Stride Property Group · NZX:SPG

Stride Property — FY2025 Earnings Presentation

36 slides from Stride Property's earnings presentation, May 2025

  1. Slide 1: Stride Property Group Annual Results

    Stride Property Group Annual Results for the year ended 31 March 2025 (FY25) Stride Property Group | Annual Results FY25

  2. Slide 2: Contents

    Contents 3 Overview 4 Financial overview 5 Sector update 6 Markets update 7 Investment management business 10 Portfolio 18 Sustainability 20 FY25 consolidated financial results 23 Capital management 26 Outlook 28 Glossary 30 Appendices Capitalised and technical terms are defined in the glossary on p

  3. Slide 3: Overview

    Overview Stride Property Group as at 31 Mar 25 Stride’s look-through Investment Portfolio1 Value WACR WALT Occupancy $1.5bn 6.2% 6.6 years 95% Investment management business Total AUM External AUM External management fees $3.2bn $2.2bn $20.4m for FY25 Capital management Bank LVR2 Balance sheet LVR3

  4. Slide 4: Financial overview

    110 Carlton Gore Road, Auckland Financial overview Stride Property Group Profit after income tax $21.7m up +$77.8m from FY24 Distributable Profit after current income tax $48.3m down $(10.8)m from FY24 Distributable Profit per share 8.64cps down (2.12)cps from FY24 SIML management fee income $20.4m

  5. Slide 5: Sector update

    Sector update Office Town Centres • Flight to quality remains a key theme reflected in the increased • Consumer confidence up vs. 2023 lows, but spending still spread between occupancy and average rentals across different cautious. Total MAT down (2.2)% on FY24, but on average building grades1 is up

  6. Slide 6: Markets update

    Markets update 20 Customhouse Quay, Wellington Direct investment and institutions Equities and debt • Capitalisation rates stabilising across all asset classes • Lower term deposit rates (~4%) are making dividend yields for LPVs (5%-10% gross) more attractive • Evident rise in LFR and industrial tra

  7. Slide 7: Investment management business

    Investment management business Stride Property Group | Annual Results FY25 7 7

  8. Slide 8: Diversified portfolio and revenue sources

    Diversified portfolio and revenue sources Stride combines a property investment FY25 look-through revenue sources2 business (SPL) with an investment management business (SIML) 3% Activity and 15% performance Recurring fees SPL’s weighted look-through portfolio value1 management as at 31 Mar 25 fees

  9. Slide 9: SIML management fee income

    SIML management fee income External management fees by type FY25 external management fee income $20.4m, up $20.4m $19.9m from FY24’s $19.9m Activity and $3.9m $3.7m performance fees • $16.5m recurring fees, up $0.3m from FY24. Recurring fees Stabilised valuations support future recurring fees • SIML

  10. Slide 10: Portfolio

    Portfolio Stride Property Group | Annual Results FY25 10 10

  11. Slide 11: Products

    Products Stride has AUM of $3.2bn over four Products Portfolio composition by value as at 31 Mar 25 Industre development commitments Property categorised as 'Development and Other' $1,010m $989m $35m $24m $833m $282m $49m Town Centre $95m $965m $407m $23m $694m $689m Office $384m Sector focus: Offic

  12. Slide 12: FY25 highlights

    Woolworths, Greenlane FY25 highlights • Total portfolio valuation of $1.0bn as at 31 Mar 25 • Divestment of two regional supermarket properties for a combined sale price of $54.3m, to support the acquisition of Bunnings Westgate, Auckland, for $51.0m 1 • Divestment of Woolworths Mt Roskill, Auckland

  13. Slide 13: FY25 highlights

    16A Wickham Street, Hamilton Development FY25 highlights • Acquisition of 7.9 hectares of land in Hamilton, providing future development opportunities • Development of a 5 Green Star industrial facility at Favona Road, Auckland has commenced, for cost of ~$30m (excl. land) and an expected yield on c

  14. Slide 14: FY25 highlights

    Queensgate Shopping Centre, Wellington FY25 highlights • Rent reviews generated an uplift of +3.5% on prior rentals • Renewals to leading brands such as Whitcoulls, Hallensteins, Glassons and ANZ • Specialty GOC for the portfolio remained steady at ~13% as at 31 Mar 25, despite specialty MAT decreas

  15. Slide 15: SPL Town Centre portfolio

    SPL Town Centre portfolio FY25 highlights • Rent reviews and renewals drove a +5.7% uplift on prior rentals, primarily driven by CPI linked reviews • New tenants include Look Sharp, Lovisa, Connor and Gecko in the Village • Specialty MAT decreased (1.5)% to $129m against FY24 • Specialty GOC for the

  16. Slide 16: SPL Office portfolio

    SPL Office portfolio FY25 highlights • Refurbishment commenced at 215 Lambton Quay, including lobby upgrade and new end of trip facilities • Sustainability upgrades at 34 Shortland Street completed, targeting 4 star NABERSNZ rating • Rent reviews and renewals over 51,000 sqm provided a +3.2% uplift

  17. Slide 17: Developments

    Developments During FY25, the following Industre development projects commenced: Favona development, Favona Road 14-20 Favona Road, Auckland • SIML is managing the development of new industrial buildings at 14-20 Favona Road, Auckland • The project includes two multi unit warehouse buildings for up

