FY24 Annual Results

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

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

---

Annual Report 2024
Stride Property Group

Contents
2Financial Overview
4Strategic Overview
6Chair and CEO’s Report
10Board of Directors
12People
14Executive Team
16Performance
18Developments
20Products
22SPL Look-Through Portfolio
25SPL Portfolio
26Office
30Town Centres
32Investore
36Industre
41Diversified
42Capital Management
44Five Year Financial Summary
46Financial Statements
91Independent Auditor’s Report
96Corporate Governance
129Statutory Disclosures
137Implications of Investing in Stapled Securities
138Glossary
139Corporate Directory
This document comprises the Annual Report for each of Stride
Investment Management Limited (SIML) and Stride Property Limited
(SPL), which are members of Stride Property Group (Stride).
Each of SPL, SIML and Stride has been designated as “Non-Standard”
(NS) by NZX. The implications of investing in stapled securities of
Stride are set out at page 137 of this report.
A copy of the waivers granted by NZX in respect of SPL,

SIML and Stride’s “NS” designation can be found at
www.nzx.com/companies/SPG/documents
Stride Property GroupAnnual Report 20241

Financial
Overview
for 12 months ended 31 March 2024 (FY24)
Portfolio
Overview
as at 31 March 2024
net rental income
up $1.2m or 1.7% from
FY23 ($71.1m)
$72.3m
distributable profit
1
after
current income tax
up $1.5m or 2.6% from FY23
(FY23: $57.6m)
$59.1m
portfolio value
3
down from $1.3bn as at
31 March 2023
4
due to
portfolio valuation
movement and disposal of
22 The Terrace, Wellington
$1.2bn
Proactive
Capital
Management
combined cash dividend
for FY24
representing a combined
payout ratio of 74% of Stride’s
distributable profit
1
8.0cps
loss after income tax
reduced by $60.6m (FY23:
$(116.7)m loss after income tax),
largely due to a smaller net portfolio
valuation reduction of $(75.8)m
compared with FY23 of $(118.5)m
$(56.1)m
Stride’s portfolio includes
$1.0bn of directly held office
and town centre assets
SPL’s look through portfolio is
valued at $1.6bn, including its
interests in the portfolios of each of
Investore, Diversified and Industre,
which are managed by SIML
as at 31 March 2024 including
commitments
2
, with $2.2bn of
external assets under management
on a committed
2
basis
$3.2bn
Assets under management
1. See glossary on page 138.
2. Commitments include: (1) SPL: building upgrades at 34 Shortland Street, Auckland, and 215 Lambton Quay, Wellington (committed post balance date), and various capital
expenditure commitments contracted for (refer note 3.4 to the consolidated financial statements); (2) IPL: various capital expenditure commitments; and (3) Industre:
development of the property at 16A Wickham Street, Hamilton, and the purchase price of the property at 160 Higgins Road, Hamilton, which was committed to and settled
post balance date.
3. Excludes lease liabilities. Includes: (1) SPL’s 51.7% interest in the joint operation component of the Industre Property Joint Venture as at 31 March 2024 (for more information,
refer note 3.2 to the consolidated financial statements); (2) the value of Stride’s office at 34 Shortland Street, Auckland, which is shown in the consolidated financial statements
as ‘Property, plant and equipment’; and (3) the value of the rental guarantee receivable in relation to 110 Carlton Gore Road, Auckland.
4. Excludes lease liabilities. Includes: (1) SPL’s 51.7% interest in the joint operation component of the Industre Property Joint Venture as at 31 March 2023; (2) the value of ‘Assets
classified as held for sale’; and (3) the value of Stride’s offices at 34 Shortland Street, Auckland, and 22 The Terrace, Wellington, which are shown in Stride’s FY23 consolidated
financial statements as ‘Property, plant and equipment’ and ‘Assets classified as held for sale’ respectively.
5. Commitments include: (1) building upgrades at 34 Shortland Street, Auckland, and 215 Lambton Quay, Wellington (committed post balance date); and (2) various capital
expenditure commitments contracted for (refer note 3.4 to the consolidated financial statements).
6. Balance sheet LVR includes SPL’s office and town centre properties as well as the value of SPL’s interests in each of the Stride Products, and SPL’s direct debt.
36.7% bank LVR
1
as at 31 March
2024, or 37.2% on a committed
5

basis, with balance sheet LVR
6
of
27.6%
Dividend reinvestment plan
operated during FY24, with an
average participation rate of 45%,
resulting in $20m reinvested
75% of SPL’s drawn debt as at
31 March 2024 was hedged
4.22% weighted average cost
of debt as at 31 March 2024, an
increase of only +26 basis points
since 31 March 2023, due to SPL’s
strong hedging position
Stride Property GroupStride Property GroupAnnual Report 2024Annual Report 202423

Strategic
Overview
Stride has delivered on
a number of portfolio
initiatives during FY24
to position its office
portfolio for the future,
and has continued to
develop high quality,
sustainable new buildings
for the Stride Products
1
1. See glossary on page 138.
2. Excludes properties categorised as ‘Development and Other’ in the
consolidated financial statements.
3. Green rated buildings for SPL’s office properties comprise buildings that
have a NABERSNZ rating or Green Star (Design and/or As Built) rating.
Building upgrades at 34 Shortland
Street, Auckland, are transforming this
asset into a more modern, sustainable
office property
Stride completed the acquisition of the
6 Green Star Design rated office
property at 110 Carlton Gore Road,
Auckland, and also completed the sale
of 22 The Terrace, Wellington
92% of Stride’s office portfolio
2
by
value is green rated
3
, with 73% having
a 5 Green Star rating or better and 83%
being Prime or A grade assets
Stride developed a new Woolworths
supermarket at Waimakariri Junction
for Investore. This building is 5 Green
Star Design rated, with a number of
sustainability initiatives implemented
during construction
Stride also developed a new industrial
building for Industre at 34 Airpark Drive,
Auckland, targeting a 5 Green Star
As Built rating, and delivering a 15%
development margin at completion
Stride Property GroupStride Property GroupAnnual Report 2024Annual Report 202445

Chair and
CEO’s Report
Dear Shareholders,
The Boards of Directors of Stride
Property Limited (SPL) and Stride
Investment Management Limited
(SIML) (which together form Stride
Property Group (Stride)) are pleased to
deliver Stride’s annual report for FY24.
Stride has continued to benefit from
its diversified business model, which
incorporates a property investment
business with a real estate investment
management business, to deliver
positive underlying earnings.
Economic conditions have continued to remain challenging
during FY24, with elevated inflation rates driving higher interest
rates which, in turn, impact property capitalisation rates and
result in lower portfolio values for SPL and the Stride Products.
Despite these conditions, Stride’s underlying earnings for FY24,
as measured by distributable profit
1
, have remained resilient,
with FY24 distributable profit after current income tax being
2.6% up on FY23 and 0.9% up on FY23 on a weighted per
share basis. Stride’s more conservative dividend policy has
enabled it to utilise higher levels of retained earnings to repay
bank debt and further strengthen its balance sheet.
The challenging economic conditions have also resulted in a
lower overall level of activity across the New Zealand real estate
industry, with both commercial property transactional activity and
development activity being affected. This has resulted in lower
management fees for SIML. The Board is pleased to have seen
property valuations stabilising over the second half of FY24, but
is conscious of elevated interest rates and a softer economy
which are expected to persist for the remainder of this year.
Positive portfolio activity across the SPL portfolio, including
strong rental growth from rent reviews and renewals of +4.9% on
prior rentals, partly driven by the higher inflationary environment,
has helped to deliver positive benefits for Stride’s financial results.
Financial performance
Net rental income for FY24 at $72.3 million was $1.2 million
higher than FY23 at $71.1 million, largely due to the net rental
income from the office property at 110 Carlton Gore Road,
Auckland, which was acquired in May 2023, partially offset by
the sale of the property at 22 The Terrace, Wellington, in July
2023. As noted, the subdued real estate market drove lower
management fee income for FY24, with management fee income
of $19.9 million, compared with FY23 of $23.3 million. Overall,
the additional net rental income, together with guarantee income
relating to 46 Sale Street, Auckland, has offset the reduced
management fee income.
Stride kept corporate overhead expenses consistent with
FY23 at $18.3 million, despite the current inflationary
environment. Due to the higher interest rate environment, net
finance expense at $19.8 million for FY24 was $2.7 million
higher than FY23 (FY23: $17.1 million). This has resulted in
profit before other expense and income tax of $50.8 million,
$2.7 million lower than FY23 (FY23: $53.5 million).
The higher interest rate environment has impacted portfolio
capitalisation rates during FY24, thus reducing portfolio values,
resulting in SPL having a net reduction in fair value of investment
properties for FY24 of $(75.8) million, lower than for FY23
where SPL experienced a $(118.5) million net reduction. The
economic conditions have similarly impacted the portfolio
valuations of the Stride Products, which has flowed through to a
share of loss in equity accounted investments of $(23.7) million
(FY23: $(42.4) million loss). Overall, this has contributed to a
loss after income tax of $(56.1) million, compared with a loss
after income tax of $(116.7) million for FY23.
Distributable profit
1
after current income tax, which the Boards
consider is more reflective of the underlying earnings of Stride,
was $59.1 million for FY24, $1.5 million or 2.6% higher than
FY23 at $57.6 million.
The reduced portfolio value due to the higher interest rate
environment has impacted Stride’s net tangible assets, with
net tangible assets of $1.78 per share as at 31 March 2024,
down from $1.98 per share as at 31 March 2023.
Portfolio
SPL owns a portfolio of office and town centre properties, as
well as its interests in the Stride Products of Industre Property
Joint Venture (Industre), Investore Property Limited (Investore)
and Diversified NZ Property Trust (Diversified). Over the past
few years SPL has focussed on transforming its office portfolio
into a high quality, sustainable portfolio of newer assets.
As indicated in our annual report for FY23, during FY24 SPL has
progressed a number of improvements at 34 Shortland Street,
Auckland, which also houses Stride’s head office, to modernise
the building while at the same time improving the building’s energy
efficiency. The lobby has been redeveloped into a bright, modern,
spacious and inviting space, with the quality finishes mirrored
in the on-floor lobbies on the refurbished floors of the building.
Stride has also installed new end of trip facilities in the basement,
encouraging workers in the building to actively commute to the
office and reduce their carbon emissions. Stride is in the process
of upgrading the mechanical systems to improve the building’s
energy efficiency, targeting a minimum 4 star NABERSNZ rating
upon completion of the upgrades.
As a result of SPL’s improvement activities across its office
portfolio, 92% of the office portfolio
2
by value is green rated
3
,
with 73% by value rated 5 Green Star or higher. In addition,
83% of the portfolio
2
by value comprise Prime or A grade
assets. SPL considers its high quality portfolio will continue to
attract tenant demand given the recent “flight to quality” trend
among office occupiers.
Stride has now transformed two older office properties into
quality, sustainable buildings, following its redevelopment of
22 The Terrace, Wellington (which SPL has now sold), and the
refurbishment of 34 Shortland Street, Auckland. Stride plans
to use these skills to undertake improvements at the office
property at 215 Lambton Quay, Wellington, to improve tenant
amenities and the building’s energy efficiency.
SPL’s town centre assets of Silverdale Centre and NorthWest
Shopping Centre are both located in fast-growing regions of
Auckland, and both have benefited from strong population growth
in their catchment areas, with moving annual turnover increasing
at both centres during FY24. This has contributed to higher
rents across the portfolio, and, together with SIML’s keen focus
on managing costs, has resulted in specialty gross occupancy
cost
1
across the portfolio
2
remaining at 11.0% of store sales for
FY24. In addition, SPL also owns a 50% interest in Johnsonville
Shopping Centre, which remains a development asset.
FY24 has seen a number of leasing transactions completed
across SPL’s office and town centre portfolios
2
, with 166 rent
reviews and lease renewals completed across these portfolios,
delivering a 4.9% uplift on prior rentals.
Real estate investment
management business
SIML is proud to have continued to deliver quality outcomes
for each of the Stride Products during FY24. This has included
strong leasing activity across all portfolios, as well as the
completion of new buildings for each of Investore and Industre.
SIML continues to build on its expertise in creating sustainable,
quality buildings, and has consistently delivered new
developments on time and within budget for SPL and the Stride
Products. This provides the Stride Products with opportunities
to secure new, quality buildings in a market that may not
otherwise support these opportunities.
During FY24 SIML, on behalf of Investore, completed a new
supermarket at Waimakariri Junction, tenanted by Woolworths.
This property has obtained a 5 Green Star Design rating,
and is targeting a 5 Green Star As Built rating. SIML also
completed a new industrial property at 34 Airpark Drive,
Auckland, for Industre. This property is now leased by DHL
on a 10 year lease. Industre is targeting a 5 Green Star As
Built rating for this building, which is currently in progress.
A 5 Green Star rating equates to “New Zealand excellence” and
is the standard that Stride targets for all new developments.
Both Woolworths Waimakariri Junction, Kaiapoi, and 34 Airpark
Drive, Auckland, incorporate a number of sustainability initiatives,
including solar panels, rainwater harvesting, electric vehicle
parking and active transport facilities, together with energy and
water metering systems which enable monitoring of consumption.
Although direct property market conditions during FY24 have
been challenging, this also creates opportunities. As an example,
SIML negotiated the acquisition of 7.9 hectares of land on behalf
of Industre in the Hamilton region for $19 million, with settlement
occurring post balance date, in early May 2024. This land will
provide future development opportunities for Industre to continue
to grow its industrial portfolio.
1. See glossary on page 138.
2. Excluding properties categorised as ‘Development and Other’ in the
consolidated financial statements.
3. Green rated buildings for SPL’s office properties comprise buildings that have a
NABERSNZ rating or Green Star (Design and/or As Built) rating.
Stride Property GroupStride Property GroupAnnual Report 2024Annual Report 202467

