition, all Directors undertake
appropriate training to remain current on how to best
perform their duties as Directors.
Directors are entitled to access such information and
to seek such independent advice as they individually
or collectively consider necessary to fulfil their
responsibilities and permit independent judgement in
decision-making.
Recommendation 2.7 – The board should have a
procedure to regularly assess director, board and
committee performance.
Directors typically conduct a full external Board
performance review biannually to review the
Board’s performance and its engagement with SIML
management. During FY24, the Board engaged an
independent external review of its performance and
its engagement with SIML management utilising the
Institute of Directors of New Zealand’s Evaluate tool, a
comprehensive Board evaluation process. The Board’s
objective with this external review was to ensure the
Board was functioning effectively by strengthening
governance and leadership. The report provided an
overview of the Board’s effectiveness and confirmed that
the Investore Board continues to enjoy a high level of
collaboration, open dialogue and dynamism.
Recommendation 2.8 – A majority of the board
should be independent directors.
As set out in the commentary to recommendation 2.4,
the Board has considered the status of the Directors
and has confirmed that Investore’s Board comprises a
majority of Independent Directors, consistent with the
recommendation in the NZX Code.
Recommendation 2.9 – An issuer should have an
independent chair of the board.
The Chair of the Board is Mike Allen, an Independent
Director, as noted in the commentary to recommendation
2.4.
Recommendation 2.10 – The chair and the CEO
should be different people.
The Chair of the Board, Mike Allen and the Chief Executive
Officer of SIML, the Manager, Philip Littlewood, are two
different people and accordingly are independent of each
other.
Company Secretary
The Company Secretary of Investore is an employee of
SIML, as Investore has no employees, and is a member
of the Executive Team reporting directly to the Chief
Executive Officer of SIML, the Manager. 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 required.
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20247677
Principle 3: Board Committees
“The board should use committees
where this will enhance its effectiveness
in key areas, while still retaining board
responsibility.”
Committees play an important role in Investore’s
governance framework, allowing a subset of the Board
to focus on a particular area of importance, while
still ensuring the Board as a whole is responsible for
decision-making for Investore.
Recommendation 3.1 – An issuer’s audit
committee should operate under a written charter.
Membership on the audit committee should be
majority independent and comprise solely of
non-executive directors of the issuer. The chair of
the audit committee should be an independent
director and not the chair of the board.
Audit and Risk Committee
The Audit and Risk Committee operates under a written
Charter which is reviewed annually by the Committee
to ensure that it remains appropriate and current. This
Charter is available in the Investor Centre on Investore’s
website. The key responsibilities of the Audit and Risk
Committee are set out in Table 5.
The Charter requires that the Audit and Risk Committee
be comprised solely of non-executive Directors and have
at least three members, with the majority of members
being Independent Directors. At least two Directors on
the Committee must be independent of SIML. The Chair
of the Audit and Risk Committee is to be an Independent
Director and may not be the Chair of the Board.
All Audit and Risk Committee members are expected
to have an appropriate degree of financial acumen for
the position of Audit and Risk Committee member and
at least one member must have accounting or related
financial expertise.
As at the date of this Corporate Governance statement,
the Audit and Risk Committee comprises three
Directors, of whom two, Gráinne Troute and Mike Allen,
are Independent Directors. Gráinne Troute is the Chair
of the Committee, is an Independent Director and is
not the Chair of the Board. The third member of the
Committee, Ross Buckley, is a SIML-appointed Director
with considerable financial, audit, tax and risk experience,
having been with the global accounting and consulting
firm KPMG for 38 years, including as the Executive
Chairman of KPMG in New Zealand and a member of
KPMG’s Asia Pacific Board and KPMG’s Global Council
for nearly 10 years. Directors who are not committee
members have a standing invitation to, and do, regularly
attend the Audit and Risk Committee meetings.
Meetings of the Audit and Risk Committee are held at
least twice a year, having regard to Investore’s reporting
and audit cycle. Additional meetings may be held at the
discretion of the Chair, or if requested by any Audit and
Risk Committee member or the external auditor.
The Audit and Risk Committee ensures the Board
is properly and regularly informed and updated on
corporate financial matters and provides assistance to
Directors in fulfilling their responsibility to investors in
relation to the reporting practices of Investore, and the
quality, integrity, and transparency of the financial reports
of Investore.
Recommendation 3.2 – Employees should only
attend audit committee meetings at the invitation
of the audit committee.
The Chief Executive Officer, Chief Financial Officer,
senior management of SIML and the external auditor have
a standing invitation to attend Audit and Risk Committee
meetings. The Audit and Risk Committee are free to, and
do, meet separately with the external auditor without the
Chief Executive Officer, Chief Financial Officer or senior
management of SIML present, to discuss audit matters.
Recommendation 3.3 – An issuer should have a
remuneration committee which operates under
a written charter (unless this is carried out by
the whole board). At least a majority of the
remuneration committee should be independent
directors. Management should only attend
remuneration committee meetings at the invitation
of the remuneration committee.
As Investore has no employees and a relatively small
Board, the function of Director remuneration is
undertaken by the full Board, with Director remuneration
ultimately requiring shareholder approval.
Recommendation 3.4 – An issuer should establish
a nomination committee to recommend director
appointments to the board (unless this is carried
out by the whole board), which should operate
under a written charter. At least a majority of the
nomination committee should be independent
directors.
As Investore has a relatively small Board, the function of
Director appointment is undertaken by the full Board, with
Independent Director appointments ultimately requiring
shareholder approval.
Table 5: The primary roles of the Audit and Risk Committee are:
Risk
• Ensure that SIML, the
Manager, has established a
risk management framework
to effectively identify,
monitor, manage and report
key business risks
• Review key business risks
and controls, and review
reports on effectiveness of
systems for internal control,
financial reporting and risk
management
• Review and approve key
insurance policy terms
and cover adequacy and
recommend such to the
Board
• Review the procedures for
identifying key business
risks and controlling their
financial impact
Audit
• Recommend appointment or
removal of external auditors
and monitor and review the
services provided by auditors
to ensure independence is
maintained
• Meet with the external auditor,
agree scope of half year review
and annual audit, review audit
opinion, and review auditor’s
compensation and recommend
such to the Board, subject to
shareholder approval
• Report results of annual audit
to the Board, including whether
the financial statements
comply with applicable laws
and regulations
• Assess and confirm to the
Board the independence of the
external auditor
• Review any internal audit
functions undertaken by SIML
on behalf of Investore and
receive a summary of findings
from completed internal audits
Financial Reporting
• Review financial
statements and obtain the
external auditor’s views on
disclosures and content of
the financial statements to
be presented to investors
• Review with SIML and
external auditors the
results of analysis of
significant financial
reporting issues and
practices, including
changes in accounting
principles
• Review judgements about
the quality of accounting
principles and clarity of
financial disclosure used
in Investore’s financial
reporting
• Review and recommend
financial reports to the
Board
Recommendation 3.5 – An issuer should consider
whether it is appropriate to have any other board
committees as standing board committees. All
committees should operate under written charters.
An issuer should identify the members of each of
its committees, and periodically report member
attendance.
The Board has one standing committee to assist in the
exercise of its functions and duties, the Audit and Risk
Committee. The Board may also establish non-standing
committees, as and when required, to deal with specific
matters. No non-standing committees were established
during FY24.
Recommendation 3.6 – The board should
establish appropriate protocols that set out the
procedure to be followed if there is a takeover
offer for the issuer including any communication
between insiders and the bidder. The board
should disclose the scope of independent
advisory reports to shareholders. These protocols
should include the option of establishing an
independent takeover committee, and the
likely composition and implementation of an
independent takeover committee.
The Board has established takeover protocols which
set out the procedure to be followed in the event a
takeover offer for Investore is made or it is foreseeable
that an offer may be imminent. These protocols are
available in the Investor Centre on Investore’s website.
The protocols provide for an independent takeover
committee to be formed, comprising Independent
Directors of Investore to oversee the takeover process
and ensure compliance with Investore’s obligations
under the Takeovers Code. The protocols also govern
the procedure for communications with the bidder, the
market, and investors.
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20247879
Principle 4: Reporting
and Disclosure
“The board should demand integrity in
financial and non-financial reporting, and
in the timeliness and balance of corporate
disclosures.”
Recommendation 4.1 – An issuer’s board should
have a written continuous disclosure policy.
Investore has a Market Disclosure Policy to ensure
the Company meets its obligation to keep the market
informed of all material information. Investore’s Market
Disclosure Policy is available in the Investor Centre on
Investore’s website and sets out Investore’s commitments
in relation to market disclosure to:
Ensure that shareholders, bondholders, and the
market are provided with full and timely information
about Investore’s activities
Comply with the continuous disclosure principles
contained in statute and the Listing Rules
Ensure that all market participants have equal
opportunities to receive externally available
information issued by Investore
Investore believes that high standards of reporting
and disclosure are essential for proper accountability
between the company and its investors, employees and
stakeholders. The Market Disclosure Policy requires
all SIML directors, members of the executive of SIML,
and Directors of Investore to inform the Chief Executive
Officer of SIML or the General Manager Corporate
Services of SIML (who is also the Disclosure Officer under
the Market Disclosure Policy) of any potentially material
information or proposal immediately after the relevant
person becomes aware of that information or proposal.
No Director or employee of SIML, the Manager, is
permitted, until adequate public disclosure has
been made, to communicate to anyone any material
information concerning the business and affairs
of Investore, except in accordance with the Market
Disclosure Policy.
A Disclosure Committee, comprising the Investore
Board’s Chair, the Chief Executive Officer of SIML, and
the General Manager Corporate Services of SIML, is
responsible for making decisions about what information
is material information and ensuring that appropriate
disclosures are made in a timely manner to the market.
In addition, the Board considers at each meeting matters
for disclosure and ensures that any material decisions
made at Board meetings are announced on a timely basis
in compliance with the Listing Rules.
The Market Disclosure Policy and Investore’s compliance
with the policy were reviewed by the Board during FY24.
