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Stride Property Ltd & Stride Investment Management Ltd (NZX: SPG) HY22 Interim Results and Capital Raise

Thursday 25th November 2021

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Stride Property Group (Stride) is pleased to announce its interim results for the six months ended 30 September 2021 (HY22).

Stride is also commencing a capital raising (Offer) to raise up to $120m, comprising an underwritten $100m placement and a non-underwritten $20m retail offer, with the ability to accept additional applications under each of the placement and the retail offer at Stride’s discretion. The proceeds of the Offer will be used initially to reduce bank debt, reducing SPL’s loan to value ratio to 29.8% (on a pro forma basis as at 30 September 2021 assuming $120m is raised under the Offer and taking into account estimated costs of the Offer). The Offer will provide Stride with greater flexibility and options for the establishment of its office fund, Fabric Property Limited (Fabric), as well as progressing other strategic initiatives as part of Stride’s broader investment management strategy.

HY22 Interim Results

HY22 has been another active six months for Stride, highlighted by significant growth in our business, with assets under management growing by $439m to $3.4bn. Stride has also continued to progress its strategy of establishing a group of Products in specific commercial property sectors to provide growth in its investment management business.

Stride has delivered positive results during this six month period, with profit before income tax from continuing operations of $69.5m, up $14.3m from the six months to 30 September 2020 (HY21), and profit after income tax from continuing operations of $61.5m, up $9.9m from HY21.

Second quarter dividend

Stride today declares a combined cash dividend of 2.4775 cps for Stride Property Limited (SPL) and Stride Investment Management Limited (SIML) for the quarter ended 30 September 2021, to be paid on 7 December 2021 to all shareholders on the register as at 5.00pm on 30 November 2021 (the record date). Stride has received a waiver from NZX to enable it to shorten the 5 business days’ notice period prescribed by the NZX Listing Rules between the announcement of this dividend and its record date. This will mean that stapled securities issued in the Offer will not be eligible for the dividend for the quarter ended 30 September 2021, which Stride considers to be a fair outcome, as these securities were not on issue during the quarter to which the dividend relates. It also ensures that all persons acquiring shares in the Offer – whether under the placement or retail offer - are treated equally. Any shareholders wishing to adjust their shareholdings prior to the record date for the dividend will need to make any trades prior to market close on 26 November 2021 in order for the adjustment to become effective by the record date.

Capital Raising

The Offer comprises:

• Placement: A placement of $100m to eligible investors. Stride reserves the right to increase the size of the placement at its discretion based on the size, composition and quality of demand from shareholders and other investors. The placement price will be $2.00, which represents a discount of 8.5% to the last close on 24 November 2021 of $2.185 (ex-dividend) and a 7.6% discount to the volume weighted average price for Stride stapled securities over the preceding five business days of $2.164 (ex-dividend). Any stapled securities not taken up in the placement will be underwritten by Goldman Sachs New Zealand Limited at the placement price, pursuant to the terms of a placement agreement entered into with Stride today.

• Retail Offer: A retail offer (Retail Offer) offered to all eligible shareholders with a registered address in New Zealand, under which each eligible shareholder can apply for up to $50,000 worth of new stapled securities. Stride is seeking to raise $20m under the Retail Offer, with the discretion for Stride to accept additional applications. The issue price under the Retail Offer will be the lower of (a) the price paid by investors in the placement and (b) the price that is a 2.5% discount to the volume weighted average market price for Stride stapled securities over the five business days prior to and including the closing of the Retail Offer. The Retail Offer has been structured to be as fair as possible to all existing shareholders, and enables almost all shareholders to participate through either the placement or the Retail Offer (except where restricted due to legal constraints) to maintain their pro rata holding in Stride, and should scaling be required, it will be by reference to existing shareholdings as at 5.00pm on 24 November 2021. The Retail Offer opens on 29 November 2021, with the offer document and online application form in respect of the Retail Offer also being available from that date.

Please see the links below for details

Stride Property Group - HY22 Interim Results Announcement and Capital Raise - 251121.pdf

Stride Property Group - HY22 Interim Report - 251121.pdf

Stride Property Group - HY22 Interim Results and Capital Raising Presentation - 251121.pdf

Stride Property Group - NZX Results Announcement - 251121.pdf

Stride Property Limited - NZX Distribution Notice 251121.pdf

Stride Investment Management Limited - NZX Distribution Notice 251121.pdf

Stride Property Group - Corporate Action Notice - 251121.pdf

Source: Stride Property Ltd & Stride Investment Management Ltd

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