Stride Property Group · NZX:SPG
Stride Property — Merger or Acquisition (September 2021)
14 slides from Stride Property's merger presentation, September 2021
Slide 1: Stride Property Group Office fund demerger and IPO
Stride Property Group Office fund demerger and IPO September 2021 Stride Property Group Office fund demerger and IPO 0
Slide 2: Important Notice
Important Notice Information only: This Presentation has been prepared solely by Stride Property Limited (SPL) and Stride Investment Management Limited (SIML, and together with SPL, Stride) and is being provided to you solely for information purposes to provide a general overview of Stride and its o
Slide 3: Overview of the demerger
Overview of the demerger Stride Property Group (Stride) has established Fabric Property Limited (Fabric) to invest in quality, sustainable office properties that exhibit ‘enduring demand’. Fabric is intended to be demerged from Stride Property Limited (SPL) and undertake a $250m - $290m initial publ
Slide 4: Delivery of strategy
Delivery of strategy Continuation of Stride’s long-term strategy to develop an enduring Real Estate 1 Investment Management (REIM) platform with total AUM of $3.6bn1 2 New NZX listed Stride Product with an office sector focus Establishment of a high quality portfolio valued at $931m2, with a 7.2 yea
Slide 5: Growth in SIML's Assets Under Management
Growth in SIML’s Assets Under Management Execution of strategy has lead to further growth in SIML’s business. A further $0.4bn of committed acquisitions and developments across SIML’s managed $3,619m Products will help deliver future growth $3,244m $3,003m $931m $714m $610m $2,079m $693m $466m $646m
Slide 6: Overview of Fabric
Overview of Fabric Stride Property Group Office fund demerger and IPO 5
Slide 7: Fabric establishment portfolio
Fabric establishment portfolio Fabric’s establishment portfolio is a sustainable, high-quality office portfolio located in Auckland and Wellington. It has strong tenant covenants, with a robust occupancy and long WALT Portfolio summary • Current Portfolio: The current Fabric portfolio consists of 10
Slide 8: Overview of Stride Portfolio
Overview of Stride Portfolio Stride Property Group Office fund demerger and IPO 7
Slide 9: Products
Products Fabric is Stride’s fourth Product and the second to be NZX listed. Fabric will be managed by SIML and SPL will retain a 24.6%-32.2% cornerstone stake subject to raise size Portfolio composition by value as at 31 July 20211 $1,140m Committed developments and acquistions² $74m $931m $693m $21
Slide 10: Impact of transaction on Stride
Impact of transaction on Stride Establishment of Fabric delivers: • A well diversified SPL investment portfolio on a weighted look through basis • Greater scale to SIML’s REIM platform, leading to incremental annual growth in base management fees of +$5.2m SPL’s weighted look-through portfolio compo
Slide 11: Impact and outlook
Impact and outlook Stride Property Group Office fund demerger and IPO 10
Slide 12: Deleveraged balance sheets
Deleveraged balance sheets At demerger Fabric will repay SPL for monies advanced to it. On a pro forma basis as at 31 March 2021, this will result in SPL’s directly-held LVR reducing to between 10.0% and 21.4% with a total bank facility size of $200m. On a look-through1 basis, SPL’s LVR reduces to b
Slide 13: Combined dividend maintained
Combined dividend maintained Stride shareholders will receive shares in Fabric on a 1:4 basis for no consideration, with total combined FY22 dividends to Stride shareholders (including Stride and Fabric dividends) of 9.91cps, in line with previous guidance and providing flexibility to reinvest capit
Slide 14: Outlook and strategic focus
Outlook and strategic focus 46 Sale Street, Auckland Establishment of Fabric is an important step towards growing Stride’s REIM platform. Transition to a capital light model provides further reinvestment opportunities to create value for shareholders Outlook • Dividend guidance: Following the IPO of
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