Recommendation 4.2 – An issuer should make
its code of ethics, board and committee charters
and the policies recommended in the NZX
Code, together with any other key governance
documents, available on its website.
Investore is committed to ensuring that investors
and potential investors are informed as to Investore’s
key governance policies and charters. The Board
Charter, Audit and Risk Committee Charter, annual and
interim reporting, NZX announcements, key corporate
governance policies and other investor related material
(as recommended in the NZX Code) are available in the
Investor Centre on Investore’s website.
A remuneration policy has not been prepared by Investore
as Investore has no employees. However, information
regarding Director remuneration is made available to
investors when shareholders are asked to approve any
changes to Director remuneration and additionally is
reported in the annual reports of Investore.
Recommendation 4.3 – Financial reporting should
be balanced, clear and objective.
Investore is committed to maintaining appropriate
financial reporting and adopts processes and procedures
to ensure that reporting is clear, balanced and objective.
Investore publishes interim and audited full year financial
statements that are prepared in accordance with relevant
financial standards, with the Audit and Risk Committee
overseeing preparation of these financial statements,
consistent with its responsibilities as described in relation
to recommendation 3.1.
Recommendation 4.4 – An issuer should provide
non-financial disclosure at least annually, including
considering environmental, social sustainability
and governance factors and practices. It should
explain how operational or non-financial targets
are measured. Non-financial reporting should be
informative, include forward looking assessments,
and align with key strategies and metrics
monitored by the board.
Investore’s annual report provides both financial and non-
financial information. Alongside the annual and interim
financial reporting, Investore also prepares an investor
presentation which outlines activity and key metrics for
the period in review, as well as providing certain forward
looking information on strategic initiatives.
The Audit and Risk Committee has established processes
to identify and consider the material business risks
faced by Investore. The Board regularly receives risk
management reports and reviews key risks to the
business of Investore and the controls implemented
to manage exposure to those risks. All identified risks
have specific mitigation strategies where appropriate,
and the Manager regularly reviews the effectiveness of
these strategies. A high-level summary of key risks to
Investore’s business as regularly monitored by the Board
is set out in Table 7 under Principle 6.
Investore is committed to ensuring that Environmental
Sustainability, Social Responsibility and Corporate
Governance (ESG) are key considerations in the operation
and governance of its business. Investore works
closely with its Manager, SIML, and the SIML Board’s
Sustainability Committee to implement its sustainability
strategy and achieve its objectives. Tim Storey, a SIML-
appointed Director to the Board, is also a member of
the SIML Board’s Sustainability Committee. Investore
prepares an annual Sustainability Report which outlines
progress against Investore’s strategic sustainability
objectives and targets, and includes reporting on
climate change risks, which, for FY24, complies with the
Aotearoa New Zealand Climate Standards. Investore’s
Sustainability Report also includes its greenhouse gas
inventory report.
More information on Investore’s approach to
sustainability, including its targets and objectives,
climate risks and opportunities and greenhouse
gas inventory, can be found in Investore’s FY24
Sustainability Report, available in the Sustainability
section of Investore’s website from 28 May 2024.
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20248081
Principle 5: Remuneration
“The remuneration of directors and
executives should be transparent, fair
and reasonable.”
Recommendation 5.1 – An issuer should have
a remuneration policy for the remuneration of
directors. An issuer should recommend director
remuneration to shareholders for approval in a
transparent manner. Actual director remuneration
should be clearly disclosed in the issuer’s annual
report.
Directors are remunerated in the form of Directors’
fees as approved by shareholders, with a higher level of
remuneration for the Chair of the Board and an additional
amount for the Chair of the Audit and Risk Committee, in
order to reflect the additional time and responsibilities
that these positions require. No Director of Investore
is entitled to any remuneration other than by way of
Directors’ fees and the reasonable reimbursement of
travel, accommodation and other expenses incurred in
the course of performing duties or exercising their role as
a Director. Directors do not participate in any Investore
share or option plan.
No Director of an Investore subsidiary received any
remuneration or other benefits during FY24 in relation
to their duties as a Director of a subsidiary company,
other than the benefit of an indemnity from Investore and
the benefit of insurance cover in respect of all liabilities
(to the extent permitted by law) which arose out of the
performance of their normal duties as Directors, subject
to certain exceptions such as deliberate breach of duty.
The Board is collectively responsible for recommending
Director remuneration packages to shareholders.
Directors’ remuneration was last reviewed in 2023, being
two years since the previous remuneration review. At
the time of the 2023 review, the Board engaged Ernst
& Young to provide an independent report on Directors’
remuneration for Investore, utilising Ernst & Young’s
database of directors’ remuneration in New Zealand. The
report benchmarked the remuneration paid to Investore’s
Directors against an industry peer group of NZX listed
companies, selected on the basis of comparable market
capitalisation. A summary of that report was made
available to shareholders when considering the resolution
to increase Directors’ remuneration at the 2023 Annual
Shareholder Meeting.
In proposing the increase in remuneration, the Board
took into account the Ernst & Young independent
benchmark report, as well as Directors’ workloads
and responsibilities, and Investore’s performance. The
amount of the proposed increase in remuneration was
consistent with the recommendation of Ernst & Young.
Shareholders approved an increase in Directors’
remuneration at the 2023 Annual Shareholder Meeting
with effect from 1 July 2023. Non-executive Director
remuneration increased from $50,000 to $53,250 per
annum; the Chair’s remuneration was increased from
$95,000 to $106,500 per annum; and the additional
remuneration for the role of the Chair of the Audit and
Risk Committee was increased from $8,000 to $13,000
per annum. Audit and Risk Committee Members receive
no additional remuneration. As previously advised to
the market, Investore intends to continue to review
Director remuneration every two years. Investore remains
committed to the principle that remuneration is set and
managed in a manner which is fair, transparent, and
reasonable.
Table 6 sets out Director remuneration for those Directors
who held office in the year to 31 March 2024. These
fees are consistent with those approved by shareholders
previously. As noted at the Annual Shareholder Meeting in
2023, Investore does not operate a fee pool, and has no
pool for additional attendances.
Table 6: Directors’ Remuneration for FY24
Director
Director Fees
Mike Allen (Chair) $103,625
Gráinne Troute (Chair of
Audit and Risk Committee)
$64,187
Adrian Walker $52,437
Tim Storey$52,437
Ross Buckley$52,437
Total$325,125
Note: Total Directors’ fees exclude GST and reimbursed costs
directly associated with carrying out Directors’ duties.
Note: Numbers may not sum due to rounding.
Recommendation 5.2 – An issuer should have
a remuneration policy for remuneration of
executives which outlines the relative weightings
of remuneration components and relevant
performance criteria.
Investore does not have a remuneration policy because
it has no employees, and accordingly pays no executive
remuneration.
Recommendation 5.3 – An issuer should disclose
the remuneration arrangements in place for the
CEO in its annual report. This should include
disclosure of base salary, short term incentives and
long term incentives and the performance criteria
used to determine performance based payments.
Investore does not have any employees and accordingly
does not have any remuneration arrangements in place
for a CEO.
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20248283
Principle 6: Risk Management
“Directors should have a sound
understanding of the material risks
faced by the issuer and how to manage
them. The board should regularly
verify that the issuer has appropriate
processes that identify and manage
potential and material risks.”
Recommendation 6.1 – An issuer should have
a risk management framework for its business
and the issuer’s board should receive and review
regular reports. An issuer should report the
material risks facing the business and how these
are being managed.
The Board recognises that identification and
management of risks to Investore’s business is essential
to the continued success of Investore and an important
part of the Board’s responsibilities. The Board is
responsible for overseeing and approving Investore’s risk
management strategy and policies, as well as ensuring
effective audit, risk management and compliance
systems are in place.
The Audit and Risk Committee assists the Board in
fulfilling its risk assurance and audit responsibilities and
the Board then delegates the implementation of a Board
approved risk management framework to the Manager,
SIML. Investore has established a risk management
framework, supported by a set of risk-based policies
appropriate for Investore, including a Treasury Policy,
Investore’s Investment Mandate, and the Manager’s
Conflicts Policy and Delegations of Authority (which are
both endorsed and approved by the Investore Board). The
principal purpose of this framework is to integrate risk
management into Investore’s operations, and to formalise
risk management as part of Investore’s internal controls
and corporate governance arrangements.
As part of the risk management framework, the Manager
maintains a comprehensive risk register for Investore,
recording the key risks to its business, and assigning
each risk a rating based on the likelihood and impact of
the risk, both before and after application of mitigating
controls that are implemented to manage the risk. The
risk register is reviewed on a biannual basis and newly
emerging risks and key risks as well as risk trends are
reported to the Board. All identified risks have specific
mitigation strategies where appropriate, and the
effectiveness of these strategies are regularly reviewed.
Residual risk ratings are compared against the Board’s
stated risk appetite for key risks, enabling the Board to
monitor where risks may be diverging from the appetite of
the Board for that particular risk.
Table 7, although not an exhaustive list, sets out a high-
level summary of the key risks to Investore’s business
that are reported to, and monitored by, the Board as
part of Investore’s Risk Management Framework.
Investore’s exposure to climate-related risks forms
part of Investore’s Sustainability Report, available in
the Sustainability section of Investore’s website,
www.investoreproperty.co.nz, available from 28
May 2024.
Table 7: Investore’s Key Risks
Key RiskControl
Sustained high interest rates could lead to capitalisation
rate expansion, resulting in a decrease in property
portfolio valuations
Investore monitors market conditions and seeks to
optimise the portfolio to mitigate against the risk of
capitalisation rate expansion. Investore also takes an active
approach to capital management, ensuring a resilient
balance sheet.
Rising costs as a result of external factors, including
inflation and high interest rates, potentially impacting
tenants’ businesses and impacting their ability to meet
their obligations under their leases
Investore has a high proportion of essential businesses
which do not typically fall into the ‘discretionary spending’
category and tend to be more resilient in varying market
conditions.
Investore also has a relatively long WALT
1
which minimises
the risk of vacancies.
