Stride Property Group · NZX:SPG
Stride Property — H1 FY2024 Earnings Presentation
36 slides from Stride Property's earnings presentation, November 2023
Slide 1: Stride Property Group Interim Results Presentation
Stride Property Group Interim Results Presentation for the six months ended 30 September 2023
Slide 2: Contents
Contents 3 Overview 7 Investment management business 10 Portfolio 17 Sustainability 19 HY24 consolidated interim financial results 22 Capital management 25 Outlook 27 Glossary 29 Appendices Capitalised and technical terms are defined in the glossary on page 28. Stride Stride Property Property Group
Slide 3: Overview
Overview 30 September 2023 Stride Property Group SPL office and town centre portfolio1 Value2 WACR WALT Occupancy3 $1.0bn 6.3% 6.3 years 96% Investment management business Total AUM External AUM Management fees5 $3.2bn $2.2bn $10.3m on a committed4 basis on a committed4 basis for HY24 Capital manage
Slide 4: Financial overview
Financial overview Stride Property Group Loss after income tax $(50.5)m 110 Carlton Gore Road, Auckland compared to $(53.1)m loss after income tax for HY23 Distributable profit1 after current income tax $31.4m up +$2.1m / +7.2% from HY23 Distributable profit per share 5.76cps up 0.34cps / +6.3% from
Slide 5: Executing on capital management initiatives
Executing on capital management initiatives SPL (excl. Industre joint operation assets and debt) Stride has successfully executed on the capital management initiatives announced in November 2022, reducing SPL’s committed1 bank LVR2 to 35.8%, or 26.8% on a balance sheet3 basis Industre DRP Refined Di
Slide 6: Sector update
Sector update Office1 Town Centres1,3 • Flight to quality continues, with location and quality being • Strong tenant mix and reduced vacancy has driven Moving occupiers’ most important requirements2 Annual Turnover (MAT)4 growth of +12.4% from 30 Sep 22. Stats NZ reported a decline in retail card tr
Slide 7: Investment management business
Investment management business Stride Stride Property Property Group Group || Interim Interim Results Results HY24 HY24 7 7
Slide 8: Diversified revenue sources
Diversified revenue sources HY24 look-through revenue sources1 Stride combines a property investment business (SPL) with an investment management business (SIML) 4% Activity and Stride derives its revenue from: 14% performance Recurring fees • Management fees management • Direct property income from
Slide 9: Management fee income
Management fee income HY24 management fee1 income of $10.3m, down from HY23 (HY23: $12.0m) • $8.1m recurring fees, down $0.7m from HY23 due to disposals and lower property valuations in managed products • Lower activity fees due to no performance fees and reduced transaction activity SIML management
Slide 10: Portfolio
Portfolio Stride Stride Property Property Group Group || Interim Interim Results Results HY24 HY24 10 10
Slide 11: Products
Products Stride has committed1 AUM of $3.2bn, including developments Portfolio composition by value as at 30 Sep 23 1 Commitments $1,037m $9m $1,014m $21m Property categorised as 'Development and Other' $36m and held for sale $60m 2 $285m $743m $1m $80m 2 $933m $412m $707m 3 $25m $662m $387m Sector
Slide 12: HY24 highlights (Industre)
439 Rosebank Road, Auckland HY24 highlights1 • Disposal of two properties for an aggregate sales price of $43.5m, 10% above the combined book value • 13 rent reviews completed over 25,000 sqm, resulting in +7.5% increase on prior rentals • Potential reversion to market of +15.2%2 across the portfoli
Slide 13: HY24 highlights (Investore)
Woolworths Browns Bay, Auckland HY24 highlights1 • Total portfolio valuation2 of $1.0bn as at 30 Sep 23 • 29 rent reviews completed over 27,000 sqm resulting in a 3.2% increase on prior rentals • Including Countdown Hamilton (Anglesea) lease extension agreed post balance date, renewals completed rep
Slide 14: HY24 highlights (Diversified)
Queensgate Shopping Centre, Wellington HY24 highlights1 • EVENT Cinemas opening at Queensgate Shopping Centre in Dec 22 has contributed to growth in portfolio MAT2, +13.8% against 30 Sep 22 • Rent reviews generated uplift of +4.9% on prior rentals • Specialty GOC2 improved to 13.3% as at 30 Sep 23 f
Slide 15: SPL Town Centre portfolio
SPL Town Centre portfolio HY24 highlights1 • Continued strong performance with MAT2 growth of +8.2% against 30 Sep 22 • Rent reviews and renewals drove a +5.1% uplift on prior rentals, primarily driven by CPI related reviews • Specialty GOC2 for the portfolio decreased to 11.1% as at 30 Sep 23 from
Slide 16: SPL Office portfolio
SPL Office portfolio HY24 highlights1 • Settlement of the acquisition of the new building at 110 Carlton Gore Road, Auckland, rated 6 Green Star (Design) • Disposal of 22 The Terrace, Wellington, settled Jul 23 • First floor of turnkey suites completed at 34 Shortland Street, Auckland, with building
Slide 17: Sustainability
Sustainability Stride Stride Property Property Group Group || Interim Interim Results Results HY24 HY24 17 17
Slide 18: Continued focus on sustainability