Chair and
CEO’s Report
FY24 has seen subdued activity in the real estate market
across New Zealand, and this has flowed through into
SIML’s management fees, with management fee income of
$19.9 million down on FY23 of $23.3 million. A reduction in
activity based fees has been a key driver of this, with these
fees down to $3.7 million, from $5.7 million in FY23, due to
lower portfolio transaction and development activity as well as
no performance fees earned for FY24.
SIML is proud to manage a diversified portfolio of quality
commercial property, and intends to continue to work towards
growth in these portfolios, while also monitoring market
conditions to establish a new Stride Product when conditions
are conducive.
Capital management
Capital management has continued to be a focus for the Stride
Boards and Stride has successfully executed a number of
capital management initiatives announced during FY23 to
ensure that Stride’s balance sheet remains robust:
• The dividend reinvestment plan has continued to be in
operation during FY24, resulting in $20 million being
reinvested during FY24.
• SPL completed the sale of the office property at
22 The Terrace, Wellington, with the net proceeds of the
sale used to pay down debt.
• SPL received a distribution from Industre of $15 million
following the sale by Industre of two properties during
FY24. This evidences the ability of SPL to access sources
of capital beyond its direct property investments. The
distribution was used to pay down debt.
These initiatives have helped to offset the decline in investment
property values experienced during FY24 and, as a result, SPL
has managed to maintain its loan to value ratio (LVR) at 36.7%
consistent with 31 March 2023, or 37.2% when taking into
account commitments. This LVR is calculated based on the
value of SPL’s directly held portfolio and direct debt, and does
not include any value for SPL’s interests in the Stride Products or
the value of SIML’s management contracts. Taking into account
SPL’s interests in the Stride Products, SPL’s LVR on a balance
sheet basis (which includes the value of SPL’s interests in each
of the Stride Products as additional assets) is 27.6%. The
composition of Stride’s balance sheet is a key point of difference
relative to its peers, and as the Industre distribution highlighted,
Stride has access to other sources of capital on its balance
sheet beyond direct property.
SPL continues to take a prudent approach to interest rate
management, which has benefited SPL to date through its
strong hedging position. As at 31 March 2024, 75% of SPL’s
drawn debt is hedged, providing a level of resilience in a higher
interest rate environment. As at 31 March 2024, SPL’s weighted
average cost of debt was 4.22%, an increase of only 26 basis
points since 31 March 2023, compared with an increase of
75 basis points in the Official Cash Rate over the same period.
While Stride has had a strong hedging position which has
benefited it since the onset of the current higher interest rate
environment, this hedging is beginning to mature and reprice
at prevailing market rates which is expected to impact FY25
earnings. Stride will seek to enter into further hedging when it
sees relative value in order to manage the impact of interest rate
variability on future earnings.
People
SIML is committed to supporting and developing its people.
This year SIML is pleased to introduce additional parental
leave benefits to support our people as they become parents:
• Full pay for primary carers for 14 weeks as a top up
to the Government-provided parental leave financial
contribution
• Employer KiwiSaver contributions for 14 weeks for
primary carers
• Annual leave taken in the 12 months after returning
from parental leave paid at the higher of average weekly
earnings or ordinary weekly pay
SIML supports the development of its people and seeks to
promote internally where possible. During FY24, we were
pleased to appoint six internal candidates to new positions,
demonstrating the growth of our people through SIML’s
commitment to development and learning.
In late April 2024, Andrew Hay, our Fund Manager Industre
and member of the SIML Executive Team, resigned from
SIML. Andrew has been with SIML for over 20 years, and
during that time has helped to transform the business to
the company it is today, including supporting the growth of
Industre over the past four years. On behalf of the Board
and SIML management, we would like to thank Andrew for
his hard work and dedication and wish him well in his new
endeavours.
Governance
The Stride Boards strive to ensure a high level of efficiency
and effectiveness in their operations so as to provide the best
corporate governance for a successful real estate investment
business. To that end, during FY24 the Stride Boards
conducted a comprehensive Board review utilising the Institute
of Directors of New Zealand’s Evaluate tool. The Boards
considered the outcome of the review and are implementing
the recommendations in order to continue to maintain a best
practice governance standard for the benefit of investors and
all stakeholders.
Sustainability
During FY23 Stride set a number of ambitious climate-
related targets, including reducing our greenhouse gas
emissions by 42% by 2030 from our FY20 baseline year.
We are pleased with the progress that has been made in
relation to these targets during FY24, with our scope 1 and
2 greenhouse gas emissions declining by 26.4% from FY23
and by 18.7% from our FY20 baseline year
1
. Progress has
also been made on refining and developing our carbon
transition plan, which will provide us with a roadmap to
transition the existing office and shopping centre properties
owned and managed by Stride to a low carbon future,
consistent with Stride’s strategy.
Stride is pleased to deliver its first mandatory climate-
related disclosures for FY24, which form part of our separate
Sustainability Report. Stride’s FY24 Sustainability Report
and Climate-Related Disclosures can be found here:
www.strideproperty.co.nz/investor-centre/. As our climate-
related disclosures for FY24 show, a great deal of work has
been invested in further developing and understanding our
climate-related risks and opportunities, including integrating
these into Stride’s overall enterprise risk management process.
While we acknowledge there is further work to do, the Stride
Boards are pleased with progress to date, which provides a
strong platform for integrating climate risk into our business
strategy and processes.
Tim Storey
Chair,
SPL and SIML
Philip Littlewood
Chief Executive Officer,
SIML
1. Stride’s FY20 baseline year has been recalculated during FY24 in line with Stride’s
baseline recalculation policy which requires the baseline to be recalculated when
there is a movement of more than 10% of total portfolio net lettable area. See
Stride’s FY24 Sustainability Report for further information.
2. See glossary on page 138.
Outlook
Stride expects the challenging macroeconomic conditions
to continue during FY25, which may result in continued
reduced levels of activity, thus impacting SIML’s activity based
management fees. The Government has implemented changes
to the tax deductibility of depreciation on commercial buildings,
and this will negatively impact Stride’s FY25 earnings compared
with FY24.
For these reasons, we expect FY25 to continue to present
challenging conditions for the commercial property sector.
However, as these challenging conditions persist, this can
create opportunities for SIML’s real estate investment
management business.
Stride will continue to take a conservative approach to capital
management in the current economic environment, including
close management of our balance sheet and costs.
We will focus on ensuring our assets continue to
demonstrate enduring demand through upgrades, and
where we are refurbishing an asset, we will always consider
upgrades to improve the commercial and sustainability
performance of the asset.
The Boards confirm they currently intend to pay a combined cash
dividend for SPL and SIML for FY25 of 8.00 cents per share,
consistent with our policy of targeting a total cash dividend that
is between 80% and 100% of SPL’s distributable profit
2
and
between 25% and 75% of SIML’s distributable profit.
On behalf of the Boards and staff, thank you for your
continued support of Stride Property Group.
Stride Property GroupStride Property GroupAnnual Report 2024Annual Report 202489

Board of
Directors
Tim Storey
LLB, BA
Independent Director, Chair
of the Board and Chair of the
Remuneration and Nomination
Committee
Term of Office: Appointed to SPL
on 1 April 2009 and to SIML on
16 February 2016; last elected 2022
annual meeting
Tim was appointed Chair of Stride in
2009. He has more than 30 years’
experience across a range of sectors
and has practiced as a lawyer in New
Zealand and Australia, retiring from the
Bell Gully partnership in 2006. Tim is a
member of the Institute of Directors in
New Zealand (Inc), a director of Investore
Property Limited, and director of a
number of private companies.
Michelle Tierney
GAICD, BA, MBA
Independent Director
Term of Office: Appointed to SPL on
17 July 2014 and to SIML on 16 February
2016; last elected 2023 annual meeting
Michelle has more than 30 years’
experience in the property industry,
with a background in funds
management, real estate investment,
property and asset management, and
sustainability. Michelle is currently a
director of ASX listed Growthpoint
Properties Australia, ASX listed PEET
Ltd, Cotton Research and Development
Corporation, and Uniting NSW &
ACT, one of the largest not-for-profit
organisations in Australia. Michelle was
previously Chief Operating Officer of
ASX 100 company Region Property
Group (formerly SCA Property Group)
in Australia, General Manager of
Business Development and Strategy
for the National Australia Bank Global
Institutional Bank, Fund Manager of
the $3.8b GPT Wholesale Shopping
Centre Fund and Head of Property
and Asset Management for ASX50
company The GPT Group. Michelle is a
graduate and member of the Australian
Institute of Company Directors and
Women on Boards Australia.
Ross Buckley
BBS, FCA, FCPA, CMInstD
Independent Director and Chair of
the Audit and Risk Committee
Term of Office: Appointed to SPL and
SIML on 9 August 2021; elected 2021
annual meeting
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 and a member of
KPMG’s Asia Pacific Board and KPMG’s
Global Council. During his career with
KPMG he managed the firm’s Audit,
Risk and Tax practices, in addition to the
firm’s People, Performance and Culture
function. Ross is a director of ASB Bank
Limited, Investore Property 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.
Tracey Jones
BCom, CA, CMInstD
Independent Director
Term of Office: Appointed to SPL and
SIML on 11 April 2023; elected 2023
annual meeting
Tracey has considerable experience
in accounting and finance, as well
as funds management. Tracey
worked for 15 years with Tappenden
Holdings, including as COO and
CFO, managing a large investment
portfolio that included a number of
property interests. Tracey moved into
a governance career in 2016, and is
currently an independent director of
Partners Life, and independent chair
of Nikko Asset Management NZ, and
Welcome Limited.
Jacqueline Cheyne
BAcc, FCA, CMInstD
Independent Director and Chair of
the Sustainability Committee
Term of Office: Appointed to SPL and
SIML on 13 March 2019; last elected
2022 annual meeting
Jacqueline has 25 years of experience
in financial audit and advisory services,
including 11 years as a partner at
Deloitte in audit and assurance.
Jacqueline led Deloitte’s Corporate
Responsibility and Sustainability
services function for Deloitte New
Zealand for nine years. Jacqueline is
currently a Member of the External
Reporting Board, and the recently
established Sustainability Reporting
Board, a member of the Audit
Oversight Committee of the Financial
Markets Authority, chair of Snow Sports
NZ, and a director of New Zealand
Green Investment Finance Limited,
Queenstown Airport Corporation and
Pioneer Energy Limited.
Nick Jacobson
LLB, BCom
Independent Director
Term of Office: Appointed to SPL and
SIML on 18 July 2019; last elected
2021 annual meeting
Nick has over 30 years’ experience
with leading global investment
banks and global financial services
companies, specialising in real
estate advisory and capital markets
across Australia, Europe, and Asia.
Nick is currently Managing Director
at Wingate in Sydney, Australia,
responsible for investing in significant
CRE private credit transactions. Nick
was previously Managing Director
and Head of Investment Banking
Services at Goldman Sachs Australia,
and Chairman of Goldman Sachs’ Real
Estate Investment Banking division.
Stride Property GroupStride Property GroupAnnual Report 2024Annual Report 20241011

People
Stride’s people are essential to its success, and we
demonstrate this through internally promoting our people,
providing a favourable benefit package, and seeking to
support the wellbeing of our people
Stride seeks to promote its people to fill vacant internal
positions where possible. During FY24 this resulted in six SIML
people being appointed to new positions internally, providing
our people with development opportunities and demonstrating
the value we place on our people.
SIML offers a number of benefits to our people, focussed
on wellbeing, recognition and reward, social benefits,
and learning and development. SIML regularly reviews
these benefits to ensure that we are supporting our
employees in areas that matter to them. This year, the
SIML Board reviewed SIML’s parental leave benefits
and determined to provide further support:
• Full pay for primary carers for 14 weeks, as a top up to the
Government-provided parental leave financial contribution
• Employer KiwiSaver contributions for 14 weeks for
primary carers
• Annual leave taken in the 12 months after returning
from parental leave paid at the higher of average
weekly earnings or ordinary weekly pay
Stride’s head office is located in its office building at
34 Shortland Street, Auckland, which is undergoing a
refurbishment and upgrade. The works have included the
installation of modern and convenient end of trip facilities,
encouraging workers at the building, including SIML’s
people, to take active modes of transport to work – walking,
running and cycling. Over FY24 SIML undertook two
employee commuting surveys, and the most recent survey,
completed in March 2024 when the end of trip facilities
had been completed, showed that SIML head office staff
were driving less and cycling or walking to work more.
At the same time as upgrading the public amenities at
34 Shortland Street, SIML has refurbished its office, to provide
a modern and inviting space for our people to work and enjoy.
Stride is proud to sponsor the Graeme Dingle Foundation, which
is focussed on inspiring young people across New Zealand to
realise their potential through school and community-based
programmes that help build self-esteem, promote good
values and teach valuable life, education and health skills. In
addition to its sponsorship of the Graeme Dingle Foundation,
during FY24 SIML staff participated in a volunteer day with
the Graeme Dingle Foundation at Te Hōnonga a Iwi restoration
site at Rosedale Park, Auckland, to help build a fence for the
chicken enclosure and clear pest plants. The day comprised
hard work, learning and social engagement, with opportunities
to understand how the Graeme Dingle Foundation lives by the
values it teaches to young people throughout New Zealand,
and to learn more about the Te Hōnonga a Iwi restoration site.
Stride Property GroupStride Property GroupAnnual Report 2024Annual Report 20241213

Executive Team
Philip Littlewood
BProp, BCom, MBA
Chief Executive Officer
Philip joined Stride in 2014, being appointed as Chief Executive Officer in 2017,
and is responsible for the overall strategy and management of Stride. Philip has
extensive experience in property investment, funds management, development,
asset management and financing.
Philip previously worked in property investment management in New Zealand
and England, including roles in private equity, and with Morgan Stanley and AMP
Capital Investors.
Jennifer Whooley
CA
Chief Financial Officer
Jennifer has more than 25 years’ experience in the property industry and is responsible
for Stride’s overall financial plans and policies, ensuring the compliance of its
accounting practices. Jennifer is also responsible for the people and culture function
within Stride. Prior to joining Stride, Jennifer was Chief Accountant for Fletcher
Property. Jennifer was named the EY CFO of the Year for 2018.
Mark Luker
Dip.Val.Prop
General Manager Development
Mark is responsible for Stride’s development activities. He has over 25 years of
experience in the property development and investment industry, acquired through
complex large-scale retail and commercial development projects, both within New
Zealand and Australia. Mark joined Stride from Kiwi Property Group, where he held the
roles of General Manager Development and Project Director, Sylvia Park.
Adam Lilley
BCom, LLB, CA
General Manager Investment / Investore Fund Manager
Adam has over 10 years’ experience in the property and finance industries, and was
previously an Institutional Equities Research Analyst at Craigs Investment Partners,
specialising in the NZ listed property sector. Prior to that, Adam was an Investment
Manager at Stride and rejoined in 2021 to lead Stride’s Investment team. In FY23
Adam also took responsibility for managing the Investore business as Investore Fund
Manager.
Jessica Rod
BProp, BA
General Manager Office
Jessica is the General Manager Office and is responsible for growing and managing
Stride’s office portfolio. Jessica has been with Stride for over 20 years, and prior to
her current role was an Investment Manager. Jessica has been responsible for a
number of recent office acquisitions, including the acquisition of the property at
110 Carlton Gore Road, Auckland.
Roy Stansfield
ACA
General Manager Shopping Centres
Roy is responsible for the shopping centre portfolios owned and managed by Stride.
His role includes all aspects of asset management, retail leasing and planning. Roy has
30 years’ experience in the retail shopping centre industry. Prior to joining Stride, he
was employed by Challenge Properties, St Lukes Group and Kiwi Property Group.
Louise Hill
BCom, LLB
General Manager Corporate Services
Louise has more than 20 years’ legal experience and is responsible for a range
of corporate functions within Stride, including legal, governance, compliance, IT,
insurance, health and safety, sustainability and risk. Louise’s previous roles included
Head of Legal (NZ) for Fletcher Building and senior associate in the corporate/
commercial team at Bell Gully.
Stride Property GroupStride Property GroupAnnual Report 2024Annual Report 20241415

Performance
Distributable
profit
1
growth
FY24 look-through
revenue sources
3
SIML management fees
2
1. See glossary on page 138.
2. Net of management fees received from SPL.
3. Stride’s revenue comprises SIML management fees and SPL income derived from its directly held property plus
revenue derived from its interests in the Stride Products, which is calculated based on net Contract Rental on
a look-through basis as at 31 March 2024. Management fees comprise FY24 management fees from Stride
Products (i.e. excluding fees from SPL).
Stride has continued to grow its distributable profit
1
in
FY24, including as a result of acquisition and leasing activity,
despite challenging economic conditions which have
impacted SIML’s asset management fees
Challenging market conditions have led to a fall in activity across the Stride Products
during FY24, impacting SIML’s activity-based management fees. In addition, the
higher interest rate environment has led to higher capitalisation rates which has
resulted in lower portfolio valuations across the Stride Products, leading to lower asset
management or recurring fees, which are based on asset values. Activity based fees are
directly impacted by economic cycles and will therefore be expected to improve as the
economy recovers.
Stride’s exposure to a range of commercial asset classes, together with its real estate
investment management business, means that Stride has diversification in its revenue
sources, providing a level of resilience across varying market conditions.
OfficeRetail Shopping Centres/Town Centres
Recurring management fees
Large Format Retail
IndustrialActivity and performance fees
$12.6m
$2.1m
$14.7m
FY19
$12.3m
$5.0m
$17.3m
FY20
$13.5m
$10.7m
$24.2m
FY21
$8.2m
$24.3m
$16.1m
FY22
$23.3m
$5.7m
$17.6m
FY23
$19.9m
$3.7m
$16.2m
FY24
FY22
$54.2m
FY23
$57.6m
FY24
$59.1m
FY21
$46.3m
FY20
$37.7m
Activity and performance fees
Recurring fees
36%
20%
11%
16%
14%
3%
FY19
$38.8m
Stride Property GroupStride Property GroupAnnual Report 2024Annual Report 20241617

Developments
SIML has an experienced development team that
has continued to deliver high quality, sustainable
developments for SPL and the Stride Products during
FY24, delivered on time and within budget.
Three major projects were completed or progressed
during FY24, which builds on the successful projects
completed by the SIML development team in prior years,
including the award-winning development of the Waste
Management Auckland Headquarters, which won the
New Zealand Property Council Supreme Award and the
redevelopment of 22 The Terrace, Wellington, which
was awarded an Excellence in Green Building Award at
the 2022 Property Industry Awards.
The SIML development team delivers quality projects
for the Stride Products, providing investors with
investments they might not otherwise have been able
to access. The delivery of successful projects creates
a capability within SIML which ensures ongoing
development management fee income for SIML,
and additional assets under management.
New industrial development
at 34 Airpark Drive, Auckland –
delivered on time and within budget
for Industre, and targeting a 5 Green
Star As Built rating. This property
was leased on completion to DHL for
a 10 year term, and delivers a yield
on cost of 5.8% (including land).
New Woolworths supermarket
at Waimakariri Junction, created for
Investore – delivered on time and within
budget, achieved a 5 Green Star Design
rating and targeting a 5 Green Star As
Built rating. This property has been
leased to Woolworths for an initial term
of 12 years, and a total term of 35 years
if all rights of renewal are exercised. The
development will deliver a yield on cost
of 5.5% (including land).
Completion of lobby and end of trip
refurbishment projects forming
part of the ongoing upgrade of the
office property at 34 Shortland Street,
Auckland. The next phase of the
upgrade, involving heating and cooling
efficiency upgrades, is expected
to enable this building to achieve a
minimum 4 star NABERSNZ rating.
Stride Property GroupStride Property GroupAnnual Report 2024Annual Report 20241819