Sustained high interest rates impacting cost of debt to
Investore
88% of Investore’s borrowings were hedged or subject to a
fixed rate of interest as at 31 March 2024, with a weighted
average cost of debt of 4.3%, providing protection against
rising interest rates in the medium term.
Increase in insurance and rates costs Investore works closely with its insurance broker to
negotiate the best premiums possible.
Investore submits on rates proposals and works closely
with Councils where possible to minimise rates increases.
Customer concentration and single sector focusInvestore considers that the large format retail sector is a
beneficial sector to invest in. Investore’s tenants tend to be
resilient in varying market conditions as a high proportion
are essential businesses which do not typically fall into the
‘discretionary spending’ category.
Geographical and tenant portfolio diversification are
sought, where appropriate, to mitigate this risk.
Rising costs making developments and maintenance
expenditure more expensive
Investore will continue to monitor construction cost
escalation and implement strategies as appropriate to
manage this risk, including early commitment to materials
for projects that are identified, reducing the risk of cost
escalation during the course of a project.
Sustainability and climate changeInvestore has a focus on sustainability and ensuring that its
business remains sustainable for the long term. Investore
has prepared a Sustainability Report for FY24 (available
from 28 May 2024) and is implementing strategies
and initiatives to address the impact of climate risk on
Investore’s business.
Seismic strengthening due to changing assessment
guidelines
Investore monitors changes in standards and guidelines
for seismic assessments to ensure that its properties
remain seismically resilient. Investore proactively obtains
seismic assessments of its properties when it considers
appropriate, which enables Investore to understand and
manage this risk.
1. See glossary on page 98.
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20248485
Principle 7: Auditors
“The board should ensure the quality
and independence of the external audit
process.”
Recommendation 7.1 – The board should establish
a framework for the issuer’s relationship with its
external auditors. This should include procedures:
(a) for sustaining communication with the issuer’s
external auditors; (b) to ensure that the ability of
the external auditors to carry out their statutory
audit role is not impaired, or could reasonably be
perceived to be impaired; (c) to address what, if
any, services (whether by type or level) other than
their statutory audit roles may be provided by
the auditors to the issuer; and (d) to provide for
the monitoring and approval by the issuer’s audit
committee of any service provided by the external
auditors to the issuer other than in their statutory
audit role.
The key framework for the relationship between Investore
and its external auditor, PwC, is comprised in the Audit
and Risk Committee Charter, which includes the audit
independence guidelines. The Audit and Risk Committee
Charter can be found in the Investor Centre on Investore’s
website.
The Audit Independence Guidelines require compliance
with the Listing Rules, which, in turn, requires rotation
of the lead audit partner at least every five years. During
FY22, Investore rotated its lead audit partner, with Philip
Taylor becoming the lead audit partner for the next five
years. Investore does not have a policy of rotating its audit
firm, on the basis that there is a limited pool of external
audit firms within New Zealand and Investore engages
the other major firms for non-audit services, meaning
they would be conflicted if approached to act as auditor.
However, as Investore has only been operational for eight
years, Investore’s Audit and Risk Committee will continue
to consider its audit independence framework.
Investore’s Audit Independence Guidelines set out
a description for determining the non-audit services
that may be provided by the external auditor without
compromising the external auditor’s independence.
The Audit and Risk Committee regularly monitors any
non-audit services that may be provided by the external
auditor and confirms whether these services prejudice
the maintenance of independence of the auditor. The
purpose of the audit independence framework is to
ensure that audit independence is maintained, both in
fact and appearance, so that Investore’s external financial
reporting is reliable and credible. Any non-audit services
provided by the external auditor must first be approved
by the Chair of the Audit and Risk Committee and the
Chief Financial Officer of SIML, the Manager. During
FY24, Investore’s external auditor, PwC, did not provide
any services for Investore other than audit and review
of Investore’s financial statements and other assurance
services.
The Audit and Risk Committee meet at least twice a year
with the external auditor, with the opportunity to meet
without any representatives of the Manager present. The
Board invites the external auditor to attend meetings of
the Audit and Risk Committee as required. Directors are
free to make direct contact with the external auditor as
necessary to obtain independent advice and information.
Recommendation 7.2 – The external auditor should
attend the issuer’s Annual Meeting to answer
questions from shareholders in relation to the
audit.
In the interests of encouraging active participation by
shareholders at Annual Shareholder Meetings, Investore’s
external auditor is in attendance to answer any questions
shareholders may have in relation to the audit of the
annual financial statements.
Recommendation 7.3 – Internal audit functions
should be disclosed.
Investore engages SIML to manage its business, as it has
no employees, and accordingly Investore does not have
an internal audit function.
SIML, as Manager, does not operate an internal audit
function due to its size. However, the Investore Board
and/or Manager engage consultants to undertake
internal reviews from time-to-time on a project-by-
project basis, and can monitor, amongst other things,
internal controls, risk management or the integrity of
financial systems. Such projects can operate both with
and independently from the Manager, with findings
reported directly to the Board.
Recommendation 6.2 – An issuer should disclose
how it manages its health and safety risks and
should report on its health and safety risks,
performance and management.
Investore’s health and safety framework reflects
its commitment to health and safety. The Board
acknowledges that effective governance of health and
safety is essential for the continued success of Investore.
Investore’s health and safety approach reflects the
externally managed nature of its business. In appointing
SIML to manage the Investore business, Investore relies
on SIML to ensure that Investore is complying with its
health and safety obligations on a day to day basis. The
Investore Board works closely with SIML to understand
the key risks to Investore’s business from a health and
safety perspective, ensure that these risks are eliminated
or minimised, and ensure that SIML is implementing
appropriate systems and procedures to ensure effective
management of health and safety risks when managing
Investore’s assets and business.
SIML sets key performance indicators on an annual basis
and reports regularly against those key performance
indicators to the Investore Board. In addition, the
Investore Board reviews any incidents across the
Investore sites, together with SIML’s remedial actions
in relation to incidents, and seeks to ensure that there
is continual learning from any incidents or near misses.
During FY24, Investore continued to promote a positive
health and safety culture throughout its area of influence,
including SIML, its tenants and its supply chain.
A key area of focus for both Investore and SIML is
contractor management, ensuring that only contractors
with appropriate health and safety practices are
engaged, and when engaged they are minimising risks to
staff, public and tenants in undertaking their activities.
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20248687
Principle 8: Shareholder
Rights and Relations
“The board should respect the rights of
shareholders and foster constructive
relationships with shareholders that
encourage them to engage with the
issuer.”
The Board believes that open communication with
investors is very important to ensure effective governance
and oversight of the business of Investore. Investors
deserve to be provided with such information as may
be required to enable them to make informed decisions
about their investment in Investore.
Recommendation 8.1 – An issuer should have
a website where investors and interested
stakeholders can access financial and operational
information and key corporate governance
information about the issuer.
Information about Investore and key corporate
governance information is available in the Investor
Centre on Investore’s website. The Investore Centre
has copies of all annual reports; interim financial
reporting; climate disclosure reporting; notices of
Annual Shareholder Meetings and transcripts of those
meetings; presentations; and key corporate governance
documents, including Investore’s constitution and
Board and Committee charters and policies.
Shareholders are encouraged to refer to the website
www.investoreproperty.co.nz for more information.
While annual and interim reports are made available on
Investore’s website, they are also available on the NZX
website, www.nzx.com on Investore’s page under the
ticker “IPL”. Investors can also request hard copies (where
available) by contacting Investore’s Share Registrar
(whose contact details can be found in the Corporate
Directory at the back of this Annual Report).
Recommendation 8.2 – An issuer should allow
investors the ability to easily communicate with
the issuer, including by designing its shareholder
meeting arrangements to encourage shareholder
participation and by providing shareholders the
option to receive communications from the issuer
electronically.
Shareholders are encouraged to attend Investore’s
Annual Shareholder Meeting and take the opportunity
to meet the Board and senior managers of SIML, the
Manager. Directors and senior managers (including
the Chief Executive Officer) of the Manager attend
shareholder meetings and are available for questions.
The Chair provides time for questions from the floor, and
these are answered by the appropriate member of the
Board or Manager. Investore’s external auditor attends
the meeting and is available to take questions on the
preparation of the financial statements and the auditor’s
report.
The Board endeavours, where possible, to distribute
every Notice of Meeting for shareholder meetings at
least 20 working days prior to any shareholder meeting
to enable shareholders to fully participate in shareholder
meetings. Each notice of meeting for shareholder
meetings and transcripts of those meetings are made
available on Investore’s website and on the NZX. The
2023 Annual Shareholder Meeting was held mid-
morning in a conference room of the Mövenpick Hotel,
a hotel which is located in central Auckland and is easily
accessible by public transport.
Investore has elected not to hold a hybrid meeting
for this year’s Annual Shareholder Meeting due to the
significant additional costs associated with this and the
limited attendance by shareholders when virtual Annual
Shareholder Meetings have been held previously.
The Company encourages investors to receive investor
communications by electronic means where possible.
Investore participates in the regular initiative undertaken
by its Share Registrar, Computershare, to encourage
investors to receive communications electronically,
as this saves money for Investore and also supports
Investore’s sustainability initiatives by avoiding the use of
resources for printed documents.
Recommendation 8.3 – Quoted equity security
holders should have the right to vote on major
decisions which may change the nature of the
issuer in which they are invested.
Investore’s shareholders have the right to vote on major
decisions in accordance with the Listing Rules. No major
decisions were put to shareholders for approval during
FY24.
Recommendation 8.4 – If seeking additional
equity capital, issuers of quoted equity securities
should offer further equity securities to existing
equity security holders of the same class on a
pro rata basis, and on no less favourable terms,
before further equity securities are offered to other
investors.
Investore did not seek any additional equity capital
during FY24. However, Investore did adopt a Dividend
Reinvestment Plan (DRP) during FY24 where all
shareholders who were resident in New Zealand and
Australia were given the opportunity to invest the net
proceeds of cash dividends payable on some or all of
their shares in additional fully paid ordinary shares in
Investore. Shareholders outside of New Zealand and
Australia were excluded to avoid a risk of breaching the
laws of other countries. Additional shares acquired under
the DRP rank equally in all respects with existing shares
issued by Investore.
