Sharechat Logo

Stride Property posts flat earnings as new real estate management strategy beds in

Wednesday 30th May 2018

Text too small?

Stride Property Group posted flat annual earnings as it beds in a new strategy and reshaped portfolio where it clips the ticket as a property manager as well as directly owning real estate. 

Distributable earnings, a favoured measure of property investors which strips out unrealised movements in the value of a property portfolio, rose to $38.8 million, or 10.63 cents per share, in the 12 months ended March 31, from $37.7 million, or 10.33 cents, a year earlier, it said in a statement. Net profit jumped to $95.3 million from $53.3 million, including a $48.3 million gain in the fair value of the 26 property portfolio. 

Stride embarked on the new strategy in 2016, carving out its large format retail properties into a separately listed vehicle - Investore Property - in which it retained a 19.9 percent stake and manages for a fee. Stride's management fee income climbed 56 percent to $13.3 million, while net rental income dipped 0.5 percent to $57.6 million. 

"The decision to focus on real estate investment management has resulted in significant growth in this part of Stride’s activities and confirms Stride as a leader in the New Zealand property sector," chair Tim Storey said in the annual report. "Overall, our results were in line with or higher than the prospective financial information provided at the time of Stride’s formation in 2016."

The board declared a fourth-quarter dividend of 2.57 cents per share, taking the annual return to 9.91 cents, a level it expects to pay in the 2019 financial year. 

Stride shrank its direct property portfolio in the period, selling three Bunnings properties to Investore, while signing up to a $43 million development for Waste Management in Auckland. The portfolio was valued at $902.2 million, up from $895.3 million a year earlier. The weighted average lease term was 5.1 years, up from 4.9 years a year earlier, while the occupancy rate edged down 0.1 of a percentage point to 96.7 percent. 

The company's eight office buildings were valued at $223.6 million with net contract rental of $16.3 million from 69 tenants. Its 10 industrial buildings were valued at $195.7 million, generating net contract rental of $10.8 million from 18 tenants, and six retail properties valued at $419.1 million attracted net contract rental of $27.2 million from 291 tenants. Its remaining large format retail building was worth $42.8 million with net contract rental of $2.3 million. 

Stride also manages 40 properties on behalf of Investore and another three for Diversified Property Trust. 

Stride shares rose 0.6 percent to $1.78. 

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar eases as US-China trade war, Brexit saga drag on
OceanaGold less confident in regulatory regime
INFINZ says RBNZ bank capital proposals lack analysis and scrutiny
Spark scolded for misleading customers on broadband price hike
Zespri annual profit jumps 77% on higher kiwifruit sales, increased licensing
Freightways says express package growth slowed in 2H, may flow into FY2020
BUDGET 2019: NZ debt target to be more flexible from 2022
Argosy annual profit climbs 36% on revaluation gains, pays slightly bigger dividend
NZ-owned banks says RBNZ capital proposals will make it harder to compete
Sanford earnings hit by vessel impact from crew death

IRG See IRG research reports