Products
1. See glossary on page 138.
2. Includes Johnsonville Shopping Centre, which is owned 50:50 by SPL and Diversified.
3. Commitments include: (1) SPL: building upgrades at 34 Shortland Street, Auckland, and 215 Lambton Quay, Wellington (committed post balance date), and various capital
expenditure commitments contracted for (refer note 3.4 to the consolidated financial statements); (2) IPL: various capital expenditure commitments; and (3) Industre:
development of the property at 16A Wickham Street, Hamilton, and the purchase price of the property at 160 Higgins Road, Hamilton, which was committed to and settled post
balance date.
4. Excludes: (1) SPL’s 51.7% interest in the joint operation component of the Industre Property Joint Venture which is reported as part of the assets of SPL in the consolidated
financial statements (refer note 3.2 to the consolidated financial statements); and (2) lease liabilities. Stride’s office portfolio value includes: (1) the value of Stride’s office at
34 Shortland Street, Auckland, which is shown in the consolidated financial statements as ‘Property, plant and equipment’; and (2) the value of the rental guarantee receivable
in relation to 110 Carlton Gore Road, Auckland.
5. Excludes lease liabilities.
SIML manages a group of entities
that invest in commercial property,
which we call the Stride Products.
The Stride Products comprise both
listed and unlisted entities, providing
diversification of opportunities in
varying market conditions. Stride will
continue to build portfolios of assets
within SPL that could be used for
the establishment of future Stride
Products, when market and economic
conditions are conducive.
Stride is an NZX listed entity which comprises SPL
and SIML. SPL is the property owning entity, directly
owning a portfolio of office and town centre assets
as well as an interest in each of the Stride Products.
SIML is the manager of the Stride Products
Investore is an NZX listed entity and owns a portfolio
of large format retail properties
Industre is a joint venture between Stride and
JPMAM
1
and owns a portfolio of industrial assets
primarily located in the Auckland region
Diversified is a trust that is primarily owned by two
Australian superannuation entities, with SPL owning
2.1%. Diversified owns shopping centre assets in
New Zealand
Portfolio composition
as at 31 March 2024
SIML management platform as at 31 March 2024 (including development properties)
Stride structure as at 31 March 2024
Value of investment
properties ($m)

Number of investment
properties

SPL investment in
Stride Products
Office and town centre portfolio
4
1,023.311
2
100%
988.2
5
4718.8%
726.02251.7%
414.03
2
2.1%
$414m
$390m
$24m
$705m
$284m
$35m
$1,031m
$8m
$1,003m
$972m
5
$17m
$14m
Note: Numbers in chart may not
sum due to rounding.
Office
Retail Shopping Centres/
Town Centres
Property categorised as
‘Development and Other’
Large Format Retail
Industrial
Commitments
3
Management Agreement
Directly owned portfolio
Ownership Interests
SIML manages
the business
and assets of
these entities
Stride Investment Management Limited
(Real estate investment manager)
Stride Property Group
• Owns 22 industrial properties
valued at $726m
• Owns 3 shopping centre
properties
2
valued at $414m
• Owns 47 large format retail
properties valued at $988m
• 6 offices valued at $705m
• 3 shopping centres valued
at $284m
• 2 development assets
2

valued at $35m
Stride Property Limited
(Property owner and investor)
18.8%
51.7%
2.1%
$777m
$676m
$50m
$51m
4
Stride Property GroupStride Property GroupAnnual Report 2024Annual Report 20242021

SPL Look-Through
Portfolio
As at 31 March 2024, SPL’s commercial property interests comprise:SPL’s weighted look-
through portfolio
1,4
as at
31 March 2024
ownership interest in office
and town centre assets
100%
ownership interest in
Industre’s industrial portfolio
51.7%
ownership interest in
Investore’s large format
retail portfolio
18.8%
ownership interest in
Diversified’s shopping
centre assets
2.1%
Office
Retail Shopping Centres/
Town Centres
Large Format Retail
Industrial
Stride’s exposure to the office sector on a look-through basis has increased
from 39% as at 31 March 2023 to 46% as at 31 March 2024 as a result of the
acquisition of the office property at 110 Carlton Gore Road, Auckland. Stride
intends to create a new Product using its directly held office assets when market
and economic conditions are conducive, which would be expected to result in its
exposure to the four core commercial property sectors becoming more evenly
balanced over time.
46%
19%
12%
23%
1. All metrics relate to the stabilised investment portfolio, and exclude properties categorised as ‘Development and Other’ in the respective financial statements.
2. Excludes lease liabilities. Includes the value of Stride’s office at 34 Shortland Street, Auckland, which is shown in the consolidated financial statements as ‘Property, plant and
equipment’, and the value of the rental guarantee receivable in relation to 110 Carlton Gore Road, Auckland.
3. See glossary on page 138.
4. Excludes committed acquisitions and developments, and lease liabilities.
Look-through value
2
($m) 1,529.2
Look-through WALT
3
(years)
6.8
Look-through occupancy (%)97.2
These interests provide SPL with a diversified portfolio
1
with strong
metrics, while also ensuring alignment of interests between Stride and
the Stride Products
Stride Property GroupStride Property GroupAnnual Report 2024Annual Report 20242223

SPL Portfolio
1. Excludes: (1) SPL’s 51.7% interest in the joint operation component of the Industre Property Joint Venture which is reported as part of the assets of SPL in the consolidated
financial statements (refer note 3.2 to the consolidated financial statements); and (2) properties categorised as ‘Development and Other’ in the consolidated financial statements.
2. Excludes properties categorised as ‘Assets classified as held for sale’ in Stride’s FY23 consolidated financial statements.
3. See glossary on page 138.
4. Occupancy has been calculated including casual licences with an initial term greater than three months, and excluding units held for committed redevelopment or remix works.
5. Property age measured since construction or last major refurbishment.
6. Excludes lease liabilities. Includes the value of Stride’s office at 34 Shortland Street, Auckland, which is shown in the consolidated financial statements as ‘Property, plant
and equipment’.
7. Includes the value of the rental guarantee receivable in relation to 110 Carlton Gore Road, Auckland.
31 March 2024 31 March 2023
2
Properties (no.)98
Tenants (no.)230233
Net Lettable Area (sqm)131,213117,063
Net Contract Rental
3
($m)61.951.9
WA LT
3
(years)5.95.5
Occupancy Rate
4
(% by area)96.097.3
Weighted Average Age
5
(years)11.112.0
Weighted Average Capitalisation Rate (%)6.36.2
Portfolio Value
6
($m)988.0
7
846.6
SPL’s directly held portfolio
1
comprises office and town
centre properties with enduring demand
Stride Property GroupStride Property GroupAnnual Report 2024Annual Report 20242425

Office
1. Unless otherwise stated, all metrics relate to the SPL office portfolio as set out in note 3.2 to the consolidated financial statements, and exclude
properties categorised as ‘Development and Other’ in the consolidated financial statements.
2. Green rated buildings for SPL’s office properties comprise buildings that have a NABERSNZ rating or Green Star (Design and/or As Built) rating.
3. See glossary on page 138.
4. Includes 55 Lady Elizabeth Lane, Wellington, which is classified as ‘Development and Other’ in the consolidated financial statements.
5. Excludes properties categorised as ‘Assets classified as held for sale’ in the FY23 consolidated financial statements.
6. Includes the value of Stride’s office at 34 Shortland Street, Auckland, which is shown in the consolidated financial statements as ‘Property, plant
and equipment’.
7. Includes the value of the rental guarantee receivable in relation to 110 Carlton Gore Road, Auckland.
SPL has continued
to transform its
office portfolio
1

to meet market
demand for high
quality, sustainable
buildings
During FY24 SPL completed the acquisition of the new, 6 Green Star Design rated
office property at 110 Carlton Gore Road, Auckland, while also progressing a number
of upgrade works at its property at 34 Shortland Street, Auckland, as described on
pages 28 and 29 of this report.
FY24 also saw the sale of the property at 22 The Terrace, Wellington, which Stride
had redeveloped, upgrading it into a 5 Green Star rated building, with the building
being awarded a Green Building Excellence Award at the 2022 New Zealand Property
Industry Awards, and an Excellence in Sustainability Award at the 2021 Wellington
Property People Awards.
Stride is developing expertise in taking older buildings, such as 22 The Terrace and
34 Shortland Street and transforming them into more modern, high quality, energy
efficient and sustainable buildings. We believe this expertise will be valuable given the
need to transition to a low carbon future.
As at 31 March 2024:
SPL has continued to see strong rental growth in its office portfolio during FY24,
with 42 rent reviews and renewals completed across 36,000 sqm, resulting in a
4.4% increase on prior rentals.
Post balance date, an anchor tenant at SPL’s Prime grade quality office building at
20 Customhouse Quay, Wellington, has elected to exercise a renewal right early,
extending the current lease term to 2039. This is a positive statement of intention from
a material tenant at this location, and has a significant impact on the WALT
3
for the
office portfolio, taking WALT on a pro forma basis as at 31 March 2024, to 7.4 years.
Net market rental for SPL’s office portfolio

also moved favourably during the period,
increasing by 2.2% across the office portfolio from 31 March 2023, partly offsetting the
capitalisation rate movement of +26 basis points. This resulted in a net reduction in fair
value for the whole office portfolio
4
of $(61.0) million or (7.8)% from 31 March 2023.
92% of the office portfolio

by value is green rated
2
,
with 73% by value rated 5 Green Star or higher
83% of the office portfolio

by value are Prime or
A grade assets
51% of the office portfolio

by value is located in
Auckland, with the remainder in Wellington
31 March 2024 31 March 2023
5
Properties (no.)65
Tenants (no.)7273
Net Lettable Area (sqm)72,53858,384
Net Contract Rental
3
($m)41.131.4
WA LT
3
(years)6.96.2
Occupancy Rate (% by area)94.695.4
Weighted Average Capitalisation Rate (%)5.95.7
Portfolio Value
6
($m)704.5
7
553.1
Key investment portfolio
1
metrics
Stride Property GroupStride Property GroupAnnual Report 2024Annual Report 20242627

Transforming
34 Shortland Street
SPL acquired the office building at
34 Shortland Street, Auckland,
in 2020, and since that time has
undertaken a number of improvements
to ensure that the building continues
to have enduring demand. Net market
rentals for this property increased
15% since September 2022, which
was prior to works commencing.
This property still has gas boilers,
and SPL plans to upgrade these
boilers over the coming years.
Once this work has been completed,
34 Shortland Street will have been
transformed into a high quality, energy
efficient property, demonstrating the
improvements that can be made to an
older building while still retaining
the structure.
Lobby redeveloped into a bright and welcoming
space, regenerating the building entrance and
providing a high quality place for people to gather
End of trip facilities installed, providing a modern,
convenient and comfortable changing space
for workers, encouraging more active modes
of transport
Thoroughfare from Fort Street to Shortland Street
refurbished, including installation of new, efficient
escalators
Renovation of on-floor lift lobbies continues,
together with floor refurbishments to create
modern, high quality turnkey fitouts
Upgrade of mechanical systems to improve
the energy efficiency of the building in progress,
targeting a minimum 4 star NABERSNZ rating
upon completion
Seismic strengthening completed, taking the
building to 100% NBS
Stride Property GroupStride Property GroupAnnual Report 2024Annual Report 20242829

Town Centres
SPL’s town centre portfolio
1
continues to benefit from strong
growth in the catchment areas of the centres, with moving
annual turnover increasing, contributing to higher rents
across the portfolio
1. Unless otherwise stated, all metrics relate to the SPL town centre portfolio as set out in note 3.2 to the consolidated financial statements, and exclude SPL’s 50% interest in
Johnsonville Shopping Centre, which is classified as ‘Development and Other’ in the consolidated financial statements.
2. Retail Catchment Analysis NorthWest Shopping Centre, prepared by Colliers for Stride and dated November 2023.
3. Retail Catchment Analysis Silverdale Centre, prepared by Colliers for Stride and dated November 2023.
4. See glossary on page 138.
5. Sales data is not collected for all tenants at Silverdale Centre as not all tenants are obliged to provide this information under the terms of their lease.
6. Includes SPL’s 50% interest in Johnsonville Shopping Centre, which is owned 50:50 by SPL and Diversified and is classified as ‘Development and Other’ in the consolidated
financial statements.
7. Occupancy has been calculated including casual licences with an initial term greater than three months, and excluding units held for committed redevelopment or remix works.
8. Excludes lease liabilities.
SPL’s town centre assets

are located at NorthWest and
Silverdale, both Auckland suburbs which are growing
strongly, and forecast to have continued growth.
There have been 27,978 residential building consents issued
in the NorthWest catchment between 2020 and 2023
2
.
The population in the NorthWest primary catchment area is
forecast
2
to increase by 133% between 2018 and 2048,
delivering strong demand for the NorthWest town centre.
Moreover, the growing population has average household
spending per capita 8% higher than the Auckland average
2
.
The SPL town centres have also seen strong rent reviews as
a result of this sales performance, with 124 rent reviews and
renewals completed across the portfolio during FY24, delivering
a 5.8% increase on prior rentals, primarily driven by CPI-linked
rent reviews.
While we have seen an increase in council rates and insurance
during FY24, SIML’s management of costs, together with
increased sales, has resulted in specialty gross occupancy cost
4

across the portfolio remaining steady at 11.0% of store sales
for FY24.
The Silverdale area is similarly demonstrating strong
growth, with 6,899 residential building consents issued
between 2020 and 2023
3
, and the Silverdale primary
catchment population forecast
3
to increase by 44%
between 2018 and 2048. As with the NorthWest
catchment, the Silverdale catchment shows strong
spending trends, with average household spending per
capita 11% higher than the Auckland average
3
.
Across the SPL town centres, specialty moving annual turnover
4
(MAT) was up 2.9% in the 12 months to 31 March 2024.
Both NorthWest town centre and Silverdale Centre have
delivered strong growth since FY17, with NorthWest town
centre delivering average moving annual turnover or MAT
4

growth of 6.0% per annum since FY17, while Silverdale
Centre
5
has delivered average MAT growth of 4.8% per annum
over the same period – a period that includes the years affected
by Covid-19.
Market rents have remained stable over FY24, increasing 0.6%
across the town centre portfolio, which have partially offset a
33 basis point increase in capitalisation rates, largely as a result
of the higher interest rate environment. This has led to a total
portfolio
6
net valuation movement of $(11.3)m or (3.5)% over
the 12 months to 31 March 2024.
SPL MAT
4
growth since 2017
31 March 2024 31 March 2023
Properties (no.)33
Tenants (no.)158160
Net Lettable Area (sqm)58,67558,679
Net Contract Rental
4
($m)20.720.5
WA LT
4
(years)3.84.5
Occupancy Rate
7
(% by area)97.899.2
Weighted Average Capitalisation Rate (%)7.37.0
Portfolio Value
8
($m)283.5293.5
FY17FY18FY19FY20FY21FY22FY23FY24
NorthWest
Silverdale
5
NorthWest
+6.0% pa
Silverdale
5

+4.8% pa
Key investment portfolio
1
metrics
Stride Property GroupStride Property GroupAnnual Report 2024Annual Report 20243031

31 March 2024 31 March 2023
Properties (no.)4544
Tenants (no.)144143
Net Lettable Area (sqm)255,898249,906
Net Contract Rental
4
($m)63.761.8
WA LT
4
(years)7.48.1
Occupancy Rate (% by area)99.199.5
6