Recommendation 8.5 – The board shall ensure
that the notice of annual or special meeting of
quoted equity security holders is posted on the
issuer’s website as soon as possible and at least
20 working days prior to the meeting.
During FY24, shareholders were given at least
20 working days’ notice of the Annual Shareholder
Meeting held on 28 June 2023.
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20248889
Table 8: Interests Register Entries
DirectorCompanyPosition
Mike Allen (Chair)
Breakwater Consulting Limited Director
Taumata Plantations Limited Director
Vincent Capital Advisory Board Chair
New Zealand Natural Fibres Limited Chair Elect
1
Wool Impact Limited Chair
1
Wool Research Organisation of New Zealand (WRONZ)Director
Gráinne Troute
Tourism Holdings Limited Director
Summerset Group Holdings Limited Director
Tourism Industry Aotearoa Chair
1
Duncan CotterillIndependent Board Member
Montana Group Chair
2
NZX Corporate Governance InstituteMember
2
Adrian WalkerNil
Tim Storey
Stride Property Limited and subsidiaries Chair
Stride Investment Management Limited Chair
Industre Property Nominee Limited and related entities Director
Prolex Limited Director
Prolex Investments Limited Director
Prolex Management Limited Director
LawFinance LimitedChair
Ross Buckley
Stride Property Limited and subsidiariesDirector
Stride Investment Management LimitedDirector
ASB Bank LimitedDirector
Service Foods NZ LimitedChair
Institute of DirectorsChair of National Board, National Council
Member and Auckland Branch Committee
Member
Massey UniversityCouncil Member and Chair of Finance
and Audit Committee
Auditor Oversight Committee of the Financial Markets AuthorityChair
Adam Lilley
Stride Investment Management LimitedEmployee
1. Entries removed by notices given by Directors during the year ended 31 March 2024.
2. Entries added by notices given by Directors during the year ended 31 March 2024.
No declarations of specific interests in a transaction or proposed transaction with Investore were made pursuant to section
140(1) of the Companies Act 1993 during the reporting period.
Disclosures of Interest
The general disclosures of interest made by Directors of Investore and its subsidiary during the reporting period 1 April
2023 to 31 March 2024 pursuant to section 140 and section 211(1)(e) of the Companies Act 1993, are shown in Table 8.
Statutory
Disclosures
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20249091
Directors of Subsidiary Companies
Investore had one subsidiary as at 31 March 2024, being
Investore Property (Carr Road) Limited. The directors
of this company are Mike Allen and Adam Lilley. This
company is a wholly owned direct subsidiary of Investore.
No additional fees were paid to Mike Allen (and no fees
were paid to Adam Lilley) in respect of the directorship of
this company.
Indemnity and Insurance
As permitted by Investore’s Constitution, Investore has
entered into a deed of access, indemnity and insurance to
indemnify its Directors, and the directors of its subsidiary,
for liabilities or costs they may incur for acts or omissions
in their capacity as a Director to the extent permitted
under the Companies Act 1993. The indemnity does
not cover wilful default or fraud, criminal liability, liability
for failure to act in good faith and in the best interests
of the relevant company, or liabilities that cannot be
legally indemnified. Investore also has a Directors and
Officers liability insurance policy in place. Among other
things, the Directors and Officers liability insurance policy
excludes cover for deliberate dishonesty, insider trading,
fines and penalties (except for legally indemnifiable civil
fines or civil penalties), liability arising out of a breach of
professional duty other than as a professional director,
and liability for which the insured is legally indemnified. In
authorising any insurance to be effected, each Director
signs a certificate stating that, in their opinion, the cost of
insurance is fair to the Company.
Use of Company Information
No notices have been received by Investore under section
145 of the Companies Act 1993 with regard to the use
of information received by Directors in their capacities as
directors of Investore or its subsidiary, Investore Property
(Carr Road) Limited.
Loans to Directors
There are no loans to the Directors of Investore
or the directors of its subsidiary, Investore Property
(Carr Road) Limited.
Disclosures of Directors’ Interests in
Share Transactions
For the purpose of section 148(2) of the Companies Act
1993, Director Gráinne Troute disclosed the following
changes in shareholding in Investore during the period
from 1 April 2023 to 31 March 2024:
Director Gráinne Troute participated in the Dividend
Reinvestment Plan announced by Investore on 28 June
2023 and acquired:
• a beneficial interest in 525 shares allotted at
$1.223701 per share on 25 September 2023 in
respect of the dividend declared by Investore in
respect of the period 1 April 2023 to 30 June 2023;
• a beneficial interest in 641 shares allotted at
$1.020972 per share on 12 December 2023 in
respect of the dividend declared by Investore in
respect of the period 1 July 2023 to 30 September
2023; and
• a beneficial interest in 521 shares allotted at
$1.053305 on per share 18 March 2024 in respect
of the dividend declared by Investore in respect of
the period 1 October 2023 to 31 December 2023.
For the purposes of section 148 (2) of the Companies
Act 1993, no disclosures were made by the Directors
in respect of changes in shareholdings in Investore’s
subsidiary, Investore Property (Carr Road) Limited.
Directors’ Interests in Shares
Directors disclosed the following relevant interests in
Investore shares as at 31 March 2024:
DirectorRelevant Interest Held in Ordinary Shares
Mike Allen56,592
Gráinne Troute34,277
Adrian Walker 10,000
Tim Storey 49,759
Ross Buckley32,500
Directors are not required to hold shares in Investore
but may choose to do so in order to demonstrate
alignment of interests in the performance of Investore
with shareholders.
Directors have not disclosed any relevant interests in
Investore bonds as at 31 March 2024.
Twenty Largest Registered Shareholders as at 31 March 2024
NameNumber of SharesPercentage of Shares
Stride Property Limited70,391,87118.83
Accident Compensation Corporation - NZCSD36,524,9109.77
Forsyth Barr Custodians Limited 34,131,9089.13
BNP Paribas Nominees (NZ) Limited - NZCSD 18,600,4964.98
Generate KiwiSaver Public Trust Nominees Limited - NZCSD18,241,9924.88
ANZ Wholesale Trans-Tasman Property Securities Fund - NZCSD 16,476,8224.41
HSBC Nominees (New Zealand) Limited - NZCSD 14,691,4943.93
JBWere (NZ) Nominees Limited 14,201,6993.80
FNZ Custodians Limited13,793,5893.69
Custodial Services Limited13,373,3403.58
New Zealand Depository Nominee Limited 11,800,8153.16
TEA Custodians Limited Client Property Trust Account - NZCSD 8,337,2242.23
Citibank Nominees (New Zealand) Limited - NZCSD 7,193,0731.92
Forsyth Barr Custodians Limited 5,162,6731.38
MFL Mutual Fund Limited - NZCSD 4,695,8111.26
Hobson Wealth Custodian Limited 4,403,6421.18
ANZ Wholesale Australasian Share Fund - NZCSD 4,282,8711.15
ANZ Wholesale Property Securities - NZCSD 3,816,3261.02
Adminis Custodial Nominees Limited3,752,4111.00
PT (Booster Investments) Nominees Limited3,721,0391.00
Total307,594,00682.28
Numbers may not sum due to rounding.
Twenty Largest Registered Bondholders (IPL010) as at 31 March 2024 (Note 1)
NameNumber of UnitsPercentage of Units
HSBC Nominees (New Zealand) Limited - NZCSD 21,147,00021.15
Custodial Services Limited 15,912,00015.91
Forsyth Barr Custodians Limited12,135,00012.14
FNZ Custodians Limited11,288,00011.29
Hobson Wealth Custodian Limited 6,332,0006.33
Public Trust - NZCSD (The Aspiring Fund) 5,215,0005.22
NZPT Custodians (Grosvenor) Limited - NZCSD 2,495,0002.50
JBWere (NZ) Nominees Limited2,134,0002.13
ANZ Fixed Interest Fund - NZCSD 1,744,0001.74
ANZ Wholesale NZ Fixed Interest Fund - NZCSD1,493,0001.49
TEA Custodians Limited Client Property Trust Account - NZCSD 1,432,0001.43
FNZ Custodians Limited 1,147,0001.15
Commonwealth Bank of Australia - NZCSD 920,0000.92
Investment Custodial Services Limited 834,0000.83
Forsyth Barr Custodians Limited756,0000.76
Lu Ren & Yanan Xu601,0000.60
Kiwigold.co.nz Limited 500,0000.50
Rita Maria Halanke400,0000.40
Sandore Limited400,0000.40
Su Li300,0000.30
FNZ Custodians Limited 261,0000.26
Total87,446,00087.45
Note 1: Two holders hold the same number of bonds, meaning that 21 holders have been reported above in the top 20 holders table.
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20249293
Substantial Product Holders as at 31 March 2024
As at 31 March 2024, the names of all persons who are substantial product holders in Investore pursuant to sub-part 5 of
part 5 of the Financial Markets Conduct Act 2013 are noted below:
Name
Date of
Substantial Product
Holder Notice
Relevant Interest
in the Number of
Ordinary Shares
Percentage
of Ordinary
Shares Held
Stride Property Limited20 May 202069,201,97718.8%
ANZ New Zealand Investments2 December 202229,777,1698.1%
Forsyth Barr Investment Management Limited27 July 202329,576,0438.0%
Accident Compensation Corporation (ACC)9 August 202336,374,2309.9%
The number of ordinary shares listed in the table are as per the last substantial product holder notice filed on or prior to 31 March 2024.
Distribution of Ordinary Shares and Shareholdings as at 31 March 2024
Size of Holding
Number of
Shareholders
Percentage of
Shareholders
Number
of Ordinary
Shares
Percentage
of Ordinary
Shares
1 – 99290.651,1210.00
100 – 199190.422,4570.00
200 – 4991102.4541,4310.01
500 – 9992525.61180,7670.05
1,000 – 1,99963514.15922,4460.25
2,000 – 4,9991,10424.593,573,8070.96
5,000 – 9,99993620.856,468,9181.73
10,000 – 49,9991,16425.9323,090,3216.18
50,000 – 99,9991342.998,730,7312.34
100,000 – 499,999771.7214,010,9063.75
500,000 – 999,99960.134,318,2011.16
1,000,000 and over230.51312,480,55283.59
Total4,489100.00373,821,658100.00
Numbers may not sum due to rounding.
