FY25 Annual Results

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

jennifer.whooley@strideproperty.co.nz

---

Stride Property Group
Annual Report 2025
Annual Report 2025
Stride Property Group

Contents
Capitalised terms have
the meaning given in the
glossary on page 132.
Overview2
Chair and CEO’s Report6
Board of Directors10
People12
Executive Team14
Performance16
Diversification in Assets and Revenue18
SPL Look-Through Portfolio20
Active Investment Management22
SPL Portfolio25
Office26
Town Centre30
Investore32
Industre36
Diversified41
Capital Management42
Five Year Financial Summary44
Consolidated Financial Statements45
Independent Auditor’s Report85
Corporate Governance89
Statutory Disclosures120
Implications of Investing in Stapled Securities131
Glossary132
Corporate Directory133
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 131 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 2025
1

Financial Overview
for 12 months ended 31 March 2025 (FY25)
1. Net of management fees received from SPL.
2. See glossary on page 132.
3. Includes SPL's directly owned portfolio, plus SPL's proportionate ownership in the portfolios of the Stride Products. Excludes properties categorised as 'Development and Other'
in the respective financial statements.
4. Excludes lease liabilities. In the case of SPL, 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. In the case of Investore, includes the value of
the rental guarantee receivable in relation to Bunnings Westgate.
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.
Stride has delivered resilient financial results in FY25 despite continued
challenging market conditions.
Portfolio Overview
as at 31 March 2025
Stride's look-through
3
investment portfolio comprises directly held properties and its
interests in the portfolios of the Stride Products
2
, and continues to demonstrate strong
investment metrics.
net rental income, down
$(3.3)m from FY24 ($72.3m)
$69.1m
management fee income
1
,
up $0.6m from FY24 ($19.9m)
$20.4m
value
4
$1.5bn
growth in look-through
3
rental on prior
rentals from new lettings, renewals and
rent reviews
+3.8%
WA LT
2
6.6 years
occupancy
5
by area
95%
weighted average
capitalisation rate6.2%
combined cash dividend for
FY25, representing a combined
payout ratio of 93% of Stride’s
distributable profit
2
8.0cps
profit after income tax, up $77.8m
(FY24: $(56.1)m loss after income tax),
largely due to a smaller net portfolio
valuation reduction of $(29.5)m
compared with FY24 ($(75.8)m net
portfolio valuation reduction)
$21.7m
distributable profit
2
after current income
tax, down $(10.8)m (FY24: $59.1m)
$48.3m
net tangible assets (NTA) per share
as at 31 March 2025, down $(0.06)
from 31 March 2024
$1.72
46 Sale Street, Auckland
Stride Property GroupStride Property GroupAnnual Report 2025Annual Report 2025
23

Proactive Capital
Management
Active Investment
Management
Business
$3.2bn assets under management as at 31 March
2025 including $2.2bn of external assets under
management
38.7% bank LVR
1
as at 31 March 2025, with
balance sheet LVR
2
(which includes the value of
SPL’s interests in each of Investore, Diversified and
Industre
1
) of 29.0%
Building upgrades to reposition SPL’s office
property at 34 Shortland Street, Auckland, now
largely complete, with upgrades underway at
215 Lambton Quay, Wellington
72% of SPL’s drawn debt as at 31 March 2025
was hedged
SIML is delivering $58m of new industrial
developments for Industre
1
at 14-20 Favona Road,
Auckland, and 16A Wickham Street, Hamilton, both
of which are targeting a 5 Green Star Design & As
Built rating
4.9% weighted average cost of debt as at
31 March 2025
SIML helped to advance Investore's
1
strategy of
targeted growth through the divestment of three
properties during FY25 for a combined sales price
of $79.3m (3.4% above book value as at 31 March
2024), and the acquisition of Bunnings Westgate
SPL's lenders have committed to refinance SPL's
bank debt facilities, which, once complete, will
result in the weighted average cost of debt reducing
to 4.5% and extend the weighted average maturity
of debt facilities from 2.1 years to 5.0 years on a pro
forma 31 March 2025 basis
SIML completed a restructure of Industre including
streamlining the corporate and banking structures,
with weighted average margin and line fees on bank
debt reducing by ~40 basis points
1. See glossary on page 132.
2. Balance sheet LVR includes SPL's directly held property as well as the value of
SPL's interests in each of the Stride Products, and SPL's direct debt.
20 Customhouse Quay, Wellington
Stride Property GroupStride Property GroupAnnual Report 2025Annual Report 2025
45

Chair and CEO's Report
Dear Shareholders,
Stride Property Group (Stride) is pleased to deliver its annual report for FY25. Stride has
delivered another positive performance during FY25, with resilient underlying rental
and growing management fees demonstrating the benefit of Stride’s quality investment
portfolios and its diverse real estate investment management business.
While we have seen the challenging macro-economic
conditions of recent years continue through FY25, the last half
of FY25 appears to have been the low point in the cycle for
commercial property, with relatively high interest rates and a
corresponding subdued commercial property market starting to
demonstrate a more positive outlook. Recent activity suggests
that the property investment market is stabilising following
the cuts to the Official Cash Rate by the Reserve Bank of New
Zealand, with 2.0% of cuts being made to April 2025, taking
the rate to 3.5%, and further rate cuts signalled to come during
the remainder of calendar year 2025.
These reductions in interest rates are supportive of increased
investment activity in the New Zealand commercial property
market, and we expect activity to improve following some
subdued years when interest rates and inflation rates were
high. However, we are conscious of continuing volatility and
uncertainty in global markets, which has weighed on investor
sentiment, and which could still impact economic activity
generally, including in the commercial property sector.
Stride continues to be well positioned to manage this
volatility, and to benefit from improved market conditions
when they eventuate. Stride’s quality commercial property
investment portfolios and its real estate investment
management business provides Stride with diversification of
revenue and assets, providing a level of resilience in varying
market conditions.
Financial performance
Stride’s diversified revenue sources, comprising its real
estate investment management business together with
its direct and indirect commercial property investments,
continued to deliver resilient financial performance during
FY25. Stride’s FY25 financial statements have been
impacted by the restructure of Industre Property Joint
Venture (Industre), as the joint operation component
of Industre was previously reported as part of Stride’s
consolidated statement of comprehensive income and
consolidated statement of financial position. The restructure
has resulted in this component being removed from Stride’s
financial statements and the impact of Industre is now
represented as part of the equity-accounted investments.
While Stride’s FY25 combined net rental income and
management fee income (excluding fees from SPL) of
$89.5 million is $2.7 million lower than FY24, FY25 net
rental income was impacted by $(3.0) million as a result
of the Industre restructure, and therefore excluding the
restructure, combined net rental income and management
fee income is slightly higher than FY24.
Stride takes an active and prudent approach to managing
costs, with FY25 corporate overhead expenses of
$(15.9) million, down $2.5 million from FY24. This continues
the trend of careful management of costs, with FY25
corporate overhead expenses 9% lower than for FY22.
The difference would be materially greater on an inflation
adjusted basis.
FY25 profit before net finance expense, other (expense)/
income and income tax of $68.2 million, down $2.5 million
from FY24, is a favourable result given the impact of the
Industre restructure in FY25, as well as the fact that FY24
benefited from one-off guarantee income of $2.4 million
related to the insolvency of a tenant.
Lower net finance expenses contributed to profit before
other (expense)/income and income tax of $49.3 million,
down $1.5 million from FY24. Overall, profit after income tax
for FY25 was $21.7 million, up $77.8 million on FY24, with
the FY25 result being impacted by a lower net reduction in
fair value of investment properties, a positive share of profit
in equity-accounted investments, and higher income tax
expense (including as a result of the Government’s policy
decision to remove tax deductions for depreciation on
commercial buildings).
Distributable profit
1
after current income tax for FY25 of
$48.3 million was down from FY24 ($59.1 million), as a result
of higher tax in FY25 due to the removal of a tax deduction
for depreciation on commercial buildings, the timing impact
of the restructure of Industre, and one-off items in FY24 that
were not repeated in FY25. Excluding these factors, FY25
distributable profit would have been comparable to FY24.
Portfolio
SPL directly owns office and town centre properties and
also has an indirect ownership interest in the properties
owned by each of the Stride Products of Industre, Investore
Property Limited (Investore), and Diversified NZ Property Trust
(Diversified). This provides SPL with a diversified portfolio
2
on a
look-through basis, with strong metrics – 95% occupancy,
6.6 years weighted average lease term, and a look-through
portfolio value of $1.5 billion. During FY25 SIML delivered 3.8%
growth in look-through rental on prior rentals, from new lettings,
renewals and rent reviews.
Over the past two years Stride has undertaken a number of
projects to reposition the office property at 34 Shortland
Street, Auckland, owned by SPL, including redevelopment
of the lobby, installation of end of trip facilities, electrical and
mechanical upgrades designed to enable the building to
achieve a 4 star NABERSNZ rating, installation of new lifts
and escalators, refurbishment of on-floor lift lobbies and the
creation of modern, high quality turnkey fitouts. This work
continues with the last projects which are currently underway,
being the improvement of the Shortland Street and Fort Street
entrances, together with a number of improvements to the
carparking spaces. The benefit of these improvements are
being seen, with the average net effective market rentals for
the property increasing by 9% over the period from
the acquisition of this property in September 2020 to
31 March 2025, which compares favourably with Auckland
B grade rentals which declined by approximately 9% over
the same period
3
. We are starting to see improvements in
leasing activity at this property, and expect this to continue as
economic conditions improve.
Stride is implementing similar improvements at the SPL
office property at 215 Lambton Quay, Wellington, with a
recently-completed lobby upgrade, installation of new end
of trip facilities and new lifts, and electrical and mechanical
improvements in progress.
While some portfolio valuations have continued to be impacted
by market conditions, capitalisation rates are stabilising across
the portfolios managed by SIML.
Real estate investment
management business
SIML remains an active investment manager, and has
undertaken a number of strategic transactions for the
Stride Products during FY25, including:
• two new industrial developments for a total cost of
$58 million underway on behalf of Industre: the
development of a new facility at 16A Wickham Street,
Hamilton, which will be leased to Wattyl New Zealand, an
existing tenant of Industre, on completion (expected late
2025); and development of a new facility at 14-20 Favona
Road, Auckland, expected to be completed in the first half
of 2026;
• the sale of three supermarket properties for a total sales
price of $79.3 million and the acquisition of Bunnings
Westgate, Auckland, for $51 million cash
4
by Investore,
with SIML managing these divestments and acquisition.
Investore intends to recycle the remaining capital from
the divestments into strategic investment opportunities
to further enhance Investore’s rental and underlying
growth profile;
• the restructure of Industre into a more streamlined
corporate shareholding structure which, together with
a new banking structure, reduced the weighted
average margin and line fees on Industre's bank debt by
approximately 40 basis points; and
• a number of refinancing transactions completed by SIML
on behalf of the Stride Products, including post balance
date transactions which have sought to take advantage of
favourable conditions to reduce overall debt costs.
This continued activity has driven higher overall management
fees for SIML for FY25 when compared with FY24,
demonstrating the resilience of SIML’s real estate investment
management business, even during the trough of the
market cycle.
SIML’s management business is profitable on FY25 recurring
fees alone, and as recurring fees are largely based on
valuations, these recurring fees have been impacted during
recent years by reducing portfolio valuations across the Stride
Products. With valuations stabilising, this is expected to support
recurring asset management fees into FY26.
A core part of Stride’s strategy is to grow an enduring
management business. Currently, the core real estate
investment management platform includes Investore and
Industre, which both have enduring management arrangements.
These two Products collectively contributed around 70% of
SIML’s management fee revenue
5
in FY25. Since establishment,
this strategy has been very successful and profitable for Stride,
providing exposure to activity fee income when markets were
conducive, and underpinning Stride’s revenue with consistent
and predictable recurring fee revenue during recent years when
market activity has been more subdued.
1. See glossary on page 132.
2. Metrics relate to the stabilised investment portfolios and exclude properties
categorised as 'Development and Other' in the respective financial statements.
3. CBRE Auckland Yield and Rent Update April 2025.
4. Up to a further $3.5 million of Investore shares may be issued to the vendor as part
consideration, with shares equal to this value being issued on 1 December 2025
if the value of Investore’s net tangible assets (NTA) per share as at 30 September
2025 increases by at least 44% from a base NTA per share of $1.57 as at
31 March 2024.
5. Net of management fees received from SPL and excluding staff cost recharges.
Stride Property GroupStride Property GroupAnnual Report 2025Annual Report 2025
67

