Investore Property Limited (NS) Analysis

Overview

Investore Property Limited (IPL) was established in October 2015 in connection with the acquisition of 19 Countdown supermarkets from Antipodean Supermarkets Limited and Antipodean Properties Limited.

The transfer of 6 properties from Stride Property Limited (Stride) and Stride Holdings Limited to IPL took place between 29 April and 9 June 2016 by way of sale and purchase agreements for cash consideration equal to the most recently obtained independent valuation of the properties transferred (in each case, 31 March 2016).

In June 2016, IPL entered into a sale and purchase agreement to acquire 14 Countdown supermarkets from Shopping Centres Australasia Property Group Trustee NZ Limited (the SCA Acquisition). Settlement of 6 properties occurred on 12 July 2016, with the other 8 properties expected to settle in September 2016.

IPL's investment strategy is focused on Large Format Retail property assets. Large Format Retail means a single-storey or low level property comprising retail shops and outlets and car parking areas with more than 50% of the property generally occupied by, and more than 50% of the rental generally provided by, a single major tenant or a limited number of major tenants under net leases. IPL believes that Large Format Retail assets have a specific, differentiating set of attributes that can provide a reliable income return to shareholders. These attributes include:

- quality tenants, including significant national retailers, offering rental income stability;

- long weighted average lease terms; and

- buildings that require low maintenance and capital expenditure requirements over the building life.

IPL is managed by Stride Investment Management Limited (SIML) under the terms of a management agreement. SIML is also the manager of Stride and an Australian wholesale fund, Diversified NZ Property Fund Limited, which is in the process of restructuring to become Diversified NZ Property Trust.

IPL is a Listed Portfolio Investment Entity (PIE). Shares in IPL began trading on the NZX Main Board on 12 July 2016.

Following the completion of the SCA Acquisition in September 2016, IPL will own a portfolio of 39 properties with an independent valuation of $641.4 million as at 31 March 2016, primarily located in the main urban areas throughout New Zealand.

IPL has been granted Listing with a 'Non-Standard' ("NS") designation.

The NS designation was assigned to IPL because of provisions in its constitution allowing its manager, Stride Investment Management Limited, to appoint two directors to its board of four directors.

For further information, please see a copy of the waiver under Documents on IPL's homepage on nzx.com.

Performance

The following information was extracted from Investore Property Limited's Full Year Results, released on 21 May 2026:

FY26 Highlights Financial Performance

▪ Net rental income of $65.5m, up $3.2m from FY25 at $62.3m

▪ Profit before other income/(expense) and income tax of $36.6m, up from FY25 at $35.2m

▪ Profit after income tax of $31.7m, $(6.6)m lower than FY25 at $38.4m primarily due to the lower net valuation increase in the portfolio in FY26

▪ Distributable Profit (Note 1) after current income tax of $30.7m, up from FY25 at $28.4m

▪ Distributable Profit (Note 1) per share of 8.13 cents, up from FY25 at 7.58 cents

▪ FY26 cash dividend of 6.50 cents per share, in line with guidance

▪ Net Tangible Assets (NTA) per share of $1.62 as at 31 March 2026, up from $1.60 as at 31 March 2025

Investore Property Limited (Investore) is pleased to announce its financial results for the year ended 31 March 2026 (FY26). Investore’s portfolio continued to deliver resilient operating earnings over FY26, with profit before other income/(expense) and income tax of $36.6m up on FY25 of $35.2m, and Distributable Profit (Note 1) after current income tax of $30.7m up on FY25 of $28.4m. Investore also executed on its strategic objectives of targeted growth and portfolio optimisation through various transactions over the year, recycling capital into assets that strengthen the portfolio’s longer term growth outlook, as well as enhance tenant diversification.

The Investore portfolio is valued at $1.1 billion (Note 2) as at 31 March 2026, an increase of $140 million or 14% over the 12 months to 31 March 2026, primarily driven by the acquisitions of Silverdale Centre and Bunnings New Lynn, partially offset by the disposals over the period. The portfolio value on a like-for-like basis was stable for the year, with the Investment Portfolio (Note 3) market capitalisation rate in line with FY25 at 6.3%.

Investore remains committed to a proactive approach to capital management to reduce leverage and maintain a flexible balance sheet for growth, which during FY26 included the refinance of $225 million of bank debt facilities resulting in lower debt funding costs. $100 million additional bank facilities and the issuance of $62.5 million subordinated convertible notes supported the acquisition of Silverdale Centre.

Investore today declares a final cash dividend for the fourth quarter of FY26 of 1.625 cents per share, bringing the total cash dividend for FY26 to 6.50 cents per share, in line with FY26 guidance. This dividend will carry imputation credits of 0.365265 cents per share. A supplementary dividend of 0.165750 cents per share will be paid to non-resident shareholders. The Investore Board has resolved to continue the suspension of the Dividend Reinvestment Plan for the FY26 fourth quarter dividend declared today.

Disclaimer: This section is provided as general information only. It is not intended as a substitute for legal or professional advice to company directors and officers or investors. NZX Limited disclaims any liability arising from the use of this information.