Distribution of Holders of IPL010 Listed Bonds as at 31 March 2024
Size of Holding
Number of
Bondholders
Percentage of
Bondholders
Issued
Bonds ($)
Percentage of
Issued Bonds
0 – 4,9990000
5,000 - 9,999408.68232,0000.23
10,000 - 49,99932269.856,161,0006.16
50,000 - 99,9995411.713,056,0003.06
100,000 - 499,999286.074,466,0004.47
500,000 - 999,99951.083,611,0003.61
1,000,000 Over122.6082,474,00082.47
Total461100.00100,000,000100.00
Numbers may not sum due to rounding.
Twenty Largest Registered Bondholders (IPL030) as at 31 March 2024 (Note 1)
NameNumber of UnitsPercentage of Units
HSBC Nominees (New Zealand) Limited - NZCSD 26,505,00021.20
Forsyth Barr Custodians Limited 17,283,00013.83
Generate KiwiSaver Public Trust Nominees Limited - NZCSD15,272,00012.22
ANZ Fixed Interest Fund - NZCSD 8,600,0006.88
Custodial Services Limited 7,404,0005.92
Hobson Wealth Custodian Limited 7,346,0005.88
TEA Custodians Limited Client Property Trust Account - NZCSD 7,310,0005.85
NZPT Custodians (Grosvenor) Limited - NZCSD 6,725,0005.38
JBWere (NZ) Nominees Limited 3,281,0002.62
FNZ Custodians Limited3,034,0002.43
Westpac Banking Corporate NZ Financial Markets Group -NZCSD 1,935,0001.55
Forsyth Barr Custodians Limited 1,786,0001.43
ANZ Custodial Services New Zealand Limited - NZCSD1,542,0001.23
Investment Custodial Services Limited 1,478,0001.18
Adminis Custodial Nominees Limited1,215,0000.97
ANZ Wholesale NZ Fixed Interest Fund - NZCSD1,000,0000.80
I J Investments Limited515,0000.41
JBWere (NZ) Nominees Limited 500,0000.40
South Pacific Securities Limited500,0000.40
Anthony Eugene Smith & Carolyn Jean Smith & David Kenneth Brown 440,0000.35
Bglir Trustee Limited340,0000.27
Total 114,011,00091.21
Note 1: Two holders hold the same number of bonds, meaning that 21 holders have been reported above in the top 20 holders table.
Twenty Largest Registered Bondholders (IPL020) as at 31 March 2024 (Note 1)
NameNumber of UnitsPercentage of Units
Forsyth Barr Custodians Limited 20,429,00016.34
HSBC Nominees (New Zealand) Limited - NZCSD 18,500,00014.80
Custodial Services Limited 15,803,00012.64
FNZ Custodians Limited15,692,00012.55
Generate KiwiSaver Public Trust Nominees Limited - NZCSD14,596,00011.68
Hobson Wealth Custodian Limited 9,626,0007.70
TEA Custodians Limited Client Property Trust Account - NZCSD 4,050,0003.24
ANZ Fixed Interest Fund - NZCSD 3,546,0002.84
NZPT Custodians (Grosvenor) Limited - NZCSD 2,841,0002.27
Forsyth Barr Custodians Limited 1,613,0001.29
JBWere (NZ) Nominees Limited 1,295,0001.04
Hobson Wealth Custodian Limited 1,108,0000.89
FNZ Custodians Limited 968,0000.77
Investment Custodial Services Limited 859,0000.69
Forsyth Barr Custodians Limited 800,0000.64
Hobson Wealth Custodian Limited 637,0000.51
FNZ Custodians Limited 602,0000.48
Public Trust RIF Nominees Limited - NZCSD555,0000.44
Hugh McCracken Ensor500,0000.40
JML Capital Limited500,0000.40
JBWere (NZ) Nominees Limited460,0000.37
Total 114,980,00091.98
Note 1: Two holders hold the same number of bonds, meaning that 21 holders have been reported above in the top 20 holders table.
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20249495
Distribution of Holders of IPL020 Listed Bonds as at 31 March 2024
Size of Holding
Number of
Bondholders
Percentage of
Bondholders
Issued Bonds
($)
Percentage of
Issued Bonds
0 – 4,9990000
5,000 - 9,9993712.05253,0000.20
10,000 - 49,99919764.174,084,0003.27
50,000 - 99,9993310.752,061,0001.65
100,000 - 499,999206.514,082,0003.27
500,000 - 999,99982.615,421,0004.34
1,000,000 Over123.91109,099,00087.28
Total307100.00125,000,000100.00
Numbers may not sum due to rounding.
Distribution of Holders of IPL030 Listed Bonds as at 31 March 2024
Size of Holding
Number of
Bondholders
Percentage of
Bondholders
Issued Bonds
($)
Percentage of
Issued Bonds
0 – 4,9990000
5,000 - 9,9995714.07314,0000.25
10,000 - 49,99927367.415,110,0004.09
50,000 - 99,999327.901,898,0001.52
100,000 - 499,999245.934,447,0003.56
500,000 - 999,99930.741,515,0001.21
1,000,000 Over163.95111,716,00089.37
Total405100.00125,000,000100.00
Numbers may not sum due to rounding.
Donations
Neither Investore nor its subsidiary made any donations
in the year ended 31 March 2024. Investore is a sponsor
of the Graeme Dingle Foundation and during the year
in review paid $35,000 in sponsorship to the Graeme
Dingle Foundation.
Credit Rating
As at the date of this Annual Report, Investore does not
have a credit rating.
Exercise of NZX Disciplinary Powers
The NZX did not exercise any of its powers under Listing
Rule 9.9.3 in relation to Investore during FY24.
Auditor’s Fees
As noted, PwC has continued to act as auditor for
Investore and its subsidiary and the amount payable by
Investore to PwC, for audit fees and non-audit work fees
undertaken in respect of FY24, is set out in note 7.2 to
the Financial Statements.
NZX Waivers
During FY24 Investore was granted or relied on certain
waivers from the Listing Rules, which are described
below. A copy of these waivers is available at:
www.nzx.com/companies/IPL.
Investore has been granted a number of waivers from
the Listing Rules in relation to its structure, including the
right of SIML to appoint two Directors, which are outlined
below.
Listing Rules 2.2 to 2.8
Listing Rules 2.2 to 2.8 stipulate certain requirements
in relation to the appointment, removal and rotation of
Directors. A waiver from Listing Rules 2.2 to 2.8 was
granted to the extent that SIML, as the Manager of
Investore, has exercised its right to appoint two Directors
(the SIML-appointed Directors). This waiver is subject to a
number of conditions, including that:
• the Chair of the Board must be independent and
have a casting vote on any Board resolutions;
• the Management Agreement is in force;
• Investore is not permitted to count any votes cast
by SPL (and its Associated Persons (as defined
in the Listing Rules) (other than votes cast by a
Director in respect of shares owned or held in their
personal capacity)) on the election or removal of the
Independent Directors;
• Investore will continue to be identified by a
“Non-Standard Designation” (NS Designation);
• the NS Designation be disclosed as a part of
Investore’s offer documents and annual reports; and
• this waiver is disclosed as part of Investore’s annual
reports.
This waiver was requested and granted to ensure that
SIML, while it is Manager of Investore, is able to have
influence over the strategic direction of Investore by
being able to appoint two (but not less than two) Directors
and to remove any such Director and appoint another in
their place.
Listing Rule 2.10.1
Listing Rule 2.10.1 limits the ability of Directors to vote
on matters in which they are “interested” for the purposes
of the Companies Act 1993. A waiver from Listing Rule
2.10.1 was granted to permit the SIML-appointed
Directors to vote on matters in which they are “interested”
solely due to their directorship of both Investore and
SIML. This waiver is subject to the conditions that:
• the Chair of the Board must be independent and
have a casting vote on any Board resolutions;
• any Directors appointed by SIML must be identified
in Investore’s offer documents and its annual reports;
• at any time that a new person is appointed to the
Investore Board, that Director certifies to NZX
Regulation that any Board resolution that they
approve will, in their opinion, be in what the Director
believes to be the best interests of Investore; and
• this waiver is disclosed as a part of Investore’s annual
reports.
This waiver was requested, and granted, to ensure that
SIML-appointed Directors were not restricted from
voting on Investore Board resolutions solely due to being
Directors of SIML.