Chair and CEO's Report (cont.)
Diversified is not a perpetual Product, and may be subject
to review during FY27. Around 30% of SIML’s external
management fee revenue
1
in FY25 was derived from
Diversified. Stride estimates that if the Diversified assets were
sold and Diversified wound up, this would reduce Stride’s
distributable profit
2
by around 5-6% on a normalised basis.
Capital management
Stride continues to take a prudent and active approach to
capital management, with 72% of drawn debt hedged and a
bank loan to value ratio (LVR) of 38.7%, both as at 31 March
2025. The Boards are comfortable with the current LVR, given
the quality of the SPL portfolio and the current low point in the
economic cycle with valuations stabilising recently. In addition,
the Boards note that this LVR is based on SPL’s direct property
holdings only, and does not reflect the value of SPL’s ownership
interests in each of the Stride Products. When these assets are
taken into account, the balance sheet LVR
3
is 29.0%.
SPL’s weighted average cost of debt was 4.9% as at 31 March
2025, which is up around 70 basis points from 31 March 2024
due to a number of favourable swaps entered into during the
period impacted by COVID-19 having matured. Post balance
date SPL's lenders have committed to refinance SPL's bank debt
facilities. Once the refinance is complete, the weighted average
cost of debt will reduce to 4.5% and the weighted average tenor
remaining on debt facilities will increase to 5.0 years (on a pro
forma basis as if the refinance occurred as at 31 March 2025).
People
During FY25 the SIML Board was pleased to support its
people further through the introduction of a number of new
benefits, primarily related to parental leave, including full pay
for primary carers for 14 weeks as a top up to the Government-
provided parental leave financial contribution. These new
benefits, together with existing benefits such as employer
KiwiSaver contributions at 5% when an employee contributes
at least 4% of their salary, means that Stride remains an
attractive employer.
The benefits SIML provides to its employees are only one
aspect of the way in which SIML seeks to ensure employee
wellbeing, and during FY25 SIML continued its programme
of wellbeing initiatives, including bringing in external
speakers to present on wellbeing topics. These initiatives
and the benefits enjoyed by SIML employees were reflected
in the employee engagement survey undertaken by SIML
during FY25. Overall, we were particularly pleased to see
that 86% of our employees would recommend Stride as a
great place to work.
In May 2025, Louise Hill, our General Manager Corporate
Services and member of the SIML Executive Team, resigned
from SIML. Louise has been with SIML for 7.5 years, and during
that time has contributed to a number of key transactions for
the company, including the establishment of the Industre joint
venture and the development of Stride’s sustainability strategy.
On behalf of the Board and SIML management, we would like
to thank Louise for her contributions and wish her the best for
the future.
Governance
During FY25 Director Jacqueline Cheyne resigned from the
Boards of SPL and SIML. The Boards are currently undertaking
a process for the appointment of a new director and expect to
make an announcement regarding a new appointment prior
to the Annual Shareholders Meeting, currently planned for
August 2025.
The Stride Boards are committed to high standards of corporate
governance and continuous learning to ensure that the
Boards retain the necessary skills to oversee the management
and growth of Stride’s business. During FY25 all Directors
completed the Institute of Directors’ Climate Governance
Essentials course, providing Directors with appropriate skills and
understanding in relation to the governance of climate-related
risks so as to enable them to assess climate change governance
issues currently facing Stride, and manage climate-related risks
to ensure business resilience.
The Stride Boards support the development of the next
generation of directors, and appointed Craig Hopkins as a
future director under the Institute of Directors’ Future Directors
programme in April 2025. This programme provides aspiring
directors the opportunity to participate on a board without
having the obligations and responsibilities of a director, and
also enables Stride to have the benefit of Craig’s knowledge
and experience.
Sustainability
Sustainability continues to be a strategic focus for the Boards.
The Audit and Risk Committee has now assumed responsibility
for the oversight of Stride’s climate-related risks and climate
disclosures, with the full Boards considering the impact of
climate-related risks and sustainability matters on business
strategy. This has resulted in sustainability becoming further
integrated into Stride’s approach to risk management, as well as
its overall business strategy and objectives. Stride’s approach
differs by sector, and takes into account tenant and investor
demand and the strategy of each of the Stride Products. By
delivering on a portfolio by portfolio strategy aligned with
sustainability objectives, this ensures that the properties owned
and managed by Stride continue to have enduring demand, and
that Stride’s business and that of the Stride Products continue
to be sustainable for the long term.
Stride has continued its progress against its sustainability
targets, with a focus in particular on implementing the carbon
reduction plan developed during FY24 which provides a
roadmap for improvements to SPL’s office and town centre
properties intended to support Stride in the achievement of its
target of reducing scope 1 and 2 greenhouse gas emissions by
42% by 2030 from the FY20 baseline year.
Further information, together with Stride’s climate disclosures
in accordance with the Aotearoa New Zealand Climate
Standards, can be found in Stride’s FY25 Sustainability
Report and Climate-Related Disclosures, available on Stride’s
website: www.strideproperty.co.nz/investor-centre/.
Outlook
While there are indicators that the commercial property
sector has reached the low point in the economic cycle, with
reductions in interest rates supportive of investment activity
in the New Zealand commercial property market, the Boards
are conscious of volatility and uncertainty in global markets,
which could impact economic activity.
Stride will continue to focus on growing its core portfolios and
its management business and will take opportunities to secure
sites with future development potential where this supports
growth in Stride’s core portfolios and the development of one or
more future Products when economic conditions are conducive.
The Boards confirm they currently intend to pay a combined
cash dividend for SPL and SIML for FY26 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.
Tim Storey
Chair,
SPL and SIML
Philip Littlewood
Chief Executive Officer,
SIML
1. Net of management fees received from SPL and excluding staff cost recharges.
2. See glossary on page 132.
3. Balance sheet LVR includes SPL’s directly held property as well as the value of
SPL’s interests in each of the Stride Products, and SPL’s direct debt.
110 Carlton Gore Road, Auckland
Stride Property GroupStride Property GroupAnnual Report 2025Annual Report 2025
89

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) and
is a director of Investore Property
Limited and of a number of private
companies.
Tracey Jones
BCom, CA, CMInstD
Independent Director
Term of Office: Appointed to SPL and
SIML on 11 April 2023; last 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, as
well as director of a number of private
companies.
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; last elected
2024 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 Chair 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 and is an
Auckland Council Member of the
Institute of Directors of New Zealand.
He is a Council Member and Chair
of the Finance and Audit Committee
of the Massey School of Business
Advisory Board, and is the Chair of
the Auditor Oversight Committee of
the Financial Markets Authority.
Nick Jacobson
LLB, BCom
Independent Director
Term of Office: Appointed to SPL and
SIML on 18 July 2019; last elected
2024 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
Chair of Goldman Sachs’ Real Estate
Investment Banking division.
Michelle Tierney
GAICD BA (Journalism & Comm)
PgDip (Bus Admin) 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 20 years’
experience in the property industry,
including as the Chief Operating
Officer for SCA Property Group
in Australia, General Manager of
Business Development and Strategy
for the National Australia Bank Global
Institutional Bank, and Fund Manager
of the $3.8 billion GPT Wholesale
Shopping Centre Fund. Michelle is
currently a director of ASX-listed
Growthpoint Properties Australia, ASX-
listed Peet Limited, Cotton Research
& Development Corporation Australia,
Uniting NSW.ACT, Message Stick
Foundation Limited, CareerTrackers
Indigenous Internship Program Limited,
and director of Assemble HoldCo 1
Pty Ltd representing H.E.S.T. Australia
Limited. Michelle is also a member of
the Domestic and Family Violence and
Sexual Assault Corporate Leadership
Group for New South Wales, Australian
Institute of Company Directors, Chief
Executive Women, and Women on
Boards.
Craig Hopkins
NZ Cert in Civil Engineering (Int)
Future Director
Craig is the CEO of Generation
Homes New Zealand Limited, one of
New Zealand’s top 10 group home
builders, and has been involved in
the construction industry for over
10 years. Prior to that, Craig was
group commercial manager for
Precast New Zealand Limited and
asset manager for Kiwi Income
Property Trust. Craig is also the
Northern Region Chair and National
Board Member of the Building
Institute Aotearoa. Craig has been
appointed as a future director and as
such he participates in Stride Board
meetings but does not vote or have
any role as a director.
Stride Property GroupStride Property GroupAnnual Report 2025Annual Report 2025
1011

People
During FY25 Stride conducted an employee engagement
survey to understand how our people feel about working
at Stride. We are pleased to report an increase in our
engagement score, and are proud to see that 86% of
our people would recommend Stride as a great place
to work. While we are very pleased with the results of
our engagement survey, Stride is focussed on continual
improvement, and going forward will target improvements in
learning and development, wellbeing, and further technology
improvements.
Community involvement and support is important to Stride.
Stride sponsors the Keystone Trust, the Tania Dalton
Foundation and the Graeme Dingle Foundation. Stride’s
sponsorships are targeted towards maximising the positive
impacts of Stride’s business activities on the community
through actively engaging in partnerships that address
social issues at national and local levels.
The Graeme Dingle Foundation is a New Zealand charity
dedicated to inspiring young people across New Zealand to
realise their potential through school and community-based
programmes that help build self-esteem, promote good values,
improve attitudes and behaviour, and improve academic
results. The Keystone Trust provides scholarships to young
people facing hardship to support them in their studies in
the fields of property or construction, while the Tania Dalton
Foundation supports young people through sport, to unlock
their talent and be their best selves.
Stride supports its chosen charities in more ways than simply
providing financial sponsorship. During FY25, Stride people
participated in activities to raise funds for the Graeme Dingle
Foundation and the Keystone Trust, as well as provide other
support to the Graeme Dingle Foundation.
Drop your boss
Every year one lucky Stride volunteer elects to be dropped
from Auckland’s Sky Tower to raise funds for the Graeme
Dingle Foundation. In 2024, Stride’s office manager,
Laurianne English, boldly took the plunge, falling 192m
and raising thousands of dollars to help the Graeme Dingle
Foundation continue its valuable work.
Volunteer day at Te Hōnonga a Iwi
restoration site at Rosedale Park,
Auckland
For the second year in a row Stride staff participated in
a volunteer day at Te Hōnonga a Iwi restoration site at
Rosedale Park in Auckland, organised as part of our support
for the Graeme Dingle Foundation. This year saw our
team build and fill new planter boxes at the site to create a
community garden. We lost count of the barrow loads of soil
and mulch that was moved, but the achievement at the end
made all the sweat and mud well worth it.
JLL Touch Rugby Tournament
For the second year in a row Stride was proud to participate
in the Try for Charity touch rugby tournament organised by
JLL and the Keystone Trust. This year the tournament raised
an incredible $28,500 for the Keystone Trust’s student
hardship fund. The Stride team improved in many ways from
their inaugural 2024 outing – improving their ranking on the
leaderboard and suffering significantly fewer injuries.
Stride Property GroupStride Property GroupAnnual Report 2025Annual Report 2025
1213

Executive Team
Philip Littlewood
BProp, BCom, MBA
Chief Executive Officer
Philip celebrated his 10 year
anniversary with Stride in 2024, and
has led the Stride team since 2017,
responsible for the overall strategy
and management of Stride. Philip
has extensive experience in property
investment, funds management,
development, asset management
and financing.
Philip’s prior experience includes 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,
as well as capital management and
portfolio reporting within Stride and
its managed entities. Jennifer is
also responsible for the people and
culture function and the information
technology team 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.
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 more than
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.
Adam Lilley
BCom, LLB, CA
General Manager Investment
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
New Zealand listed property sector.
Adam was previously an Investment
Manager at Stride and rejoined in
2021, and now leads the Investment,
Industre and Investore teams.
Jessica Rod
BProp, BA
General Manager Office
Jessica 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 transforming
the office portfolio, including leading a
number of acquisition transactions and
building upgrade projects.
Stride Property GroupStride Property GroupAnnual Report 2025Annual Report 2025
1415

Performance
Stride’s FY25 distributable profit
1
is lower than FY24 as a result of higher tax in FY25
due to a Government policy change in removing a tax deduction for depreciation on
commercial buildings, the timing impact of the restructure of Industre in FY25, and
a number of one-off items in FY24 that were not repeated in FY25. Excluding these
factors, FY25 distributable profit would have been comparable to FY24.
SIML management fees
2
FY24
FY25
Distributable profit
1

$59.1m
FY24
FY25
$48.3m
SIML has delivered higher recurring fees and activity fees compared with FY24,
demonstrating SIML’s ability to generate resilient fee income in varying market
conditions. We are seeing indications that the market is at the bottom of the cycle, with
valuations stabilising and investment market activity increasing. SIML’s management
business is profitable on FY25 recurring fees alone, and as recurring fees are largely
based on valuations, these recurring fees have been impacted during recent years by
reducing portfolio valuations across the Stride Products. With valuations stabilising,
this is expected to support recurring asset management fees into FY26.
$19.9m$3.7m$16.2m
$20.4m$3.9m$16.5m
Activity and performance fees
Recurring fees
Management fees by
Product
Management fee income for FY25 grew by $0.6m or 2.8% when compared to
FY24, primarily due to growth from our management arrangement with Industre,
our industrial property focussed Product.
Diversified (management fees)
Diversified (staff cost recharges)
Industre
Investore
FY25
$20.4m
$7.0m
$5.2m
$5.5m
$2.6m
$19.9m
FY24
$7.3m
$4.1m
$6.0m
$2.4m
1. See glossary on page 132.
2. Net of management fees received from SPL.
110 Carlton Gore Road, Auckland
Stride Property GroupStride Property GroupAnnual Report 2025Annual Report 2025
1617

Diversification in Assets
and Revenue
Stride comprises SIML’s real estate investment management business together with
SPL’s business of investing, directly and indirectly, in different classes of commercial
property. This means that when shareholders invest in Stride, they are investing
in a business that has exposure to a number of income streams across a range of
commercial asset classes, providing a level of diversification and resilience in varying
market conditions. These ownership interests also ensure alignment of interests
between Stride and each of the Stride Products.
SIML manages a group of entities that invest in commercial property, which we call the
Stride Products. These Products comprise both listed and unlisted entities, providing
diversification of capital sources and opportunities in different market conditions.
Stride will continue to build portfolios of assets within SPL that could be used for the
establishment of future Products, when market and economic conditions are conducive.
Entity
structure
NZX listedNZX listedJoint venture between
SPL and JPMAM
2
Unit trust owned primarily
by two Australian
superannuation entities
Assets and
business
Directly owns office
and town centre
properties, and owns
an interest in each of
the Stride Products
Owns a portfolio of
quality everyday needs
large format retail
property
Owns industrial
properties primarily
located in the
Auckland region
Owns shopping centre
properties
Value of
investment
properties
3
$1,010m$989m$833m
4
$407m
SPL ownership 100%18.8%49.6%2.2%
SIML
management
arrangement
PerpetualPerpetualPerpetualSubject to review in FY27
1. Stride’s revenue comprises SIML management fees and SPL revenue. SPL revenue comprises income derived
from SPL’s directly held property plus revenue derived from its interests in the Stride Products which is calculated
based on net Contract Rental on a look-through basis as at 31 March 2025. Management fees comprise
recurring management fees and activity and performance fees and exclude fees from SPL.
2. See glossary on page 132.
3. Excludes lease liabilities where applicable. In the case of SPL, 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.
In the case of Investore, includes the value of the rental guarantee receivable in relation to Bunnings Westgate.
4. Includes development commitments at 16A Wickham Street, Hamilton, and 14-20 Favona Road, Auckland.
Diversified revenue
sources
1
Portfolio composition
by value as at
31 March 2025
Office
Large Format Retail
Industrial
Recurring management fees
Activity and performance fees
35%
20%
11%
16%
15%
3%
Property categorised as
‘Development and Other’
Industre development
commitments
4
$384m