  18. Slide 18: Sustainability

    Sustainability Stride Property Group | Annual Results FY25 18 18

  19. Slide 19: Progress against targets

    Progress against targets Stride continues to make progress against its sustainability targets Target FY25 Progress Reduce scope 1 and 2 emissions by 42% from 12.3% reduction from FY20 baseline year FY20 baseline year by 2030 Improve energy and water efficiency This remains a work in progress. Energy

  20. Slide 20: FY25 Consolidated financial results

    FY25 Consolidated financial results Stride Property Group | Annual Results FY25 20 20

  21. Slide 21: Financial performance

    Financial performance Stride Property Group (Stride) - Consolidated Change 31 Mar 25 31 Mar 24 $m $m $m % Net rental income 69.1 72.3 (3.3) (4.5) Guarantee income - 2.4 (2.4) (100.0) Management fee income 20.4 19.9 +0.6 +2.8 Total corporate expenses (21.3) (24.0) +2.7 +11.1 Profit before net finance

  22. Slide 22: Distributable Profit

    Distributable Profit Change Stride Property Group (Stride) - Consolidated 31 Mar 25 31 Mar 24 $m $m $m % Profit/(loss) before income tax 32.5 (52.0) +84.4 +162.5 Non-recurring, non-cash and other adjustments: - Net change in fair value of investment properties 29.5 75.8 (46.3) (61.0) - Share of (pro

  23. Slide 23: Capital management

    Capital management Stride Property Group | Annual Results FY25 23 23

  24. Slide 24: Capital management – debt facilities

    Capital management – debt facilities • Bank LVR1 was 38.7% as at 31 Mar 25, with balance sheet As at As at gearing, taking into account investments in the Stride Products, Syndicated debt facilities 31 Mar 25 31 Mar 24 of 29.0% • Post balance date refinance commitment to result in the Debt facility

  25. Slide 25: Capital management – cost of debt

    Capital management – cost of debt • As at 31 Mar 25, SPL had $280m of active interest rate swaps, representing 72% of drawn debt As at As at Cost of debt 31 Mar 25 31 Mar 24 • $125m of hedging entered into during the year at a weighted average rate of 3.6%. $50m of these have start dates post Weight

  26. Slide 26: Outlook

    Outlook Stride Property Group | Annual Results FY25 26 26

  27. Slide 27: Outlook

    Outlook • Macroeconomic conditions remain challenging however lower interest rates are supportive of increased market activity, creating opportunities for Stride’s Products and real estate investment management business • Continued focus on delivering Industre’s development pipeline and SPL’s remain

  28. Slide 28: Glossary

    Glossary Stride Property Group | Annual Results FY25 28 28

  29. Slide 29: Glossary

    Glossary AUM Assets under management Contract Rental Contract Rental is the amount of rent payable by each tenant, plus other amounts payable to SPL (or the relevant landlord) by that tenant under the terms of the relevant lease as at the relevant date, annualised for the 12 month period on the basi

  30. Slide 30: Appendices

    Appendices Stride Property Group | Annual Results FY25 30 30

  31. Slide 31: Appendix 1: Total AUM

    Appendix 1: Total AUM Stride’s strategy is to AUM movements over FY25 create a group of Products in core +$49m $3,239m $3,153m +$31m +$26m $3,190m commercial property +$70m - $(11)m sectors which form the $(79)m basis of its investment $1,023m $1,010m $1,010m management business Total AUM is $3.2bn

  32. Slide 32: Appendix 2: Investment Portfolio by sector

    Appendix 2: Investment Portfolio by sector Town Centre/ Overview Total Office Industrial Large Format Retail Retail Shopping Centres Office and Town Centre portfolio Properties (no.) 9 6 3 Net Contract Rental ($m) 60.6 39.6 21.0 WALT (years) 5.9 7.0 3.6 Occupancy (% by area) 91.2 87.7 95.5 Portfolio

  33. Slide 33: Appendix 3: SPL Office and Town Centre portfolio

    Appendix 3: SPL Office and Town Centre portfolio As at As at SPL Overview 31 Mar 25 31 Mar 24 Location by Contract Rental Properties (no.) 9 9 Tenants (no.) 222 230 Net Lettable Area (sqm) 131,019 131,213 Wellington 33% Net Contract Rental ($m) 60.6 61.9 WALT (years) 5.9 5.9 Occupancy (% by area) 91

  34. Slide 34: Appendix 4

    Appendix 4 Net Contract Rental $2.1m $61.9m $60.6m $(2.6)m $(0.8)m As at Rent reviews Net Leasing Impact Other items As at 31 Mar 24 (includes unrecovered opex 31 Mar 25 due to vacancies) Profit before other expense and income tax $50.8m $1.9m $2.7m $49.3m $0.6m $(2.0)m $(2.4)m $(2.2)m FY24 Net rent

  35. Slide 35: Appendix 4 (cont.)

    Appendix 4 (cont.) Net Tangible Assets per share $0.09 $(0.02) $0.04 $(0.02) $1.78 $(0.05) $(0.02) $1.72 $(0.08) As at Operating profit Income tax Movement in cash Net reduction in fair Impairment of Share of profit in Dividends As at 31 Mar 24 before tax expense flow hedges, net of value of investm

  36. Slide 36: Thank you

    Stride Property Group Level 12, 34 Shortland Street Auckland 1010, New Zealand Thank you PO Box 6320 Victoria Street West Auckland 1142, New Zealand P +64 9 912 2690 W strideproperty.co.nz Important Notice: The information in this presentation is an overview and does not contain all information nece

Stride Property Group — FY2025 Earnings Presentation on 6ix