Directors’ Statement
This Annual Report is dated 17 May 2024 and is signed
for and on behalf of the Board of Directors of Investore
Property Limited by:
Mike Allen
Independent Director
and Chair of the Board
Gráinne Troute
Independent Director
and Chair of the Audit
and Risk Committee
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20249697
GlossaryCorporate Directory
Board or Investore Board
Board of Directors of Investore Property Limited
Contract Rental
Contract Rental is the amount of rent payable by each tenant, plus other
amounts payable to Investore by that tenant under the terms of the
relevant lease as at the relevant date, annualised for the 12-month period
on the basis of the occupancy level for the relevant property as at the
relevant date, and assuming no default by the tenant
CPI
Consumer Price Index
Director
A director of Investore
Distributable Profit
Distributable profit is a non-GAAP measure and consists of profit/(loss)
before income tax, adjusted for determined non-recurring and/or non-
cash items (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 profit before income tax, is set out in note 3.2 to the Consolidated
Financial Statements
FY
The financial year ended or ending 31 March of the relevant year
Investore or the Company
Investore Property Limited, together with its wholly owned subsidiary,
Investore Property (Carr Road) Limited
Independent Director
Means a Director who is both ‘Independent of the Manager’ and an
‘Independent Director’ pursuant to the Listing Rules
Listing Rules
The main board listing rules of NZX
LV R
Loan to value ratio
NLA
Net Lettable Area
NZX
NZX Limited
NZX Code
NZX Corporate Governance Code 2023
SIML or the Manager
Stride Investment Management Limited, the Manager of Investore under a
Management Agreement dated 10 June 2016 (as may be amended from
time to time)
SPL
Stride Property Limited
Stride
Stride Property Group, comprising the stapled entities of SPL and SIML
WA LT
Weighted Average Lease Term
Board of Directors
Mike Allen (Chair)
Gráinne Troute
Adrian Walker
Tim Storey (SIML-appointed Director)
Ross Buckley (SIML-appointed Director)
Registered Office
Level 12, 34 Shortland Street, Auckland 1010
PO Box 6320, Victoria Street West
Auckland 1142, New Zealand
W investoreproperty.co.nz
Manager
Stride Investment Management Limited
Level 12, 34 Shortland Street, Auckland 1010
PO Box 6320, Victoria Street West
Auckland 1142, New Zealand
T +64 9 912 2690
Auditor
PwC
PwC Tower, Level 27, 15 Customs Street West,
Auckland 1010
Private Bag 92162, Auckland 1142
Share Registrar
Computershare Investor Services Limited
Level 2, 159 Hurstmere Road, Takapuna
Private Bag 92119, Victoria Street West
Auckland 1142
T +64 9 488 8700
F +64 9 488 8787
E enquiry@computershare.co.nz
Legal Adviser
Bell Gully
Level 14, Deloitte Building
1 Queen Street, Auckland 1010
PO Box 4199, Auckland 1140
Bankers
ANZ Bank New Zealand Limited
China Construction Bank Corporation
New Zealand Branch Industrial and Commercial
Bank of China Limited, Auckland Branch
Westpac New Zealand Limited
Bond Supervisor
Public Trust
Private Bag 5902
Wellington 6140
Investore Property LimitedInvestore Property LimitedAnnual Report 2024Annual Report 20249899
Investore
Property Limited
Level 12, 34 Shortland Street
Auckland 1010
PO Box 6320
Victoria Street West,
Auckland 1142, New Zealand
T +64 9 912 2690
W investoreproperty.co.nz
---
Annual Results
Presentation
For the year ended 31 March 2024
17 May 2024
Financial overview03
Key metrics04
Portfolio05
Sustainability13
Financial performance16
Capital management 20
Looking ahead23
Appendices25
2
Investore Property Limited | FY24 Annual Results Presentation
Contents
Loss after income tax
$(67.1)m
due to a net reduction in fair value of investment properties of
$(98.7)m, which compares with FY23 loss after income tax of
$(150.2)m
Financial overview
For the 12 months ended 31 Mar 24 (FY24)
Profit before other expense
and income tax
$35.1m
in line with FY23 at $35.2m
Distributable profit
1
after
current income tax
$31.0m
in line with FY23 at $31.0m
Distributable profit per share
8.39 cents
in line with FY23 at 8.44 cps
1.Distributable profit is a non-GAAP measure and consists of (loss)/profitbefore 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.
FY24 cash dividend
7.20 cents
per share
3
Investore Property Limited | FY24 Annual Results Presentation
McDonalds, Takanini
Portfolio metrics
4
Capital management
4.3%
Weighted average
cost of debt
as at 31 Mar 24
88%
Debt hedged or subject to
a fixed rate of interest
as at 31 Mar 24
Investore Property Limited | FY24 Annual Results Presentation
40.8%
Loan to Value Ratio
3
as at 31 Mar 24
$8.2m
Cash retained from the
dividend reinvestment
plan (DRP) and reduced
dividend
5
$1.0bn
Portfolio valuation
1
a net reduction in fair value of (9.1)% or
$(98.7)m over 12 months to 31 Mar 24
99.1%
Portfolio occupancy
2
(by area)
as at 31 Mar 24
6.37%
Average portfolio
capitalisation rate
2
up 67bp from 31 Mar 23
7.4 years
Weighted average lease
term
2
(WALT)
as at 31 Mar 24
39%
Woolworths stores over
turnover threshold
2,4
as at 31 Mar 24
6.55%
Initial yield
2
as at 31 Mar 24
1.As at 31 March 2024. Portfolio value excludes lease liabilities.
2.Metrics refer to the stabilised portfolio, which excludes properties classified as ‘Development and Other’ in note
2.2 to the consolidated financial statements.
3.Loan to Value Ratio (LVR) is calculated based on independent valuations, which exclude lease liabilities and 507
Pakuranga Road, Auckland, Development asset. See note 2.2 to the consolidated financial statements.
4.Weighted by Moving Annual Turnover (MAT). MAT is determined by calculating the net sales over the 12-month
period ending on the relevant reporting date.
5.Reflects dividends reinvested for Q1 to Q3 of FY24 under the DRP, and reduced dividend for Q3 of FY24.
5Investore Property Limited | FY24 Annual Results Presentation
Woolworths, Newtown
Portfolio
Active portfolio management
6
Investment portfolio metrics
As at
31 Mar 24
1
As at
31 Mar 23
4
Investment portfolio value
2
($m)9721,033
Number of properties4544
Number of tenants144143
Net lettable area (NLA) (sqm)255,898249,906
Net Contract Rental
3
($m)63.761.8
WALT (years)7.48.1
Market capitalisation rate (%)6.375.70
Initial yield (%)6.555.98
Occupancy rate by area (%)99.199.5
5
Total site area (sqm)627,677611,077
Net rent ($/sqm)251247
•65 rent reviews completed over 96,000sqm resulting in
+3.1% increase on prior rentals
•57 of the rent reviews completed were structured reviews
i.e. CPI or fixed. The CPI rent reviews completed delivered
+6.2% increase on prior rentals
•20 renewals and 4 new lettings were completed with a
weighted average lease term (WALT) of 7 years
•Average property market capitalisation rate
1
increased by
+67bps to 6.37%, contributing to a net reduction in fair
value
2
of $(98.7)m or (9.1)% over the 12 months ended
31 Mar 24
•Development of new Woolworths Waimakariri Junction
completed in Nov 23; 5 Green Star Design rating achieved
1.See footnote 2 on page 4.
2.Portfolio value excludes lease liabilities.
3.Contract Rental is the amount of rent payable by each tenant, plus other amounts payable to Investore by that tenant under the terms of the relevant leases, annualised for the 12-month period on the basis of the occupancy level of the
relevant property, and assuming no default by the tenant.
4.Metrics refer to the stabilised portfolio, which excludes properties classified as ‘Development and Other’ in note 2.2 to the FY23 consolidated financial statements.
5.Vacant tenancies with current or pending development works are excluded from occupancy statistics, and as at 31 March 2023, metric excluded 2,947 sqm at Bay Central Shopping Centre, Tauranga.
Investore Property Limited | FY24 Annual Results Presentation
An initial 12-year lease with
Woolworths with additional rights of
renewal for a further 23 years if all
rights are exercised
8 dedicated parks for ‘Direct to Boot’
5 Green Star Design rated, targeting a
5 Green Star As Built rating. More
information on sustainability features
can be found on page 15
The remainder of the site, being
1.8 hectares, will be developed as part
of Stage 2 and will provide further large
format retail opportunities
Woolworths Waimakariri Junction
7
Investore Property Limited | FY24 Annual Results Presentation
Key features include:
Investore successfully completed the development of the new Woolworths at Waimakariri Junction, Kaiapoi in Nov 23.
The total cost of the development was circa $26.1m (incl. land), and was delivered within budget and on time
Woolworths, Waimakariri Junction
Portfolio optimisation
8
Investore benefits from owning 36 Woolworths supermarkets, resulting in a
strong relationship which fosters collaboration across the portfolio
Investore Property Limited | FY24 Annual Results Presentation
During FY24, Investore undertook a number of improvement projects
in collaboration with Woolworths to enhance the overall portfolio,
including:
Woolworths, Greenlane
Agreement to provide $1.9m capital contribution towards online
expansion works at Woolworths Greenlane, including a new online
extension and 8 drive-through pick up bays, delivering a 7.5% per
annum yield on cost
In connection with the Greenlane arrangement, Woolworths has
agreed to extend its lease at Woolworths Hamilton (Anglesea Street)
for 6 years, with a further 6 year right of renewal. Valuation increased
by $1.5m / +23%, when compared to the 31 Mar 23 valuation
Investore has also agreed to provide capital contributions in respect
of works underway at Woolworths Rangiora and Woolworths
Highland Park, to improve online pick up facilities. Woolworths will
pay increased rental equivalent to 7.5% and 5.5% per annum
(respectively) on the landlord’s contributions to cost of the works
These transactions illustrate how Investore can work with its
tenants to deliver mutually beneficial outcomes across its
portfolio
1.0%
4.4%
2.7%
4.4%
7.2%
2.4%
18.0%
5.9%
0.3%
18.1%
5.9%
27.8%
1.9%
VacantFY25FY26FY27FY28FY29FY30FY31FY32FY33FY34FY35FY36
Long dated lease expiry profile
Lease Expiry Profile
3
by Contract Rental
2
As at 31 March 2024
Long portfolio WALT
1
of 7.4 years,
with 78% of Contract Rental
2
expiring
in FY30 or beyond
FY25
4.4% Contract Rental expiring:
•Woolworths leased properties at Maidstone
(1.2%) and Onehunga (1.0%)
•Other expiries total 2.2% across 15 tenancies
FY26
2.7% Contract Rental expiring:
•Animates at Takanini (0.5%)
•Hunting and Fishing at Bay Central Shopping
Centre (0.5%)
•Other expiries total 1.6% across 15 tenancies
FY27
4.4% Contract Rental expiring:
•Woolworths at Mt Wellington Shopping Centre
(2.1%)
•Other expiries total 2.3% across 18 tenancies
Vacant
1.0% Contract Rental vacant:
•Post balance date, 8 year lease agreed with
Bargain Chemist for space at Mt Wellington
Shopping Centre, with expiry in FY32,
representing 0.3% of Contract Rental
1.Weighted average lease term.
2.See footnote 3 on page 6.
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 2024 as a percentage of Contract Rental.
9
Investore Property Limited | FY24 Annual Results Presentation
WALT
7.4 years
Note: Numbers may not sum due to rounding.