$694m
$282m
$1,010m
Office and
Town Centre
Sector focus:
SPL investment:
100%
Large Format
Retail
18.8%
Industrial
49.6%
Retail Shopping
Centres
2.2%
$989m
$965m
$24m
$35m
$833m
$689m
$49m
$95m
$407m
$23m
Office
Town Centre
Retail Shopping Centres/Town Centres
Stride Property GroupStride Property GroupAnnual Report 2025Annual Report 2025
1819

SPL Look-through
Portfolio
SPL's weighted look-
through investment
portfolio
1
as at
31 March 2025
SPL look-through
investment portfolio
1
demonstrates strong
metrics
1. All metrics relate to the stabilised investment portfolios, and exclude properties categorised as ‘Development and Other’ in the respective financial statements.
Excludes committed developments and lease liabilities.
2. Excludes lease liabilities. In the case of SPL, 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. In the case of Investore, includes the value of
the rental guarantee receivable in relation to Bunnings Westgate.
3. See glossary on page 132.
4. Occupancy is based on area and has been calculated including casual licences with an initial term greater than three months, and excluding units held for committed
redevelopment or remix works.
Note: Values in the chart above represent total portfolio values for each Stride Product, including properties categorised as 'Development and Other' in the respective financial
statements and excluding commitments.
Office
Large Format Retail
Industrial
Retail Shopping Centres/Town Centres
46%
19%
12%
23%
Look-through value
2
($m) 1,508
Look-through WALT
3
(years) 6.6
Look-through occupancy
4
(%) 95
SPL's directly held portfolio, together with its indirect commercial property interests
in the portfolios of Investore, Industre and Diversified, provide SPL with a diversified
portfolio that demonstrates strong investment metrics.
SPL's look-through
portfolio value as at
31 March 2025
$9m
Office
Retail Shopping Centres/
Town Centres
Large Format Retail
Industrial
$706m
$304m
$1,010m
Directly held
$407m
$2,179m
$989m
Stride Products
$784m
$706m
$304m
$1,594m
$186m
Weighted look-
through
$389m
18.8%
2.2%
49.6%
110 Carlton Gore Road, Auckland
Stride Property GroupStride Property GroupAnnual Report 2025Annual Report 2025
2021

Active Investment
Management
New industrial developments totalling $58m for Industre underway at
14-20 Favona Road, Auckland, and 16A Wickham Street, Hamilton, both of
which are targeting a 5 Green Star Design & As Built rating
Divestment of Woolworths Invercargill, Woolworths Mount Roskill and
Pak’nSave New Plymouth on behalf of Investore for a combined sales price
of $79.3m, 3.4% above the combined book value as at 31 March 2024
Acquisition of Bunnings Westgate, the largest Bunnings in New Zealand,
for a cash purchase price
1
of $51m and a passing yield of 6.2%
Restructure of Industre to streamline the corporate and banking structures,
reducing the weighted average margin and line fees on bank debt by
~40 basis points
Bank refinancing completed for Investore and, post balance date, two new
banks have been introduced into the Investore banking syndicate, reducing
Investore’s overall debt costs
Stride takes an active approach to management of the Stride Products and seeks
to enhance portfolios and optimise returns in all market conditions. Key investment
management initiatives completed for the Stride Products during FY25 included:
1. Up to a further $3.5m of Investore shares may be issued to the vendor as part consideration, with shares equal to
this value being issued on 1 December 2025 if the value of Investore's net tangible assets (NTA) per share as at
30 September 2025 increases by at least 44% from a base NTA per share of $1.57 as at 31 March 2024.
16A Wickham Street, Hamilton (Industre development)
Stride Property GroupStride Property GroupAnnual Report 2025Annual Report 2025
2223

SPL Portfolio
SPL’s directly held portfolio
1
comprises office and town centre properties with
enduring demand.
31 March 202531 March 2024
2
Properties (no.)
99
Net Lettable Area (sqm)
131,019131,213
Net Contract Rental
3
($m)
60.661.9
WA LT
3
(years)
5.95.9
Occupancy Rate
4
(% by area)
91.296.0
Weighted Average Age (years)
11.811.1
Weighted Average Capitalisation Rate (%)
6.36.3
Portfolio Value
5
($m)
976988
1. All metrics refer to SPL's stabilised portfolio of investment assets and exclude properties categorised as ‘Development and Other’ in the consolidated financial statements.
2. Excludes 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 for FY24.
3. See glossary on page 132.
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. Excludes lease liabilities. 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.
NorthWest Shopping Centre, Auckland
20 Customhouse Quay, Wellington
Stride Property GroupStride Property GroupAnnual Report 2025Annual Report 2025
2425

Office
Responding to the ongoing market trend of a “flight to quality”, Stride continues to
reposition its office portfolio to higher quality, well located, sustainable buildings that will
continue to demonstrate enduring demand.
Stride has continued to progress the repositioning of its office building at 34 Shortland Street, Auckland, completing mechanical
upgrades and high quality turnkey office suites, and commencing improvements to the front and rear entrances during FY25. With the
transformation of this property now largely complete, Stride has commenced similar upgrades to its office building at 215 Lambton
Quay in Wellington. These upgrades include a comprehensive refurbishment of the ground floor lobby, including introducing a new
café, installing new modern end of trip facilities and secure bike storage, modernising the lifts, and completing mechanical upgrades
targeting a 4 star NABERSNZ rating.
The repositioning of these assets is intended to ensure that the SPL office portfolio meets market demand for quality, well-located,
green rated properties with high seismic resilience. The improvement works completed by Stride, together with ~$860m of
acquisitions and divestments undertaken since March 2020, have significantly transformed the SPL office portfolio, improving its
quality and positioning it to better meet market demand.
31 March 2025
1
31 March 2020
WALT has increased
7.0 years4.6 years
Average age has
decreased
12 years31 years
Percentage of premium
grade assets (prime or A
grade) has increased
91%21%
Percentage of assets
by value rated 4 star
NABERSNZ or 5 Green
Star or better has
increased
74%21%
1. Excluding properties categorised as
‘Development and Other’.
2. CBRE Research Report April 2025.
3. CBRE New Zealand Office Occupier Sentiment
Survey August 2024.
4. CBRE Market Outlook Report December 2024.
Office portfolio

transformation
Market dynamics
The flight to quality and demand for premium grade space in the office sector
continues and this is evidenced by 100% occupancy across Stride’s prime office
portfolio in both Wellington and Auckland.
In the current economic environment occupiers have been focussed on rightsizing their
spaces and achieving cost savings, and this, together with the Government retraction
in the Wellington market, has resulted in challenging market conditions. Despite this,
Auckland and Wellington CBD employment have grown strongly from March 2020
to 2024, with Auckland’s CBD employment growing 11% between March 2020 and
2024 and Wellington’s CBD employment growing 8% over the same period
2
. These
growth rates exceeded the overall population growth rate of the respective city. Much
of this growth has happened in office-related industries, with 45% of the Auckland
CBD’s total workforce comprising professional services and finance. This growth,
together with an increasing presence of employees in the office (with most employees
working at least 3 days a week in the office
3
), supports demand for CBD offices.
Auckland CBD office
vacancy
4
(%)
23.7
13.7
24.6
5.2
6.1
4.1
3.0
4.4
6.9
16.1
19.3
1.0
Historical - Premium
Historical - A Grade
Historical - B Grade
Forecast - Premium
Forecast - A Grade
Forecast - B Grade
Wellington CBD office
vacancy
4
(%)
2010201220142016201820202022202420262028
201320152017201920212023202520272028
Stride Property GroupStride Property GroupAnnual Report 2025Annual Report 2025
2627

Office (cont.)
1. CBRE Auckland Yield and Rent Update April 2025.
2. See glossary on page 132.
3. Valuation refers to the entire portfolio, including assets characterised as ‘Development and Other’ in the consolidated financial statements.
4. 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.
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.
6. 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’; (2) the value
of the rental guarantee receivable in relation to 110 Carlton Gore Road, Auckland.
Key investment
portfolio
4
metrics
31 March 202531 March 2024
Properties (no.)
66
Net Lettable Area (sqm)
72,34472,538
Net Contract Rental
2
($m)
39.641.1
WA LT
2
(years)
7.06.9
Occupancy Rate
5
(% by area)
87.794.6
Weighted Average
Capitalisation Rate (%)
5.95.9
Portfolio Value
6
($m)
694705
Leasing activity
SPL has started to see the benefits of its investment in improving the property at
34 Shortland Street, with the average net effective market rentals increasing by
9% over the period from the acquisition of this property in September 2020 to
31 March 2025. In contrast, Auckland B grade rentals declined by approximately 9%
over this period
1
. CBRE forecast further outperformance of high quality office over
lower grade office in both Auckland and Wellington in the coming five years, with
respect to movements in rents, occupancy and capitalisation rates.
SPL has completed four new lettings at 34 Shortland Street since 31 March 2024
across 1,400 sqm. While this property has further vacancy, SPL takes confidence
from the leasing activity completed to date as well as ongoing enquiries, and expects
occupancy to improve over FY26. With upgrades largely completed, 34 Shortland
Street offers high quality space in a desirable location and with great amenity, while
still being affordable compared to prime grade space, further supporting its leasing
proposition. SPL has commenced a similar project to refurbish its office property at
215 Lambton Quay, Wellington, to reposition it in a challenging leasing market.
A small number of properties in the office portfolio are experiencing some vacancy,
primarily among those that are undergoing upgrades. Stride expects leasing activity to
improve as the upgrades are completed and economic conditions improve.
During FY25 50 rent reviews and renewals were completed across 51,000 sqm,
providing a 3.2% increase on prior rentals. 69% of these leasing transactions were
fixed rental uplifts, generating an increase of 2.8% on prior rentals. New leases
and renewals have resulted in WALT
2
being maintained across the office portfolio
at 7.0 years as at 31 March 2025 (from 6.9 years as at 31 March 2024).
The weighted average portfolio capitalisation rate has remained constant during FY25,
reflecting a stabilisation of office valuations on a gross basis. Overall, SPL’s office
portfolio net valuation
3
decreased $(24.6)m or (3.4)% from 31 March 2024.
20 Customhouse Quay, Wellington
46 Sale Street, Auckland
Stride Property GroupStride Property GroupAnnual Report 2025Annual Report 2025
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Town Centre
1. Unless otherwise stated, all metrics exclude SPL’s 50% interest in Johnsonville Shopping Centre, which is classified as ‘Development and Other’ in the consolidated
financial statements.
2. Sales data is not collected for all tenants at Silverdale Centre as not all tenants are obliged to provide this information under the terms of their lease.
3. Based on Statistics New Zealand's Electronic Card Transactions Data for March 2025.
4. See glossary on page 132.
5. Includes SPL's 50% share of Johnsonville Shopping Centre, which is owned 50:50 by SPL and Diversified.
6. Occupancy has been calculated including casual licences with an initial term greater than three months, and excluding units held for committed redevelopment or remix works.
7. Excludes lease liabilities.
Key investment
portfolio
1
metrics
31 March 202531 March 2024
Properties (no.)
33
Net Lettable Area (sqm)
58,67558,675
Net Contract Rental
4
($m)
21.020.7
WA LT
4
(years)
3.63.8
Occupancy Rate
6
(% by area)
95.597.8
Weighted Average
Capitalisation Rate (%)
7.47.3
Portfolio Value
7
($m)
282284
Stride’s town centre portfolio
1
continues to demonstrate strong metrics, including
positive rental growth with rent reviews completed during FY25 delivering a 6.0%
increase on prior rentals.
Stride’s town centre assets are located at NorthWest and Silverdale, and are well positioned to benefit from future economic cycles,
with both assets relatively new and located in areas of strong population growth in Auckland.
The Stride town centres have continued to deliver strong rental performance, with 125 rent reviews and renewals completed
across the portfolio during FY25 delivering a 5.7% increase on prior rentals.
While the increase in the cost of living and weaker consumer sentiment has impacted sales at the Stride town centres, with FY25
moving annual turnover
2
(MAT) down (1.8)% from FY24, MAT has increased at Stride’s town centres by 3.2% per annum since FY19,
demonstrating the benefits of the centres being located in fast growing regions of Auckland. The FY25 movement in MAT is consistent
with overall spending trends across New Zealand, with total electronic transactions for core retail down (1.7)% over the 12 months to
31 March 2025
3
.
While we have seen an increase in operating costs during FY25, Stride’s careful cost management focus has resulted in specialty
gross occupancy cost
4
across the portfolio remaining steady at ~11% of store sales for FY25.
Net market rents and capitalisation rates across the SPL town centre portfolio have remained constant from 31 March 2024, resulting
in a small total portfolio
5
net valuation movement of $(4.4)m or (1.4)% over the 12 months to 31 March 2025.
NorthWest Shopping Centre, Auckland
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3031

