HY22 Interim Results and Capital Raise

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tim.storey@strideproperty.co.nz
philip.littlewood@strideproperty.co.nz

jennifer.whooley@strideproperty.co.nz
louise.hill@strideproperty.co.nz

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Interim Report
For the six months ended
30 September 2021

This document comprises the Interim Report for each of Stride
Investment Management Limited (SIML) and Stride Property
Limited (SPL), which are members of Stride Property Group
(Stride). Each of SPL, SIML and Stride has been designated as
“Non-Standard” (NS) by NZX.
2 Highlights
4 Chair and CEO’s Report
8 Stride Portfolio
10 Products and Places
11 SPL Office Portfolio
12 SPL Town Centre Portfolio
13 Diversified
14 Investore
16 Industre
18 Capital Management
19 Glossary
21 Consolidated Interim Financial Statements
54 Corporate Directory
Contents
Stride Property Group
Interim Report for the six months ended 30 September 2021
1

Stride Portfolio
$69.5m profit
before income tax from
continuing operations
up $14.3m from HY21
$61.5m profit
after income tax from
continuing operations
up $9.9m from HY21
$24.2m
distributable profit
1

after current income tax
up $3.1m from HY21
$2.24 net tangible
assets per share
as at 30 September 2021
($2.15 as at 31 March 2021)
9.91 cents per share
combined Stride
Property Group cash
dividend targeted
2

for FY22
Performance
1. See glossary on page 19.
2. Assuming no further restrictions are imposed due to COVID-19 once the traffic light
system takes effect, assumed to be early December 2021.
3. Portfolio value as at 30 September 2021 excludes: (1) the seismic works to be completed
by SPL and the rental guarantee provided by SPL in relation to the three large format
retail properties acquired by Investore from SPL on 30 April 2020 (total $5.6 million);
and (2) lease liabilities.
4. Excludes lease liabilities. Includes Stride’s 52.2% interest in the joint operation
component of the Industre Property Joint Venture. For more information, see note 3.2 to
the consolidated interim financial statements. Includes value of Level 12, 34 Shortland
Street, which houses Stride’s head office, and is shown in the consolidated interim
financial statements as property, plant and equipment.
5. As at 30 September 2021, excluding committed acquisitions and developments,
and excluding lease liabilities. Includes SPL's directly held investment properties and
its indirect or look-through holdings in the Stride Products, being Investore, Industre
and Diversified.
Ross BuckleyJessica Rod
Products and PlacesPeople
SPL’s property portfolio valued
4
at
$1.22bn as at 30 September 2021
SPL's weighted look-through
portfolio interests
5
:
New director Ross Buckley
appointed to the Board
Jessica Rod welcomed to the Stride
executive team in the new role of
General Manager – Office
For six months ended
30 September 2021 (HY22)
All figures as at 30 September 2021
Town
Centre/
Retail
Shopping
Centres
20%
Large
Format
Retail
13%
Industrial
23%
Office
44%
Stride Assets Under Management
up $439m to $3.4bn
$268m of
completed acquisitions
across SPL and the Stride Products
since 31 March 2021
$737.7m including $42.7m
of completed acquisitions
portfolio valued

at
$1.15bn including $73.3m
of completed acquisitions
portfolio valued
3
at
Stride Property GroupStride Property Group
Interim Report for the six months ended 30 September 2021Interim Report for the six months ended 30 September 2021
23

Chair and CEO’s Report
The first half of the
FY22 financial year
has been another
active six months for
Stride, highlighted
by significant growth
in our business,
with assets under
management growing
by $439 million. 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 continued to grow its office portfolio, with the completed acquisition of the property
at 46 Sale Street, Auckland, for $152 million, and the conditional acquisition of the property
under construction at 110 Carlton Gore Road, Auckland, for $217.5 million. These acquisitions
supported the proposed establishment of a separate office entity, and in September 2021 Stride
announced its intention to establish a new office Product by way of a demerger and NZX listing of
SPL’s wholly owned subsidiary, Fabric Property Limited (Fabric).
Due to market conditions, the Board made the decision to withdraw the demerger and
initial public offering on 21 September, which we believe was in the best interests of Stride
shareholders as well as Fabric investors. Stride remains committed to its strategy of growing
its real estate investment management business, and we are considering the next steps for our
office portfolio, which we believe to be an attractive investment proposition, within Stride or as a
separate entity.
The Stride team has managed to deliver a very positive first half of FY22, at the same time as
being focused on pursuing its strategy of growing its real estate investment management
business. Stride delivered strong profit after tax from continuing operations of $61.5 million,
up $9.9 million from HY21. This strong result was due primarily to a combination of higher
net rental income (HY22: $30.1 million; HY21: $20.5 million) as a result of growth in the
office portfolio, and higher share of profit in associates (HY22: $37.5 million; HY21:
$22.3 million). The higher share of profit in associates was largely because HY22 incorporates a
full six months of owning an interest in Industre, whereas the prior period had only three months
of Industre ownership.
Management fee income of $12.8 million was $0.3 million lower than HY21. This was the result
of a combination of factors – lower leasing fees from Diversified partially offset by higher asset
management fees, higher management fees from Investore, and lower management fees from
Industre, as the HY21 fees were impacted by the acquisition fees from the establishment of
Industre ($1.2 million). Excluding this establishment acquisition fee, the fees from Industre would
have been $0.6 million higher than HY21. Recurring SIML base fee income of $8.2 million was
up 24.2% on HY21 ($6.6 million), driven by the establishment of Industre and strong growth in
external assets under management (30 September 2021: $2.4 billion; 30 September 2020:
$1.9 billion).
Corporate expenses for HY22 were higher at $16.9 million (HY21: $9.4 million). However,
excluding project costs associated with the proposed initial public offering of Fabric and the
one-off recognition of historic software expenditure which was previously capitalised but, due to
a change in accounting policy, is now required to be expensed in the current period, corporate
expenses would have been $11.3 million. The increase from HY21 was due to higher staff costs
and feasibility costs related to potential acquisitions which did not proceed. While the Board
is conscious of seeking to minimise costs, it supports expenditure associated with exploring
acquisitions that further the execution of Stride's strategy.
Overall, distributable profit
1
after current income tax of $24.2 million for HY22 was a favourable
result, up $3.1 million from HY21.
At the same time as delivering positive financial performance, Stride has also focussed on the
growth and development of the Stride Products during HY22, with both Investore and Industre
completing a number of strategic acquisitions and having a pipeline of development growth. This
activity has contributed to the growth in Stride's total assets under management, which have
grown to $3.4 billion as at 30 September 2021, or $3.8 billion including conditional acquisitions
and developments.
SPL’s portfolio is valued
2
at $1,216.4 million as at 30 September 2021, representing a net
valuation gain for the six months from 31 March 2021 of +$13.7 million or +1.1%. SPL’s town
centre assets recorded a net valuation increase of +$11.5 million or +3.7%, and the Industre
portfolio recorded a net valuation gain of +$82.9 million or +12.7% over the six months to
30 September 2021, with increases in both sectors primarily driven by capitalisation rate
compression. SPL records its proportionate share of the Industre
assets held in the joint operation component of the joint venture in its
accounts, with this share achieving a +$20.4 million net valuation gain
(+13.7%).
SPL’s wholly owned subsidiary, Fabric, which owns office assets,
recorded valuations which were in line with valuations as at
31 March 2021, with a minor net valuation decrease of ($1.0) million
or (0.15)%, with the decrease primarily due to COVID-19 rental
abatement provisions.
SPL holds one further office property directly, being 55 Lady
Elizabeth Lane, Wellington. Works are required to improve the seismic
performance of this property, although the exact nature of the works
required is still being understood, with engineers undertaking surveys
of the property. As a result, the valuation of this property was reduced
by the currently estimated cost of these works, contributing to a
devaluation of this property by $17.3 million as at 30 September 2021.
The growth in Stride’s assets under management has been delivered
through a dedicated focus by the SIML management team on all of the
Stride Products. The Investore portfolio has now grown to a value
3
of
$1.15 billion, through a combination of acquisitions and portfolio
valuation growth. During the first half of FY22 Investore completed
$73.3 million of acquisitions, comprising Countdown, Petone, and
the Rebel Sports and Briscoes-tenanted property at 4 Carr Road,
Auckland. Investore also has a conditional agreement to acquire land at
Waimak Junction in Kaiapoi, North Canterbury, on which it has agreed
to build a Countdown supermarket. SIML is pleased to be able to
deliver these acquisition opportunities for Investore, particularly in the
current competitive market for large format retail property.
SIML is also pleased to have delivered significant growth for Industre,
with the industrial portfolio growing from a value of approximately
$260 million at the time of agreeing to form the joint venture, to
$792 million as at 30 September 2021, including committed
acquisitions and developments. This significant growth is a
testament to the dedication of the SIML team in sourcing appropriate
opportunities for this portfolio, and also demonstrates the beneficial
relationship we have with our joint venture partner, JPMAM
1
, which has
contributed all of the equity required for the growth of the portfolio
since the commencement of the joint venture on 1 July 2020. We
expect that our joint venture partner will continue to contribute equity
for growth until Stride’s interest is reduced from 52% today to 25%,
with JPMAM holding 75%.
Both Investore and Industre continue to have growth potential
– Investore’s conditional acquisition of the development land at
Waimak Junction, Kaiapoi, will provide it with an ongoing development
opportunity, while Industre currently has four properties with
developments underway or planned. The SIML development team is
establishing a strong track record of delivering successful projects, on
time and on budget, incorporating strong sustainability credentials.
When undertaking developments, the SIML team incorporates
sustainability initiatives where possible, targeting a minimum four star
Green Star rating for all new developments and refurbishment projects,
where feasible. This activity demonstrates Stride’s commitment to
1. See glossary on page 19.
2. See footnote 4 on page 2.
3. See footnote 3 on page 2.
215 Lambton Quay, Wellington
Stride Property GroupStride Property Group
Interim Report for the six months ended 30 September 2021Interim Report for the six months ended 30 September 2021
45