Everyday Needs
Woolworths, New World, PAK’nSAVE, Animates
Hardware
Bunnings, Mitre 10 MEGA, Resene
General Merchandise /
Retail
Briscoes, Rebel Sport, Kitchen Things,
Hunting and Fishing, Lighting Direct, Freedom Furniture
Food &
Beverage / Other
McDonald’s, Burger Fuel, Columbus Coffee,
Pizza Hut, Domino’s Pizza, Super Liquor, Noodle Canteen
Health & Wellbeing
Unichem Pharmacy, Snap Fitness, Affinity Medical Imaging
10
Key tenants meeting daily needs
Investore's portfolio consists of quality, well-located large format retail properties with tenants that attract regular visitation,
including supermarkets, hardware stores, general merchandise and health & wellbeing, enhancing the portfolio's resilience
Investore Property Limited | FY24 Annual Results Presentation
1.See footnote 3 on page 6.
Columbus Coffee,
Mitre 10 MEGA Botany
Portfolio Tenant
Classification by
Contract Rental
1
Everyday Needs,
71%
Hardware,
16%
General
Merchandise /
Retail, 8%
Food & Beverage
/ Other, 4%
Health &
Wellbeing, 1%
11
Investore’s portfolio is geographically diversified across New Zealand with the majority of the portfolio
located in highly populated urban areas such as Auckland, Wellington, Canterbury, Waikato and the Bay of
Plenty. Anchor tenants represent 87% of Investore’s Contract Rental
1
Geographic diversification by Contract Rental
1
Anchor tenant concentration by Contract Rental
1
Investore Property Limited | FY24 Annual Results Presentation
Note: Numbers may not sum due to rounding.
35%
17%
10%
10%
10%
13%
5%
83%
17%
AucklandWellingtonBay of PlentyOther North Island
WaikatoCanterbury & OtagoOther South Island
1.See footnote 3 on page 6.
North Island
South Island
3%
3%
4%
13%
64%
Briscoes Group
Mitre 10
Foodstuffs
Bunnings
Woolworths
Geographically Diversified Portfolio
Turnover Rent
12
Investore Property Limited | FY23 Annual Results Presentation
Note: Numbers may not sum due to rounding.
1.See footnote 3 on page 6.
2.MAT is determined by calculating the net sales over a 12-month period from April to March, with the calculation being completed on a rolling basis.
3.Investore’s Woolworths supermarket portfolio on a like-for-like basis between 31 March 2018 and 31 March 2024.
Woolworths supermarket portfolio turnover mix
(weighted by MAT)
2
•The leases for Woolworths stores, which make up 64% of the
portfolio's Contract Rental
1
, include a turnover rent component,
where additional rent is paid once store sales, or Moving Annual
Turnover (MAT)
2
, exceed a specified threshold
•There has been a continued increase in stores paying turnover rent,
with 39% of stores (weighted by MAT) now paying turnover rent, up
from 9% as at 31 Mar 18. As at 31 Mar 24, 12 stores are trading
above their turnover rent threshold, up from 10 stores at 31 Mar 23
•Turnover rent has also continued to increase across the portfolio on
a like-for-like basis
3
, to $1.4m for FY24, up from $0.3m in FY18.
Over the past 3 years, turnover rent has grown at a 13% cumulative
annual growth rate
•Since FY19 the trend is for stores that are just below the turnover
threshold (with turnover 80 - 100% of threshold) to steadily move
into paying turnover rent. Of the 22% of stores (weighted by MAT)
that are in the 80 - 100% bracket as at 31 Mar 24, 57% are in
Auckland and 23% in Wellington
•For most Woolworths leases in the portfolio, turnover rent is
crystalised to base rent at each rent review date, with the base rent
increase being the average turnover rent paid in the previous three
years
Woolworths supermarket base and turnover rent
(like-for-like)
3
9%
13%
20%
23%
26%
31%
39%
42%
47%
38%
38%
37%
30%
22%
49%
40%
42%
38%
37%
39%
39%
Mar 18Mar 19Mar 20Mar 21Mar 22Mar 23Mar 24
>100%80% - 100%<80%
of turnover threshold
$34.2m$34.3m$34.4m$35.2m$35.2m$35.2m$35.4m
$0.3m
$0.3m
$0.5m
$1.0m
$1.0m
$1.4m
$1.4m
FY18FY19FY20FY21FY22FY23FY24
Base rentTurnover rent
Sustainability
13Investore Property Limited | FY24 Annual Results Presentation
Woolworths, Mt Roskill
Sustainability
14
Investore Property Limited | FY24 Annual Results Presentation
Investore considers that it has very low scope 1 and
2 emissions (for FY24, 25.1 tCO2-e), primarily from
refrigerants used in air conditioning systems and
electricity for lighting
To reduce refrigerant emissions, Investore has
developed a programme to replace air conditioning
units that use R22 refrigerant with a low global
warming potential alternative. 14 units have been
replaced to date, with a further 38 planned for
replacement over FY25 and FY26
Investore also has programmes targeted at its scope
3 emissions, which are its biggest emissions:
Solar feasibility completed for standalone supermarket;
Investore will now engage with major tenants to
progress this initiative
Contribution towards tenant LED lighting upgrades at
several properties across the portfolio
Woolworths Waimakariri Junction
15
Investore Property Limited | FY24 Annual Results Presentation
Benefits to people
•Durable, low toxicity materials used
throughout the development
•Electric vehicle chargers
•16% of parking spaces reserved for fuel-
efficient vehicles
•End of trip facilities installed, including
designated bicycle parking, to encourage
cycling to the store
Sustainable construction
•Utilisation of low carbon concrete and
low embodied carbon materials
where appropriate
•82% of waste diverted from landfill
Operational efficiency
•Solar panels installed
•Energy efficient refrigeration systems
•Heat generated from store fridges is
recycled to regulate the overall store
temperature
•100% low energy LED lighting installed
•Low water use plumbing fittings
5 Green Star Design rated,
targeting 5 Green Star As
Built, the “New Zealand
excellence” standard
Mitre 10 MEGA, Botany
Financial Performance
16Investore Property Limited | FY24 Annual Results Presentation
Financial performance
17
31 Mar 24
$m
31 Mar 23
$m
Change
$m%
Net rental income
61.2 60.3 +1.0 +1.6
Corporate expenses
(8.1) (8.9) +0.7 +8.1
Profit before net finance expense, other expense and income tax
53.151.4+1.7+3.3
Net finance expense
(18.0) (16.2) (1.8) (11.0)
Profit before other expense and income tax
35.135.2(0.1)(0.2)
Other expense
1
(98.8) (185.3) +86.5 +46.7
Loss before income tax
(63.6)(150.1)+86.4+57.6
Income tax expense
(3.5) (0.1) (3.4)(2,624.2)
Loss after income tax attributable to shareholders
(67.1)(150.2)+83.1+55.3
1.Other expense includes net reduction in fair value of investment properties.
Values in the table above are calculated based on the numbers in the consolidated financial statements for each respective financial period and may not sum due to rounding.
Investore Property Limited | FY24 Annual Results Presentation
31 Mar 24
$m
31 Mar 23
$m
Change
$m%
Loss before income tax
(63.6) (150.1) +86.4 +57.6
Non-recurring, non-cash items, and other adjustments:
- Net change in fair value of investment properties
98.7 185.2 (86.5) (46.7)
- Borrowings establishment costs amortisation
1.0 0.9 +0.0 +2.0
- Other
0.3 (0.1) +0.4 +609.2
Distributable profit before current income tax
36.436.0+0.3+1.0
Current income tax
(5.4) (5.0) (0.4) (7.3)
Distributable profit after current income tax
31.031.0(0.0)(0.1)
Adjustments to funds from operations:
- Maintenance capital expenditure
(3.7) (2.3) (1.4) (59.9)
- Seismic works
(2.3) - (2.3) (100.0)
- Incentives and associated landlord works
(0.4) (0.1) (0.3) (536.7)
Adjusted Funds From Operations (AFFO)
2
24.628.6(4.0)(14.1)
Weighted average number of shares (millions)
369.3 367.7
Basic and diluted distributable profit after current income tax per share -
weighted (cents)
8.39cps8.44cps
AFFO basic and diluted distributable profit after current income tax per share -
weighted (cents)
6.65cps7.78cps
Distributable profit
18
1
1.See footnote 1 on page 3 for definition.
2.AFFO is a non-GAAP measure and is intended as a supplementary measure of operating performance. Cash spent during the period on capital expenditure as part of maintaining a building’s grade/quality, but not expensed as
part of distributable profit after current income tax, is adjusted to enable the investors to see the cash generating ability of the business.
Values in the table above are calculated based on the numbers in the consolidated financial statements for each respective financial period and may not sum due to rounding.
Investore Property Limited | FY24 Annual Results Presentation
Financial summary
19
1.Excludes lease liabilities.
2.See footnote 3 on page 4.
3.Excludes after tax fair value of interest rate derivatives.
As at
31 Mar 24
As at
31 Mar 23Change
Investment property value ($m)
1
989.4 1,062.1 (72.7)
Drawn debt ($m)
(402.8) (387.6) +15.2
Loan to Value Ratio (LVR)
2
40.8%36.5%+4.3%
Equity ($m)
587.1 675.0 (88.0)
Shares on issue (millions)
373.8 367.5 +6.3
Net Tangible Assets (NTA) per share
$1.57$1.84($0.27)
Adjusted NTA
3
per share
$1.57 $1.84($0.27)
Investore Property Limited | FY24 Annual Results Presentation
Capital Management
20Investore Property Limited | FY24 Annual Results Presentation
$100m
$120m
$125m
$105m
$125m
FY25FY26FY27FY28
Debt maturity profile as at 31 March 2024
IPL010 Bond
(matured April 2024)
Bank FacilitiesRetail Bonds
Proactive capital management
21
1.See footnote 3 on page 4.
2.Taking into account the reduced Q4 FY24 dividend and capital commitments as at 31 March 2024 (see
note 2.4 to the consolidated financial statements).
