Stride Property Group · NZX:SPG
Stride Property — HY25 Earnings Presentation
35 slides from Stride Property's earnings presentation, Nov 27, 2024
Slide 1: Stride Property Group Interim Results HY25
Stride Property Group Interim Results for the six months ended 30 September 2024 (HY25) Stride Property Group | Interim Results HY25
Slide 2: Contents
Contents 3 Overview 4 HY25 financial overview 5 Sector update Investment management 6 business 9 Portfolio 16 Sustainability HY25 consolidated interim 18 financial results 21 Capital management 24 Outlook 26 Glossary 28 Appendices Capitalised and technical terms are defined in the glossary on page 2
Slide 3: Overview
Overview Stride Property Group as at 30 Sep 24 Stride’s look-through portfolio1 Value WACR WALT Occupancy $1.5bn 6.2% 6.8 years 96% Investment management business Total AUM External AUM External management fees $3.3bn $2.2bn $9.4m on a committed2 basis on a committed basis for HY25 Capital managemen
Slide 4: HY25 financial overview
HY25 financial overview Stride Property Group Profit after income tax $18.5m up $69.0m from HY24 Distributable Profit after current income tax $24.1m down $(7.3)m from HY24 Distributable Profit per share 4.31cps down (1.45)cps from HY24 Assets under management (committed) as at 30 Sep 24 $3.3bn Net
Slide 5: Sector update
Sector update Office Town Centres • Supply of new office developments slowing as the market • Rent reviews completed during HY25 resulted in an increase adjusts to the macroeconomic environment of +3.6% on prior rentals • Companies continue to encourage employee presence in the • Macroeconomic headw
Slide 6: Investment Management Business
Investment Management Business Stride Property Group | Interim Results HY25 Stride Property Group | Interim Results HY25 6
Slide 7: Diversified revenue sources
Diversified revenue sources Stride combines a property investment business HY25 look-through revenue sources1 (SPL) with an investment management business (SIML) 3% Activity and 14% performance Recurring fees management fees 35% Office 16% Industrial 11% Large Format Retail 21% Retail Shopping Centr
Slide 8: Management fee income
Management fee income HY25 external management fee income of $9.4m • $7.9m recurring fees are broadly in line with HY24, and remain up on HY22 due to completed development projects adding to assets under management since then • Fewer developments were completed in HY25 resulting in lower activity fe
Slide 9: Portfolio
Portfolio Stride Property Group | Interim Results HY25 Stride Property Group | Interim Results HY25 9
Slide 10: Products
Products Stride has committed AUM of $3.3bn Portfolio composition by value as at 30 Sep 24 Commitments $1,037m Property categorised as 'Development and Other' $13m $998m $4m and held for sale $37m $77m $284m $818m $73m Town Centre $70m $916m $410m $24m $705m $675m Office $386m Directly held Sector f
Slide 11: HY25 highlights
Bunnings Westgate, Auckland HY25 highlights • Unconditional agreements entered into to sell two regional, non-core supermarket properties for a combined sale price of $54.3m and to acquire Bunnings Westgate for $51.0m cash1 • 33 rent reviews completed over 27,000 sqm resulting in +4.6% increase on p
Slide 12: HY25 highlights
439 Rosebank Road, Auckland HY25 highlights • New commitment to develop 5 Green Star industrial facility at Favona Road, Auckland, for cost of $33m (excl. land) and an expected yield on cost of 6%+ (incl. land) • Development progressing at 16A Wickham Street, Hamilton, with total project costs estim
Slide 13: HY25 highlights
HY25 highlights • Specialty MAT decreased (2.2)% to $226.4m against HY24 • Specialty GOC for the portfolio remained steady at ~13.0% as at 30 Sep 24 • Rent reviews generated an uplift of +2.8% on prior rentals, driven by CPI and fixed % increases • Total portfolio valuation of $410m as at 30 Sep 24,
Slide 14: SPL Town Centre portfolio
SPL Town Centre portfolio HY25 highlights • Specialty MAT increased +2.5% to $131.3m against HY24 • Specialty GOC for the portfolio remained steady at ~11.0% as at 30 Sep 24 • Rent reviews drove a +4.8% uplift on prior rentals, primarily driven by CPI related reviews • Total portfolio value of $307m
Slide 15: SPL Office portfolio
SPL Office portfolio HY25 highlights • Rent reviews and renewals over 31,000 sqm provided a +3.5% uplift on prior rentals • Refurbishment works underway at 215 Lambton Quay • Sustainability upgrades at 34 Shortland Street completed, targeting 4 star NABERSNZ rating • Prime assets occupancy is 100%,
Slide 16: Sustainability
Sustainability Stride Property Group | Interim Results HY25 Stride Property Group | Interim Results HY25 16
Slide 17: Transition plan progress