building a sustainable business – considering the impacts of our
activities on the climate is part of how we do business.
As part of its commitment to building a sustainable business,
the Stride Sustainability Committee of the Board is overseeing the
development of a detailed climate risk assessment for Stride and
each of the Stride Products. This will enable Stride to begin to report
against the principles of the Taskforce on Climate-related Financial
Disclosures (TCFD) which Stride intends to do as part of its FY22
financial reporting.
This activity would not be possible without a strong team of people,
and SIML is very proud of its people. In September SIML announced
the establishment of a new executive team role, General Manager –
Office, to manage and oversee the growing office portfolio. SIML was
extremely pleased to be able to appoint a long-standing employee,
Jessica Rod, to the role. Jess has been with SIML for over 15 years,
and we will benefit from Jess’s considerable experience in managing
a number of strategic acquisitions, including the acquisition of
46 Sale Street, as well as her in-depth knowledge of the Stride way
of doing business and her strong relationships throughout the
property industry.
Stride was also very pleased to appoint a new director during HY22,
Ross Buckley. Ross has considerable management and financial
experience, having been a partner at KPMG for 26 years and Executive
Chair of KPMG for nearly 10 years. Ross retired from the KPMG
partnership in October 2020 to pursue a governance career and is
currently an independent Director of ASB Bank, independent Chair
of Service Foods Limited, Chair of Massey Business School advisory
board, and National Council member and Chair of the Auckland
Branch of the Institute of Directors. Stride will benefit greatly from
Ross’s considerable skills and experience, and we are very pleased
to welcome Ross to the Board. The appointment of Ross is part of the
ongoing Board refresh, with Director John Harvey, the current Chair
of the Stride Audit and Risk Committee, announcing that he is likely to
retire from the Stride Boards during calendar year 2022.
Finally, the Board is closely monitoring the impacts of the restrictions
imposed to manage the outbreak of the Delta variant of COVID-19.
Stride has worked hard over the prior lockdown periods to provide
fair levels of rent abatement and deferrals, even where tenants were
not contractually entitled to such, as Stride understands that it
benefits Stride and its managed Products if we have tenants with
sustainable businesses.
The Government has recently enacted legislation mandating all
commercial landlords abate a fair proportion of rent for all tenants
impacted by COVID-19 restrictions. The full impact of this legislation
is not currently known, but Stride will continue to work with its tenants
to seek to ensure a fair allocation of costs and benefits, and will seek
to minimise the financial impact for Stride and the Stride Products
where possible.
While Stride is conscious of recent interest rate increases, Stride
believes it is sufficiently insulated to changes in interest rates over the
medium term, as SPL has interest rate swaps in place with a notional
value equal to 98% of drawn debt as at 30 September 2021 (including
forward starting swaps).
Taking this into account, together with Stride’s anticipated costs
of COVID-19 restrictions for the remainder of FY22, the Board is
pleased to reconfirm the previously forecast combined cash dividend
for SPL and SIML of 9.91 cents per share for FY22, assuming no
further restrictions are imposed due to COVID-19 once the traffic light
system takes effect, assumed to be early December 2021.
Stride has today announced a $120 million capital raise, comprising
a $100 million underwritten placement and a $20 million retail
offer (with the ability to accept additional applications under each of
the placement and retail offer at Stride's discretion). This capital raise
will reduce SPL's LVR from 41.0% as at 30 September 2021 to 29.8%
(on a pro forma basis assuming $120 million of new capital is raised),
which will provide flexibility and options for Stride in relation to the
establishment of Stride's office Product, Fabric, while also pursuing
other strategic initiatives.
Looking forward for the remainder of FY22, Stride will continue
to focus on supporting the growth and development of the Stride
Products, and as noted, continues to reflect on the best way forward
for its office portfolio. Stride firmly believes that its high quality office
portfolio represents a valuable investment, whether within Stride
or as a separate entity. Stride remains committed to its strategy of
establishing a group of Products in specific commercial property
sectors to provide growth in its investment management business.
Thank you for your continued support of Stride Property Group.
Chair and CEO’s Report
(continued)
20 Customhouse Quay, Wellington
Tim Storey
Chair,
SPL and SIML
Philip Littlewood
Chief Executive Officer,
SIML
Stride Property Group
Interim Report for the six months ended 30 September 2021
7Stride Property Group
Interim Report for the six months ended 30 September 2021
6

