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Stride net rental income rose nearly $10m over half

Radio New Zealand logo Radio New Zealand 5 days ago


Stride's net rental income rose nearly $10m over the half, due to the acquisition of further properties to its office portfolio. © Stride's net rental income rose nearly $10m over the half, due to the acquisition of further propert... Stride's net rental income rose nearly $10m over the half, due to the acquisition of further properties to its office portfolio.


The diversified property manager Stride plans to raise $120 million, after reporting a strong lift in its half year profit.

The company manages the property investment vehicles, Investore, Diversified and Industre.

Key numbers (for 6 months ended September vs year ago)

  • Net profit $61.5m vs $51.5m
  • Underlying profit $25.9m vs $24.1
  • Revenue $42.9m vs $33.6m
  • Interim dividend 2.48 cps vs 2.48 cps

Stride's net rental income rose nearly $10m over the half, due to the acquisition of further properties to its office portfolio.

The growth in its bottom line was fueled by its share of the profit in its investments entities rising to $37.5m, from $22.3m a year ago.

"After considering the expected imacts on distributable profit for FY22 of rent abatements associated with the most recent Covid-19 restrictions, including the recently enacted government legislation mandating commercial landlords provide tenants with rent abatements where the lease does not contain a "no access in an emergency" clause.....Stride confirms its previous guidance of combined cash dividends for FY22 of 9.9 cps," the company said in a statement.

It added that this was predicated on no further lockdown restrictions being imposed after the traffic light systems took effect.

Stride had provided $3.2m worth of rent relief over the half.

The company also outlined plans to raise a total of $120m in capital from institutional and retail investors to pay down debt and provide balance sheet flexibility should it proceed with plans to establish a listed office fund called Fabric.

Shares would be offered at $2 each, which is a 8.5 percent discount on the last traded price and a 7.6 percent discount on the volume weighted average price over the past five business days.

The retail offer, which is worth $20m, would be offered at the lower placement price or a 2.5 percent discount on the market price over the previous five trading days.

In September, Stride announced plans to spin off its office fund into a NZX listed entity called Fabric through an initial public offering of shares worth between $250m and $290m.

However, about a week later, the company put the plan on ice due to market uncertainty caused by the Chinese real estate giant China Evergrande verging on default in September.

Stride maintained that while the IPO plans had been shelved, they could be resurrected.

The company's chief executive, Philip Littlewood, told RNZ the capital raise would give the business more time to review its options, with an announcement to be made next year.

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