Weighted Average Capitalisation Rate (%)6.45.7
Portfolio Value
2
($m)971.91033.2
Investore’s investment portfolio of large format retail properties
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
1. 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/
(loss) before income tax, is set out in note 3.2 to
Investore’s consolidated financial statements.
2. Excludes lease liabilities. Includes all properties
in Investore’s portfolio, including assets classified
as ‘Development and Other’ in Investore’s
consolidated financial statements.
3. Unless otherwise stated, all metrics exclude
properties categorised as ‘Development and
Other’ in note 2.2 to the Investore consolidated
financial statements.
4. See glossary on page 138.
5. 16 properties have a Green Star Performance
rating and one property has a Green Star
Design rating.
6. Vacant tenancies with current or pending
development works are excluded from occupancy
statistics. As at 31 March 2023, metric excluded
2,947 sqm at Bay Central Shopping Centre,
Tauranga.
The Investore portfolio is valued
2
at $1.0bn as at 31 March
2024, representing a net valuation decrease of $(98.7)m or
(9.1)% from 31 March 2023. This decrease is primarily due
to the sustained high interest rate environment which has
resulted in the average portfolio
3
capitalisation rate increasing
to 6.37%, up 67 basis points from 31 March 2023.
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:
Investore’s portfolio comprises
45 large format retail properties,
from standalone supermarkets to
large format retail centres, with a
high concentration of nationally
recognised brands and tenants
that provide ‘everyday needs’.
net rental income
Up $1.0m from FY23
$61.2m
loss after income tax
Compared to a loss after income
tax of $(150.2)m for FY23
$(67.1)m
distributable profit
1
after
current income tax
In line with FY23 at $31.0m
$31.0m
Completion of the development of
the 5 Green Star Design rated
Woolworths Waimakariri Junction, on
time and within budget at a cost of
$26.1m (including land)
Agreement with Woolworths to fund
the expansion of the online fulfilment
facilities at Woolworths Greenlane,
including 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
SIML, on behalf of Investore, completed
65 rent reviews across the portfolio,
representing more than 96,000 sqm,
delivering a rental increase of 3.1% on
prior rentals
45 properties
144 tenants
7.4 years weighted average lease term
99.1% portfolio occupancy by area, rising
to 99.4% including leases agreed post
balance date
78% of leases by Contract Rental
4
expiring
in FY30 and beyond
43% of portfolio by value has a
green rating
5
Portfolio
3
overview
Key investment portfolio
3
metrics
Stride Property GroupStride Property GroupAnnual Report 2024Annual Report 20243233

Investore targets all new developments to achieve a 5 Green Star rating. Consistent with
this commitment, SIML was proud to have delivered a new Woolworths supermarket at
Waimakariri Junction for Investore during FY24. This development was a collaboration
between Investore and Woolworths New Zealand, with a number of sustainability
initiatives implemented to achieve a 5 Green Star Design rating, which equates to
a standard of “New Zealand excellence”. SIML and Investore expect this building to
achieve a 5 Green Star As Built rating, currently in progress.
Sustainable development
– Woolworths
Waimakariri Junction
Sustainable construction
• Utilisation of low carbon concrete and low embodied carbon materials where
appropriate
• 82% of waste by weight diverted from landfill during construction through
demolition and construction waste being reused, recycled or aided by low
waste prefabrication
Operational efficiency
• 480 sqm of solar panels installed on the roof
• 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
• Thermal insulation and double glazing installed to reduce heat loss and gain
• 100% low energy LED lighting installed
• Reduction of typical water consumption (when compared to a reference
building) through the installation of low water use plumbing fittings
Benefits to people
• Durable, low toxicity materials used throughout the development where
appropriate, including adhesives, paints, sealants, carpets, ceiling tiles, and
composite timber board products
• Electric vehicle chargers installed for customer convenience
• 16% of parking spaces reserved for fuel-efficient vehicles
• End of trip facilities installed, including designated bicycle parking for staff and
customer bicycle storage facilities to encourage cycling to the store
1. LVR is calculated based on independent valuations, which exclude lease liabilities, and excludes 507 Pakuranga
Road, Development asset (see note 2.2 to the Investore consolidated financial statements).
2. Reflects dividends reinvested for Q1 to Q3 of FY24 under the dividend reinvestment plan, and the reduced
dividend for Q3 of FY24.
Investore remains committed to a proactive approach to capital management,
which, during FY24, included the adoption of a dividend reinvestment plan,
and the revision of its dividend policy to balance income returns for investors
while retaining additional capital to improve balance sheet resilience.
Capital management
88% debt hedged or subject to a fixed rate of interest
as at 31 March 2024
4.3% weighted average cost of debt as at
31 March 2024
40.8% loan to value ratio
1
as at 31 March 2024, up
from 36.5% as at 31 March 2023 primarily due to a net
investment property devaluation
$8.2m cash retained as a result of the adoption of
the dividend reinvestment plan and reduction in
dividend guidance
2
2.1 years weighted average maturity of debt facilities as
at 31 March 2024
Investore’s fixed rate bond IPL010 was repaid post
balance date using $100m of new bank debt. Post
the maturity of this bond, Investore now has no debt
maturing until FY26
Stride Property GroupStride Property GroupAnnual Report 2024Annual Report 20243435

1. Unless otherwise stated, all metrics refer to Industre’s portfolio of investment assets and exclude properties categorised as ‘Development and Other’ in Industre’s
financial statements.
2. See glossary on page 138.
3. Based on Industre’s valuation reports as at 31 March 2024 and comparing passing rent to market rent on a face rental basis.
4. Includes properties categorised as ‘Development and Other’ in Industre’s financial statements.
31 March 2024 31 March 2023
Properties (no.)1919
Tenants (no.)5370
Net Lettable Area (sqm)181,528185,049
Net Contract Rental
2
($m)33.733.3
WA LT
2
(years)10.09.7
Occupancy Rate (% by area)97.899.9
Weighted Average Capitalisation Rate (%)5.85.2
Portfolio Value ($m)676.4715.9
Industre has continued its focus on new developments and
acquisitions, and continues to see strong growth in rentals
across its portfolio
1
of industrial properties
During FY24, SIML, on behalf of Industre, completed the
development of a new industrial building at 34 Airpark Drive,
Auckland. This development, now tenanted by DHL on a 10 year
lease (which also tenants the neighbouring Industre property
at 30 Airpark Drive), incorporates a number of sustainability
initiatives, targeted to achieve a 5 Green Star As Built rating
(currently in progress). This project delivered a development
margin of 15% on completion.
Industre has also agreed to construct a new development at its
property at 16A Wickham Street, Hamilton. On completion, the
property will be leased to an existing Industre tenant for a
15 year term. This new development ensures that Industre
retains its valuable tenant, as its existing premises no longer
suit the tenant’s needs.
The total cost of the new development is expected to be
approximately $31m (excluding land), and will provide a yield on
cost of between 6.0% and 6.75% (including land), depending
on final scope and metrics. The development is expected to
be complete in the second half of FY26. SIML will manage the
development of the new facility on behalf of Industre. Consistent
with previous growth activity, JPMAM
2
have agreed to fund the
equity required for this development.
Post balance date, Industre has acquired 7.9 hectares of land
at Hamilton, which it has agreed to lease back to the vendor for
clean fill operations for a 5 year term. This property provides
future development opportunities for Industre, consistent with
its strategy of targeted acquisitions providing development
opportunities.
Industre’s approach is to identify properties with underutilised
sites in preferred locations, and where the existing assets
provide short term income until the asset can be redeveloped.
Industre, through its manager, SIML, then redevelops these
sites, often in collaboration with tenants, to provide investors
with prime industrial assets with enduring tenant demand and
enhanced returns.
During FY24 Industre also sold two properties, at
22 Ha Crescent and 15 Ride Way, both in Auckland, at an
aggregate sale price of $43.5m, 10% above the combined
book value for the assets, evidencing the strong Auckland
industrial market. Industre was able to make a distribution to
SPL and JPMAM as a result of the sale of these properties.
In addition to the development activity in the portfolio, SIML has
also concluded a number of rent reviews and renewals, with rent
reviews across the Industre portfolio

delivering an increase of
3.9% on prior rentals, while renewals have delivered an increase
of 23.5% on prior rentals.
Net market rental for the Industre portfolio has increased by
6.7% over the 12 months to 31 March 2024. These market
rental movements have resulted in the Industre portfolio having
a potential reversion to market
3
of +18.8%. With 28.9% of
Contract Rental
2
subject to market review or expiry over FY25
and FY26, this provides the potential for Industre to capture
these higher market rents.
Higher market rents across the industrial portfolio offset some
of the capitalisation rate movement, resulting in a total portfolio
4
net valuation movement for the 12 months to 31 March 2024 of
$(29.0)m or (3.8)%.
Key investment portfolio
1
metrics
Stride Property GroupStride Property GroupAnnual Report 2024Annual Report 20243637

34 Airpark Drive –
Sustainable development
SIML is proud to have managed the development of a new industrial property at
34 Airpark Drive, Auckland, for Industre. This new development incorporates a number of
sustainability initiatives, consistent with the sustainability objectives of Stride and Industre.
Solar panel array installed, delivering on-site
renewable generation
Rainwater harvesting facilities provide a water reuse
system for toilets and irrigation
Energy, water metering and building management
system installed to enable accurate monitoring of
energy efficiency
Dedicated carparks provided for electric vehicles and
low emission vehicles, together with electric vehicle
chargers
End of trip amenities installed, encouraging active forms
of transport for workers
Reduction of whole-of-life embodied carbon of 48%
compared to a reference industrial building
82% of construction waste by weight diverted
from landfill
Targeting 5 Green Star As Built rating (in progress)
Financial Information
Summarised statement of financial position
as at 31 March 2024 ($000)
Summarised statement of comprehensive income
for the year ended 31 March 2024 ($000)
IndustreSPL’s interests
Joint
Venture
2024
Joint
Operations
2024
Total
2024
Joint
Venture
2024
Joint
Operations
2024
Total
2024
Assets
Current assets
7,7591,1208,8794,0145794,593
Investment properties
438,315287,650725,965226,768148,819375,587
Other non-current assets81,005
-
81,005
41,910-41,910
Total assets
527,079
288,770815,849272,692149,398422,090
Liabilities
Current liabilities
(3,906)(482)(4,388)(2,021)(250)(2,271)
Borrowings
(273,496)(77,888)(351,384)(141,497)(40,297)(181,794)
Other non-current liabilities
(1,227)-(1,227)(635)-(635)
Total liabilities(278,629)(78,370)(356,999)(144,153)(40,547)(184,700)
Net assets
248,450210,400458,850
128,539108,851237,390
IndustreSPL’s interests
Joint
Venture
2024
Joint
Operations
2024
Total
2024
Joint
Venture
2024
Joint
Operations
2024
Total
2024
Income23,54915,76039,309
12,1778,15420,331
Expenses(18,656)
(8,669)
(27,325)
(9,646)(4,485)(14,131)
Other income/(expense)*(26,375)(2,640)(29,015)
(13,645)(1,366)(15,011)
Net loss(21,482)
4,451
(17,031)(11,114)2,303(8,811)
Numbers may not sum due to rounding.
*Includes gain on disposal of investment properties and net change in fair value of investment properties.
For further information refer to note 7.0 to the consolidated financial statements.
Stride Property GroupStride Property GroupAnnual Report 2024Annual Report 20243839

1. Unless otherwise stated, all metrics refer to Diversified’s portfolio of investment assets and exclude properties categorised as ‘Development and Other’ in the Diversified
financial statements.
2. See glossary on page 138.
3. Includes Diversified’s 50% interest in Johnsonville Shopping Centre, which is owned 50:50 by SPL and Diversified, and categorised as ‘Development and Other’ in the
Diversified financial statements.
4. Excludes properties categorised as ‘Investment properties classified as held for sale’ in the Diversified FY23 financial statements.
5. Occupancy has been calculated including casual licences with an initial term greater than three months, and excluding units held for committed redevelopment or remix works.
The strong sales growth in the early part of the financial year has
resulted in specialty moving annual turnover or MAT
2
increasing
during FY24, up 3.4% on FY23.
Sales growth influenced rental activity across the Diversified
portfolio
1
, with 113 rent reviews across 35,000 sqm of the
portfolio delivering an increase of 5.9% on prior rentals.
New lettings and renewals drove an improvement in the WALT
2

for the Diversified portfolio, from 2.9 years as at 31 March
2023, to 3.0 years as at 31 March 2024. Lease renewals
during FY24 included a number of key tenants, such as H&M,
BNZ, ASB and Westpac.
Diversified’s shopping centre portfolio
1
saw strong sales growth
through the early part of FY24, although this has weakened
towards the end of the financial year, which is starting to impact
tenant demand. However, we continue to see demand for space
from Australian-based retailers, and the leisure apparel category
remains strong, with a number of retailers seeking additional or
larger stores
SIML’s focus on cost management, together with higher sales,
has resulted in specialty gross occupancy cost
2
for the portfolio
remaining constant at 12.9% for FY24.
The portfolio has also seen improved market rents, up
4.2% from 31 March 2023, which has partially offset a slight
softening in capitalisation rates (+25 basis points), resulting
in a total portfolio
3
net valuation movement of (0.4)% over the
12 months to 31 March 2024.
31 March 2024 31 March 2023
4
Properties (no.)22
Tenants (no.)243233
Net Lettable Area (sqm)85,71384,424
Net Contract Rental
2
($m)34.132.3
WA LT
2
(years)3.02.9
Occupancy Rate
5
(% by area)96.697.5
Weighted Average Capitalisation Rate (%)8.17.8
Portfolio Value ($m)390.0387.0
Key investment portfolio
1
metrics
Stride Property GroupStride Property GroupAnnual Report 2024Annual Report 20244041

Capital Management
SPL has continued to take a prudent approach to capital
management given the current higher interest rate
environment. This careful approach has enabled SPL to
maintain its LVR
1
largely in line with 31 March 2023 on a
committed basis
SPL’s bank LVR
1
as at 31 March 2024 is 36.7% or 37.2% on a committed
2
basis, in line with 31 March 2023, when the LVR was
36.4% or 37-38% on a committed basis. This LVR reflects only SPL’s directly held office and town centre properties, and does
not take into account SPL’s interests in the Stride Products. Taking into account SPL’s investments in the Stride Products, SPL’s
committed
3
gearing is 28.1% on a balance sheet basis
4
or 37.8% on a look-through basis
5
.
SPL has benefited from a number of initiatives during FY24 to manage its LVR, including:
During FY24 SPL refinanced its bank debt facilities and reduced total facility size by
$65m as part of its cost management initiatives. Following this refinancing, SPL now
has no debt expiring until FY27 and a weighted average maturity of debt facilities of
3.1 years.
31 March 2024 31 March 2023
Banking Facility Limit ($m)460525
Debt Facilities Drawn ($m)375402
Weighted Average Debt Maturity (years)3.12.3
Weighted Average Cost of Debt (%)4.223.96
Percentage of Drawn Debt Hedged (%)7580
LV R
1
(%) (Covenant: ≤ 50%) 36.736.4
Interest Cover Ratio (Covenant: ≥2.125x)3.4x3.6x
Weighted Average Lease Term
6
(years) (Covenant: >3.0 years) 5.54.9
Continued operation of the dividend reinvestment plan, with an average
participation rate of 45%, resulting in $20m being reinvested during FY24
Receipt of a distribution from Industre of $15m, following the sale of two
properties by Industre, demonstrating Stride’s sources of liquidity over and above
its directly held property portfolio
Sale of the office property at 22 The Terrace, Wellington
1. Calculated as bank debt as a percentage of the value of investment property for mortgage security purposes. Includes: (1) SPL’s office and retail properties; and (2) debt
associated with these properties; and excludes SPL’s interest in the Industre joint operation and associated bank debt which are reported as part of the assets and liabilities of SPL
(refer note 7.3 to the consolidated financial statements for further information).
2. Commitments include: (1) building upgrades at 34 Shortland Street, Auckland, and 215 Lambton Quay, Wellington (committed post balance date); and (2) various capital
expenditure commitments contracted for (refer note 3.4 to the consolidated financial statements).
3. Commitments include: SPL: (1) building upgrades at 34 Shortland Street, Auckland, and 215 Lambton Quay, Wellington (committed post balance date); and (2) various capital
expenditure commitments contracted for (refer note 3.4 to the consolidated financial statements); IPL: (1) various capital expenditure commitments; and (2) the reduced FY24
Q4 dividend; Industre: (1) development of the property at 16A Wickham Street, Hamilton; (2) the purchase price of the property at 160 Higgins Road, Hamilton, committed post
balance date; and (3) the equity contribution from JPMAM (see glossary) associated with these transactions.
4. Balance sheet LVR includes SPL’s office and town centre properties as well as the value of SPL’s interests in each of the Stride Products, and SPL’s direct debt.
5. Look-through LVR includes SPL’s directly held property and debt, as well as its proportionate share of the property and debt of each of the Stride Products.
6. The unexpired lease term in a property or portfolio, assuming the property or portfolio is fully leased. This is weighted by the income applicable to each lease and a current market
rental with nil term for vacant space.
7. Green loan facilities are made in accordance with the Green Finance Framework of Fabric Property Limited (Fabric, a wholly owned subsidiary of SPL), which requires that the
value of Fabric’s green assets (defined as properties rated at least 4 star NABERSNZ or 5 Green Star) exceeds the value of Fabric’s green loans. The Framework complies with the
Green Loan Principles (2023) published by the Asia Pacific Loan Market Association, the Loan Market Association and the Loan Syndication and Trading Association.
Debt maturity profile
SPL takes an active approach to interest rate management, given the risks and
uncertainty of the current higher interest rate environment. As at 31 March 2024, SPL
had $280m of active interest rate swaps, representing 75% of drawn debt.
SPL’s weighted average cost of debt is 4.22% as at 31 March 2024, an increase
of only 26 basis points over FY24, compared to a 75 basis point increase in the
Official Cash Rate over this time, as a result of SPL’s strong hedging position and
cancellation of excess bank debt facility.
Interest rate
management
Green loan facilities
7
Other bank facilities
FY28
$150m
$50m
FY25FY26FY27
$200m
$60m
Debt maturity profile
as at 31 March 2024
Weighted average fixed interest rate
(excl. margin and line fees)
Notional fixed rate debt
Mar 27
$105m
Mar 26
$155m
3.52%
3.91%
Mar 25
$205m
2.78%
Mar 24
$280m
1.35%
Fixed rate interest profile
as at 31 March 2024
Stride Property GroupStride Property GroupAnnual Report 2024Annual Report 20244243