Stride
Products
$2,395m
$508m
$1,149m
$738m
As at 30 September 2021, SPL has a diversified look-through portfolio worth $1.66bn, with
strong investment metrics, including WALT
1
of 6.7 years and 97.7% occupancy by area on a
weighted look-through basis.
Stride has indicated its intention to establish a separate Product focused solely on the office
sector, Fabric. While Stride will retain an ownership interest in Fabric, Stride’s exposure to the
office sector will reduce if Fabric is established as a standalone entity, leading to more balanced
property interests across the commercial property sectors.
1. See glossary on page 19.
2. As at 30 September 2021, excluding
committed acquisitions and developments,
and excluding lease liabilities.
Portfolio
SPL’s Weighted
Look-Through
Portfolio Value
2
Photo to be confirmed
20 Customhouse Quay, Wellington
Town Centre/
Retail Shopping
Centres
20%
Large Format
Retail
13%
Industrial
23%
Office
44%
$11m
$216m
$385m
$1,047m
$321m
$726m
SPL
Directly held
$726m
$321m
$1,659m
SPL Weighted
Look-through
Stride’s strategy is to establish a group of sector-
specific commercial property Products managed
by SIML, with SPL owning an interest in each Stride
Product. This results in SPL having an exposure to the
asset classes it holds directly, as well as an indirect
interest in the portfolios owned by each of the
Stride Products.
Town Centre/
Retail Shopping
Centres
Large
Format Retail
Office
Industrial
18.8%
52.2%
2.1%
Stride Property GroupStride Property GroupInterim Report for the six months ended 30 September 2021Interim Report for the six months ended 30 September 202189

Stride has focussed on growing its office portfolio over the last 18 months, with portfolio value
increasing from $186.1 million as at 31 March 2020 to $726.1 million as at 30 September
2021. The average market capitalisation rate for Stride’s office portfolio has compressed to
5.10% as at 30 September 2021, from 5.36% as at 31 March 2021.
This growth in the office portfolio has come through investment in quality, sustainable properties,
including 20 Customhouse Quay, Wellington (acquired December 2020) and 46 Sale Street,
Auckland (acquired June 2021). Stride also has a conditional agreement to acquire a further
office property, at 110 Carlton Gore Road, Auckland, for $217.5 million.
Stride’s strategy is to invest in quality, sustainable office properties that exhibit enduring demand,
which means properties that are well located, that help create an environment where people
want to work and collaborate, with high seismic and sustainability ratings, and access to high
quality amenities and features that contribute to the wellbeing of those who occupy the space.
In addition to acquisitions, SIML has been active in undertaking leasing transactions across the
office portfolio:
• Rent reviews completed across 26,000 sqm resulting in an increase on previous rentals
of 3.0%
• New lettings and renewals completed across 7,000 sqm with an increase on previous
rentals of 6.2%
As at 30 September 2021As at 31 March 2021
Properties (no.)1110
Tenants (no.)
113115
Net Lettable Area (sqm)
80,970
69,614
Net Contract Rental
7
($m)39.131.9
WA LT
7
(years)6.36.3
Occupancy Rate (% by area)96.198.6
Value
4
($m)726.1579.7
Net Valuation Movement for HY22 ($m)
(18.3)
1. Includes acquisition of 110 Carlton Gore Road, Newmarket, at a price of $217.5m, which acquisition remains conditional on
successful completion of the initial public offering of SPL’s wholly owned subsidiary, Fabric.
2. Includes 50% of Johnsonville Shopping Centre which is owned by SPL. Comprises only the office and retail shopping centre
portfolios owned by SPL. Excludes SPL's 52.2% interest in the joint operation component of the Industre Property Joint
Venture which is reported as part of the assets of SPL in the consolidated interim financial statements (see note 3.2 for
further information). These properties have been included in the Industre portfolio reported on page 10.
3. Includes the acquisition of the property at Waimak Junction, Kaiapoi, North Canterbury, at a price of $10.5m, plus the
anticipated costs of Stage 1 of the development of this property. The current commitment, including the cost of the land and
the Stage 1 development, is expected to be $31m. The agreement to acquire land at Waimak Junction remains conditional on
receipt of resource consents.
4. Excludes lease liabilities; includes the value of Level 12, 34 Shortland Street, which houses Stride’s head office and is shown
in the consolidated interim financial statements as property, plant and equipment.
5. See footnote 3 on page 2.
6. Includes 50% of Johnsonville Shopping Centre which is owned by Diversified.
7. See glossary on page 19.
46 Sale Street, Auckland
Products
and Places
Stride owns
and manages
over $3.4bn of
commercial property,
including the office
and town centre
portfolios owned by
SPL, together with
the portfolios of the
Stride Products –
Investore, Industre
and Diversified.
As at 30 September
2021 the portfolio
composition of the
Stride Products by
value is as follows:
$792m
$55m
$738m
Industrial
52.2%
$527m
$19m
$508m
Retail Shopping
Centres
2.1%
$1,185m
$37m
3
$1,149m
Large Format
Retail
18.8%
SPL Office
Portfolio
SPL
investment
$1,301m
$321m
$726m
Office and
Town Centre
2
100%
$254m
1
Town Centre/
Retail Shopping
Centres
Acquisitions and developments
(including conditional acquisitions)
Large
Format Retail
OfficeIndustrial
Value of
investment
properties
Net valuation movement
for 6 months to
30 September 2021
Developments
and acquisitions
Total portfolio
value/assets under
management
SPL investment in
Stride Product
Office and Retail Portfolio
2
$1,047m
4
($6.8m)
(0.6%)$254m
1
$1,301m100%
$738m
+$82.9m
+12.7%
$55m$792m
52.2%
$1,149m
5
+$44.8m
+4.1%
$37m
3
$1,185m
18.8%
$508m
+$15.4m
+3.1%
$19m$527m2.1%
Total$3,442m$364m$3,806m
6
Note: Numbers may not sum due to rounding.
Note: Numbers may not sum due to rounding.
Stride Property GroupStride Property Group
Interim Report for the six months ended 30 September 2021Interim Report for the six months ended 30 September 2021
1011