Investore
1. Unless otherwise stated, all metrics refer to Investore's stabilised portfolio of investment assets and exclude properties categorised as ‘Development and Other’ in note
2.2 to Investore’s consolidated financial statements.
2. Up to a further $3.5m of Investore shares may be issued to the vendor as part consideration, with shares equal to this value being issued on 1 December 2025 if the value of
Investore's net tangible assets (NTA) per share as at 30 September 2025 increases by at least 44% from a base NTA per share of $1.57 as at 31 March 2024.
3. Valuation refers to the entire portfolio, including assets characterised as 'Development and Other' in Investore's consolidated financial statements and excludes lease liabilities.
4. See glossary on page 132.
5. Excludes lease liabilities.
6. Includes the value of the rental guarantee receivable in relation to Bunnings Westgate.
Investore’s investment property portfolio continued to deliver resilient operating earnings
during FY25, with the value of Investore’s portfolio remaining relatively constant over the
period due to the average portfolio
1
capitalisation rate stabilising.
Portfolio
1
overview
31 March 202531 March 2024
Properties (no.)
4345
Net Lettable Area (sqm)
254,684255,898
Net Contract Rental
4
($m)
63.063.7
WA LT
4
(years)
6.87.4
Occupancy Rate (% by area)
99.099.1
Weighted Average
Capitalisation Rate (%)
6.36.4
Portfolio Value
5
($m)
965
6
972
Investore’s portfolio
1
comprises 43 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’.
Investore has delivered on its strategies of targeted growth and portfolio optimisation
through a number of transactions during FY25, intended to position the portfolio to
capture future growth opportunities.
Investore also continues to optimise its existing portfolio through partnering with tenants
to undertake improvement projects and store refurbishments. This includes a number
of expansions at Woolworths stores to support Woolworths in its focus on online sales
fulfilled through the existing store network. These expansions have delivered benefits to
Investore through additional rental income and increased lease tenure in some cases.
During FY25 SIML completed 59 rent reviews on behalf of Investore, resulting in an
increase in rental of 4.2% on prior rentals. A further $0.7m of annualised turnover rent
was crystallised into base rent across six Woolworths stores, resulting in a 13.3% uplift
on prior rentals for these stores, providing Investore more certainty over this income.
The Investore portfolio
3
is valued at $1.0 billion as at 31 March 2025, representing a
net gain in fair value of $12.2m or 1.3% over the 12 months to 31 March 2025. This
stabilisation in valuation is primarily a result of resilient rental income and transactional
market evidence supported by falling interest rates.
Acquisition of Bunnings Westgate for $51.0m cash
2
, representing a passing yield on
acquisition of 6.2%
Divestment of Woolworths Invercargill, Woolworths Mount Roskill and Pak’nSave New
Plymouth for a combined sales price of $79.3m, being 3.4% above the combined book
value as at 31 March 2024
These transactions provide Investore with exposure to properties with stronger long
term growth potential, increasing the percentage of Bunnings leases within Investore’s
portfolio and reducing the Woolworths concentration. Investore intends to recycle
the proceeds from the sale of Woolworths Mount Roskill into strategic investment
opportunities to further enhance Investore's rental and underlying growth profile
Bunnings Westgate, Auckland
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3233

Investore (cont.)
1. LVR is calculated based on independent
valuations, which exclude lease liabilities, and
is calculated as bank debt as a percentage of
the value of investment property for mortgage
security purposes.
$225 million of bank debt facilities refinanced,
resulting in lower debt funding costs and two
additional banks entering the syndicate post
balance date
Adoption of a Green Finance Framework, with Investore’s
$225 million of bank debt facilities classified as green
loan facilities
$100 million of new interest rate hedging4.1% weighted average cost of debt as at 31 March
2025, down from 4.3% as at 31 March 2024
74% debt hedged or subject to a fixed rate of
interest as at 31 March 2025
2.9 years weighted average maturity of debt facilities as at
31 March 2025, up from 2.1 years as at 31 March 2024
38.5% LVR
1
as at 31 March 2025, down from
40.8% as at 31 March 2024 primarily due to the
divestment of Woolworths Mount Roskill
Operation of dividend reinvestment plan, resulting in
$4.2 million of cash being retained by Investore and used
to reduce leverage
Capital management
FY25 was another active year for capital management activities undertaken by SIML on behalf of Investore, with the
implementation of several initiatives to proactively manage risk and optimise Investore’s cost of debt.
Woolworths Browns Bay, Auckland
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3435

Industre
Industre continues to grow its industrial portfolio through new developments and
acquisitions, and while FY25 transactions continued to evidence strong rental growth in
the industrial market, rentals have started to stabilise towards the end of the financial year.
Portfolio activity
Industre continues to grow and improve its portfolio through strategic acquisitions and
developments:
• Industre acquired 7.9 hectares of land at Hamilton during FY25, which it leased
back to the vendor for clean fill operations for a 5 year term. Industre paid 50%
of the purchase price on settlement of the acquisition, with the remainder due in
two equal annual instalments over FY26 and FY27. This property is intended to
provide a future development opportunity for Industre, consistent with its strategy
of targeted acquisitions providing future development opportunities.
• Development of a new industrial facility is underway at 16A Wickham Street,
Hamilton. This facility will be leased to one of Industre’s existing tenants, Wattyl
New Zealand, who will take a 15 year lease on completion of the development.
Completion of the new development is expected in late 2025 at a total cost
of approximately $28m (excluding land), with $15m remaining as at 31 March
2025. The development will provide an expected yield on cost of 6.0% (including
land), depending on final scope and metrics. Consistent with previous growth
activity, the Industre joint venture partner JPMAM
1
has agreed to fund the equity
required for this development. Wattyl is currently a tenant at Industre’s property at
4-14 Patiki Road, Auckland. Industre is exploring options to redevelop this site,
which comprises 4.6 hectares of available land. Patiki Road is part of Industre’s
ongoing development pipeline, consistent with its approach of identifying
properties with under-utilised sites in preferred locations, and where the existing
assets provide short term income until the site can be redeveloped.
• Industre commenced development of another new industrial facility at
14-20 Favona Road, Auckland. This property was acquired by Industre in
March 2022 and has been held as a development opportunity since that date.
Industre elected to commence development of this property during FY25 as the
strong industrial rental market aligned with a subdued construction market in
Auckland, resulting in attractive development yields. The project has an expected
total cost of $30m (excluding land), with an expected yield on cost of 6%+
(including land). Construction is expected to be completed in the first half of 2026.
SIML has also concluded a number of leasing transactions on behalf of Industre, with
new lettings and renewals delivering an increase of 20.3% on prior rentals, while rent
reviews have delivered an increase of 3.9% on prior rentals.
While we have seen market rents stabilising recently, the Industre portfolio
2
retains
a potential reversion to market
3
of +7.6%. With around 23% of net Contract Rental
1

subject to market review or expiry over FY26 and FY27, this provides the potential for
Industre to capture these higher market rents, as we have seen with new lettings and
renewals completed during FY25.
Stabilising market rents, together with relatively constant capitalisation rates has
resulted in a total portfolio
4
net valuation gain for the 12 months to 31 March 2025
of $16.9 m or 2.2%.
Industrial market rents have started to stabilise towards the end of FY25, although
vacancy rates are expected to remain low (around 2%), with industrial land in short
supply, especially in core locations in Auckland, which is where Industre has focussed its
investment activity. This is expected to support enduring demand for Industre’s assets.
Key investment
portfolio
2
metrics
31 March 202531 March 2024
Properties (no.)
1919
Net Lettable Area (sqm)
182,477181,528
Net Contract Rental
1
($m)
36.333.7
WA LT
1
(years)
9.110.0
Occupancy Rate (% by area)
96.997.8
Weighted Average
Capitalisation Rate (%)
5.85.8
Portfolio Value ($m)
689676
Auckland
industrial vacancy
5
1. See glossary on page 132.
2. Unless otherwise stated, all metrics refer to
Industre’s stabilised portfolio of investment
assets and exclude properties categorised as
‘Development and Other’ in Industre’s financial
statements.
3. Based on Industre's valuation reports as at
31 March 2025 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.
5. CBRE Market Outlook Report December 2024.
14-20 Favona Road, Auckland
201220142016201820202022
1.8
1.9
202420262028
Stride Property GroupStride Property GroupAnnual Report 2025Annual Report 2025
3637

Industre (cont.)
Industre portfolio value
growth ($ millions)
Industre portfolio
tenant classification by
net Contract Rental
1
as at
31 March 2025
(pro forma
2
)
27%
12%
19%
42%
Acquisitions
Completed developments
Assets at commencement of
joint venture
Waste Management
Other
Manufacturing
Logistics
Committed developments
31 March
2025
833
339
236
209
49
1. See glossary on page 132.
2. As at 31 March 2025 as if the development at 16A Wickham Street, Hamilton, had been completed and the lease
to Wattyl New Zealand had commenced as at that date and the lease of 4-14 Patiki Road, Auckland, to Wattyl
New Zealand had ceased as at that date. Otherwise excludes properties categorised as 'Development and Other'
in Industre's financial statements.
SPL's industrial portfolio at
date of JV agreement
(Sept 2019)
257
257
439 Rosebank Road, Auckland
Stride Property GroupStride Property GroupAnnual Report 2025Annual Report 2025
3839

Diversified
1. Unless otherwise stated, all metrics refer to Diversified’s stabilised portfolio of investment assets and exclude
properties categorised as ‘Development and Other’ in Diversified's financial statements.
2. See glossary on page 132.
3. Includes Diversified's 50% share of Johnsonville Shopping Centre, which is owned 50:50 by SPL and Diversified.
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.
SIML continues to actively manage Diversified’s shopping centre portfolio, optimising
leasing transactions and maintaining the attractiveness of these centres to shoppers
and tenants.
Key investment
portfolio
1
metrics
SIML continues to deliver strong leasing activity within the Diversified portfolio, with 115 rent reviews completed across the portfolio
1

during FY25 delivering an increase of 3.5% on prior rentals. New lettings and renewals completed during FY25 have a weighted
average lease term of 4 years, supporting the portfolio’s weighted average lease term of 2.7 years as at 31 March 2025. Lease
renewals during FY25 included a number of key tenants, such as Whitcoulls, Hallensteins, Glassons, and ANZ.
SIML’s focus on optimising the portfolio and managing costs has resulted in specialty gross occupancy cost
2
for the portfolio
1

remaining stable at ~13% as at 31 March 2025, despite rising rates and energy costs.
Net market rentals remained flat across the portfolio during FY25. An expansion in the weighted average capitalisation rate for the
portfolio of 21 basis points has resulted in a total portfolio
3
net valuation movement of $(11.1)m or (2.7 )% over the 12 months to
31 March 2025.
31 March 202531 March 2024
Properties (no.)
22
Net Lettable Area (sqm)
85,62785,713
Net Contract Rental
2
($m)
34.434.1
WA LT
2
(years)
2.73.0
Occupancy Rate
4
(% by area)
97.096.6
Weighted Average
Capitalisation Rate (%)
8.38.1
Portfolio Value ($m)
384390
Chartwell Shopping Centre, Hamilton
Stride Property GroupStride Property GroupAnnual Report 2025Annual Report 2025
4041

Capital Management
1. See glossary on page 132. Bank LVR is calculated as bank debt as a percentage of the value of investment property for mortgage security purposes.
2. Balance sheet LVR includes SPL’s directly held property as well as the value of SPL’s interests in each of the Stride Products, and SPL’s direct debt.
3. 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.
4. 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.
5. 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 drawn green loans. The Framework has been
developed to be consistent with the Asia Pacific Loan Market Association Green Loan Principles (2025) and International Capital Market Association Green Bond Principles
(2021 with June 2022 Appendix).
31 March 202531 March 2024
Banking Facility Limit ($m)
460460
Debt Facilities Drawn ($m)
390375
Weighted Average Debt Maturity (years)
2.13.1
Weighted Average Cost of Debt (%)
4.94.2
Percentage of Drawn Debt Hedged (%)
7275
Bank LVR
1
(%) (Covenant: ≤ 50%)
38.736.7
Balance Sheet LVR
2
(%)
29.027.6
Look-Through LVR
3
(%)
38.137.4
Interest Cover Ratio (Covenant: ≥2.125x)
3.2x3.4x
Weighted Average Lease Term
4
(years) (Covenant: >3.0 years)
4.85.5
Stride continues to take a prudent and active approach to capital management.
Stride’s bank LVR
1
as at 31 March 2025 is 38.7%, slightly up on 31 March 2024 when the LVR was 36.7%. This LVR only reflects
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 gearing is 29.0% on a balance sheet basis
2
or 38.1% on a look-
through basis
3
.
Post balance date, SPL's lenders have committed to refinance SPL's bank debt facilities. Once the refinance is complete, the weighted
average tenor remaining on the bank facilities will increase from 2.1 years to 5.0 years and the weighted average cost of debt will reduce
from 4.9% to 4.5% (both on a pro forma basis as if the refinance had occurred as at 31 March 2025).
Interest rate
management
Stride actively monitors the cost of debt and will enter into interest rate hedges
when pricing is favourable. During FY25, Stride entered into $125m of new interest
rate swaps, and as at 31 March 2025, Stride had $280m of active interest rate swaps,
representing 72% of drawn debt.
SPL’s weighted average cost of debt is 4.9% as at 31 March 2025, which is 70 basis
points higher than the weighted average cost of debt as at 31 March 2024. This
movement is primarily due to favourable interest rate swaps entered into during the
period impacted by COVID-19 maturing. Post balance date, SPL's lenders have
committed to refinance SPL's bank debt facilities, which will result in the weighted
average cost of debt reducing to 4.5% on a pro forma 31 March 2025 basis, once the
refinance is completed.
Green loan facilities
5
Post-balance date refinance
Bank facilities
Debt maturity profile
as at 31 March 2025
Fixed rate interest profile
as at 31 March 2025
Mar 26
$280m
Mar 27
$230m
Mar 28
$100m
Mar 25
$280m
2.98%
3.56%
3.75%
3.64%
Weighted average fixed interest rate
(excl. margin and line fees)
Notional fixed rate debt
FY26FY30
$110m
FY31
$350m
FY28
$150m
$50m
FY27
$200m
$60m
FY29
NorthWest Shopping Centre, Auckland
Stride Property GroupStride Property GroupAnnual Report 2025Annual Report 2025
4243

