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Investore posts inaugural year profit

NZN 28/05/2017 Jonathan Underhill

Investore Property, the property investor spun out of Stride Property last year, has posted an inaugural full-year profit as a listed company that beat its prospectus forecast after recording a stronger-than-expected increase in the value of its property portfolio.

Net profit was $28.5 million in the 12 months ended March 31, from $11.5m forecast in its prospectus, the Auckland-based property investor said in a statement. It provided six-month figures for the year-earlier period which weren't easily comparable.

Other key measures of financial performance were broadly in line with the company's forecasts. Net rental income was $35m in the year, versus the $34.9mn base case estimate in its prospective financial information. Corporate expenses were $4.7m versus $4.8m forecast and net finance expenses were $13.3m versus $12.9m.

Distributable profit before tax was $21.2m compared with a forecast of $20.7m, allowing the company to declare annual cash dividends of 5.34 cents a share, including 2.06 cents for the quarter ended March 31.

Its property portfolio was valued at $660.4m and net drawn debt was $261m, for a bank loan to value ratio of 39.5 per cent.

Investore raised about $189m in its initial public offering last year, allowing the company to buy 14 Countdown supermarkets as part of its 39 building portfolio, which was valued at $642.8m as at September 30.

The property investor was separated from Stride and listed on the NZX in July, with Stride retaining a 19.9 per cent shareholding and the management contract to run the portfolio. Investore paid Stride $2.7m in management fees in the full year.

The shares last traded at $1.35 and have fallen 9.4 per cent from last year's $1.49 offer price.

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