Stride’s directly held town centre portfolio comprises NorthWest Shopping Centre, NorthWest
Two, and Silverdale Centre, located in fast growing areas of Auckland, as well as 50% of the
Johnsonville Shopping Centre in Wellington.
Stride takes an active approach to management of its town centre portfolio. By way of example,
during the six months to 30 September 2021, Stride completed 24 new lettings and lease
renewals at NorthWest, with a weighted average lease term (or extension) of 4.2 years.
Stride is also progressing plans to develop a new urban centre at NorthWest, comprising
25,000 sqm of high quality offices with open spaces, shopping and entertainment. Stride has
obtained resource consent for this new development and is currently seeking expressions of
interest from new tenants to support the development of the first property. This centre, called
NW1, is intended to combine with Stride’s current town centre assets in the area, being the
NorthWest Shopping Centre and NorthWest Two, the street frontage retail and entertainment
hub, to create a true town centre. Designed as an urban node for one of Auckland’s fastest
developing areas, the centre is intended to provide all the amenities a thriving community needs.
SIML seeks to maximise the value of the Diversified portfolio, through active leasing and close
management of the centres.
During the first six months of FY22 SIML agreed a number of leasing transactions across the
Diversified portfolio, including:
• Letting 1,300 sqm at Remarkables Park Town Centre to the Queenstown Lakes District
Council for 10 years for use as a modern community arts space and café. This tenancy is
expected to attract significant visitation to the centre, supporting other retail tenants at
Remarkables Park, and demonstrates SIML’s active approach to centre management.
• Introduction of a flagship Cotton On store to Chartwell Shopping Centre. Works are
currently underway to prepare for this new tenancy, which is expected to attract new
customers to the centre.
The latter half of HY22 has been impacted by COVID-19 in New Zealand, but as most of
Diversified’s retail shopping centres are located in Wellington and Queenstown, these centres
have been closed for the least period possible.
As at 30 September 2021As at 31 March 2021
Properties
1
(no.)44
Tenants (no.)
229232
Net Lettable Area (sqm)64,81265,736
Net Contract Rental
2
($m)21.822.5
WA LT
2
(years)4.24.3
Occupancy Rate (% by area)
96.8
96.5
Value
3
($m)321.3309.9
Net Valuation Movement for HY22 ($m)+11.5
As at 30 September 2021As at 31 March 2021
Properties
1
(no.)44
Tenants (no.)
324335
Net Lettable Area (sqm)105,061105,064
Net Contract Rental
2
($m)37.837.9
WA LT
2
(years)3.23.4
Occupancy Rate (% by area)93.893.8
Value ($m)508.4465.6
Net Valuation Movement for HY22 ($m)+15.4
1. Includes Johnsonville Shopping Centre, which is
owned 50:50 by SPL and Diversified.
2. See glossary on page 19.
3. Excludes lease liabilities.
NorthWest Shopping Centre, Auckland
SPL Town
Centre Portfolio
Diversified owns four
shopping centres
across New Zealand,
being Queensgate
Shopping Centre
(Wellington),
Chartwell Shopping
Centre (Hamilton),
Remarkables
Park Town Centre
(Queenstown), and has
a 50% interest in the
Johnsonville Shopping
Centre (Wellington)
with SPL holding the
other 50%.
Queensgate Shopping Centre,
Lower Hutt
Stride Property Group
Interim Report for the six months ended 30 September 2021
13Stride Property Group
Interim Report for the six months ended 30 September 2021
12

As at 30 September 2021As at 31 March 2021
Properties (no.)4443
Tenants (no.)
140130
Net Lettable Area (sqm)249,784246,272
Net Contract Rental
3
($m)58.857.1
WA LT
3
(years)9.59.8
Occupancy Rate (% by area)99.099.1
Value ($m)1,148.6
2
1,037.9
6

Net Valuation Movement for HY22 ($m)
+44.8
1. Includes the acquisition of the property at Waimak Junction, Kaiapoi, for $10.5m, which acquisition remains conditional.
2. See footnote 3 on page 2.
3. See glossary on page 19.
4. LVR is calculated based on independent valuations, which include seismic works to be funded by SPL in relation to the three
large format retail properties acquired by Investore from SPL on 30 April 2020. The independent valuations also exclude
lease liabilities.
5. Distributable profit is a non-GAAP measure and consists of profit/(loss) before income tax, adjusted for determined non-
recurring and/or non-cash items (including non-recurring adjustments for incentives payable to anchor tenants for lease
extensions) and current tax. For further information see note 3.2 to Investore's consolidated interim financial statements for
the six months to 30 September 2021.
6. Portfolio value as at 31 March 2021: (1) excludes $7.0m of seismic works to be completed by SPL on the three large format
retail properties acquired by Investore from SPL on 30 April 2020 and the value of the rental guarantee from SPL of $0.1m;
(2) excludes lease liabilities; and (3) includes the property at 35 MacLaggan Street, Dunedin, which was classified as property
held for sale in Investore’s financial statements.
Investore’s focus during HY22 has been on
pursuing its strategy of targeted growth, having
acquired or agreed to acquire $83.8m of property
1
,
and growing its portfolio value
2
to $1.15bn as at
30 September 2021.
Financial highlights (HY22)
Portfolio highlights (as at
30 September 2021)
Transaction highlights
$15.4m profit
before other
income /
(expense) and
income tax
up $3.2m
from HY21
$56.9m
profit after
income tax
down $34.1m from
HY21, reflecting a
lower revaluation
movement of
$44.8m for HY22,
compared with
$83.7m for HY21
$13.3m
distributable
profit
5
after
current
income tax
down $0.4m
from HY21
99.0%
portfolio occupancy
by area
9.5 years
W A LT
3

29.8%
Loan to Value Ratio
4
$73.3m of
acquisitions
completed, with a
further conditional
acquisition for
$10.5m agreed
$70m debt facility
refinanced for a
further 12 months,
with no debt now
expiring until FY24
4 Carr Road, Auckland
Stride Property Group
Interim Report for the six months ended 30 September 2021
14Stride Property Group
Interim Report for the six months ended 30 September 2021
15

