Sharechat Logo

Stride Property beats forecast with annual profit on valuation gains

Tuesday 30th May 2017

Text too small?

Stride Property Group, which spun out its retail portfolio into a separately listed vehicle last July, reported annual profit ahead of its forecasts with a huge increase in property valuations.



The company's net profit was $56.9 million in the year to March 31, compared to its $31 million forecast, though that includes a $22.5 million increase in fair value of investment properties, compared to a predicted $1.7 million in the prospective financial statements. Net rental income was slightly ahead of forecasts at $63.6 million compared to $63.3 million, with profit before tax and other income at $37.5 million, from a projected $37.4 million.



Earlier this week, Investore Property, the separately-listed retail property investor, posted an inaugural full-year profit as a listed company of $22.9 million, beating its prospectus forecast of $11.5 million after recording a stronger-than-expected $13.7 million increase in the value of its property portfolio.



Investore separated from Stride and listed on the NZX in July, with Stride retaining a 19.9 percent shareholding and the management contract to run the portfolio. Investore paid Stride $2.7 million in management fees in the full year.



Stride said it has a very positive outlook with "opportunities for expansion across its real estate investment management, property development and property investment activities", and the 2018 financial year "is expected to be one of managed growth in line with forecasts set out at the time of the listing."



In a memorandum issued before the demerger, the company estimated management fee income would grow to $9.2 million in 2017 and $12.9 million in 2018. Today's results showed Stride made $8.5 million from management fees in 2017.



The memorandum also included projections of 11.25 cents per share in 2017 dividends, a 9.5 percent lift from those paid in 2016, and 11.77 cents per share in 2018 dividends. The board today declared a 9.96 cents per share final dividend for 2017, consistent with guidance given during the year, but lower than the 10.75 cents per share dividend from 2016.



The shares dipped 0.6 percent to $1.73, and have dropped 1.7 percent this year.





  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
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:

RBNZ a 'poor communicator' - CBL's Harris
Methane reduction target could be catastrophic - Fonterra Shareholders' Council
Greater role for gas in electrification of transport, industry
Chorus sees growth in high value gigabit fibre plans
Arvida gets 87% uptake in $92 mln rights offer
NZ dollar weakens after US retail sales boost greenback
17th July 2019 Morning Report
Dairy product prices gain for first time in five auctions
MARKET CLOSE: NZ shares fall in listless trading; power companies gain
Gold Report 16th July 2019

IRG See IRG research reports