Five Year Financial
Summary
The five year financial summary table reflects the numbers in the consolidated financial
statements for each respective year
Consolidated
Financial Statements
Consolidated Statement of Comprehensive Income46
Consolidated Statement of Changes in Equity47
Consolidated Statement of Financial Position48
Consolidated Statement of Cash Flows49
Notes to the Financial Statements 51
Independent Auditor’s Report 85
Five Year Financial Summary
The five year financial summary table reflects the numbers in the consolidated financial
statements for each respective year
20252024202320222021
Five Year Financial Summary($m)($m)($m)($m)($m)
Net rental income
1
69.1
72.371.165.850.7
Guarantee income
-
2.4---
Management fee income
1
20.4
19.923.324.324.2
Profit before net finance expenses, other
(expense)/income and income tax from
continuing operations
68.2
70.670.762.753.9
Net finance expenses
(18.8)
(19.8)(17.1)(16.1)(13.4)
Profit before other (expense)/income and income
tax from continuing operations
49.3
50.853.545.640.4
Other (expense)/income
(16.8)
(102.8)(163.3)78.1100.9
Profit/(loss) before income tax from
continuing operations
32.5
(52.0)(109.7)124.7141.3
Income tax expense
(10.8)
(4.1)(7.0)(12.4)(9.4)
Profit/(loss) after income tax from
continuing operations
21.7
(56.1)(116.7)112.3132.0
Profit/(loss) from discontinued operations
-
---(0.1)
Profit/(loss) attributable to shareholders
21.7
(56.1)(116.7)112.3131.9
Basic earnings per share - weighted from
continuing and discontinued operations
3.87 cents
(10.22) cents(21.60) cents22.70 cents32.99 cents
Distributable profit
2
before current income tax
57.6
66.568.162.652.4
Distributable profit
2
after current income tax
48.3
59.157.654.246.3
Basic distributable profit after current income tax
per share - weighted
8.64 cents
10.76 cents10.66 cents10.95 cents11.58 cents
Property values
3
1,010.2
1.171.81,254.11,244.61,050.5
Total assets
1,397.7
1,458.51,590.51,642.31,383.6
Bank debt drawn
390.4
375.0402.4305.5261.0
Loan to value ratio
4
38.6%
36.7%36.4%28.7%29.3%
Total equity
959.7
992.41,075.71,231.11,017.8
NTA per share
$1.72
$1.78$1.98$2.28$2.15
Adjusted NTA per share
5
$1.72
$1.77$1.95$2.25$2.15
Stride Property Group Annual Report 31 March 2025
1
1 2021 figure has been restated to eliminate the building management fees charged from SIML to SPL.
2 See glossary on page 132.
3 Excludes lease liabilities. 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).
4 Excludes lease liabilities. Includes 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).
5 Excludes after tax fair value of interest rate derivatives.
1. 2021 figure has been restated to eliminate the building management fees charged from SIML to SPL.
2. See glossary on page 132.
3. Excludes lease liabilities. 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).
4. Excludes lease liabilities. Includes 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).
5. Excludes after tax fair value of interest rate derivatives.
Values in the table above are calculated based on the numbers in the consolidated financial statements for each respective financial
year and may not sum accurately due to rounding.
The Five Year Financial Summary contains certain information which is contained in the audited consolidated financial statements of
each respective year. Further information can be obtained by referring to those audited consolidated financial statements.
Stride Property GroupStride Property GroupAnnual Report 2025Annual Report 2025
4445

Consolidated Statement of Comprehensive Income
For the year ended 31 March 2025
20252024
Notes$000$000
Gross rental income
97,711
98,857
Direct property operating expenses
(28,659)
(26,555)
Net rental income3.169,052
72,302
Guarantee income-
2,421
Management fee income20,415
19,853
Less corporate expenses
Corporate overhead expenses
(15,868)
(18,340)
Administration expenses
8.3
(5,447)
(5,634)
Total corporate expenses
(21,315)
(23,974)
Profit before net finance expense, other (expense)/income and income tax68,152
70,602
Net finance expense5.3
(18,835)
(19,771)
Profit before other (expense)/income and income tax49,317
50,831
Other (expense)/income
Net change in fair value of investment properties
3.2(29,525)
(75,779)
Share of profit/(loss) in equity-accounted investments
7.220,471
(23,676)
Impairment of equity-accounted investment
7.2(8,776)
-
Gain/(loss) on disposal of investment properties
974
(2,472)
Hedge ineffectiveness of cash flow hedges
10
(880)
Profit/(loss) before income tax32,471
(51,976)
Income tax expense
8.1
(10,819)
(4,148)
Profit/(loss) after income tax attributable to shareholders21,652
(56,124)
Other comprehensive income/(loss):
Items that may be reclassified subsequently to profit or loss
Deferred tax on share-based payment expense
163
144
Movement in cash flow hedges, net of tax
5.7(8,982)
(6,608)
Movement in cash flow hedge reserve, net of tax, in equity-accounted investments
7.2(1,807)
(1,148)
Items that will not be reclassified to profit or loss
Revaluation (deficit)/surplus
8.7
(200)
2,800
Total other comprehensive loss after tax
(10,826)
(4,812)
Total comprehensive income/(loss) after tax attributable to shareholders
10,826
(60,936)
Stride Property Limited (SPL) total comprehensive income/(loss) after tax attributable
to shareholders
2,078
(67,965)
Stride Investment Management Limited (SIML) total comprehensive income after tax attributable
to shareholders
5.6
8,748
7,029
Total comprehensive income/(loss) after tax attributable to shareholders
10,826
(60,936)
Earnings per share (EPS)4.1
Basic EPS (cents)3.87
(10.22)
Diluted EPS (cents)3.85
(10.22)
46
Stride Property Group Annual Report 31 March 2025
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 2025
Number of
shares
Share
capital
Retained
earnings
Other
reservesTotal
Notes000$000$000$000$000
Balance at 31 Mar 24558,408884,02293,65314,758992,433
Transactions with shareholders:
Dividends paid
4.2--(44,723)-(44,723)
Employee incentive scheme
5.7
6315693871771,133
Total transactions with shareholders
631569(44,336)177(43,590)
Profit after income tax
--21,652-21,652
Total other comprehensive loss
---(10,826)(10,826)
Total comprehensive income/(loss)
--21,652(10,826)10,826
Balance at 31 Mar 25
559,039884,59170,9694,109959,669
Balance at 31 Mar 23
543,321863,309192,27920,1491,075,737
Transactions with shareholders:
Dividends reinvested/(paid)
4.2
14,88819,509(43,030)-(23,521)
Employee incentive scheme
5.7
1991,204528(579)1,153
Total transactions with shareholders
15,08720,713(42,502)(579)(22,368)
Loss after income tax--(56,124)-(56,124)
Total other comprehensive loss
---(4,812)(4,812)
Total comprehensive loss
--(56,124)(4,812)(60,936)
Balance at 31 Mar 24
558,408884,02293,65314,758992,433
Stride Property Group Annual Report 31 March 2025
47
The attached notes form part of and are to be read in conjunction with these consolidated financial statements.
Stride Property GroupStride Property GroupAnnual Report 2025Annual Report 2025
4647

Consolidated Statement of Financial Position
As at 31 March 2025
20252024
Notes$000$000
Current assets
Cash
15,569
14,762
Debtors and other receivables
8.53,066
4,248
Prepayments
218
176
Derivative financial instruments
5.2
1,022
6,535
19,875
25,721
Non-current assets
Investment properties
3.21,029,503
1,190,883
Equity-accounted investments
7.2333,442
222,354
Loan to associate
8.43,398
3,398
Property, plant and equipment
8.78,777
9,058
Derivative financial instruments
5.2788
6,879
Other non-current assets
1,874
250
1,377,782
1,432,822
Total assets
1,397,657
1,458,543
Current liabilities
Trade and other payables
8.614,587
16,096
Lease liabilities
3.37
7
Current tax liability
2,587
1,755
17,181
17,858
Non-current liabilities
Borrowings
5.1390,129
374,598
Borrowings (Industre joint operation participating interest)
7.3-
40,297
Lease liabilities
3.327,600
27,607
Deferred tax liability
8.11,579
5,686
Derivative financial instruments
5.2
1,499
64
420,807
448,252
Total liabilities
437,988
466,110
Net assets959,669
992,433
Share capital
884,591
884,022
Retained earnings
70,969
93,653
Reserves
5.7
4,109
14,758
Equity
959,669
992,433
SPL equity
936,758
971,730
SIML equity (non-controlling interest)
5.6
22,911
20,703
Equity
959,669
992,433
For and on behalf of the Boards of Directors of SPL and SIML, who authorised these consolidated financial statements for issue on 28 May 2025:
Tim Storey
Chair of the Boards
Ross Buckley
Chair of the Audit and Risk Committee
48
Stride Property Group Annual Report 31 March 2025
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 2025
20252024
Notes$000$000
Cash flows from operating activities
Gross rental received
95,774
100,722
Management fee income
20,641
19,459
Bank interest received
659
799
Direct property operating and corporate expenses
(48,246)
(47,384)
Interest paid
(18,704)
(20,165)
Share-based payment costs
(516)
(168)
Income tax paid
(10,280)
(7,939)
Guarantee income in relation to 46 Sale Street, Auckland
-
2,421
Borrowings establishment costs
-
(485)
Net cash provided by operating activities
39,328
47,260
Cash flows from investing activities
Dividend income from equity-accounted investments net of dividends reinvested
8.47,113
5,830
Net proceeds from disposal of investment properties
-
28,966
Capital expenditure on investment properties
(14,589)
(13,693)
Capital expenditure on other non-current assets
(1,624)
-
Property, plant and equipment purchased
(91)
(1,071)
Distribution from equity-accounted investments
-
15,374
Interest received in relation to the loan advance on 110 Carlton Gore Road, Auckland
-
1,556
Acquisition of investment properties
-
(35,366)
Net cash (applied to)/provided by investing activities
(9,191)
1,596
Cash flows from financing activities
Drawdown on borrowings
18,900
36,000
Repayment of borrowings
(3,500)
(63,400)
Lease liabilities payments
(7)
(6)
Dividends paid net of dividends reinvested
4.2
(44,723)
(23,521)
Net cash applied to financing activities
(29,330)
(50,927)
Net increase/(decrease) in cash held807
(2,071)
Opening cash
14,762
16,833
Closing cash at balance date
15,569
14,762
Cash consists of:
Cash
14,925
14,506
Cash held for retentions
644
256
Cash at balance date
15,569
14,762
Stride Property Group Annual Report 31 March 2025
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 2025Annual Report 2025
4849