1. See glossary on page 19.
2. This information relates to the six month period from 1 April 2021 to 30 September 2021. Stride's share in Industre reduced from 56.33% as at 31 March 2021 to 52.15% as at 30 September
2021. Stride's net share of Industre's profit is calculated on the weighted average participating interest during the period.
Industre's portfolio has
grown by $127.7m
over the six months to
30 September 2021,
to a value of $737.7m,
or $792.4m including
committed acquisitions
and developments.
Industre actively pursues growth opportunities that present current or future redevelopment
prospects, with the intention to develop the properties into attractive industrial facilities which it
will own for the long term. One example of this is the property at 439 Rosebank Road, Auckland,
which Industre acquired in late 2020. The SIML development team is currently managing a new
industrial development on this site which will include three smaller industrial units at the front
of the site, as well as a larger warehouse with supporting offices in a separate building on the
rear of the site. Stride and Industre value sustainable developments and accordingly Industre is
targeting a minimum four star Green Star design for the project. The gross lettable area of the
development will be approximately 8,000 sqm, with the development expected to be completed
in October 2022.
Industre is a joint arrangement between SPL and JPMAM. The accounting for the arrangements by SPL is a combination of a joint operation
(proportionate share of assets, liabilities, revenue and expenses – refer to note 6.4 in the consolidated interim financial statements) and joint venture
(equity accounted – refer to note 6.3 in the consolidated interim financial statements). This page summarises the joint arrangement. SIML is the
manager of the joint arrangement.
As at 30 September 2021As at 31 March 2021
Properties (no.)2118
Tenants (no.)
45
39
Net Lettable Area (sqm)
178,197
173,330
Net Contract Rental
1
($m)
29.0
27.4
WA LT
1
(years)
9.2
9.7
Occupancy Rate (% by area)99.197.3
Value ($m)
737.7610.0
Net Valuation Movement for HY22 ($m)
+82.9
IndustreStride's interest (52.2%)
Joint Venture
Unaudited
30-Sep-21
$000
Joint Operations
Unaudited
30-Sep-21
$000
Total
Unaudited
30-Sep-21
$000
Joint Venture
Unaudited
30-Sep-21
$000
Joint Operations
Unaudited
30-Sep-21
$000
Total
Unaudited
30-Sep-21
$000
Assets
Current assets
4,8682,3947,262
2,5391,2483,787
Investment properties
413,608324,100737,708
215,702169,022384,724
Other non-current assets
81,111-81,111
42,300-42,300
Total Assets
499,587326,494826,081
260,541170,270430,811
Liabilities
Current liabilities
2,8971,2364,133
1,5136442,157
Borrowings
199,71378,249277,962
104,15340,808144,961
Other non-current liabilities
350-350
182-182
Total Liabilities
202,96079,485282,445
105,84841,452147,300
Net assets
296,627
247,009543,636
154,693128,818283,511
Summarised Statement of Financial Position
IndustreStride's interest
Joint Venture
Unaudited
30-Sep-21
$000
Joint Operations
Unaudited
30-Sep-21
$000
Total
Unaudited
30-Sep-21
$000
Joint Venture
Unaudited
30-Sep-21
$000
Joint Operations
Unaudited
30-Sep-21
$000
Total
Unaudited
30-Sep-21
$000
Income
12,3487,26319,611
6,6853,93310,618
Expenses
(8,084)(3,214)(11,298)
(4,374)(1,738)(6,112)
Net change in fair value of investment properties
44,99537,91482,909
24,07420,36944,443
Net share of profit
2
49,25941,96391,222
26,38522,56448,949
Summarised Statement of Financial Performance
Industre has been
very active with
acquisitions and
developments during
the first half of FY22:
$42.7m
acquisitions completed
$54.7m
developments
/ acquisitions
in progress and
committed
$792.4m
portfolio value as at
30 September 2021
including committed
acquisitions and
developments
439 Rosebank Road, Auckland (artist's impression of completed development)
Stride Property GroupStride Property Group
Interim Report for the six months ended 30 September 2021Interim Report for the six months ended 30 September 2021
1617

Capital
Management
Stride’s bank covenant LVR as at 30 September 2021 of 41.0% is within the Board’s long
term target LVR range, but the Board would prefer this to be lower in the current environment.
Accordingly, the Board has elected to undertake a capital raise in conjunction with the
release of Stride’s interim results for the six months to 30 September 2021, targeting raising
$120 million, which would reduce Stride’s bank covenant LVR to 29.8% (on a pro forma basis
2
).
This will provide Stride with greater flexibility and options for the establishment of its office fund,
Fabric, as well as progressing other strategic initiatives as part of Stride's broader investment
management strategy.
Stride’s bank covenant LVR is calculated solely based on the value of its directly held office
and town centre portfolio. Taking into account the value of SPL’s interests in each of the Stride
Products, Stride's balance sheet LVR would be 28.8% as at 30 September 2021, or 20.9% on a
pro forma basis after the current capital raise
2
. On a look-through basis, including each Product's
properties and debt, Stride's LVR is 36.4% or 29.3% on a pro forma basis after the current Stride
capital raise
2
.
Stride is conscious of increasing interest rates in the market and has a hedging policy in place to
manage interest rate risk. SPL and its wholly owned subsidiary, Fabric, have fixed rate hedging in
place with notional value equivalent to 98% of drawn debt as at 30 September 2021 (including
forward starting swaps), with a weighted average interest rate of 1.5% and a weighted average
tenor remaining of 2.9 years.
20 Customhouse Quay, Wellington
$120m capital
raise announced, to
reduce SPL's LVR
1

from 41.0% as
at 30 September
2021 to 29.8% (on
a pro forma basis
2
).
1. See glossary on page 19.
2. Assuming $120m is raised in the
capital raising.
Glossary
Contract RentalContract Rental is the amount of rent payable by each tenant, plus other
amounts payable to SPL (or the relevant landlord) by that tenant under the terms
of the relevant lease as at the relevant date, annualised for the 12-month period
on the basis of the occupancy level for the relevant property as at the relevant
date, and assuming no default by the tenant
Distributable Profit
Distributable profit is a non-GAAP measure and consists of profit/(loss)
before income tax, adjusted for determined non-recurring and/or non-cash
items, shares of profits in associates, dividends received from associates and
current tax. Further information, including the calculation of distributable profit
and the adjustments to profit before income tax, is set out in note 4.2 to the
Consolidated Interim Financial Statements
DiversifiedDiversified NZ Property Trust, a Stride Product
FabricFabric Property Limited, a wholly owned subsidiary of SPL which owns
office properties
FY21The financial year ended 31 March 2021
FY22The financial year ending 31 March 2022
HY21The six months ended 30 September 2020
HY22The six months ended 30 September 2021
Industre Industre Property Joint Venture, a joint venture between SPL (through its
wholly owned subsidiary, Stride Industrial Property Limited) and JPMAM.
Industre is a Stride Product
InvestoreInvestore Property Limited, a Stride Product
JPMAMA group of international institutional investors, through a special purpose
vehicle, AP SG 17 Pte Ltd, and advised by J.P. Morgan Asset Management
LV R
Bank covenant Loan to Value Ratio, calculated as bank debt as a
percentage of investment property. Includes SPL's office and retail
properties and the debt associated with these properties, and excludes
SPL's interest in the Industre joint operation and associated bank debt
which are reported as part of the assets and liabilities of SPL in the
consolidated interim financial statements
SIMLStride Investment Management Limited
SPLStride Property Limited
StrideStride Property Group, comprising the stapled entities of SPL and SIML
Stride Boards or BoardsThe Boards of SPL and SIML together
WA LTWeighted Average Lease Term
Stride Property GroupStride Property Group
Interim Report for the six months ended 30 September 2021Interim Report for the six months ended 30 September 2021
1819

