Stride Portfolio Net Value Increase of $60 million or 5.2% and Fourth Quarter FY16 Update

Stride Portfolio Net Value Increase of $60 million or 5.2% and Fourth Quarter FY16 Update

NZX Announcement Immediate — 29 April 2016

Stride Property Limited (‘Stride’) has completed the independent market valuation of its property portfolio, with the portfolio value increasing by a net $60 million or 5.2% for the 12 month period to 31 March 2016 (FY16) on a like for like basis¹.

 
As at 31 March 2016, Stride’s portfolio was valued at $1,274.8 million², with a weighted average capitalisation rate across the portfolio of 6.95%.

The market valuations have been completed by independent valuers, are subject to final audit, and will be confirmed in Stride’s financial results for FY16 which will be announced on 30 May 2016.

Stride CEO Peter Alexander said “Stride’s net portfolio valuation increase was predominantly driven by Stride’s Auckland portfolio, which rose in value by $45.5 million (6.6%).”

In addition, NorthWest Shopping Centre increased by a net $8.3 million after capital expenditure of $54 million during the year. The valuation is now $175 million, and assumes a market capitalisation rate of 6.88%.

“Market capitalisation rate compression and an increase in assessed market rentals also resulted in favourable valuation increases across the portfolio.”

“The Wellington portfolio and the remainder of Stride’s regional portfolio also had positive valuation movements of $3.3 million (1.6%) and $11.2 million (4.2%) respectively,” concluded Mr Alexander.

Following the revaluation of the portfolio, Stride’s bank Loan to Value Ratio (LVR) was 41.75% as at 31 March 2016.
 
Portfolio Overview

As at 31 March 2015As at 31 March 2016
Properties4159
Tenants281415
Net Lettable Area (m²)334,694432,337
Net Contract Rental³($ millions)58.590.9
Weighted Average Lease Term (years)5.17.9
Occupancy Rate (% by area)96.699.6
Portfolio Value² ($ millions)872.41,274.8

 
Lease Transactions
47 lease transactions were completed during the quarter, which included:

  • 17 rent reviews over 18,532m² for a total annual rental of $4.0 million
  • 15 lease renewals over 3,023m² for a total annual rental of $1.2 million
  • 15 new lettings completed over 3,361m² for a total annual rental of $1.3 million

 

  1. The valuations of all properties disposed of during the 12 months from 1 April 2015 have been disregarded in this calculation. As at 31 March 2015, the portfolio was valued at $872.4 million.
  2. Market valuations have been completed by independent valuers for all the properties as at 31 March 2016, except for those assets which are subject to unconditional Sale & Purchase Agreements, which are stated at the sale price. The portfolio value is subject to final audit and will be confirmed in Stride’s financial statements for FY16.
  3. Net Contract Rental is the amount of rent payable by each tenant, plus other amounts payable to Stride by that tenant under the terms of the relevant lease as at 31 March 2016, annualised for the 12 month period on the basis of the occupancy level for the relevant property as at 31 March 2016, and assuming no default by the tenant.

 


 
For Further Information Please Contact:
Tim Storey, Chairman, Stride Property Limited
Mobile: 021 633 089 – Email: tim.storey@strideproperty.co.nz

Peter Alexander, Chief Executive, Stride Property Limited
DDI: 09 913 1154 – Mobile: 0275 443 678 – Email: peter.alexander@strideproperty.co.nz

Jennifer Whooley, Chief Financial Officer, Stride Property Limited
DDI: 09 913 1150 – Mobile: 021 536 406 – Email: jennifer.whooley@strideproperty.co.nz

Stride Overview:
Stride Property Limited (‘Stride’), formerly known as DNZ Property Fund Limited, owns one of New Zealand’s largest diversified investment property portfolios with $1,274.8 million as at 31 March 2016 (subject to final audit) of commercial office, retail and industrial properties located in the main urban areas throughout New Zealand.

Notification of Issue of Securities
Stride conditionally sells Office Property in Auckland