Transition plan progress New Upgrades to developments existing buildings Transition plan New developments or major refurbishments Stride’s carbon transition plan contains actions objective target a 5 Green Star rating to support Stride’s target of reducing scope 1 and 2 greenhouse gas emissions by 4
Slide 18: HY25 Consolidated Interim Financial Results
HY25 Consolidated Interim Financial Results Stride Property Group | Interim Results HY25 Stride Property Group | Interim Results HY25 18
Slide 19: Financial performance
Financial performance Stride Property Group - Consolidated Change 30 Sep 24 30 Sep 23 $m $m $m % Net rental income 36.0 34.8 +1.2 +3.5 Guarantee income 0.0 2.4 (2.4) (100.0) Management fee income 9.4 10.3 (0.9) (8.3) Corporate and administration expenses (10.3) (11.7) +1.4 +11.9 Profit before net fi
Slide 20: Distributable Profit
Distributable Profit Stride Property Group - Consolidated Change 30 Sep 24 30 Sep 23 $m $m $m % Profit/(loss) before income tax 24.7 (49.3) +74.0 +150.1 Non-recurring, non-cash and other adjustments: - Net change in fair value of investment properties 3.6 55.3 (51.7) (93.5) - Share of (profit)/loss
Slide 21: Capital Management
Capital Management Stride Property Group | Interim Results HY25 Stride Property Group | Interim Results HY25 21
Slide 22: Capital management – debt facilities
Capital management – debt facilities SPL (excl. Industre joint operation assets and debt) • SPL’s bank LVR1 was 37.4% as at 30 Sep 24, or 38.2% on a committed As at As at basis Syndicated debt facilities 30 Sep 24 31 Mar 24 • When factoring in SPL’s interests in its products, committed gearing is: B
Slide 23: Capital management – cost of debt
Capital management – cost of debt SPL (excl. Industre joint operation assets and debt) • As at 30 Sep 24, SPL had $280m active interest rate swaps, As at As at representing 73% of drawn debt Cost of debt 30 Sep 24 31 Mar 24 • $75m of forward starting swaps entered into in HY25 at an average rate of
Slide 24: Outlook
Outlook Stride Property Group | Interim Results HY25 Stride Property Group | Interim Results HY25 24
Slide 25: Outlook
Outlook • Current macroeconomic conditions expected to continue during FY25, but RBNZ easing is supporting cost of capital • Signs of improving market conditions are evidenced by transactional activity, and expected to create new opportunities for Stride’s real estate investment management business
Slide 26: Glossary
Glossary Stride Property Group | Interim Results HY25 Stride Property Group | Interim Results HY25 26
Slide 27: 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
Slide 28: Appendices
Appendices Stride Property Group | Interim Results HY25 Stride Property Group | Interim Results HY25 28
Slide 29: Appendix 1: Total AUM
Appendix 1: Total AUM AUM movements over HY25 Stride’s strategy is to +$90m $3,263m +$9m create a group of $3,153m +$20m +$5m $3,173m Products in core $(14)m commercial property $1,037m $1,023m $1,025m sectors which form the basis of its investment management $726m $745m $818m business Total AUM is
Slide 30: Appendix 2: Investment Portfolio by sector
Appendix 2: Investment Portfolio by sector Town Centre/ Overview Total Office Industrial Large Format Retail Retail Shopping Centres Office and Town Centre portfolio Properties (no.) 9 6 3 Net Contract Rental ($m) 60.1 39.1 21.0 WALT (years) 6.1 7.4 3.7 Occupancy (% by area) 91.7 87.6 96.9 Portfolio
Slide 31: Appendix 3: SPL Office and Town Centre portfolio
Appendix 3: SPL Office and Town Centre portfolio As at As at SPL Investment Portfolio overview 30 Sep 24 31 Mar 24 Location by Contract Rental Properties (no.) 9 9 Tenants (no.) 225 230 Net Lettable Area (sqm) 131,178 131,213 Wellington 34% Net Contract Rental ($m) 60.1 61.9 WALT (years) 6.1 5.9 Auc
Slide 32: Appendix 4
Appendix 4 Net Contract Rental $61.9m $1.2m $60.1m $(2.3)m $(0.7)m As at Rent reviews Net Leasing Impact Other items As at 31 Mar 24 (includes unrecovered opex 30 Sep 24 due to vacancies) Profit before other expense and income tax $2.2m $25.4m $0.6m $1.4m $25.4m $(0.7)m $(2.7)m $(0.9)m HY24 Net rent
Slide 33: Appendix 4 (cont.)
Appendix 4 (cont.) Net Tangible Assets per share $0.05 $1.78 $0.01 $(0.02) $(0.01) $1.75 $(0.02) $(0.04) As at Operating profit Income tax expense Movement in cash Net reduction in fair Share of profit in Dividends As at 31 Mar 24 before tax flow hedges, net of value of investment associates paid 30
Slide 34: Appendix 5: Industre summarised financial information
Appendix 5: Industre summarised financial information Summarised statement of financial position ($000) Industre SPL’s interests Joint venture Joint operations Total Joint venture Joint operations Total unaudited unaudited unaudited unaudited unaudited unaudited 30 Sep 24 30 Sep 24 30 Sep 24 30 Sep
Slide 35: Thank you
Stride Property Group Level 12, 34 Shortland Street Thank you Auckland 1010, New Zealand 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