22 Consolidated Statement of
Comprehensive Income
23 Consolidated Statement of Changes in Equity
24 Consolidated Statement of Financial Position
25 Consolidated Statement of Cash Flows
27 Notes to the Financial Statements
Consolidated Interim
Financial Statements
Stride Property GroupStride Property Group
Interim Report for the six months ended 30 September 2021Interim Report for the six months ended 30 September 2021
2021

Consolidated Statement of Comprehensive Income
For the six months ended 30 September 2021
Unaudited
6 months
30 Sep 21
Unaudited
6 months
30 Sep 20
Notes$000$000
Gross rental income
41,442
27,800
Direct property operating expenses
(11,331)
(7,301)
Net rental income3.130,111
20,499
Management fee income12,750
13,058
Less corporate expenses
Corporate overhead expenses
7.2(9,298)
(7,590)
Administration expenses
7.2(2,804)
(1,844)
Project costs relating to Fabric Property Limited
1.6
(4,811)
-
Total corporate expenses
(16,913)
(9,434)
Profit before net finance expense, other income/(expense) and income tax from continuing operations25,948
24,123
Net finance expense
5.3
(7,372)
(7,376)
Profit before other income/(expense) and income tax from continuing operations18,576
16,747
Other income/(expense)
Net change in fair value of investment properties
3.213,358
16,584
Share of profit in equity-accounted investments
6.237,511
22,345
Gain/(loss) on disposal of investment properties
31
(78)
Hedge ineffectiveness of cash flow hedges
-
(419)
Profit before income tax from continuing operations69,476
55,179
Income tax expense
7.1
(7,965)
(3,567)
Profit after income tax from continuing operations attributable to shareholders61,511
51,612
Loss from discontinued operations
6.5
-
(81)
Profit attributable to shareholders61,511
51,531
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss
Deferred tax on share based payment expense
109
172
Gross movement in cash flow hedges
6,912
1,629
Tax arising from cash flow hedges
(1,936)
(456)
Changes in cash flow hedge reserve in equity-accounted investments
405
(213)
Items that will not be reclassified to profit or loss
Revaluation surplus
7.5
300
-
Total other comprehensive income after tax
5,790
1,132
Total comprehensive income after tax attributable to shareholders
67,301
52,663
Stride Property Limited (SPL) total comprehensive income after tax attributable to shareholders
61,732
45,029
Stride Investment Management Limited (SIML) total comprehensive income after tax attributable to shareholders
5,569
7,715
Total comprehensive income after tax attributable to shareholders from continuing operations
67,301
52,744
Total SPL comprehensive loss after tax from discontinued operations
6.5
-
(81)
Total comprehensive income after tax attributable to shareholders
67,301
52,663
Earnings per share (EPS) from continuing operations
4.1
Basic EPS (cents)13.00
14.12
Diluted EPS (cents)12.95
14.08
EPS per share from continuing and discontinued operations
4.1
Basic EPS (cents)13.00
14.10
Diluted EPS (cents)12.95
14.06
22Stride Property Group
Interim Report for the six months ended 30 September 2021
The attached notes form part of and are to be read in conjunction with these financial statements.
Consolidated Statement of Changes in Equity
For the six months ended 30 September 2021
Number of
shares
Share
capital
Retained
earnings
Other
reservesTotal
Notes000$000$000$000$000
Balance at 31 Mar 21 (Audited)
472,828726,680291,423(317)1,017,786
Transactions with shareholders:
Dividends paid
4.3--(23,449)-(23,449)
Share based payment expense
---545545
New shares issued
407----
Total transactions with shareholders
407-(23,449)545(22,904)
Total other comprehensive income
---5,7905,790
Profit after income tax
--61,511-61,511
Total comprehensive income
--61,5115,79067,301
Balance at 30 Sep 21 (Unaudited)
473,235726,680329,4856,0181,062,183
Balance at 31 Mar 20 (Audited)
365,352500,749201,050(3,635)698,164
Transactions with shareholders:
Dividends paid
4.3
--(18,103)-(18,103)
Share based payment expense
---169169
Total transactions with shareholders
--(18,103)169(17,934)
Total other comprehensive income---1,1321,132
Profit after income tax
--51,531-
51,531
Total comprehensive income
--51,5311,13252,663
Balance at 30 Sep 20 (Unaudited)
365,352500,749234,478(2,334)732,893
Stride Property Group
Interim Report for the six months ended 30 September 2021
23
The attached notes form part of and are to be read in conjunction with these financial statements.
Stride Property GroupStride Property Group
Interim Report for the six months ended 30 September 2021Interim Report for the six months ended 30 September 2021
2223