Five Year
Financial Summary
Five Year Financial Summary
The five year financial summary table reflects the numbers in the consolidated financial
statements for each respective year
On 1 July 2020, Industre commenced operations. Industre is a joint arrangement between SPL and a group of international institutional
investors, through a special purpose vehicle, advised by J.P. Morgan Asset Management (JPMAM). As at 31 March 2024, SPL held a
51.7% interest in Industre (2023: 51.7%).
The accounting for the arrangements by SPL is a combination of a joint operation (proportionate share of assets, liabilities, revenue
and expenses) and joint venture (equity accounted). Only JPMAM’s special purpose vehicle’s participating interest was treated as
discontinued in respect of the joint operation as SPL retained a partial direct ownership interest in the properties. All of the
financial performance and cash flows pertaining to the properties that were transferred to the Industre joint venture were treated
as discontinued. The financial performance for the discontinued operations are for the period ended 30 June 2020 (2021 column) and
the year ended 31 March 2020 (2020 column) and have been presented as “(Loss)/profit from discontinued operations”.
20242023202220212020
Five Year Financial Summary($m)($m)($m)($m)($m)
Net rental income
1
72.3
71.165.850.750.4
Guarantee income
2.4
----
Management fee income
1
19.9
23.324.324.218.3
Profit before net finance expenses, other
(expense)/income and income tax from
continuing operations
70.6
70.762.753.946.3
Net finance expenses
(19.8)
(17.1)(16.1)(13.4)(16.5)
Profit before other (expense)/income and income
tax from continuing operations
50.8
53.545.640.429.8
Other (expense)/income
(102.8)
(163.3)78.1100.9(28.9)
(Loss)/profit before income tax from
continuing operations
(52.0)
(109.7)124.7141.30.9
Income tax expense
(4.1)
(7.0)(12.4)(9.4)(1.0)
(Loss)/profit after income tax from
continuing operations
(56.1)
(116.7)112.3132.0(0.1)
(Loss)/profit from discontinued operations
-
--(0.1)25.4
(Loss)/profit attributable to shareholders
(56.1)
(116.7)112.3131.925.3
Basic earnings per share - weighted from
continuing and discontinued operations
(10.22) cents
(21.60) cents22.70 cents32.99 cents6.93 cents
Distributable profit before current income tax
2
66.5
68.162.652.447.7
Distributable profit after current income tax
59.1
57.654.246.337.7
Basic distributable profit after current income tax
per share - weighted
10.76 cents
10.66 cents10.95 cents11.58 cents10.32 cents
Property values
3
1,171.8
1,254.11,244.61,050.5996.1
Total assets
1,458.5
1,590.51,642.31,383.61,150.3
Bank debt drawn
375.0
402.4305.5261.0386.2
Loan to value ratio
4
36.7%
36.4%28.7%29.3%39.1%
Total equity
992.4
1,075.71,231.11,017.8698.2
NTA per share
$1.78
$1.98$2.28$2.15$1.91
Adjusted NTA per share
5
$1.77
$1.95$2.25$2.15$1.93
12021 figure has been restated to eliminate the building management fees charged from SIML to SPL.
2Distributable profit definition is outlined in the glossary, see page 138.
3Excludes lease liabilities. Includes assets classified as held for sale and SPL’s 51.7% interest in the joint operation component of the Industre joint arrangement. For more information,
refer note 3.2 in the consolidated financial statements. Includes the value of Stride’s offices located at 34 Shortland Street, Auckland, which is recognised in the consolidated financial
statements as property, plant and equipment refer note 8.7.
4Excludes lease liabilities and SPL’s 51.7% interest in the joint operation component of the Industre joint arrangement. Includes assets classified as held for sale and the value of Stride’s
offices located at 34 Shortland Street, Auckland, which is recognised as property, plant and equipment in the consolidated financial statements, refer note 8.7.
5Excludes after tax fair value of interest rate derivatives.
Stride Property Group Annual Report 31 March 2024
1
Stride Property GroupStride Property GroupAnnual Report 2024Annual Report 20244445

48Consolidated Statement of Comprehensive Income
49Consolidated Statement of Changes in Equity
50Consolidated Statement of Financial Position
51Consolidated Statement of Cash Flows
53Notes to the Financial Statements
91Independent Auditor’s Report
Financial
Statements
Stride Property GroupStride Property GroupAnnual Report 2024Annual Report 20244647

Consolidated Statement of Comprehensive Income
For the year ended 31 March 2024
20242023
Notes$000$000
Gross rental income
98,857
94,600
Direct property operating expenses
(26,555)
(23,518)
Net rental income3.172,302
71,082
Guarantee income2,421
-
Management fee income19,853
23,312
Less corporate expenses
Corporate overhead expenses
8.2(18,340)
(18,311)
Administration expenses
8.2
(5,634)
(5,424)
Total corporate expenses
(23,974)
(23,735)
Profit before net finance expense, other expense and income tax70,602
70,659
Net finance expense
5.3
(19,771)
(17,116)
Profit before other expense and income tax50,831
53,543
Other expense
Net change in fair value of investment properties
3.2(75,779)
(118,491)
Share of loss in equity-accounted investments
7.2(23,676)
(42,392)
Loss on disposal of investment properties
1.9(2,472)
(2,038)
Hedge ineffectiveness of cash flow hedges
5.2
(880)
(369)
Loss before income tax(51,976)
(109,747)
Income tax expense
8.1
(4,148)
(7,000)
Loss after income tax attributable to shareholders(56,124)
(116,747)
Other comprehensive income/(loss):
Items that may be reclassified subsequently to profit or loss
Deferred tax on share based payment expense
144
(391)
Movement in cash flow hedges, net of tax
5.6(6,608)
2,752
Changes in cash flow hedge reserve in equity-accounted investments
7.2(1,148)
751
Items that will not be reclassified to profit or loss
Revaluation surplus/(deficit)
8.7
2,800
(700)
Total other comprehensive (loss)/income after tax
(4,812)
2,412
Total comprehensive loss after tax attributable to shareholders
(60,936)
(114,335)
Stride Property Limited (SPL) total comprehensive loss after tax attributable to shareholders
(67,965)
(123,156)
Stride Investment Management Limited (SIML) total comprehensive income after tax attributable
to shareholders
5.5
7,029
8,821
Total comprehensive loss after tax attributable to shareholders
(60,936)
(114,335)
Earnings per share (EPS)4.1
Basic EPS (cents)(10.22)
(21.60)
Diluted EPS (cents)(10.22)
(21.60)
48
Stride Property Group Annual Report 31 March 2024
The attached notes form part of and are to be read in conjunction with these consolidated financial statements.
Consolidated Statement of Changes in Equity
For the year ended 31 March 2024
Number of
shares
Share
capital
Retained
earnings
Other
reservesTotal
Notes000$000$000$000$000
Balance at 31 Mar 23543,321863,309192,27920,1491,075,737
Transactions with shareholders:
Dividends reinvested/(paid)
4.314,88819,509(43,030)-(23,521)
Transfer to share capital on vesting of employee
incentive rights
5.61991,204-(1,917)(713)
Lapsed employee incentive rights
5.6--528(528)-
Forfeited employee incentive rights
5.6---(51)(51)
Share based payment expense
5.6
---1,9171,917
Total transactions with shareholders
15,08720,713(42,502)(579)(22,368)
Total other comprehensive income
---(4,812)(4,812)
Loss after income tax
--(56,124)-(56,124)
Total comprehensive loss
--(56,124)(4,812)(60,936)
Balance at 31 Mar 24
558,408884,02293,65314,758992,433
Balance at 31 Mar 22
540,189858,740355,45416,8901,231,084
Transactions with shareholders:
Dividends reinvested/(paid)
4.3
2,9903,942(46,667)-(42,725)
Transfer to share capital on vesting of employee
incentive rights
5.6
142627-(627)-
Lapsed employee incentive rights
5.6
--239(239)-
Forfeited long term incentive rights
5.6
---(74)(74)
Share based payment expense
5.6
---1,7871,787
Total transactions with shareholders
3,1324,569(46,428)847(41,012)
Total other comprehensive income---2,4122,412
Loss after income tax
--(116,747)-(116,747)
Total comprehensive (loss)/income
--(116,747)2,412(114,335)
Balance at 31 Mar 23
543,321863,309192,27920,1491,075,737
Stride Property Group Annual Report 31 March 2024
49
The attached notes form part of and are to be read in conjunction with these consolidated financial statements.
Stride Property GroupStride Property GroupAnnual Report 2024Annual Report 20244849

Consolidated Statement of Financial Position
As at 31 March 2024
20242023
Notes$000$000
Current assets
Cash at bank
14,762
16,833
Trade and other receivables
8.54,248
7,729
Prepayments
176
212
Derivative financial instruments
5.26,535
1,761
Other current assets
-
98
25,721
26,633
Assets classified as held for sale
-
30,500
25,721
57,133
Non-current assets
Investment properties
3.21,190,883
1,233,767
Equity-accounted investments
7.2222,354
268,096
Loan to associate
8.43,398
3,398
Other investments
250
250
Property, plant and equipment
8.79,058
6,238
Derivative financial instruments
5.2
6,879
21,581
1,432,822
1,533,330
Total assets
1,458,543
1,590,463
Current liabilities
Trade and other payables
8.616,096
42,630
Lease liability
3.37
7
Current tax liability
1,755
1,880
17,858
44,517
Non-current liabilities
Bank borrowings
5.1374,598
401,769
Borrowings (joint operation participating interest)
7.340,297
40,400
Lease liability
3.327,607
15,903
Deferred tax liability
8.15,686
12,012
Derivative financial instruments
5.2
64
125
448,252
470,209
Total liabilities
466,110
514,726
Net assets992,433
1,075,737
Share capital
884,022
863,309
Retained earnings
93,653
192,279
Reserves
5.6
14,758
20,149
Equity
992,433
1,075,737
SPL equity
971,730
1,060,691
SIML equity (non-controlling interest)
5.5
20,703
15,046
Equity
992,433
1,075,737
For and on behalf of the Boards of Directors of SPL and SIML, who authorised these consolidated financial statements for issue on 28 May 2024:
Tim Storey
Chair of the Boards
Ross Buckley
Chair of the Audit and Risk Committee
50
Stride Property Group Annual Report 31 March 2024
The attached notes form part of and are to be read in conjunction with these consolidated financial statements.
Consolidated Statement of Cash Flows
For the year ended 31 March 2024
20242023
Notes$000$000
Cash flows from operating activities
Gross rental received
100,722
89,856
Guarantee income in relation to 46 Sale Street, Auckland
2,421
-
Management fee income
19,459
24,008
Bank interest received
799
422
Direct property operating and corporate expenses
(47,384)
(46,337)
Interest paid
(20,165)
(16,710)
Borrowings establishment costs
(485)
-
Share based payment costs
(168)
-
Income tax paid
(7,939)
(11,371)
Net cash provided by operating activities
47,260
39,868
Cash flows from investing activities
Dividend income from equity-accounted investments net of dividends reinvested
8.45,830
9,032
Distribution from equity-accounted investments
8.415,374
-
Interest received in relation to the loan advance on 110 Carlton Gore Road, Auckland
1.91,556
6,859
Acquisition of investment properties
1.9(35,366)
(177,865)
Net proceeds from disposal of investment properties
1.928,966
83,452
Capital expenditure on investment properties
(13,693)
(12,863)
Property, plant and equipment purchased
(1,071)
(74)
Purchase price adjustment paid on disposal of investment property
-
(5,730)
Seismic and other works on investment properties disposed of
-
(604)
Net cash provided by/(applied to) investing activities
1,596
(97,793)
Cash flows from financing activities
Drawdown on bank borrowings
36,000
179,800
Repayment of bank borrowings
(63,400)
(82,900)
Lease liabilities payments
(6)
(38)
Dividends paid net of dividends reinvested
4.3
(23,521)
(42,725)
Net cash (applied to)/provided by financing activities
(50,927)
54,137
Net decrease in cash and cash equivalents held(2,071)
(3,788)
Opening cash and cash equivalents
16,833
20,621
Closing cash and cash equivalents
14,762
16,833
Cash and cash equivalents consists of:
Cash at bank
14,506
16,833
Cash held for retentions
256
-
Cash and cash equivalents at balance date
14,762
16,833
Stride Property Group Annual Report 31 March 2024
51
The attached notes form part of and are to be read in conjunction with these consolidated financial statements.
Stride Property GroupStride Property GroupAnnual Report 2024Annual Report 20245051