Continued focus on sustainability Stride continues to focus on the ongoing sustainability of its portfolio and business activities, including monitoring progress against targets and measuring its overall sustainability performance Targets • Stride has set a target of reducing scope 1 and 2 GHG emiss
Slide 19: HY24 consolidated interim financial results
HY24 consolidated interim financial results Stride Stride Property Property Group Group || Interim Interim Results Results HY24 HY24 19 19
Slide 20: Financial performance
Financial performance Stride Property Group (Stride) - Consolidated Change 30 Sep 23 30 Sep 22 $m $m $m % Net rental income 34.8 34.1 +0.7 +2.0 Guarantee income 2.4 - +2.4 +100.0 Management fee income 10.3 12.0 (1.8) (14.8) Total corporate expenses (11.7) (12.2) +0.5 +3.7 Profit before net finance e
Slide 21: Distributable profit
Distributable profit1 Change Stride Property Group (Stride) - Consolidated 30 Sep 23 30 Sep 22 $m $m $m % Loss before income tax (49.3) (49.3) +0.1 +0.1 Non-recurring, non-cash and other adjustments: - Net change in fair value of investment properties 55.3 51.8 +3.4 +6.6 - Share of loss in equity-ac
Slide 22: Capital management
Capital management Stride Stride Property Property Group Group || Interim Interim Results Results HY24 HY24 22 22
Slide 23: Capital management – debt facilities
Capital management – debt facilities SPL (excl. Industre joint operation assets and debt) • SPL’s bank LVR1 was 38.9% as at 30 Sep 23, or 35.8% on a committed2 basis As at As at • When factoring in SPL’s interests in its products, committed3 gearing is Syndicated debt facilities 30 Sep 23 31 Mar 23
Slide 24: Capital management – cost of debt
Capital management – cost of debt SPL (excl. Industre joint operation assets and debt) • As at 30 Sep 23, SPL had $320m active interest rate swaps, representing 80% of drawn debt. This increases to 86% after As at As at considering commitments1 Cost of debt 30 Sep 23 31 Mar 23 • Weighted average cos
Slide 25: Outlook
Outlook Stride Stride Property Property Group Group || Interim Interim Results Results HY24 HY24 25 25
Slide 26: Outlook
Outlook • The investment backdrop of the New Zealand commercial property market Diversified platform remains challenging with limited transactional activity exposure to all four core commercial property classes • Stride’s high quality portfolio continues to exhibit strong fundamentals Capital manage
Slide 27: Glossary
Glossary Stride Stride Property Property Group Group || Interim Interim Results Results HY24 HY24 27 27
Slide 28: 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 29: Appendices
Appendices Stride Stride Property Property Group Group || Interim Interim Results Results HY24 HY24 29 29
Slide 30: Appendix 1: Total AUM
Appendix 1: Total AUM AUM movements over HY24 Stride’s strategy is to +$7m +$198m +$20m create a group of $3,229m $3,174m +$31m $3,205m Products in core ($130m) ($150m) commercial property $913m $1,037m $1,028m sectors which form the basis of its investment management business $786m $742m $743m Tota
Slide 31: Appendix 2: Portfolio by sector
Appendix 2: Portfolio by sector Town Centre/ Overview1 Total Office Industrial Large Format Retail Retail Shopping Centres Office and Town Centre portfolio Properties (no.) 9 6 3 Net Contract Rental ($m) 61.8 41.2 20.6 WALT (years) 6.3 7.3 4.2 Occupancy (% by area)2 96.2 94.2 98.5 Portfolio Valuatio
Slide 32: Appendix 3: SPL Office and Town Centre portfolio
Appendix 3: SPL Office and Town Centre portfolio1 As at As at SPL Overview 30 Sep 23 31 Mar 23 Location by Contract Rental Properties (no.) 9 8 Tenants (no.) 241 233 Net Lettable Area (sqm) 131,297 117,063 Net Contract Rental ($m) 61.8 51.9 Wellington 36% WALT (years) 6.3 5.5 Auckland 64% Occupancy
Slide 33: Appendix 4: Net Contract Rental and profit
Appendix 4 Net Contract Rental1 $10.9m $0.9m $61.8m ($1.5m) ($0.3m) $51.9m As at Office acquisition Rent reviews Net Leasing Impact Other items As at 31 Mar 23 (110 CGR) 30 Sep 23 Profit before other expense and income tax $3.2m $2.1m $0.5m $25.3m $25.4m ($2.2m) ($1.8m) ($1.6m) HY22 Net rental incre
Slide 34: Appendix 4 (cont.)
Appendix 4 (cont.) Net Tangible Asset per share $0.05 $1.98 ($0.11) $1.85 ($0.03) ($0.04) As at Operating profit before tax Net reduction in fair value of Share of loss in associates Dividends As at 31 Mar 23 investment properties paid 30 Sep 23 Investment Property1 $1,254.1m2 $4.8m $5.3m $1,177.2m
Slide 35: Appendix 5: Industre summarised financial information
Appendix 5: Industre summarised financial information Summarised statement of financial position ($000) Industre SPL’s interests Joint Joint Joint Joint venture operations Total venture operations Total unaudited unaudited unaudited unaudited unaudited unaudited 30-Sep-23 30-Sep-23 30-Sep-23 30-Sep-
Slide 36: Thank you
Thank you Stride Property Group Level 12, 34 Shortland Street Auckland 1010, New Zealand PO Box 6320 Victoria Street West Auckland 1142, New Zealand P +64 9 912 2690 W strideproperty.co.nz Important Notice: The information in this presentation is an overview and does not contain all information nece
Stride Property Group — H1 FY2024 Earnings Presentation on 6ix