Consolidated Statement of Cash Flows (continued)
For the year ended 31 March 2025
Reconciliation of profit/(loss) after income tax attributable to shareholders to net cash provided by operating activities
20252024
Notes$000$000
Profit/(loss) after income tax attributable to shareholders21,652
(56,124)
(Less)/add non-cash items:
Movement in deferred tax
8.1(293)
(3,666)
Net change in fair value of investment properties
29,525
75,779
Share of (profit)/loss in equity-accounted investments
(20,471)
23,676
Impairment of equity-accounted investment
8,776
-
(Gain)/loss on disposal of investment properties
(974)
2,472
Hedge ineffectiveness of cash flow hedges
(10)
880
Spreading of fixed rental increases
(2,336)
(1,967)
Capitalised lease incentives net of amortisation
(1,023)
711
Movement in loss allowance
167
(50)
Share-based payment expense net of forfeited employee incentive rights
1,416
1,866
Non-cash movements in property, plant and equipment recognised in profit and loss
170
489
Borrowings establishment costs amortisation
131
714
Non-cash interest income received
8.4(285)
(294)
Accrued interest movement in derivative financial instruments
405
(138)
36,850
44,348
Add/(less) activity reclassified to/(from) operating activities:
Movement in working capital items relating to investing activities
2,531
26,609
Movement in borrowings establishment costs classified as operating activities
-
(485)
Movement in share-based payment costs classified as operating activities
(516)
(168)
38,865
70,304
Movement in working capital:
Decrease in debtors and other receivables
1,182
3,481
(Increase)/decrease in prepayments
(42)
134
Decrease in trade and other payables
(1,509)
(26,534)
Increase/(decrease) in current tax liability
832
(125)
Net cash provided by operating activities
39,328
47,260
50
Stride Property Group Annual Report 31 March 2025
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 2025
1.0General Information
52
1.1Reporting entity52
1.2Basis of preparation52
1.3Basis of consolidation52
1.4New standards, amendments and interpretations52
1.5Changes to accounting policies and disclosure of material accounting policies52
1.6Significant judgements, estimates and assumptions53
1.7Fair value estimation53
1.8Non-GAAP measures53
1.9Significant events and transactions53
2.0Operating Segments
54
3.0Property
56
3.1Net rental income56
3.2Investment properties57
3.3Lease liabilities62
3.4Capital expenditure commitments contracted for62
4.0Investor Returns
63
4.1Basic and diluted earnings per share (EPS)63
4.2Dividends paid63
4.3Distributable profit64
5.0Capital Structure and Funding
65
5.1Borrowings65
5.2Derivative financial instruments66
5.3Net finance expense67
5.4Capital risk management67
5.5Share capital67
5.6SIML equity (non-controlling interest)68
5.7Reserves68
6.0Risk Management
69
6.1Financial instruments69
6.2Financial risk management70
6.3Credit risk70
6.4Interest rate risk70
6.5Liquidity risk71
7.0Investments in Property Entities
72
7.1Industre72
7.2Interests in associates and joint venture72
7.3Joint operations76
8.0Other
77
8.1Tax77
8.2Remuneration79
8.3Administration expenses80
8.4Related party disclosures81
8.5Debtors and other receivables83
8.6Trade and other payables83
8.7Property, plant and equipment84
8.8Contingent liabilities84
8.9Subsequent events84
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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 (SIPL) (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 5.6).
SPL is principally involved in the ownership of investment properties in New Zealand and SIML is principally involved in the management of real estate
investment entities in New Zealand. SPL and SIML are both domiciled in New Zealand, are both registered under the Companies Act 1993 and are both
FMC reporting entities under Part 7 of the Financial Markets Conduct Act 2013.
Shares of SPL and SIML are stapled and quoted on the Main Board equity securities market of NZX under the ticker code SPG.
The financial statements were approved for issue by the Board of Directors of SPL (SPL Board) and the Board of Directors of SIML (SIML Board)
(together referred to as the Boards) on 28 May 2025.
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 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
On 23 May 2024, the New Zealand Accounting Standards Board of the External Reporting Board issued NZ IFRS 18 Presentation and Disclosure
in Financial Statements (effective for annual reporting periods beginning on or after 1 January 2027). This standard replaces NZ IAS 1 Presentation
of Financial Statements 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.
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.
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1.0 General Information (continued)
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)/income
and income tax; and Profit before other (expense)/income and income tax. These non-GAAP measures have been presented to assist investors in
understanding the different aspects of Stride’s financial performance.
Note 4.3 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.
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:
Industre joint arrangement (Industre)
On 30 April 2024, J.P. Morgan Asset Management (JPMAM) contributed $20.0 million equity into Industre resulting in SPL's proportionate holding
reducing from 51.7% to 49.6%.
On 31 October 2024, Industre was restructured (the Restructure) which resulted in the investment properties held by the Industre joint
operation, totaling $142.1 million, being transferred to the Industre joint venture entities, which comprise of Industre Property Tahi Limited (Tahi),
Industre Property Rua Limited (Rua) and Industre Property Holdings Limited (HoldCo). This was a non-cash transaction whereby the investment
properties were transferred in exchange for $102.5 million worth of shares in HoldCo and the cancellation of $39.6 million of borrowings in relation to the
Industre joint operation. Consequently, SPL's portion of the Industre joint operation's share of revenue and expenses up until 31 October 2024 has been
recognised in the consolidated statement of comprehensive income (refer note 7.3) and, effective from 1 November 2024, all of SPL's investment in
Industre has been equity-accounted (refer note 7.2). Following the Restructure, SIML continues to be the manager of Industre, the two parties, SPL and
JPMAM, continue to require unanimous consent for all relevant activities, and SIPL, is no longer the guarantor under the Industre banking arrangements.
Revaluation of investment properties
SPL undertook independent valuations of the portfolio as at 31 March 2025 which resulted in a net reduction in fair value of $(29.5) million
(2024: $(75.8) million net reduction) (refer note 3.2) and a revaluation deficit on property, plant and equipment of $(0.2) million
(2024: $2.8 million surplus) (refer note 8.7).
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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, Diversified NZ Property Trust (Diversified) and Industre joint venture (refer note 7.2).
SIML’s revenue streams are earned from the management of the real estate investments of Investore, Industre, Diversified and SPL (refer note 8.4).
The following is an analysis of Stride’s results, by reportable segments.
SPL
SPL
eliminationsSIML
SIML
eliminations2025
Segment profit$000$000$000$000$000
Net rental income65,9173,135--69,052
Management fee income--31,278(10,863)20,415
Corporate expenses
Accounting and asset management fees
(6,493)6,493---
Salaries and other benefits
--(14,331)945(13,386)
Share-based payment expense
--(1,512)-(1,512)
Forfeited employee incentive rights
--96-96
Technology expenses
--(847)-(847)
Feasibility expenses
(581)---(581)
Other expenses
(2,032)-(3,633)580(5,085)
Total corporate expenses
(9,106)6,493(20,227)1,525(21,315)
Profit before net finance expense, other (expense)/income and
income tax56,8119,62811,051(9,338)68,152
Net finance expense
(20,306)1,1771,262(968)(18,835)
Profit before other (expense)/income and income tax36,50510,80512,313(10,306)49,317
Other (expense)/income
Net change in fair value of investment properties
(29,632)107--(29,525)
Share of profit in equity-accounted investments
20,471---20,471
Impairment of equity-accounted investment
(8,776)---(8,776)
Gain on disposal of investment properties
974---974
Hedge ineffectiveness of cash flow hedges
10---10
Profit before income tax19,55210,91212,313(10,306)32,471
Income tax expense
(7,091)-(3,728)-(10,819)
Profit after income tax attributable to shareholders12,46110,9128,585(10,306)21,652
Total other comprehensive (loss)/income after tax
(10,989)-163-(10,826)
Total comprehensive income after tax attributable to shareholders
1,47210,9128,748(10,306)10,826
Transactions between SPL and SIML include management fees, salaries and wages recovery, interest charged on the loan from SIML to SPL and net
rental income charged from SPL to SIML (refer note 8.4).
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Stride Property Group Annual Report 31 March 2025
2.0 Operating Segments (continued)
SPL
SPL
eliminationsSIML
SIML
eliminations2024
Segment profit$000$000$000$000$000
Net rental income
69,5352,767--72,302
Guarantee income
2,421---2,421
Management fee income
--30,961(11,108)19,853
Corporate expenses
Accounting and asset management fees(6,808)6,808---
Salaries and other benefits--(15,984)-(15,984)
Share-based payment expense--(1,821)-(1,821)
Technology expenses--(861)-(861)
Feasibility expenses(642)---(642)
Other expenses
(1,894)-(3,362)590(4,666)
Total corporate expenses
(9,344)6,808(22,028)590(23,974)
Profit before net finance expense, other expense and income tax
62,6129,5758,933(10,518)70,602
Net finance expense
(20,881)7781,029(697)(19,771)
Profit before other expense and income tax
41,73110,3539,962(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 (loss)/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)
SPL
SPL
eliminationsSIML
SIML
eliminationsTotal
Segment assets and liabilities$000$000$000$000$000
Balance at 31 Mar 25
Total assets
1,386,68849630,054(19,581)1,397,657
Total liabilities
450,712(16,861)7,143(3,006)437,988
Balance at 31 Mar 24
Total assets1,447,261-26,287(15,005)1,458,543
Total liabilities475,708(13,897)5,584(1,285)466,110
As at 31 March 2025, SPL had assets of $336.8 million (2024: $225.8 million) relating to equity-accounted investments (refer note 7.2) and loan to
associate (refer note 8.4).
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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 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.
20252024
SPL$000$000
Gross rental income
Rental income
73,238
77,097
Service charge income recovered from tenants
21,114
20,439
Spreading of fixed rental increases
2,336
1,967
Capitalised lease incentives
2,152
316
Lease incentives amortisation
(1,129)
(962)
Total gross rental income
97,711
98,857
Direct property operating expenses
Rates and insurance
(15,857)
(14,302)
Property maintenance costs
(6,324)
(6,253)
Utilities
(2,611)
(2,434)
Other property operating expenses
(3,700)
(3,551)
Lease incentives capitalised
-
30
Lease incentives amortisation
-
(95)
Movement in loss allowance
(167)
50
Total direct property operating expenses
(28,659)
(26,555)
Net rental income
69,052
72,302
Other property operating expenses include operating expenses not recoverable from tenants and property leasing expenses. Salaries and wages
expenses of $1.7 million (2024: $1.7 million) (refer note 8.4) charged by SIML to SPL have been eliminated in the direct property operating expenses.
As a lessor, SPL has determined that it retains substantially all the risks and rewards of ownership of properties and has therefore classified all leases as
operating leases. The future aggregate minimum rentals receivable under non-cancellable operating leases are as follows:
2025
Restated
2024
$000$000
Within one year
63,748
73,337
Between one and two years
57,851
65,664
Between two and three years
52,007
59,453
Between three and four years
46,321
53,746
Between four and five years
41,375
47,700
Later than five years
155,562
218,399
Future rentals receivable
416,864
518,299
The future rentals receivable for the year ended 31 March 2024 has been restated to reflect fixed contractual rental increases and has been calculated
on gross rental income. This resulted in an increase to future rentals receivable of $58.1 million ($460.2 million to $518.3 million).
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Stride Property Group Annual Report 31 March 2025
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 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. 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)), Savills (NZ) Limited (Savills) or Bayleys Valuations Limited (Bayleys). In the prior year, an investment property was valued by
CVAS (WLG) Limited (CVAS (WLG)). All valuations are dated effective 31 March 2025.
At each reporting date, SIML’s 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 Stride’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 (refer note 1.7). There were no transfers of investment
properties between levels of the fair value hierarchy (2024: nil transfers) during the year.
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3.0 Property (continued)
3.2 Investment properties (continued)
OfficeTown CentreIndustrial
Development
and OtherTotal
SPL$000$000$000$000$000
Balance at 31 Mar 23
547,400309,410150,010226,9471,233,767
Additions---4,4834,483
Capital expenditure14,1441,24359-15,446
Spreading of fixed rental increases1,8042161-1,967
Capitalised lease incentives91255--346
Lease incentives amortisation(211)(799)(47)-(1,057)
Reclassification195,143--(195,143)-
Re-measurement of lease liabilities-11,710--11,710
Net change in fair value
(62,671)(10,707)(1,364)(1,037)(75,779)
Balance at 31 Mar 24695,700311,114148,81935,2501,190,883
Capital expenditure
10,8421,19510996413,110
Spreading of fixed rental increases
2,14512371(3)2,336
Capitalised lease incentives
1,954186-122,152
Lease incentives amortisation
(365)(670)(59)(35)(1,129)
Transfer of properties to Industre joint venture (refer note 1.9)
--(142,087)-(142,087)
Disposals
--(6,237)-(6,237)
Net change in fair value
(24,380)(2,841)(616)(1,688)(29,525)
Balance at 31 Mar 25
685,896309,107-34,5001,029,503
Comprised of:
Investment properties at valuation695,700283,500148,81935,2501,163,269
Lease liabilities (refer note 3.3)
-27,614--27,614
Balance at 31 Mar 24
695,700311,114148,81935,2501,190,883
Investment properties at valuation
685,896281,500-34,5001,001,896
Lease liabilities (refer note 3.3)
-27,607--27,607
Balance at 31 Mar 25
685,896309,107-34,5001,029,503
Stride is conscious of the need to identify the impact of managing and responding to climate risk on its business and assets and has continued to place
a high focus on sustainability and climate change initiatives, noting that it may face physical and transitional climate-related risks in the future. 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 34 Shortland Street, Auckland, 215 Lambton Quay, Wellington, and 20 Customhouse Quay, Wellington; installation of equipment to
improve the efficiency of building operations and the installation of end of trip facilities at 215 Lambton Quay, Wellington, to 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, have been included in the capital expenditure for the year ended 31 March 2025.
No property owned by SPL suffered any material damage due to the physical impacts of climate change during the current year (2024: nil).
The independent valuers that valued SPL’s investment properties have considered Environmental, Social and Governance (ESG) factors and the
associated impact on the value of a property. The valuers are not ESG experts but consider market transactional data as part of their valuation
assessment and that market values may be impacted by environmental and climate risk factors, building impacts on the health and wellbeing of tenants
and local communities, and how a building is managed to encourage sustainable practices. For example, higher green rated properties, or properties
with sustainable features, or which are less vulnerable to climate risk, potentially may have 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 ESG and climate risk factors.
A revaluation movement of $0.6 million (2024: $0.7 million) arising from the elimination of fees charged by SIML to SPL (refer note 8.4) has been