Consolidated Statement of Financial Position
As at 30 September 2021
Unaudited
30 Sep 21
Audited
31 Mar 21
Notes$000$000
Current assets
Cash at bank
22,503
23,024
Trade and other receivables
7.47,135
9,068
Prepayments
2,278
184
Other current assets
75
173
31,991
32,449
Non-current assets
Investment properties
3.21,237,455
1,071,881
Deposit and other prepayments on investment property
3.3500
2,250
Equity-accounted investments
6.2308,526
265,707
Loan to associate
7.33,398
3,398
Other investments
250
250
Software
1.4-
1,025
Property, plant and equipment
7.56,930
6,658
Derivative financial instruments
5.2
5,960
-
1,563,019
1,351,169
Total assets
1,595,010
1,383,618
Current liabilities
Trade and other payables
24,409
22,145
Lease liabilities
74
71
Current tax liability
906
4,876
Bank borrowings
5.1170,000
-
Derivative financial instruments
5.2
140
553
195,529
27,645
Non-current liabilities
Bank borrowings
5.1257,430
259,860
Borrowings (joint operation participating interest)
6.440,808
43,169
Lease liabilities
27,309
27,383
Deferred tax liability
10,695
6,180
Derivative financial instruments
5.2
1,056
1,595
337,298
338,187
Total liabilities
532,827
365,832
Net assets1,062,183
1,017,786
Share capital
726,680
726,680
Retained earnings
329,485
291,423
Reserves
6,018
(317)
Equity
1,062,183
1,017,786
SPL equity
1,049,063
1,004,093
SIML equity (non-controlling interest)
5.5
13,120
13,693
Equity
1,062,183
1,017,786
For and on behalf of the Board of Directors of SPL and SIML, dated 25 November 2021:
Tim Storey
Chair of the Boards
John Harvey
Chair of the Audit and Risk Committee
24Stride Property Group
Interim Report for the six months ended 30 September 2021
The attached notes form part of and are to be read in conjunction with these financial statements.
Consolidated Statement of Cash Flows
For the six months ended 30 September 2021
Unaudited
6 months
30 Sep 21
Unaudited
6 months
30 Sep 20
Notes$000$000
Cash flows from operating activities
Gross rent received
44,545
27,704
Management fee income
13,779
10,531
Direct property operating and corporate expenses
(28,382)
(18,328)
Interest paid
(7,297)
(5,387)
Income tax paid
(9,245)
(6,336)
Borrowings establishment costs
(750)
(296)
Interest received
-
19
Dividends received
-
2
Swap termination expenses
-
(9,293)
Net cash provided by/(applied to) operating activities
12,650
(1,384)
Cash flows from investing activities
Dividend income from equity-accounted investments
7.34,536
2,630
Acquisition of investment properties
(152,000)
(72,781)
Capital expenditure on investment properties
(9,003)
(7,894)
Seismic works on divested properties
(719)
-
Deposit on investment property paid
(500)
-
Property, plant and equipment purchased
(65)
(72)
Software expenditure
-
(80)
Proceeds from disposal of investment properties
-
346,816
Investment in equity-accounted investments
-
(69,550)
Investment in other investments
-
(250)
Net cash (applied to)/provided by investing activities
(157,751)
198,819
Cash flows from financing activities
Dividends paid
4.3
(23,449)
(18,103)
Drawdown on bank borrowings
168,100
119,250
Repayment of bank borrowings
-
(341,750)
Lease liabilities payments
(71)
(1,151)
Borrowings from joint venture
-
47,820
Net cash provided by/(applied to) financing activities
144,580
(193,934)
Net (decrease)/increase in cash and cash equivalents held(521)
3,501
Opening cash and cash equivalents
23,024
12,098
Closing cash and cash equivalents
22,503
15,599
Stride Property Group (Stride) presents total group cash flows including continuing and discontinued operations. See note 6.5 for cash flows of discontinued operations.
Stride Property Group
Interim Report for the six months ended 30 September 2021
25
The attached notes form part of and are to be read in conjunction with these financial statements.
Stride Property GroupStride Property Group
Interim Report for the six months ended 30 September 2021Interim Report for the six months ended 30 September 2021
2425

Consolidated Statement of Cash Flows (continued)
For the six months ended 30 September 2021
Unaudited
6 months
30 Sep 21
Unaudited
6 months
30 Sep 20
Notes$000$000
Profit after income tax attributable to shareholders (including discontinued operations note 6.5)61,511
51,531
Add/(less) non-cash items:
Movement in deferred tax
7.12,690
(275)
Income tax movement in cash flow hedges
-
(357)
Net change in fair value of investment properties
(13,358)
(21,114)
(Gain)/loss on disposal of investment properties
(31)
4,238
Share of profit in equity-accounted investments
(37,511)
(22,345)
Spreading of fixed rental increases
(696)
209
Capitalised lease incentives
(333)
(322)
Lease incentives amortisation
260
94
Capitalised lease incentives - COVID-19 abatements
(353)
(2,144)
Lease incentives amortisation - COVID-19 abatements
448
373
Movement in loss allowance
-
598
Share based payment expense
545
169
Depreciation
93
309
Software asset expense
1.41,025
-
Software amortisation
-
197
Borrowings establishment cost amortisation
220
185
Non-cash interest income received
(144)
-
Hedge ineffectiveness of cash flow hedges
-
1,075
Amortisation of swap termination expenses
-
1,380
Accrued interest movement in derivative financial instruments
-
(303)
14,366
13,498
Less/(add) activity reclassified from/(to) operating activities:
Movement in working capital items relating to investing activities
803
(2,849)
Movement in borrowings transaction costs classified as operating activities
(750)
(9,293)
14,419
1,356
Movement in working capital:
Decrease/(increase) in trade and other receivables
1,933
(2,339)
Increase in prepayments and other current assets
(1,996)
(1,408)
Increase in trade and other payables
2,264
1,765
Decrease in tax liability
(3,970)
(758)
Net cash provided by/(applied to) operating activities
12,650
(1,384)
26Stride Property Group
Interim Report for the six months ended 30 September 2021
The attached notes form part of and are to be read in conjunction with these financial statements.
Notes to the interim financial statements
For the six months ended 30 September 2021
1.0General Information
28
1.1Reporting entity28
1.2Basis of preparation28
1.3New standards, amendments and interpretations28
1.4Significant accounting policies, estimates and judgements28
1.5COVID-19 impacts29
1.6Significant events and transactions29
1.7Non-GAAP measures29
2.0Operating Segments
30
3.0Property
32
3.1Net rental income32
3.2Investment properties33
3.3Capital expenditure commitments contracted for36
4.0Investor Returns
37
4.1Basic and diluted earnings per share (EPS)37
4.2Distributable profit38
4.3Dividends paid39
5.0Capital Structure and Funding
40
5.1Borrowings40
5.2Derivative financial instruments41
5.3Net finance expense42
5.4Share capital42
5.5SIML equity (non-controlling interest)42
6.0Investments in Property Entities
43
6.1Industre43
6.2Interests in associates and joint venture43
6.3Industre joint venture44
6.4Industre joint operation46
6.5Discontinued operations48
7.0Other
49
7.1Income tax49
7.2Total corporate expenses49
7.3Related party disclosures50
7.4Trade and other receivables51
7.5Property, plant and equipment51
7.6Contingent liabilities51
7.7Subsequent events52
Stride Property Group
Interim Report for the six months ended 30 September 2021
27
Stride Property GroupStride Property Group
Interim Report for the six months ended 30 September 2021Interim Report for the six months ended 30 September 2021
2627