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 provided by operating activities
20242023
Notes$000$000
Loss after income tax attributable to shareholders(56,124)
(116,747)
(Less)/add non-cash items:
Movement in deferred tax
8.1(3,666)
(5,175)
Net change in fair value of investment properties
75,779
118,491
Share of loss in equity-accounted investments
23,676
42,392
Loss on disposal of investment properties
2,472
2,038
Hedge ineffectiveness of cash flow hedges
880
369
Spreading of fixed rental increases
(1,967)
(1,052)
Capitalised lease incentives net of amortisation
711
485
Movement in loss allowance
(50)
(220)
Share based payment expense net of forfeited employee incentive rights
8.21,866
1,713
Non-cash movements in property, plant and equipment recognised in profit and loss
8.2489
211
Borrowings establishment costs amortisation
714
474
Non-cash interest income received
8.4(294)
(214)
Accrued interest movement in derivative financial instruments
(138)
(225)
44,348
42,540
Add/(less) activity reclassified to/(from) operating activities:
Movement in working capital items relating to investing activities
26,609
(20,954)
Movement in borrowings establishment costs classified as operating activities
(485)
-
Movement in share based payment costs classified as operating activities
(168)
-
70,304
21,586
Movement in working capital:
Decrease/(increase) in trade and other receivables
3,481
(3,500)
Decrease in prepayments and other current assets
134
895
(Decrease)/increase in trade and other payables
(26,534)
20,083
(Decrease)/increase in current tax liability
(125)
804
Net cash provided by operating activities
47,260
39,868
52
Stride Property Group Annual Report 31 March 2024
The attached notes form part of and are to be read in conjunction with these consolidated financial statements.
Notes to the Financial Statements
For the year ended 31 March 2024
1.0General Information
54
1.1Reporting entity54
1.2Basis of preparation54
1.3Basis of consolidation54
1.4New standards, amendments and interpretations54
1.5Changes to accounting policies and disclosure of material accounting policies55
1.6Significant judgements, estimates and assumptions55
1.7Fair value estimation55
1.8Non-GAAP measures55
1.9Significant events and transactions56
2.0Operating Segments
57
3.0Property
59
3.1Net rental income59
3.2Investment properties60
3.3Lease liabilities66
3.4Capital expenditure commitments contracted for66
4.0Investor Returns
67
4.1Basic and diluted earnings per share (EPS)67
4.2Distributable profit68
4.3Dividends paid69
5.0Capital Structure and Funding
70
5.1Borrowings70
5.2Derivative financial instruments71
5.3Net finance expense72
5.4Share capital73
5.5SIML equity (non-controlling interest)73
5.6Reserves74
5.7Capital risk management74
6.0Risk Management
75
6.1Financial instruments75
6.2Financial risk management75
6.3Credit risk76
6.4Interest rate risk76
6.5Liquidity risk77
7.0Investments in Property Entities
78
7.1Industre joint arrangement (Industre)78
7.2Interests in associates and joint venture78
7.3Joint operations82
8.0Other
83
8.1Tax83
8.2Total corporate expenses85
8.3Remuneration85
8.4Related party disclosures87
8.5Trade and other receivables89
8.6Trade and other payables89
8.7Property, plant and equipment90
8.8Contingent liabilities90
8.9Subsequent events90
Stride Property Group Annual Report 31 March 2024
53
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1.0 General Information
This section sets out Stride Property Group’s accounting policies that relate to the consolidated financial statements (financial statements)
as a whole. Where an accounting policy is material and specific to a note, the policy is described within the note to which it relates.
1.1 Reporting entity
The financial statements presented are those of Stride Property Limited and its 100% owned subsidiaries, Fabric Property Limited (Fabric), Stride
Holdings Limited, and Stride Industrial Property Limited (together referred to as SPL), and Stride Investment Management Limited (SIML), each of SPL
and SIML being a 'Stapled Entity' and together the Stride Property Group (Stride). For accounting purposes, stapling gives rise to the combination of the
Stapled Entities into a consolidated group. For the purposes of financial reporting, one of the combining entities is required to be identified as the parent
entity of the consolidated group. In the case of Stride, SPL has been identified as the parent for the purposes of preparing the financial statements and
consequently SIML’s equity is presented as the non-controlling interest in the financial statements (refer note 5.5).
SPL is principally involved in the ownership of investment properties in New Zealand and SIML is principally involved in the management of real estate
investment entities in New Zealand. SPL and SIML are both domiciled in New Zealand, are both registered under the Companies Act 1993 and are both
FMC reporting entities under Part 7 of the Financial Markets Conduct Act 2013 (FMCA).
Shares of SPL and SIML are stapled and quoted on the Main Board equity securities market of NZX under the ticker code SPG.
The financial statements were approved for issue by the Board of Directors of SPL (SPL Board) and the Board of Directors of SIML (SIML Board),
together the 'Boards', on 28 May 2024.
1.2 Basis of preparation
The financial statements have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand (GAAP). Stride is a for-profit
entity for the purposes of financial reporting. The financial statements comply with New Zealand Equivalents to International Financial Reporting
Standards (NZ IFRS), other New Zealand accounting standards and authoritative notices that are applicable to entities that apply NZ IFRS. The
financial statements also comply with International Financial Reporting Standards Accounting Standards (IFRS Accounting Standards). The financial
statements were prepared in accordance with the Financial Markets Conduct (Stride Property Group) Exemption Notice 2022 and waivers granted to
Stride from certain of the NZX Listing Rules in May 2020, which each permit SPL and SIML, subject to the conditions of the exemption notice and
waivers (respectively), to prepare financial statements in respect of Stride in place of separate financial statements of each Stapled Entity. The Financial
Markets Conduct (Stride Property Group) Exemption Notice 2022 applies to accounting periods, up to and including the accounting period ending
31 March 2026.
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 (XRB) issued the following standards:
•Aotearoa New Zealand Climate Standard 1 Climate-related Disclosures (NZ CS 1);
•Aotearoa New Zealand Climate Standard 2 Adoption of Aotearoa New Zealand Climate Standards (NZ CS 2); and
•Aotearoa New Zealand Climate Standard 3 General Requirements for Climate-related Disclosures (NZ CS 3).
NZ CS 1 contains the climate-related disclosure requirements for each of the four thematic areas (Governance, Strategy, Risk Management and Metrics
and Targets) and the assurance requirements for greenhouse gas emissions disclosures. NZ CS 2 provides optional adoption provisions. NZ CS 3
contains the principles, the underlying concepts such as materiality, and the general requirements.
SPL and SIML are climate reporting entities and are each required under Part 7A of the FMCA to prepare climate-related disclosures. The entities have
been granted an exemption from certain provisions of Part 7A of the FMCA by the Financial Markets Authority to permit SPL and SIML, as stapled
entities, to prepare a single document comprising consolidated climate-related disclosures in respect of Stride. Stride is releasing its first climate-related
disclosures as required by Part 7A of the FMCA and in compliance with the standards described above at the same time as these financial statements.
In May 2024, the XRB introduced NZ IFRS 18 Presentation and Disclosure in Financial Statements (NZ IFRS 18) (effective for annual reporting periods
beginning on or after 1 January 2027). This standard replaces NZ IAS 1 Presentation of Financial Statements (NZ IAS 1) and primarily introduces a
defined structure for the statement of comprehensive income, disclosure of management-defined performance measures (a subset of non-GAAP
measures) in a single note together with reconciliation requirements. Stride has not early adopted this standard and is yet to assess its impacts.
At the date of authorisation of these financial statements, Stride has not applied any new and revised NZ IFRS standards and amendments that have been
issued but are not yet effective.
54
Stride Property Group Annual Report 31 March 2024
1.0 General Information (continued)
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 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 Boards and management 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.
1.6 Significant judgements, estimates and assumptions
In the application of NZ IFRS, the Boards and management are required to make judgements, estimates and assumptions about carrying values of assets
and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on experience and other factors that
are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements. Actual results may differ from the
judgements, estimates and assumptions made by the Boards and management.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the
estimate is revised and in any future periods affected.
Judgements made by the Boards and management in the application of NZ IFRS that have significant effects on the financial statements and estimates
with a significant risk of material adjustments in the next year are disclosed, where applicable, in the relevant notes to the financial statements as follows:
•Investment properties (note 3.2);
•Lease liabilities (note 3.3);
•Derivative financial instruments (note 5.2);
•Interests in associates - Investore Property Limited (Investore) (note 7.2);
•Interests in joint venture - Industre joint venture (note 7.2); and
•Deferred tax (note 8.1).
1.7 Fair value estimation
Stride classifies its fair value measurement using a fair value hierarchy that reflects the significance of the inputs used in making measurements. The fair
value hierarchy has the following levels:
Level 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 Boards and management review significant unobservable inputs and valuation adjustments. If third party information is used to measure fair
values, then the Boards and management 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.
1.8 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 Stride’s financial performance.
Note 4.2 sets out Stride’s calculation of distributable profit and Adjusted Funds From Operations (AFFO), which are both non-GAAP measures.
Distributable profit is presented to provide an earnings measure which more closely aligns to Stride’s underlying and recurring earnings from its
operations. AFFO is intended as a supplementary measure of operating performance. Cash spent during the period on capital expenditure as part of
maintaining a building’s grade/quality, but not expensed as part of distributable profit after current income tax, is adjusted to reflect cash earnings for
the 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.
Stride Property Group Annual Report 31 March 2024
55
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1.0 General Information (continued)
1.9 Significant events and transactions
The financial position and performance of Stride was affected by the following events and transactions that occurred during the reporting period:
Dividend reinvestment plan (DRP)
During the reporting period14,888,221 (2023: 2,989,536) Stapled Securities were issued in accordance with the DRP.
Acquisition of 110 Carlton Gore Road, Auckland
On 31 May 2023, SPL's wholly owned subsidiary, Fabric, completed the acquisition of 110 Carlton Gore Road, Auckland, for a total consideration
of $213.8 million. Fabric provided funding for the development of the property and as at 31 March 2023 the loan advanced to the vendor was
$178.7 million which was recognised as $170.3 million of development investment property and $8.4 million of interest ($6.9 million received and
$1.5 million receivable). For the period 1 April 2023 to 31 May 2023 Fabric received $1.6 million in relation to the interest on the loan advanced to the
vendor. The interest received from the vendor is considered underlying earnings from operations and is included in distributable profit (refer note 4.2).
The vendor has provided a rental guarantee over certain unleased space for a period of six years from settlement date. Subsequent to settlement, part
of this space has been leased and the remaining rental guarantee receivable of $0.3 million, based on an expected leasing period of approximately two
years from settlement, has been recognised in trade and other receivables in the consolidated statement of financial position (refer note 8.5).
Divestment of investment property
On 26 May 2023, Fabric entered into an unconditional agreement to divest the office property at 22 The Terrace, Wellington, for a gross sale price of
$29.4 million, resulting in a loss on disposal of $(2.5) million. Settlement occurred on 31 July 2023. This property had been classified as held for sale in
the consolidated statement of financial position as at 31 March 2023. Additional capital works were completed between 1 April 2023 and 31 July 2023,
which were considered usual and customary for this transaction in accordance with SPL's accounting policy for 'Assets classified as held for sale'.
Bank refinancing
In November 2023, SPL refinanced its syndicated bank facilities, reducing the total available facilities by $65.0 million to $460.0 million and extending
the expiry dates to between November 2026 and November 2027 (refer note 5.1).
Revaluation of investment properties
SPL undertook independent valuations of the portfolio as at 31 March 2024 which resulted in a net reduction in fair value of $(75.8) million
(2023: $(118.5) million net reduction) (refer note 3.2) and a revaluation surplus on property, plant and equipment of $2.8 million
(2023: $(0.7) million deficit) (refer note 8.7).
56
Stride Property Group Annual Report 31 March 2024
2.0 Operating Segments
This section sets out how Stride’s revenue streams are reported internally, reflecting the two operating segments, being SPL and SIML.
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker, identified as the
respective Board of each of SPL and SIML.
SPL’s revenue streams are earned from investment properties owned in Auckland and Wellington in New Zealand. Given SPL’s diverse client base, no
one tenant represents greater than 10% of the portfolio contract rental. SPL also generates revenue from its share of profit/(loss) in equity associates
and the joint venture being Investore, Industre joint venture and Diversified NZ Property Trust (Diversified) (refer note 7.2).
SIML’s revenue streams are earned from the management of the real estate investments of Investore, Industre joint arrangement (Industre)
(refer note 7.1), Diversified and SPL (including Fabric). For the revenue earned from Investore, Industre and Diversified, refer to note 8.4 on related
party disclosures.
The following is an analysis of Stride’s results, by reportable segments.
SPL
SPL
eliminationsSIML
SIML
eliminations2024
Segment profit$000$000$000$000$000
Net rental income69,5352,767--72,302
Guarantee income2,421---2,421
Management fee income--30,961(11,108)19,853
Total corporate expenses
(9,344)6,808(22,028)590(23,974)
Profit before net finance expense, other expense and income tax62,6129,5758,933(10,518)70,602
Net finance expense
(20,881)7781,029(697)(19,771)
Profit before other expense and income tax41,73110,3539,962(11,215)50,831
Other expense
Net change in fair value of investment properties
(76,499)720--(75,779)
Share of loss in equity-accounted investments
(23,676)---(23,676)
Loss on disposal of investment properties
(2,624)152--(2,472)
Hedge ineffectiveness of cash flow hedges
(880)---(880)
(Loss)/profit before income tax(61,948)11,2259,962(11,215)(51,976)
Income tax expense
(1,071)-(3,077)-(4,148)
(Loss)/profit after income tax attributable to shareholders(63,019)11,2256,885(11,215)(56,124)
Total other comprehensive income after tax
(4,956)-144-(4,812)
Total comprehensive (loss)/income after tax attributable
to shareholders
(67,975)11,2257,029(11,215)(60,936)
Transactions between SPL and SIML include management fees, interest charged on the loan from SIML to SPL and net rental income charged from SPL
to SIML (refer note 8.4 for details on the composition of the transactions).
Stride Property Group Annual Report 31 March 2024
57
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2.0 Operating Segments (continued)
SPL
SPL
eliminationsSIML
SIML
eliminations2023
Segment profit$000$000$000$000$000
Net rental income
68,4212,661--71,082
Management fee income
--34,814(11,502)23,312
Total corporate expenses
(9,645)7,318(22,045)637(23,735)
Profit before net finance expense, other expense and income tax
58,7769,97912,769(10,865)70,659
Net finance expense
(17,358)914984(17,116)
Profit before other expense and income tax
41,4189,98812,918(10,781)53,543
Other expense
Net change in fair value of investment properties(118,858)367--(118,491)
Share of profit in equity-accounted investments(42,392)---(42,392)
Loss on disposal of investment properties(2,504)466--(2,038)
Hedge ineffectiveness of cash flow hedges
(369)---(369)
(Loss)/profit before income tax
(122,705)10,82112,918(10,781)(109,747)
Income tax expense
(3,294)-(3,706)-(7,000)
(Loss)/profit after income tax attributable to shareholders
(125,999)10,8219,212(10,781)(116,747)
Total other comprehensive income/(loss) after tax
2,803-(391)-2,412
Total comprehensive (loss)/income after tax attributable
to shareholders
(123,196)10,8218,821(10,781)(114,335)
SPL
SPL
eliminationsSIML
SIML
eliminationsTotal
Segment assets and liabilities$000$000$000$000$000
Balance at 31 Mar 24
Total assets
1,447,261-26,287(15,005)1,458,543
Total liabilities
475,708(13,897)5,584(1,285)466,110
Balance at 31 Mar 23
Total assets1,580,045-20,048(9,630)1,590,463
Total liabilities519,521(8,096)5,002(1,701)514,726
As at 31 March 2024, SPL had assets of $225.8 million (2023: $271.5 million) relating to equity-accounted investments (refer note 7.2) and loan to
associate (refer note 8.4).
58
Stride Property Group Annual Report 31 March 2024
3.0 Property
This section covers property assets which generate Stride’s trading performance.
3.1 Net rental income
Accounting policy
Investment property is leased by SPL to tenants under operating leases with rent payable monthly. Rental income from investment properties is
recognised on a straight-line basis over the lease term. Lease incentives provided in relation to letting the investment properties are capitalised
to the respective investment properties or assets classified as held for sale in the consolidated statement of financial position and amortised on a
straight-line basis over the non-cancellable portion of the lease to which they relate, as a reduction of net rental income. Where a lease provides for
fixed rental increases over the term of the lease, they are amortised on a straight-line basis over the non-cancellable portion of the lease to which
they relate.
Income generated from service charges recovered from tenants are included in gross rental income with the service charge expenses to tenants
shown in the direct property operating expenses. Such revenue is recognised in the accounting period the underlying expenses are incurred in