reflected in the consolidated statement of comprehensive income.
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Stride Property Group Annual Report 31 March 2025
3.0 Property (continued)
3.2 Investment properties (continued)
The following tables provide a summary of the valuation of the 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. Properties classified as 'Development and Other' relate to SPL's development initiatives. The NLA, cap rate %,
contract yield %, occupancy %, and WALT years are not applicable for properties classified as 'Development and Other'. The cap rate %, contract yield %,
occupancy % and WALT years for the total investment properties are weighted averages. The totals may not sum due to rounding.
NLA
Cap
rate
Contract
yieldOccupancyWA LT
As at 31 Mar 25Valuerm
2
$000%%%years
Office
34 Shortland Street, AucklandSavills8,10046,2007.255.0366.02.5
46 Sale Street, AucklandBayleys11,352118,5005.757.29100.03.7
110 Carlton Gore Road, AucklandBayleys14,174182,7465.505.98100.09.2
1 Grey Street, WellingtonJLL10,44959,2007.006.4889.43.0
215 Lambton Quay, WellingtonCBRE10,76564,2506.752.6153.35.0
20 Customhouse Quay, WellingtonCBRE
17,505215,0005.505.49100.010.1
Office total
72,344685,8965.925.7187.77.0
Town Centre total58,675281,5007.357.4595.53.6
Development and Other total
34,500
131,0191,001,8966.346.2191.25.8
As at 31 Mar 24
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
Industrial total36,337148,8195.654.8397.911.1
Town Centre total58,675283,5007.357.3197.83.8
Development and Other total
35,250
167,5501,163,2696.206.0796.86.4
20252024
Breakdown of valuations by valuer$000$000
JLL
267,200
280,089
CBRE
279,250
284,500
Savills
46,200
74,204
CVAS (NZ)
108,000
213,526
CVAS (WLG)
-
11,250
Bayleys
301,246
299,700
Total
1,001,896
1,163,269
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3.0 Property (continued)
3.2 Investment properties (continued)
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 25
Change $000
40,550(39,050)17,393(17,184)
Change %
4(4)2(2)
As at 31 Mar 24
Change $00049,260(44,625)21,221(20,534)
Change %4(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 as follows.
Works are required to improve the seismic performance of the office property at 55 Lady Elizabeth Lane, Wellington. 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 and holding costs. The cost to complete stated in the 31 March 2025 valuation was determined
by management using estimates of the ‘on cost' elements (design, consultant, legal and contingency allowances) as well as relevant work costings for
this property which were provided by a registered quantity surveyor and was the best available information at the date of valuation. The final cost could
be higher or lower and this could impact on the fair value of the property. 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.
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.
All properties were valued on a consistent approach to 31 March 2024.
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Stride Property Group Annual Report 31 March 2025
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 their ranges (excluding properties classified as 'Development and Other') along with their sensitivity to significant
increase or decrease:
Valuation input range
Fair value
measurement
sensitivity
to significant:
Significant
input
Description20252024
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.
5.50-7.63 %
5.38-7.63 %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.
6.50-8.63 %
6.75-8.63 %DecreaseIncreaseDiscounted
Cash Flow
Gross market
rental
The valuer’s assessment of gross market rental
for both occupied and vacant areas of the
investment property.
406-996
$/m
2
182-1,003
$/m
2
IncreaseDecreaseIncome
Capitalisation
and Discounted
Cash Flow
Rental growth
rate
The rental growth rate applied to the market
rental in the 10-year cash flow projection.
1.90-2.90 %
2.08-3.00 %IncreaseDecreaseDiscounted
Cash Flow
Terminal yieldThe rate used to assess the terminal value of
the property.
5.75-7.75 %
5.75-7.75 %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
allowance
This 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, deducting total outgoings to achieve
a net market rental and capitalising this in perpetuity to derive a capital value. An increase in the gross market rental 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 2025
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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, Wellington, is an implicit right-of-use asset of $9.5 million (2024: $9.1 million) in
relation to a peppercorn ground lease with an associated immaterial lease liability.
The lease liability of $27.6 million (2024: $27.6 million) is in respect of the ground lease at NorthWest Shopping Centre, Auckland.
20252024
Lease liabilities$000$000
Opening balance27,614
15,910
Re-measurement
-
11,710
Cash lease payments
(1,724)
(1,723)
Finance lease interest
1,717
1,717
Closing balance
27,607
27,614
Current liabilities
7
7
Non-current liabilities
27,600
27,607
Total lease liabilities
27,607
27,614
3.4 Capital expenditure commitments contracted for
As at 31 March 2025, SPL has committed to $0.8 million (2024: $1.5 million) and $3.0 million (2024: $ nil) for further building upgrades at
34 Shortland Street, Auckland, and 215 Lambton Quay, Wellington, respectively.
Stride has no other material capital commitments as at 31 March 2025.
Subsequent to balance date, SPL has committed to a further $2.2 million for capital expenditure works for various other capital works.
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Stride Property Group Annual Report 31 March 2025
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)
20252024
Profit/(loss) after income tax attributable to shareholders ($000)
21,652
(56,124)
Weighted average number of shares for the purpose of basic EPS (000)
559,011
549,184
Basic EPS - SPL (cents)
2.33
(11.47)
Basic EPS - SIML (cents)
1.54
1.25
Basic EPS - weighted (cents)
3.87
(10.22)
Weighted average number of shares for the purpose of diluted EPS (000)
562,626
552,835
Diluted EPS - SPL (cents)
2.32
(11.47)
Diluted EPS - SIML (cents)
1.53
1.25
Diluted EPS - weighted (cents)
3.85
(10.22)
Basic and diluted EPS amounts are calculated by dividing profit/(loss) 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 3.62 million (2024: 3.65 million) rights issued
under SIML’s employee incentive schemes.
4.2 Dividends paid
20252024
$000$000
The following dividends were declared and paid by SPL during the period:
Q4 2024 final dividend 1.9400 cents (Q4 2023 1.7808 cents)
10,845
9,680
Q1 2025 interim dividend 1.5625 cents (Q1 2024 1.7375 cents)
8,735
9,500
Q2 2025 interim dividend 1.5625 cents (Q2 2024 1.7375 cents)
8,735
9,561
Q3 2025 interim dividend 1.5625 cents (Q3 2024 1.7375 cents)
8,735
9,629
Total dividends paid - SPL
37,050
38,370
The following dividends were declared and paid by SIML during the period:
Q4 2024 final dividend 0.0600 cents (Q4 2023 0.0600 cents)
335
326
Q1 2025 interim dividend 0.4375 cents (Q1 2024 0.2625 cents)
2,446
1,435
Q2 2025 interim dividend 0.4375 cents (Q2 2024 0.2625 cents)
2,446
1,444
Q3 2025 interim dividend 0.4375 cents (Q3 2024 0.2625 cents)
2,446
1,455
Total dividends paid - SIML
7,673
4,660
Total dividends paid - Stride
44,723
43,030
Dividends are recognised as a liability in the financial statements in the period in which the dividends are approved.
Supplementary dividends of $0.42 million (2024: $0.32 million) were paid to SPL shareholders not resident in New Zealand for which SPL received a
foreign investor tax credit entitlement.
Supplementary dividends of $0.15 million (2024: $0.10 million) were paid to SIML shareholders not resident in New Zealand for which SIML received a
foreign investor tax credit entitlement.
Stride Property Group Annual Report 31 March 2025
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4.0 Investor Returns (continued)
4.3 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.
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.
20252024
$000$000
Profit/(loss) before income tax32,471
(51,976)
Non-recurring, non-cash, and other adjustments:
Net change in fair value of investment properties
29,525
75,779
Share of (profit)/loss in equity-accounted investments
(20,471)
23,676
Impairment of equity-accounted investment
8,776
-
(Gain)/loss on disposal of investment properties
(974)
2,472
Project management and disposal fees eliminated in SIML
556
872
Rental surrender (non-cash)/cash received
(375)
3,750
Rental guarantee income
180
829
Dividend income from equity-accounted investments
7,905
7,135
Share-based payment expense net of forfeited employee incentive rights
1,416
1,866
Incentive to anchor tenant for early lease renewal
1,506
-
One-off project costs
398
-
Non-cash movements in property, plant and equipment recognised in profit and loss
170
489
Non-cash interest income
(285)
(294)
IFRS lease adjustments
(3,359)
(1,256)
Other IFRS adjustments
124
708
Hedge ineffectiveness of cash flow hedges
(10)
880
Interest received in relation to loan advance on 110 Carlton Gore Road, Auckland
-
1,556
Distributable profit before current income tax57,553
66,486
Current tax expense excluding divestments (refer note 8.1)
(9,246)
(7,377)
Distributable profit after current income tax
48,307
59,109
Adjustments to funds from operations:
Maintenance capital expenditure
(4,080)
(3,306)
Incentives and associated landlord works
(2,137)
(2,944)
AFFO
42,090
52,859
Weighted average number of shares for the purpose of basic distributable profit per share (000)
559,011
549,184
Basic distributable profit after current income tax per share - weighted (cents)8.64
10.76
AFFO basic distributable profit after current income tax per share - weighted (cents)7.53
9.62
Weighted average number of shares for the purpose of diluted distributable profit per share (000)
562,626
552,835
Diluted distributable profit after current income tax per share - weighted (cents)8.59
10.69
AFFO diluted distributable profit after current income tax per share - weighted (cents)7.48
9.56
Certain comparative amounts have been reclassified to conform with the current year's presentation.
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Stride Property Group Annual Report 31 March 2025
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 includes Stride's funding exposure to interest rate risk and related financing costs.
5.1 Borrowings
Accounting policy
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any
difference between the proceeds (net of transaction costs) and the redemption value is recognised in the consolidated statement of comprehensive
income over the period of the borrowings using the effective interest method. Borrowings are classified as current liabilities unless SPL has an
unconditional right to defer settlement of the liability for at least 12 months after the reporting date.
20252024
$000$000
Bank facilities drawn down
390,400
375,000
Unamortised borrowing establishment costs
(271)
(402)
Total net borrowings
390,129
374,598
Weighted average cost of debt (inclusive of current interest rate derivatives, margins and
line fees) at balance date
4.92%
4.22%
Total
Undrawn
facility
Drawn
amount
As at 31 Mar 25Expiry date$000$000$000
Facility A30 Nov 2026
60,000-60,000
Facility B30 Nov 2027
50,000-50,000
Facility F130 Nov 2026
100,000-100,000
Facility F230 Nov 2027
150,000-150,000
Facility F430 Nov 2026
100,00069,60030,400
460,00069,600390,400
As at 31 Mar 24
Facility A30 Nov 202660,000-60,000
Facility B30 Nov 202750,00010,00040,000
Facility F130 Nov 2026100,000-100,000
Facility F230 Nov 2027150,000-150,000
Facility F430 Nov 2026
100,00075,00025,000
460,00085,000375,000
SPL’s 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 (Westpac). 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.
In accordance with the Green Finance Framework (Framework) of Fabric, $350.0 million (2024: $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 Green Loan Principles (2025) and
International Capital Market Association Green Bond Principles (2021 with June 2022 Appendix).
SIML does not have any borrowings (2024: $ nil) however it does have a $3.0 million overdraft facility with ANZ which has not been utilised during the
current year.
20252024
Summary of net debt$000$000
Cash
15,569
14,762
Borrowings - non-current
(390,129)
(374,598)
Lease liabilities
(27,607)
(27,614)
Net debt
(402,167)
(387,450)
Stride Property Group Annual Report 31 March 2025
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5.0 Capital Structure and Funding (continued)
5.2 Derivative financial instruments
Accounting policy
Interest rate derivatives (derivative financial instruments) are initially recognised at fair value on the date a derivative contract is entered into and
are subsequently measured at their fair value at each reporting date. Fair value of over-the-counter derivatives, such as interest rate 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.
20252024
SPL$000$000
Active interest rate derivative contracts
280,000
280,000
Forward dated interest rate derivative contracts
75,000
130,000
Total notional principal value of interest rate derivative contracts
355,000
410,000
Interest rate derivative assets - current
1,022
6,535
Interest rate derivative assets - non-current
788
6,879
Interest rate derivative liabilities - non-current
(1,499)
(64)
Fair values of interest rate derivative contracts
311
13,350
Fixed interest rates ranges on active interest rate derivative contracts (excluding margins and line fees)
1.47% - 4.25%
0.53% - 1.80%
Weighted average fixed interest rate on active interest rate derivative contracts (excluding margins and
line fees)
2.98%
1.35%
Percentage of drawn debt fixed
72%
75%
During the year ended 31 March 2025, SPL entered into the following interest rate agreements:
•three year pay fixed interest rate agreement with a notional value of $25.0 million and an effective date of 31 January 2025;
•four year pay fixed interest rate agreement with a notional value of $50.0 million and an effective date of 31 March 2025; and
•three year pay fixed interest rate agreements with a total notional value of $50.0 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. SPL
does not hold derivative financial instruments for trading purposes. SIML does not hold any interest rate derivatives (2024: $ nil).
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 (2024: 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 2025 of between 3.61% for the 90-day BKBM, and 4.11% for the 10-year swap rate (2024: 5.64% and 4.37% respectively). There were
no changes to these valuation techniques during the reporting period.
The following sensitivity illustrates the impact on equity 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. There is minimal impact to profit.
20252024
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(1,802)1,787
(1,434)1,422
66
Stride Property Group Annual Report 31 March 2025
5.0 Capital Structure and Funding (continued)
5.3 Net finance expense
Accounting policy
Interest income is recognised on a time-proportional basis using the effective interest rate.
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.
20252024
$000$000
Finance income
Bank interest income
659
799
Other finance income
285
294
Total finance income
944
1,093
Finance expense
Borrowings interest
(18,062)
(19,147)
Lease liabilities interest
(1,717)
(1,717)
Total finance expense
(19,779)
(20,864)
Net finance expense
(18,835)
(19,771)
5.4 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 (interest cover ratio, loan to value ratio, WALT, green
loan ratio and diversified asset test) 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.
5.5 Share capital
Each of SPL and SIML have one class of shares. The shares of SPL rank equally with each other and the shares of SIML 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 16 April 2024, the Boards issued 630,993 Stapled Securities pursuant to the employee share incentive schemes operated by SIML.
Each of SPL and SIML had 559,038,938 shares on issue as at 31 March 2025 (2024: 558,407,945).
Stride Property Group Annual Report 31 March 2025
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5.0 Capital Structure and Funding (continued)
5.6 SIML equity (non-controlling interest)
20252024
Notes$000$000
Opening balance20,703
15,046
Transactions with shareholders:
Dividends paid
4.2(7,673)
(4,660)
Dividends reinvested net of costs
-
2,135