3.Pro forma for the maturity of the $100m IPL010 bond which matured on 18 April 2024, repaid with bank
debt facilities.
4.Loan to Value Ratio (LVR) is calculated based on independent valuation, which exclude lease liabilities.
•$100m increase in bank facilities to provide liquidity for maturity
of IPL010 bond in Apr 24; no debt now maturing until FY26
•Dividend reinvestment plan (DRP) implemented; an average of
34% participation in FY24 Q1-Q3 dividends, resulting in $6.9m
reinvested to manage leverage
•$1.3m of retained earnings as a result of the dividend reduction
in FY24 Q3 dividend
•Bank LVR covenant increased to 55.0%
•40.8% LVR
1
as at 31 Mar 24, or 41.4% on a committed basis
2
Debt facilities
Pro forma
3
As at
31 Mar 24
As at
31 Mar 23
Debt facilities limit
(ANZ, CCB, ICBC, Westpac),
including bonds
$475m$575m$475m
Debt facilities drawn$403m$403m$388m
Weighted average maturity of
debt facilities
2.5 years2.1 years3.0 years
Debt covenants
LVR
(Drawn Debt / Property Values)
Covenant: ≤ FY24: 55.0%,
FY23: 52.5%
40.8%
1
40.8%
1
36.5%
4
Interest Cover Ratio
(EBIT / Interest and Financing Costs)
Covenant: ≥ 1.75x
n/a2.9x3.2x
Investore Property Limited | FY24 Annual Results Presentation
$100m bank facilities
added, providing liquidity
for IPL010 bond maturity
in FY25
Hedging and cost of debt
22
•As at 31 Mar 24, 88% of drawn debt is hedged or subject
to a fixed interest rate
•Investore continues to benefit from high levels of fixed
rate debt at below prevailing market rates
•Weighted average cost of debt as at 31 Mar 24 was
4.34%, increasing to 4.76% pro forma for the repayment
of IPL010 fixed rate bond with bank debt
•$25m 2-year forward starting swap with effective date of
31 Dec 25 entered into
Cost of debt
Pro forma
1
As at
31 Mar 24
As at
31 Mar 23
Weighted average cost of debt
(incl. current interest rate
derivatives, bonds and bank
margins, and line fees)
4.76%4.34%4.01%
Weighted average fixed
interest rate (incl. current
interest rate derivatives and
bonds, excl. margins)
1.76%2.00%2.00%
Weighted average fixed
interest rate maturity (incl.
bonds, active and forward
starting swaps)
2.9 years2.3 years3.3 years
% of drawn debt fixed70%88%92%
Investore Property Limited | FY24 Annual Results Presentation
1.See footnote 3 on page 21.
$355m
$280m
$275m
$150m
2.00%
1.76%
1.83%
0.97%
Mar 24Mar 25Mar 26Mar 27
Fixed rate interest profile as at 31 March 2024
Notional fixed rate debt (net of fixed-to-floating hedging)
Weighted average interest rate of fixed rate debt (excl. margin and line fees)
23
Investore Property Limited | FY24 Annual Results Presentation
Woolworths, Waimakariri Junction
(in development)
Looking Ahead
•Current macroeconomic conditions remain soft and higher
interest rates have impacted property transaction volumes.
However, valuations are stabilising and interest rate cuts are
forecast to start occurring later this financial year which creates
opportunities
•Recent changes to rules surrounding tax depreciation on
commercial buildings has resulted in an additional earnings
headwind
•However, underlying portfolio metrics remain resilient, with a
defensive rental income stream from non-discretionary,
everyday needs retail tenants supported by proactive capital
management and a strong hedging outlook
•The Board intends to pursue its strategy for targeted growth if
appropriate acquisition and development opportunities present
themselves and will also consider strategic divestments,
provided appropriate value can be realised
•The Investore Board confirms it currently intends to pay a cash
dividend of 6.50 cents per share for FY25, which is expected to
be near the mid-point of Investore’s revised dividend policy
Looking ahead
Investore Property Limited | FY24 Annual Results Presentation
24
Bunnings,
Rotorua
Appendices
25Investore Property Limited | FY24 Annual Results Presentation
Appendix A
26
Investore Property Limited | FY24 Annual Results Presentation
Values in the tables above are calculated based on the numbers in the consolidated financial statements for each respective financial period and may not sum due to rounding.
$1.84
$1.57
$0.09
($0.28)
($0.01)
($0.08)
$0.01
As at
31 Mar 23
Profit before other
expense and income
tax
Net change in fair value
of investment property
Income tax expenseDividends paidDividend reinvestment
plan
As at
31 Mar 24
Net Tangible Assets
$35.2m
$35.1m
$0.8m
$0.7m
($0.5m)
$0.8m
($0.1m)
($1.8m)
FY23Net rental increase
from development
and acquisition
Net rental increase
from existing
portfolio
Net rental decrease
from IFRS
adjustments
Lower management
fee expense
Higher
administration
expense
Higher net finance
expense
FY24
Profit before other expense and income tax
27
Investore Property Limited | FY24 Annual Results Presentation
1.See footnote 3 on page 6.
Values in the tables above are calculated based on the numbers in the consolidated financial statements for each respective financial period and may not sum due to rounding.
Appendix B
$1,062.1m
$989.4m
($98.6m)
$22.5m
$3.7m
($0.3m)
As at
31 Mar 23
Net change in fair value
(excl IFRS16)
Capital expenditureAcquisitionsIFRS and otherAs at
31 Mar 24
Investment Properties (excl. lease liabilities)
$61.9m
$63.7m
($0.5m)
$1.4m
$0.2m
$0.6m
As at
31 Mar 23
Woolworths
Waimakariri Junction
Renewals /
new lettings
Rent reviewsOtherAs at
31 Mar 24
Net Contract Rental
1
Important Notice: The information in this presentation is an overview and does not
contain all information necessary to make an investment decision.It is intended to
constitute a summary of certain information relating to the performance of Investore for
the year ended 31 March 2024. Please refer to Investore’s consolidated financial
statements for the year ended 31 March 2024 for further information. The information
in this presentation does not purport to be a complete description of Investore. In
making an investment decision, investors must rely on their own examination of
Investore, including the merits and risks involved. Investors should consult with their
own legal, tax, business and/or financial advisors in connection with any acquisition of
securities.
No representation or warranty, express or implied, is made as to the accuracy,
adequacy or reliability of any statements, estimates or opinions or other information
contained in this presentation, any of which may change without notice. To the
maximum extent permitted by law, Investore, Stride Investment Management Limited
and their respective directors, officers, employees, agents and advisers disclaim all
liability and responsibility (including without limitation any liability arising from fault or
negligence on the part of Investore, Stride Investment Management Limited and their
respective directors, officers, employees, agents and advisers) for any direct or indirect
loss or damage which may be suffered by any recipient through use of or reliance on
anything contained in, or omitted from, this presentation.
This presentation is not a product disclosure statement or other disclosure document.
Level 12, 34 Shortland Street
Auckland 1010, New Zealand
PO Box 6320, Victoria Street
West, Auckland 1142,
New Zealand
P +64 9 912 2690
W investoreproperty.co.nz
Thank you
---
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019
Results for announcement to the market
Name of issuer Investore Property Limited (NS)
Reporting Period 12 months to 31 March 2024
Previous Reporting Period 12 months to 31 March 2023
Currency NZD – New Zealand Dollars
Amount (000s) Percentage change
Revenue from continuing
operations
$61,246 1.64%
Total Revenue $61,246 1.64%
Net profit/(loss) from
continuing operations
$(67,113) 55.32%
Total net profit/(loss) $(67,113) 55.32%
Final Dividend
Amount per Quoted Equity
Security
$0.01625000
Imputed amount per Quoted
Equity Security
$0.00354547
Record Date 27/05/2024
Dividend Payment Date 06/06/2024
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.57 $1.84
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Please refer to the attached Annual Report and Annual Results
Presentation for the year ended 31 March 2024.
Authority for this announcement
Name of person
authorised
to make this announcement
Louise Hill
Contact person for this
announcement
Louise Hill
Contact phone number +64 275 580033
Contact email address louise.hill@strideproperty.co.nz
Date of release through MAP
17/05/2024
Audited financial statements accompany this announcement.
---
Template
Distribution Notice
Updated as at June 2023
Please note: all cash amounts in this form should be provided to 8 decimal places, including zeros (ie 0.01001000)
Please do not amend or delete individual rows. As this template relates to prescribed content, changes to content
should only be made where it is clearly indicated that this is permitted, otherwise, if an Issuer considers a particular
element does not apply, mark the row as N/A, Any other changes to this prescribed form must first be approved by
NZX as required under NZX Listing Rule 3.26.1.
Section 1: Issuer information
Name of issuer INVESTORE PROPERTY LIMITED
Financial product name/description Ordinary Shares of Investore Property Limited
NZX ticker code IPL
ISIN (If unknown, check on NZX
website)
NZIPLE0001S3
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year X Quarterly
Half Year Special
DRP applies
Record date 27/05/2024
Ex-Date (one business day before the
Record Date)
24/05/2024
Payment date (and allotment date for
DRP)
06/06/2024
Total monies associated with the
distribution
1
$6,074,602
Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZD – New Zealand Dollar
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.01979547
Gross taxable amount
3
$0.01266239
Total cash distribution
4
$0.01625000
Excluded amount (applicable to listed
PIEs)
$0.00713308
Supplementary distribution amount $0.00160887
1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
Section 3: Imputation credits and Resident Withholding Tax
5
Is the distribution imputed
Fully imputed
If fully or partially imputed, please
state imputation rate as % applied
6
28%
Imputation tax credits per financial
product
$0.00354547
Resident Withholding Tax per
financial product
n/a
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
Start date and end date for
determining market price for DRP
Date strike price to be announced (if
not available at this time)
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
DRP strike price per financial product
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
Section 5: Authority for this announcement
Name of person
authorised to make
this announcement
Louise Hill
Contact person for this
announcement
Louise Hill
Contact phone number +64 275 580033
Contact email address louise.hill@strideproperty.co.nz
Date of release through MAP
17/05/2024
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.
6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
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