accordance with the contractual terms. The recovery of employee related expenses from SIML managed entities are included in the gross rental
income (as service charges recovered from tenants) with the employee related expenses included in corporate overhead expenses.
Leases are classified at their inception as either an operating or finance lease based on the economic substance of the agreement so as to reflect
the risks and rewards incidental to ownership. Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor
are classified as operating leases. Properties leased out under operating leases are included in investment properties and assets classified as held
for sale as separately disclosed in the consolidated statement of financial position.
20242023
SPL$000$000
Gross rental income
Rental income
77,097
75,402
Service charge income recovered from tenants
20,439
18,720
Spreading of fixed rental increases
1,967
1,052
Capitalised lease incentives
316
935
Lease incentives amortisation
(962)
(1,509)
Total gross rental income
98,857
94,600
Direct property operating expenses
Rates and insurance
(14,302)
(12,749)
Property maintenance costs
(6,253)
(5,545)
Utilities
(2,434)
(1,957)
Other property operating expenses
(3,551)
(3,576)
Lease incentives capitalised
30
177
Lease incentives amortisation
(95)
(88)
Movement in loss allowance
50
220
Total direct property operating expenses
(26,555)
(23,518)
Net rental income
72,302
71,082
Other property operating expenses include operating expenses not recoverable from tenants and property leasing expenses. Salaries and wages
expenses of $1.7 million (2023: $1.6 million) (refer note 8.4) charged by SIML to SPL have been eliminated in the direct property operating expenses.
SPL has determined that it retains all significant risks and rewards of ownership of properties and has therefore classified the leases as operating leases.
The future aggregate minimum rentals receivable under non-cancellable operating leases (2023: excluded the development property 110 Carlton Gore
Road, Auckland) are as follows:
20242023
$000$000
Within one year
67,880
57,197
Between one and two years
59,975
49,374
Between two and three years
53,869
40,714
Between three and four years
48,227
34,596
Between four and five years
42,271
28,709
Later than five years
188,015
136,482
Future rentals receivable
460,237
347,072
Stride Property Group Annual Report 31 March 2024
59
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3.0 Property (continued)
3.2 Investment properties
Accounting policy
Investment properties are held either to earn rental income or for capital appreciation or both. Investment property is initially stated at cost,
including related transaction costs, and then at fair value as determined at least every 12 months by an independent registered valuer. Subsequent
expenditure is capitalised to the asset's carrying amount only when it is probable that future economic benefits associated with the item will flow
to SPL and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed to the consolidated statement of
comprehensive income during the period in which they are incurred.
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 properties and assets classified as
held for sale at fair value.
Investment property is adjusted for cash flows relating to lease liabilities already recognised separately in the consolidated statement of financial
position and also reflected in the investment property valuations.
SIML does not hold investment properties but provides management services in respect of SPL’s investment property portfolio.
SIML has an office located in the SPL owned office building at 34 Shortland Street, Auckland (2023: 34 Shortland Street, Auckland, and 22 The Terrace,
Wellington). The value attributable to this floor area has been recognised as property, plant and equipment (refer note 8.7).
Valuations are performed by independent registered valuers who hold an annual practising certificate with the Valuers Registration Board and are
members of the New Zealand Institute of Valuers. Valuers are engaged on terms ensuring that no valuer values the same investment property for more
than three consecutive years. The investment properties were valued either by Jones Lang LaSalle Limited (JLL), CBRE Limited (CBRE), CVAS (NZ)
Limited (CVAS (NZ)), CVAS (WLG) Limited (CVAS (WLG)), Savills (NZ) Limited (Savills) or Bayleys Valuations Limited (Bayleys). All valuations are dated
effective 31 March 2024.
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 valuation reports. SIML’s executive team review the valuations performed by the independent valuers for financial
reporting purposes. This team reports directly to SIML’s Chief Executive Officer. Discussions of valuation processes and results are held between
members of SIML’s executive team and the independent valuers. Discussions of valuation processes and results are also held between SIML’s Chief
Executive Officer and the Audit and Risk Committee, at least once every six months, in line with SPL’s reporting dates. This review includes a review
of specific independent valuations and discussions with the independent valuers as considered necessary. Ultimately, the SPL Board is responsible for
reviewing and approving the investment property valuations.
Investment property measurements are categorised as Level 3 in the fair value hierarchy. There were no transfers of investment properties between
levels of the fair value hierarchy (2023: nil transfers) during the year.
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Stride Property Group Annual Report 31 March 2024
3.0 Property (continued)
3.2 Investment properties (continued)
OfficeTown CentreIndustrial
Development
and OtherTotal
SPL$000$000$000$000$000
Balance at 31 Mar 22
649,050340,413181,854-1,171,317
Addition200,786200,786
Capital expenditure7,4842,0739146510,113
Spreading of fixed rental increases980(199)282(11)1,052
Capitalised lease incentives61741564161,112
Lease incentives amortisation(382)(1,121)(48)(46)(1,597)
Transfer to property, plant and equipment(450)---(450)
Reclassification(14,250)(26,250)-40,500-
Transfer to assets classified as held for sale(30,075)---(30,075)
Net change in fair value
(65,574)(5,921)(32,233)(14,763)(118,491)
Balance at 31 Mar 23547,400309,410150,010226,9471,233,767
Additions
---4,4834,483
Capital expenditure
14,1441,24359-15,446
Spreading of fixed rental increases
1,8042161-1,967
Capitalised lease incentives
91255--346
Lease incentives amortisation
(211)(799)(47)-(1,057)
Reclassification
195,143--(195,143)-
Re-measurement of lease liability (note 3.3)
-11,710--11,710
Net change in fair value
(62,671)(10,707)(1,364)(1,037)(75,779)
Balance at 31 Mar 24
695,700311,114148,81935,2501,190,883
Comprised of:
Investment properties at valuation547,400293,500150,010226,9471,217,857
Lease liability (note 3.3)
-15,910--15,910
Balance at 31 Mar 23
547,400309,410150,010226,9471,233,767
Investment properties at valuation
695,700283,500148,81935,2501,163,269
Lease liability (note 3.3)
-27,614--27,614
Balance at 31 Mar 24
695,700311,114148,81935,2501,190,883
Stride is conscious of the need to identify the impact of managing and responding to climate risk. During the year, SPL committed to and
invested in a number of sustainability initiatives across its portfolio. These works included: upgrades of heating and cooling equipment at
20 Customhouse Quay, Wellington, and 34 Shortland Street, Auckland, to provide improved efficiency and reduce energy usage; installation of
equipment to improve the efficiency of building operations at 215 Lambton Quay, Wellington; installation of electric vehicle charging stations at
46 Sale Street, Auckland; and completion of end of trip facilities at 34 Shortland Street, Auckland, which will encourage more active forms of transport for
workers at this office property, reducing usage of private vehicles. The cost of these sustainability initiatives, which are all related to the transition to a low
carbon future, is included in the capital expenditure for the year ended 31 March 2024.
During the year ended 31 March 2024, no property owned by SPL suffered any material damage due to the physical impacts of climate change.
The independent valuers that valued SPL’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.
Capital expenditure consists of base-build fit-outs and other physical enhancements to the investment properties, with ownership of such capital
amounts being retained by SPL.
A revaluation movement of $0.7 million (2023: $0.4 million) arising from the elimination of fees charged by SIML to SPL (refer note 2.0) has been
reflected in the consolidated statement of comprehensive income.
Stride Property Group Annual Report 31 March 2024
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3.0 Property (continued)
3.2 Investment properties (continued)
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 SPL.
The cap rate %, contract yield %, occupancy % and WALT years for the property class totals and the total of investment properties are weighted
averages. For investment properties classified as 'Development and Other', the NLA, cap rate %, contract yield %, occupancy % and WALT years are not
applicable. The totals may not sum due to rounding.
NLA
Cap
rate
Contract
yieldOccupancyWA LT
As at 31 Mar 24Valuerm
2
$000%%%years
Office
34 Shortland Street, AucklandSavills8,12449,5006.753.5457.32.3
46 Sale Street, AucklandBayleys11,352119,0005.756.98100.04.7
110 Carlton Gore Road, AucklandBayleys14,174180,7005.505.77100.010.2
1 Grey Street, WellingtonJLL10,44962,0006.756.8799.93.6
215 Lambton Quay, WellingtonCBRE10,93569,0006.506.7995.92.6
20 Customhouse Quay, WellingtonCBRE
17,505215,5005.505.28100.09.5
Office total
72,538695,7005.855.8494.66.9
Town Centre
61 Silverdale Street, AucklandCVAS (NZ)23,008102,5007.007.20100.04.2
NorthWest Shopping Centre, AucklandJLL27,762141,0007.637.3596.14.1
NorthWest Two, AucklandJLL
7,90440,0007.257.4797.52.1
Town Centre total
58,675283,5007.357.3197.83.8
Industrial (51.7% interest in Industre
joint operation refer note 7.3)
30 Airpark Drive, AucklandSavills8,16224,7045.503.55100.05.7
20 Rockridge Avenue, AucklandJLL4,48813,0896.004.47100.04.5
25 O’Rorke Road and 15 Rockridge
Avenue, AucklandCVAS (NZ)18,62660,8425.875.0295.95.4
318 East Tamaki Road, AucklandCVAS (NZ)
5,06250,1845.385.32100.020.7
Industrial total
36,337148,8195.654.8397.911.1
Development and Other
55 Lady Elizabeth Lane, WellingtonCVAS (WLG)11,250
Johnsonville Shopping Centre,
Wellington (50%)JLL
24,000
Development and Other total35,250
167,5501,163,2696.206.0796.86.4
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Stride Property Group Annual Report 31 March 2024
3.0 Property (continued)
3.2 Investment properties (continued)
NLA
Cap
rate
Contract
yieldOccupancyWA LT
As at 31 Mar 23Valuerm
2
$000%%%years
Office
34 Shortland Street, AucklandJLL8,12149,3006.135.0268.71.6
46 Sale Street, AucklandJLL11,352135,8005.386.16100.05.5
1 Grey Street, WellingtonCBRE10,47262,9507.006.97100.04.2
215 Lambton Quay, WellingtonCBRE10,93578,6006.256.2098.72.8
20 Customhouse Quay, WellingtonCBRE
17,505220,7505.254.99100.010.2
Office total
58,384547,4005.715.6895.46.2
Town Centre
61 Silverdale Street, AucklandCVAS (NZ)23,008106,0006.636.82100.05.0
NorthWest Shopping Centre, AucklandJLL27,766145,5007.387.1198.44.5
NorthWest Two, AucklandJLL
7,90442,0006.756.91100.02.9
Town Centre total
58,679293,5007.026.9899.24.5
Industrial (51.7% interest in Industre
joint operation refer note 7.3)
30 Airpark Drive, AucklandSavills8,16221,4715.504.00100.01.7
20 Rockridge Avenue, AucklandJLL4,48814,1765.384.04100.01.5
25 O’Rorke Road and 15 Rockridge
Avenue, AucklandCVAS (NZ)18,62661,4635.374.93100.06.6
318 East Tamaki Road, AucklandCVAS (NZ)
5,06252,9004.884.91100.021.7
Industrial total
36,337150,0105.214.71100.011.1
Development and Other
110 Carlton Gore Road, AucklandJLL190,660
55 Lady Elizabeth Lane, WellingtonCVAS (WLG)11,750
Johnsonville Shopping Centre,
Wellington (50%)JLL
24,537
Development and Other total
226,947
153,4001,217,8576.025.9198.06.2
Stride Property Group Annual Report 31 March 2024
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3.0 Property (continued)
3.2 Investment properties (continued)
A valuation is determined based on a range of unobservable inputs, which are not freely available or explicit in the market and are developed by analysing
transactional data. Key unobservable inputs are the cap rate, discount rate, gross market rental, rental growth rates and terminal yield. The following
table details the key unobservable inputs and the ranges adopted across the various investment property classes (excluding properties classified as
'Development and Other'):
Cap rateDiscount rate
Gross
market rental
Rental
growth rateTerminal yield
%%$/m
2
%%
As at 31 Mar 24
Office
5.50-6.756.75-8.00630-1,0032.08-2.955.75-7.00
Town Centre
7.00-7.638.25-8.63381-6722.31-2.857.38-7.75
Industrial
5.38-6.007.50-8.13182-2232.82-3.005.75-6.35
Total portfolio
5.38-7.636.75-8.63182-1,0032.08-3.005.75-7.75
As at 31 Mar 23
Office5.25-7.006.50-8.00579-9062.12-2.575.50-7.25
Town Centre6.63-7.388.00-8.38380-6612.15-2.327.00-7.63
Industrial
4.88-5.507.13-7.35162-2092.94-3.055.63-5.79
Total portfolio
4.88-7.386.50-8.38162-9062.12-3.055.50-7.63
The estimated sensitivity of the fair value of the total investment property portfolio to changes in the cap rate or discount rate, assuming the cap rate or
discount rate move equally on all the properties (excluding properties classified as 'Development and Other') is provided below. The metrics chosen are
those where movements are likely to have the most significant impact on fair value.
Cap rate %Discount rate %
Impact on fair value-0.25+0.25-0.25+0.25
As at 31 Mar 24
Change $000
49,260(44,625)21,221(20,534)
Change %
4(4)2(2)
As at 31 Mar 23
Change $00044,926(41,365)19,251(18,682)
Change %5(4)2(2)
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 allowance for lessee incentives and leasing expenses.
•Discounted Cash Flow approach - adopts a ten-year investment horizon and makes appropriate allowances for rental income growth and
leasing expenses on expiries, with an estimated terminal value at the end of the investment period. The terminal yield is used to derive the terminal
value. Terminal yield rate estimates are based on comparable transaction data and also consider matters such as building age and the market
environment at the end of the investment period. 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 those as
described following.
Works are required to improve the seismic performance of the office property at 55 Lady Elizabeth Lane, Wellington. The works required are complex
in nature, due to stabilisation required in the ground and a number of remedial options are being considered. The cost to complete stated in the
31 March 2024 valuation was determined by a registered quantity surveyor in March 2022 and has been escalated to the date of valuation together
with management estimates of the ‘on cost' elements (design, consultant, legal, contingency and profit and risk allowances) and is the best available
information at the date of valuation. The final cost could be higher or lower and this could impact the fair value of the property. 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 a profit and risk allowance. SPL has discussed the seismic status of the building and the potential works required
with tenants and all of the office tenants have surrendered or terminated their leases.
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Stride Property Group Annual Report 31 March 2024
3.0 Property (continued)
3.2 Investment properties (continued)
The valuation for Johnsonville Shopping Centre, Wellington, utilises the Land Value approach, which involves direct comparison with other property
sales. This approach reflects the highest and best use for the property, in addition to the Income Capitalisation approach.
All properties were valued on a consistent approach to 31 March 2023, with the exception of 110 Carlton Gore Road, Auckland, which was under
development as at 31 March 2023 and consequently the Residual approach was utilised to determine the fair value.
The significant 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
Forecast
development costs
All costs associated with the development of the
property. This cost typically includes construction
costs, consultancy costs and financing.
DecreaseIncreaseResidual
Profit and risk allowanceThis allowance reflects the risk and surety
surrounding cost of remedial works, timing of works
as well as assumed future occupancy arrangements
following completion of all required works.
DecreaseIncreaseResidual
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.
Stride Property Group Annual Report 31 March 2024
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3.0 Property (continued)
3.3 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 the consolidated statement of comprehensive
income 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.
SIML has an operating lease for its offices at 34 Shortland Street, Auckland, where SIML is the lessee and SPL is the lessor. SIML has recognised a
right-of-use asset within property, plant and equipment and corresponding lease liability within interest bearing liabilities in relation to this lease. The lease
liability and right-of-use asset is eliminated in the financial statements.
SPL is committed under two operating leases where SPL is the lessee. The SPL leases relate to ground rent on leasehold properties and contain renewal
and termination options exercisable only by SPL. There is one at each of the following properties:
•55 Lady Elizabeth Lane, Wellington; and
•NorthWest Shopping Centre, Auckland.
Included in the investment property valuation of 55 Lady Elizabeth Lane is an implicit right-of-use asset of $9.1 million (2023: $9.1 million) in relation to a
peppercorn ground lease with an associated immaterial lease liability.
The lease liability of $27.6 million (2023: $15.9 million) is in respect of the ground lease at NorthWest Shopping Centre, Auckland, and was re-measured
during the year due to a market rent review on 1 April 2023.
20242023
Lease liability$000$000
Opening balance15,910
15,913
Re-measurement
11,710
-
Cash lease payments
(1,723)
(992)
Finance lease interest
1,717
989
Closing balance
27,614
15,910
Current liability
7
7
Non-current liability
27,607
15,903
Total lease liability
27,614
15,910
3.4 Capital expenditure commitments contracted for
As at 31 March 2024, SPL has the following commitments:
•$1.5 million (2023: $8.4 million) for further building upgrades at 34 Shortland Street, Auckland; and
•$1.2 million (2023: $1.5 million) for various other capital expenditure to be undertaken.
As at 31 March 2023, SPL also had commitments of $34.3 million for further loan advances and final settlement payments to be made in relation to the
acquisition of 110 Carlton Gore Road, Auckland. These advances and payments were made in the current year.
Stride has no other material capital commitments as at 31 March 2024.
Subsequent to balance date, SPL has committed to a further $5.3 million for capital expenditure works for 215 Lambton Quay, Wellington, and a further
$0.1 million for various other capital works.
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Stride Property Group Annual Report 31 March 2024
4.0 Investor Returns
This section sets out Stride’s earnings per share, dividends paid and how distributable profit is calculated. Distributable profit is a non-GAAP
measure (refer note 1.8) and is used by Stride to calculate profit available for distribution to shareholders by way of dividends.