Transfer to share capital on vesting of employee incentive rights
569
1,204
Other movements in reserves
564
(51)
Total transactions with shareholders
(6,540)
(1,372)
Total other comprehensive income
163
144
Profit after income tax
8,585
6,885
Total comprehensive income
8,748
7,029
Closing balance
22,911
20,703
5.7 Reserves
20252024
Reserves consist of the following Stride reserves$000$000
Cash flow hedge reserve
202
9,184
Share option reserve
1,309
969
Associate reserve - cash flow hedge
(2)
1,805
Revaluation surplus
2,600
2,800
Closing balance
4,109
14,758
Cash flow hedge reserve - SPL
Opening balance9,184
15,792
Movement in fair value of interest rate derivatives
(12,633)
(9,124)
Deferred tax on fair value movements
3,651
2,516
Closing balance
202
9,184
Share option reserve - SIML
Opening balance969
1,404
Share-based payment expense
1,512
1,917
Deferred tax on share-based payment expense
163
144
Transfer to share capital on vesting of employee incentive rights
(852)
(1,917)
Lapsed employee incentive rights
(387)
(528)
Forfeited employee incentive rights
(96)
(51)
Closing balance
1,309
969
Associate reserve - cash flow hedge - SPL
Opening balance1,805
2,953
Changes in reserves of associate
(1,807)
(1,148)
Closing balance
(2)
1,805
Revaluation surplus - SPL
Opening balance2,800
-
Revaluation (deficit)/surplus
(200)
2,800
Closing balance
2,600
2,800
Gains and losses recognised in the cash flow hedge reserve on interest rate derivatives will be reclassified in the same period in which the hedged
forecast cash flows affect profit or loss until the repayment of the borrowings.
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Stride Property Group Annual Report 31 March 2025
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:
20252024
Summary of financial instruments$000$000
Financial assets at amortised cost
Cash
15,569
14,762
Debtors and other receivables
3,066
4,248
Total financial assets at amortised cost
18,635
19,010
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
1,810
13,414
Total financial assets
23,843
35,822
Financial liabilities at amortised cost
Trade and other payables recognised as financial liabilities
5,628
6,544
Lease liabilities
27,607
27,614
Borrowings (joint operation participating interest)
-
40,297
Borrowings
390,129
374,598
Total financial liabilities at amortised cost
423,364
449,053
Derivative financial instruments
Used for hedging
1,499
64
Total financial liabilities
424,863
449,117
Stride Property Group Annual Report 31 March 2025
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6.0 Risk Management (continued)
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.
6.3 Credit risk
Stride incurs credit risk from debtors, accrued income receivable, loan to associate and transactions with financial institutions including cash balances and
interest rate derivatives. Stride is not exposed to any concentrations of credit risk apart from the loan to associate.
The risk associated with debtors is managed with a credit policy which includes performing credit evaluations on customers requiring credit and ensures
that only those customers with appropriate credit histories are provided with credit. In addition, debtor balances are monitored on an ongoing basis, with
the result that Stride's exposure to bad debts is not significant.
As SPL has a wide spread of tenants over different industry sectors, it is not exposed to any significant concentration of credit risk.
The risk from financial institutions is managed by placing cash and deposits with high credit quality financial institutions only. Stride has placed its cash
and deposits with ANZ and Westpac, both AA- rated (Standard & Poor’s).
With respect to the credit risk arising from interest rate derivative agreements, there is limited risk as all counterparties are registered banks in
New Zealand whose credit ratings are all AA- (Standard & Poor’s).
The maximum exposure to credit risk is the carrying amount of each class of financial assets as reported in note 6.1.
6.4 Interest rate risk
As Stride has no significant interest bearing assets, its operating income is substantially independent of changes in market interest rates.
SPL's interest rate risk arises from borrowings (refer note 5.1) which are issued at variable rates and expose SPL to cash flow interest rate risk. SPL's long
term interest rate hedging policy provides bands that are applied on a rolling basis, which provide for both a high level of fixed interest rate cover over the
near term, as well as a lengthy period of known fixed interest rate cover for a portion of term debt. SPL manages its cash flow interest rate risk by using
floating to fixed interest rate derivatives which have the economic effect of converting borrowings from floating to fixed rates.
As SPL holds interest rate derivatives, there is a risk that their economic value will fluctuate because of changes in market interest rates. The value of
interest rate derivatives is disclosed in note 5.2. As at 31 March 2025, SPL had fixed 72% of its drawn debt (2024: 75% fixed).
SPL's exposure to interest rate fluctuations is limited to the extent of all the non-hedged portions of borrowings which at balance date was $110.4 million
(2024: $95.0 million). If floating interest rates were 0.25% higher or lower, with other variables remaining constant, the impact on total comprehensive
income after tax attributable to shareholders would be $0.2 million (2024: $0.2 million) on an annualised basis. SPL's exposure to variable interest rate
risk and the weighted average interest rate for interest bearing financial assets and liabilities is as follows:
Interest rates applicable at balance date:20252024
Cash at bank
0.00% - 2.75%
0.00% - 4.50%
Loan to associate
7.25%
8.72%
Borrowings
3.18%
2.45%
Borrowings (joint operation participating interest)
-
3.89%
Weighted average cost of debt (inclusive of current interest rate derivatives, margins
and line fees) of the borrowings
4.92%
4.22%
Debtors and other receivables and payables are interest free and have settlement dates within one year. All other assets and liabilities are
non-interest bearing.
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Stride Property Group Annual Report 31 March 2025
6.0 Risk Management (continued)
6.5 Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit
facilities, and the ability to close out market positions. Stride’s liquidity position is monitored by management on a regular basis and is reviewed quarterly
by the Boards to ensure compliance with internal policies and banking covenants as per SPL's banking facilities.
SPL generates sufficient cash flows from its operating activities to meet its obligations arising from its financial liabilities and has the bank facilities
available to cover potential shortfalls (refer note 5.1).
The following table outlines Stride’s liquidity profile, as at 31 March, based on contractual undiscounted cash flows.
Total0-6 mths6-12 mths1-2 yrs2-5 yrs>5 yrs
$000$000$000$000$000$000
As at 31 Mar 25
Trade and other
payables recognised as
financial liabilities
5,6285,628
----
Borrowings
406,2845,4235,423198,237197,201
-
Lease liabilities
151,8238628621,7245,171143,204
Derivative financial instruments
28,5684,1794,5739,63510,181
-
592,30316,09210,858209,596212,553143,204
As at 31 Mar 24
Trade and other
payables recognised as
financial liabilities6,5446,544----
Borrowings424,5716,0256,33417,032395,180-
Lease liabilities153,4038628621,7245,171144,784
Derivative financial instruments
18,2231,8872,4895,6458,202-
602,74115,3189,68524,401408,553144,784
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7.0 Investments in Property Entities
This section sets out how the investments in property entities held by SPL are accounted for in Stride.
7.1 Industre
Accounting policy
Investments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations of
each investor, rather than the legal structure of the joint arrangement.
Industre is a joint arrangement between SPL and a group of international institutional investors through a special purpose vehicle advised by JPMAM.
As at 31 March 2025, SPL held a 49.6% interest in Industre (2024: 51.7%). Up until 31 October 2024, the accounting for the arrangement by SPL
had been a combination of a joint venture (equity-accounted) (refer note 7.2) and a joint operation (proportionate share of assets, liabilities, revenue
and expenses) (refer note 7.3). Since the completion of the Restructure on 31 October 2024 (refer note 1.9), SPL's investment in Industre has
been equity-accounted.
7.2 Interests in associates and joint venture
Accounting policy
Interests in associates and the joint venture are accounted for using the equity method and are initially recognised in the consolidated statement
of financial position at cost, adjusted for the post-acquisition change in SPL’s share of their net assets and liabilities. Under this method, SPL’s
share of profits and losses after tax of associates and profit and loss before tax of the joint venture are included in SPL’s profit before taxation.
Adjustments to the carrying amount are also made for SPL’s share of changes in the associates’ and the joint venture’s other comprehensive
income. SPL’s accounting policy is not to take account of the effects of transactions recorded directly in equity outside profit or loss and other
comprehensive income.
Under the equity method, gain or loss resulting from the transfer of investment properties to associates and the joint venture in exchange for cash
or shares is recognised only to the extent of the other investors’ interest in the associates or the joint venture, however when cash and shares are
received, the portion of the gain or loss relating to cash is recognised in full.
At each reporting date, SPL assesses its equity-accounted investments to determine whether there is any indication of impairment. If any
such indication exists, then the investments’ recoverable amount is estimated as a single asset by comparing its recoverable amount with its
carrying amount.
The recoverable amount is the greater of its value in use (VIU) and its fair value less costs of disposal (FVLCD). VIU is based on the estimated future
cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and
the risks specific to the asset or cash generating unit. FVLCD is the price that would be received to sell an asset in an orderly transaction between
market participants at the measurement date, less the costs of disposal and includes a strategic premium that is associated with collectively owning
more than the sum of the individual shares.
If the carrying amount of an equity-accounted investment exceeds its recoverable amount, an impairment loss is recognised in profit or loss and
is applied to the carrying amount of equity-accounted investment. Such impairment loss is not allocated to the underlying assets that make up the
carrying amount of the equity-accounted investment. Impairment loss is subsequently reversed only to the extent that the recoverable amount of the
investment subsequently increases.
The associates and joint venture of SPL are principally involved in the ownership of investment properties in New Zealand. They are equity-accounted
investments in SPL.
Ownership interestCarrying amount
Entity
Country of
incorporation
Ownership
Nature of
relationship
20252024
2025
$000
2024
$000
Investore
1
New ZealandSharesAssociate
18.8%
18.8%
87,553
93,023
Diversified
2
AustraliaUnitsAssociate
2.2%
2.1%
1,814
1,657
Industre joint venture
2
New ZealandSharesJoint venture
49.6%
51.7%
244,075
127,674
333,442
222,354
1Fair value, based on Investore's quoted closing share price on the NZX Main Board on the last business day for the year ended 31 March 2025, was $74.7 million
(2024: $81.7 million).
2These equity-accounted investments do not have quoted market prices as they are not listed.
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Stride Property Group Annual Report 31 March 2025
7.0 Investments in Property Entities (continued)
7.2 Interests in associates and joint venture (continued)
Investore
Given the extent of SPL's equity investment as at balance date of 18.8% (2024: 18.8%), the appointment of SIML as manager, and that two of
SIML's current directors are also directors of Investore, the SPL Board has concluded that SPL has 'significant influence' over Investore. As such, SPL's
investment in Investore has been treated as an interest in an associate. SPL is not subject to any escrow arrangements that prevent it from selling or
otherwise disposing of any shares that it holds.
As at 31 March 2025, the market value of the investment in Investore, based on the quoted closing market price of Investore's ordinary shares
of $1.05, was below the investment’s carrying amount under the equity method of accounting which is considered an impairment indicator. SPL
performed an impairment test using the FVLCD approach (2024: FVLCD).
The key inputs and assumptions in determining the recoverable amount of this investment through the FVLCD approach are a strategic investment
premium of 17.5% (2024: 17.5%) as determined by a third party in March 2024, the quoted closing share price on the NZX Main Board on the last
business day for the year ended 31 March 2025, and brokerage costs of 0.2%. The determination of the recoverable amount is considered to be
Level 3 in the fair value hierarchy (refer note 1.7). The result of the impairment test was that the investment's recoverable amount was lower than the
carrying amount as at 31 March 2025. As a result, SPL determined an impairment loss of $(8.8) million (2024: $ nil) against the carrying amount of
the investment.
The difference between the closing net assets and share at carrying percentage for Investore largely relates to the $(27.3) million cumulative impairment
loss ($(8.8) million in 2025 and $(18.5) million in 2022).
The estimated sensitivity on the recoverable amount under the FVLCD approach, if the strategic investment premium and quoted closing market price of
Investore's ordinary shares were to (decrease)/increase, is provided below:
Strategic investment premium %Market share price (% change)
-2.50+2.50-2.50+2.50
As at 31 Mar 2025
Change $000
(1,863)1,863(2,189)2,189
Change %
(2)2(3)3
As at 31 Mar 2024
Change $000(2,041)2,041(2,399)2,399
Change %(2)2(3)3
Diversified
Given the appointment of SIML as manager, and that one of SIML's current directors is also on Diversified's Investment Committee, the SPL Board
has concluded that SPL retains 'significant influence' over Diversified. As such, SPL's investment in Diversified has been treated as an interest in an
associate. As at 31 March 2025, SPL has an interest-bearing loan receivable of $3.4 million (2024: $3.4 million) with Diversified. The weighted average
interest rate for the current year was 8.14% (2024: 8.67%) and the interest was payable quarterly. Interest earned on this loan was $0.3 million
(2024: $0.3 million) (refer note 8.4). This loan is due for repayment on 12 August 2026.
Industre joint venture
Industre joint venture comprises Tahi, Rua and HoldCo. SPL has rights to its proportionate share of the net assets of these entities, based on its
ownership interest in HoldCo. SPL’s wholly owned subsidiary, SIPL, owns 49.6% of HoldCo as at 31 March 2025 (2024: participating interest 51.7%).
Tahi, Rua and HoldCo are eligible and have elected to be multi-rate Portfolio Investment Entities of which the income tax liability arises to the investors.
Accordingly, SPL recognises current and deferred tax as part of its taxes in note 8.1 (rather than as part of the investment in the joint venture).
Summarised financial information for associates and joint venture
The following tables provide summarised financial information for the associates and the joint venture of SPL and reflect the amounts presented in the
financial statements of the relevant associates, not SPL’s share of those amounts.
All investment properties held by Investore, Industre joint venture and Diversified were valued by independent registered valuers as at 31 March 2025.
SPL’s share of the valuation gains/(loss) are reflected in share of profit/(loss) in equity-accounted investments.
SPL's ownership interest in the Industre joint venture reduced from 51.7% to 49.6% on 30 April 2024. Consequently, the net share of profit for 2025
has been calculated on the weighted average proportionate holding during the current year.
Stride Property Group Annual Report 31 March 2025
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