4.1 Basic and diluted earnings per share (EPS)
20242023
Loss after income tax attributable to shareholders ($000)
(56,124)
(116,747)
Weighted average number of shares for the purpose of basic EPS (000)
549,184
540,407
Basic EPS - SPL (cents)
(11.47)
(23.30)
Basic EPS - SIML (cents)
1.25
1.70
Basic EPS - weighted (cents)
(10.22)
(21.60)
Weighted average number of shares for the purpose of diluted EPS (000)
552,835
542,847
Diluted EPS - SPL (cents)
(11.47)
(23.30)
Diluted EPS - SIML (cents)
1.25
1.70
Diluted EPS - weighted (cents)
(10.22)
(21.60)
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.
Weighted average number of shares for the purpose of diluted EPS has been adjusted for 3.65 million (2023: 2.49 million) rights issued under SIML’s
employee incentive schemes.
SPL has reported a loss after income tax attributable to shareholders for the year ended 31 March 2024. As a loss after income tax attributable to
shareholders results in an anti-dilutive position for SPL diluted EPS, the diluted EPS is reported as Basic EPS of (11.47) cents.
Stride Property Group Annual Report 31 March 2024
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4.0 Investor Returns (continued)
4.2 Distributable profit
Accounting policy
Stride’s dividend policy is to target a total cash dividend to shareholders that is equivalent to the sum of 25% to 75% of SIML’s distributable profit
and 80% to100% of SPL’s distributable profit. Distributable profit is presented to enable investors to see an earnings measure which more closely
aligns with Stride’s underlying and recurring earnings from its operations. Distributable profit is a non-GAAP measure and consists of profit/(loss)
before income tax, adjusted for determined non-recurring and/or non-cash items, share of profit/(loss) in equity-accounted investments, dividends
received from equity-accounted investments and current tax.
Adjusted Funds From Operations (AFFO) is also a non-GAAP measure and is intended as a supplementary measure of operating performance.
Although there is no standard meaning or measure per GAAP, AFFO has been determined based on guidelines established by the Property Council
of Australia. Cash spent during the period on capital expenditure as part of maintaining a building’s grade/quality, but not expensed as part of
distributable profit after current income tax, is adjusted to enable investors to see the cash generating ability of the business.
20242023
$000$000
Loss before income tax(51,976)
(109,747)
Non-recurring, non-cash, and other adjustments:
Net change in fair value of investment properties
75,779
118,491
Reversal of the lease liability movement in net change in fair value of investment properties and loss on
disposal of investment properties
(6)
(39)
Share of loss in equity-accounted investments
23,676
42,392
Loss on disposal of investment properties
2,472
2,038
Project management and disposal fees eliminated in SIML
872
833
Rental surrender income received/(non-cash)
3,750
(3,750)
Rental guarantee income
829
-
Dividend income from equity-accounted investments
7,135
9,032
Interest received/earned in relation to loan advance on 110 Carlton Gore Road, Auckland
1,556
6,859
Spreading of fixed rental increases
(1,967)
(1,052)
Capitalised lease incentives net of amortisation
711
485
Share based payment expense net of forfeited employee incentive rights
1,866
1,713
Non-cash movements in property, plant and equipment recognised in profit and loss
489
211
Borrowings establishment costs amortisation
714
474
Non-cash interest income
(294)
(214)
Hedge ineffectiveness of cash flow hedges
880
369
Distributable profit before current income tax66,486
68,095
Current tax expense(7,814)
(12,175)
Adjusted for:
Tax expense on depreciation recovered on disposal of investment properties
437
1,713
Distributable profit after current income tax
59,109
57,633
Adjustments to funds from operations:
Maintenance capital expenditure
(3,306)
(1,802)
Incentives and associated landlord works
(2,944)
(4,256)
Adjusted Funds From Operations (AFFO)
52,859
51,575
Weighted average number of shares for the purpose of basic distributable profit per share (000)
549,184
540,407
Basic distributable profit after current income tax per share - weighted (cents)10.76
10.66
AFFO basic distributable profit after current income tax per share - weighted (cents)9.62
9.54
Weighted average number of shares for the purpose of diluted distributable profit per share (000)
552,835
542,847
Diluted distributable profit after current income tax per share - weighted (cents)10.69
10.62
AFFO diluted distributable profit after current income tax per share - weighted (cents)9.56
9.50
68
Stride Property Group Annual Report 31 March 2024
4.0 Investor Returns (continued)
4.3 Dividends paid
20242023
$000$000
The following dividends were declared and paid by SPL during the period:
Q4 2023 final dividend 1.7808 cents (Q4 2022 1.8455 cents)
9,680
9,972
Q1 2024 interim dividend 1.7375 cents (Q1 2023 2.0702 cents)
9,500
11,186
Q2 2024 interim dividend 1.7375 cents (Q2 2023 1.39532 cents)
9,561
7,539
Q3 2024 interim dividend 1.7375 cents (Q3 2023 1.68083 cents)
9,629
9,082
Total dividends paid - SPL
38,370
37,779
The following dividends were declared and paid by SIML during the period:
Q4 2023 final dividend 0.060 cents (Q4 2022 0.632 cents)
326
3,415
Q1 2024 interim dividend 0.2625 cents (Q1 2023 0.4073 cents)
1,435
2,201
Q2 2024 interim dividend 0.2625 cents (Q2 2023 0.44552 cents)
1,444
2,407
Q3 2024 interim dividend 0.2625 cents (Q3 2023 0.16 cents)
1,455
865
Total dividends paid - SIML
4,660
8,888
Total dividends paid - Stride
43,030
46,667
Dividends are recognised as a liability in the financial statements in the period in which the dividends are approved.
Supplementary dividends of $0.32 million (2023: $0.56 million) were paid to SPL shareholders not resident in New Zealand for which SPL received a
foreign investor tax credit entitlement.
Supplementary dividends of $0.10 million (2023: $0.22 million) were paid to SIML shareholders not resident in New Zealand for which SIML received a
foreign investor tax credit entitlement.
During the year, $19.58 million ($17.41 million in SPL and $2.17 million in SIML) (2023: $4.01 million, $3.66 million in SPL and $0.35 million in SIML) of
gross dividends paid were reinvested in Stride as part of the DRP (refer note 1.9) and 14,888,221 (2023: 2,989,536) Stapled Securities were issued.
Stride Property Group Annual Report 31 March 2024
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5.0 Capital Structure and Funding
Stride's capital structure includes debt and equity, comprising shares and retained earnings, as shown in the consolidated statement of
financial position. This section sets out Stride's funding exposure to interest rate risk and related financing costs (excluding borrowings within
Industre joint operation, refer note 7.3).
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 SPL has an
unconditional right to defer settlement of the liability for at least 12 months after the reporting date.
20242023
$000$000
Non-current
Bank facilities drawn down
375,000
402,400
Unamortised borrowing establishment costs
(402)
(631)
Total net borrowings
374,598
401,769
Weighted average cost of debt (inclusive of current interest rate derivatives, margins and
line fees) at balance date
4.22%
3.96%
Total
Undrawn
facility
Drawn
amount
Expiry date$000$000$000
As at 31 Mar 24
Facility A30 Nov 2026
60,000-60,000
Facility B30 Nov 2027
50,00010,00040,000
Facility F130 Nov 2026
100,000-100,000
Facility F230 Nov 2027
150,000-150,000
Facility F430 Nov 2026
100,00075,00025,000
460,00085,000375,000
As at 31 Mar 23
Facility A15 Dec 2024100,000-100,000
Facility B15 Dec 202525,00012,50012,500
Facility F115 Dec 2024100,000-100,000
Facility F215 Dec 2025100,000-100,000
Facility F315 Dec 2026100,00010,10089,900
Facility F415 Dec 2024
100,000100,000-
525,000
122,600402,400
SPL’s bank borrowings are via syndicated senior secured facilities with ANZ Bank New Zealand Limited (ANZ), China Construction Bank Corporation
(New Zealand Branch), Industrial and Commercial Bank of China Limited, Auckland Branch, and Westpac New Zealand Limited. The bank security on
the facilities is managed through a security agent who holds a registered first mortgage on all the investment properties directly owned by SPL and a
registered first ranking security interest under a General Security Deed over substantially all the assets of SPL.
Due to the net reduction in fair value of investment properties recognised in respect of the office portfolio as at 31 March 2023, the total value of assets
of Fabric were less than its total liabilities as at that date. This resulted in a deemed representation provided to the banking syndicate on 1 April 2023
that the value of Fabric’s assets is greater than its liabilities being incorrect.  No action was taken by the banking syndicate in respect of this deemed
representation, and a waiver was provided by the banking syndicate which disapplied this deemed representation for the period 31 March 2023 to
31 March 2024. On 23 May 2023, Fabric issued 150.0 million new shares to its parent company, SPL, for total consideration of $150.0 million, which
was set off against $150.0 million of the advance provided by SPL to Fabric. This share issue has resulted in Fabric's assets being greater than its
liabilities as at 31 March 2024.
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Stride Property Group Annual Report 31 March 2024
5.0 Capital Structure and Funding (continued)
5.1 Borrowings (continued)
In accordance with the Green Finance Framework (Framework) of Fabric, $350.0 million of the facilities are classified as green loan facilities. The
Framework has been developed to be consistent with the Asia Pacific Loan Market Association (APLMA) Green Loan Principles (2021).
SIML does not have any bank borrowings (2023: $ nil) however it does have a $3.0 million overdraft facility with ANZ which has not been utilised during
the current year.
20242023
Summary of net debt$000$000
Cash and cash equivalents
14,762
16,833
Borrowings - non-current
(374,598)
(401,769)
Lease liability
(27,614)
(15,910)
Net debt
(387,450)
(400,846)
5.2 Derivative financial instruments
Accounting policy
Interest rate derivatives (derivative financial instruments) are initially recognised at fair value on the date a derivative contract is entered into and
are subsequently measured at their fair value at each reporting date. Fair value of over-the-counter derivatives, such as interest rate derivatives, is
determined using valuation techniques which maximise the use of observable 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
SPL$000$000
Active interest rate derivative contracts
280,000
320,000
Forward dated interest rate derivative contracts
130,000
80,000
Total notional principal value of interest rate derivative contracts
410,000
400,000
Interest rate derivative assets - current
6,535
1,761
Interest rate derivative assets - non-current
6,879
21,581
Interest rate derivative liabilities - non-current
(64)
(125)
Fair values of interest rate derivative contracts
13,350
23,217
Fixed interest rates ranges on active interest rate derivative contracts (excluding margins and line fees)
0.53% - 1.80%
0.53% - 1.80%
Weighted average fixed interest rate on active interest rate derivative contracts (excluding margins and
line fees)
1.35%
1.28%
Percentage of drawn debt fixed
75%
80%
During the year ended 31 March 2024, Fabric entered into the following forward-starting interest rate agreements:
•three year fixed agreements with a total notional value of $25.0 million and an effective date of 31 December 2024; and
•two year fixed agreement with a notional value of $25.0 million and an effective date of 31 December 2025.
SPL typically designates its interest rate derivatives as cash flow hedges of the interest flows on its variable rate borrowings. SPL 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.
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5.0 Capital Structure and Funding (continued)
5.2 Derivative financial instruments (continued)
During the year, SPL had interest rate derivative contracts with a notional value of $20.0 million (2023: $20.0 million) that had no drawn bank borrowings
hedged against them. Consequently, the fair value movement of $(0.9) million (2023: $(0.4) million) has been recognised in other income in the
consolidated statement of comprehensive income.
The fair values of interest rate derivatives are determined from valuations prepared by independent treasury advisors using valuation techniques classified
as Level 2 in the fair value hierarchy (2023: Level 2). Judgement is involved in determining the fair value by the independent treasury advisors. The fair
values 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. As at 31 March 2024, the fair value of the interest rate derivatives includes an
accrued interest asset of $0.4 million (2023: $0.3 million).
The following sensitivity illustrates the impact on equity and profit as a result of the change in fair value of the interest rate derivatives and shows the
effect if the market interest rates had been 0.25% lower or higher, with other variables remaining constant.
20242023
Gain/(loss)Gain/(loss)Gain/(loss)Gain/(loss)
on -0.25%on +0.25%on -0.25%on +0.25%
$000$000$000$000
Impact on equity(1,434)1,422
(1,773)1,757
Impact on profit--
(35)35
SPL does not hold derivative financial instruments for trading purposes.
SIML does not hold any interest rate derivatives (2023: $ nil).
5.3 Net finance expense
Accounting policy
Interest income is recognised on a time-proportional basis using the effective interest rate.
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
799
422
Other finance income
294
214
Total finance income
1,093
636
Finance expense
Bank borrowings interest
(19,147)
(16,370)
Lease liability interest
(1,717)
(1,382)
Total finance expense
(20,864)
(17,752)
Net finance expense
(19,771)
(17,116)
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Stride Property Group Annual Report 31 March 2024
5.0 Capital 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. SPL
and SIML shares are 'stapled' and jointly listed on the NZX (Stapled Securities).
Stapling of shares is a contractual and constitutional arrangement between the two Stapled Entities whereby each Stapled Entity’s equity securities are
combined with (or stapled to) the equity securities issued by the other Stapled Entity. The Stapled Entities have the same shareholders, and their shares
cannot be traded or transferred independently of one another. The Stapled Securities are traded as a single economic unit with a single quoted price.
On 12 April 2023, the Boards of SPL and SIML issued 199,248 Stapled Securities pursuant to employee share incentive schemes operated by SIML.
During the year, 14,888,221 (2023: 2,989,536) Stapled Securities were issued in accordance with the DRP (refer note 4.3).
Each of SPL and SIML has 558,407,945 shares on issue as at 31 March 2024 (2023: 543,320,476).
5.5 SIML equity (non-controlling interest)
20242023
Notes$000$000
Opening balance15,046
13,083
Transactions with shareholders:
Dividends paid
4.3(4,660)
(8,888)
Dividends reinvested net of costs
4.32,135
317
Transfer to share capital on vesting of employee incentive rights
1,204
627
Other movements in reserves
(51)
1,086
Total transactions with shareholders
(1,372)
(6,858)
Total other comprehensive income
144
(391)
Profit after income tax
6,885
9,212
Total comprehensive income
7,029
8,821
Closing balance
20,703
15,046
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5.0 Capital Structure and Funding (continued)
5.6 Reserves
20242023
Reserves consist of the following Stride reserves$000$000
Cash flow hedge reserve
9,184
15,792
Share option reserve
969
1,404
Associate reserve - cash flow hedge
1,805
2,953
Revaluation surplus
2,800
-
Closing balance
14,758
20,149
Cash flow hedge reserve - SPL
Opening balance15,792
13,040
Movement in fair value of interest rate derivatives
(9,124)
3,536
Deferred tax on fair value movements
2,516
(784)
Closing balance
9,184
15,792
Share option reserve - SIML
Opening balance1,404
948
Share based payment expense
1,917
1,787
Deferred tax on share based payment expense
144
(391)
Transfer to share capital on vesting of employee incentive rights
(1,917)
(627)
Lapsed employee incentive rights
(528)
(239)
Forfeited employee incentive rights
(51)
(74)
Closing balance
969
1,404
Associate reserve - cash flow hedge - SPL
Opening balance2,953
2,202
Changes in reserves of associate
(1,148)
751
Closing balance
1,805
2,953
Revaluation surplus - SPL
Opening balance-
700
Revaluation surplus/(deficit)
2,800
(700)
Closing balance
2,800
-
Gains and losses recognised in the cash flow hedge reserve on interest rate derivative contracts will be reclassified in the same period in which the
hedged forecast cash flows affect profit or loss until the repayment of the bank borrowings.
5.7 Capital risk management
Stride’s objectives when managing capital are to safeguard Stride’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, Stride 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, SPL is required to comply with covenants imposed under its banking facilities. The SPL Board
regularly monitors these covenants and provides six-monthly compliance certificates to the banking syndicate as part of this process. SPL has complied
with these covenants during the relevant periods.
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Stride Property Group Annual Report 31 March 2024
6.0 Risk Management
This section sets out Stride’s exposure to financial assets and liabilities that potentially subject Stride to financial risk and how Stride
manages those risks.
6.1 Financial instruments
A financial instrument is recognised if Stride becomes a party to the contractual provisions of the instrument. Financial assets are de-recognised if
Stride’s contractual rights to the cash flows expire, or if Stride transfers them without retaining control or substantially all risks and rewards of the asset.
Financial liabilities are de-recognised if Stride's obligations specified in the contract are extinguished.
Stride 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.
The following financial assets and liabilities that potentially subject Stride 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
14,762
16,833
Trade and other receivables
4,248
7,729
NZX bond
-75
Total financial assets at amortised cost
19,010
24,637
Financial assets at fair value through profit or loss
Loan to associate
3,398
3,398
Total non-derivative financial assets at fair value through profit or loss
3,398
3,398
Derivative financial instruments
Used for hedging
13,414
23,342
Total financial assets
35,822
51,377
Financial liabilities at amortised cost
Trade and other payables recognised as financial liabilities
6,544
34,289
Lease liability
27,614
15,910
Borrowings (joint operation participating interest)
40,297
40,400
Bank borrowings
374,598
401,769
Total financial liabilities at amortised cost
449,053
492,368
Derivative financial instruments
Used for hedging
64
125
Total financial liabilities
449,117
492,493
6.2 Financial risk management
Stride’s activities expose it to a variety of financial risks: credit risk, interest rate risk and liquidity risk. Stride’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 Boards. The Boards identify and evaluate financial risks in close co-operation with management. The Boards
provide 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.
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