1.0 General Information
This section sets out Stride Property Group’s accounting policies that relate to the unaudited consolidated interim financial statements (financial
statements) as a whole. Where an accounting policy is specific to a note, the policy is described within the note to which it relates.
1.1 Reporting entity
The financial statements presented are those of Stride Property Limited (SPL) and Stride Investment Management Limited (SIML), each of SPL and SIML
being a “Stapled Entity”, and together the Stride Property Group (Stride). For accounting purposes, stapling gives rise to the combination of the Stapled
Entities into a consolidated group. For the purposes of financial reporting, one of the combining entities is required to be identified as the parent entity of
the consolidated group. In the case of Stride, SPL has been identified as the parent for the purposes of preparing the financial statements and consequently
SIML’s equity is presented as the non-controlling interest in the financial statements.
SPL is principally involved in the ownership of investment properties in New Zealand and SIML is principally involved in the management of real estate
investment entities in New Zealand. SPL and SIML are both domiciled in New Zealand, are both registered under the Companies Act 1993 and are both FMC
reporting entities under Part 7 of the Financial Markets Conduct Act 2013.
Shares of SPL and SIML are stapled and quoted on the Main Board equity securities market of NZX under the ticker code SPG.
The financial statements were approved for issue by the Board of Directors of SPL (SPL Board) and the Board of Directors of SIML (SIML Board), together
the “Boards”, on 25 November 2021.
1.2 Basis of preparation
The financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP), New Zealand
International Accounting Standard 34 (NZ IAS 34) Interim Financial Reporting and International Accounting Standard 34 (IAS 34) Interim Financial Reporting.
For the purposes of complying with NZ GAAP Stride is a for-profit entity.
The financial statements have been prepared under the historical cost basis except for assets and liabilities stated at fair value as disclosed. The financial
statements have been presented in New Zealand dollars and have been rounded to the nearest thousand, unless stated otherwise.
The financial statements do not contain all the disclosures normally included in an annual financial report and should be read in conjunction with the audited
2021 annual consolidated financial statements.
The consolidated statement of cash flows for the period ended 30 September 2020 has been restated to correctly present the impact of rental income
abatement provision due to COVID-19. This has resulted in a restatement of both net cash provided by/(applied to) operating activities and net cash
(applied to)/provided by investing activities as follows: gross rent received has decreased by $2,216,000, from $29,920,000 to $27,704,000; and capital
expenditure on investment properties has decreased by $2,216,000, from ($10,110,000) to ($7,894,000). A corresponding restatement has also been
made to the rental income abatement provision due to COVID-19 non-cash adjustment, from $2,216,000 to $nil, which formed part of the reconciliation of
profit after income tax attributable to shareholders to net cash provided by operating activities. There is no impact on the net cash position, the consolidated
statement of comprehensive income or the consolidated statement of financial position.
1.3 New standards, amendments and interpretations
At the date of approval of the financial statements, there were no relevant standards in issue but not applied.
1.4 Significant accounting policies, estimates and judgements
The same accounting policies and methods of computation are followed in the financial statements as compared with the most recent annual consolidated
financial statements, with the exception of the treatment of software intangible assets as outlined below.
SIML previously capitalised cost incurred in configuring its property management software as an intangible asset as SIML considered it would benefit
from those costs to implement the cloud-based software over the expected term of the cloud computing arrangement. Following the publication of IFRS
Interpretations Committee (IFRIC) agenda decision on Configuration or Customisation Costs in a Cloud Computing Arrangement in March 2021 (and ratified
by the International Accounting Standards Board (IASB) in April 2021), SIML has reconsidered its accounting treatment and adopted the principles set out in
the IFRIC agenda decision, which is to recognise those costs as intangible assets only if the activities create an intangible asset that SIML controls and the
intangible asset meets the recognition criteria. As a result of this change in accounting policy, $1.0 million previously capitalised and included as software has
been expensed and included in corporate overhead expenses for the six months ended 30 September 2021.
28Stride Property Group
Interim Report for the six months ended 30 September 2021
1.0 General Information (continued)
1.5 COVID-19 impacts
The enactment by the Government of the COVID-19 Response (Management Measures) Legislation Act 2021 mandating rent abatement by landlords
is expected to result in SPL incurring additional rent abatement costs than previously anticipated. SPL has provided for $3.2 million of rental income
abatements yet to be formally agreed with tenants for the period to 30 September 2021.
1.6 Significant events and transactions
The financial position and performance of Stride was affected by the following events and transactions that occurred during the reporting period:
Acquisition of investment property
On 30 June 2021, SPL acquired an office property at 46 Sale Street, Auckland, for a purchase price of $152.0 million.
Withdrawal of proposed demerger and initial public offering of Fabric Property Limited (Fabric)
On 13 September 2021, Stride announced the proposed demerger and initial public offering of SPL's wholly owned subsidiary, Fabric, which was to be
Stride's latest managed product, investing in office properties. Due to market conditions, the Boards made the decision to withdraw the demerger and initial
public offering on 21 September 2021. The Boards are conscious of ensuring that the process is in the best interests of Stride shareholders as well as Fabric
investors. Stride remains committed to its strategy of growing its real estate investment management business, and the Boards will continue to consider the
next steps for Stride's office portfolio, within Stride or as a separate entity. As at 30 September 2021, SPL has incurred $4.8 million in project costs that have
been expensed to the consolidated statement of comprehensive income.
Revaluation of investment properties
SPL undertook independent valuations of the entire portfolio as at 30 September 2021 which resulted in a net change in fair value of investment properties
of $13.4 million (30 Sep 20: $21.1 million) (refer note 3.2) and a revaluation surplus on property, plant and equipment of $0.3 million (30 Sep 20: nil) (refer
note 7.5). The investment properties held by Investore Property Limited (Investore), Industre Property Joint Venture (Industre) and Diversified NZ Property
Trust (Diversified) were also valued by independent valuers at 30 September 2021. SPL’s share of the valuation gains/(losses) are reflected in share of profit
in equity-accounted investments and, for those properties in the Industre joint operation, reflected in net change in fair value of investment properties.
1.7 Non-GAAP measures
The consolidated statement of comprehensive income includes two non-GAAP measures; Profit before net finance expense, other income/(expense) and
income tax; and Profit before other income/(expense) and income tax. These non-GAAP measures have been presented to assist investors in understanding
the different aspects of Stride’s financial performance.
Note 4.2 sets out Stride’s calculation of distributable profit and Adjusted Funds From Operations (AFFO) which are both non-GAAP measures. Distributable
profit is presented to provide an earnings measure which more closely aligns to Stride’s underlying and recurring earnings from its operations. AFFO is
intended as a supplementary measure of operating performance. Cash spent during the period on capital expenditure as part of maintaining a building’s
grade/quality, but not expensed as part of distributable profit after current income tax, is adjusted to reflect cash earnings for the year.
These non-GAAP measures do not have a standard meaning prescribed by GAAP and therefore may not be comparable to information presented by
other entities.
Stride Property Group
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2.0 Operating Segments
This section sets out how Stride’s revenue streams are reported internally, reflecting the two operating segments being SPL and SIML.
SPL’s revenue streams are earned from investment properties owned in Auckland and Wellington in New Zealand. Given SPL’s diverse client base, no one
tenant represents greater than 10% of the portfolio contract rental. SPL also generates income from its share of profit in equity associates being Investore,
Industre joint venture and Diversified (refer to note 6.2).
SIML’s revenue streams are earned from the management of the real estate investments of Investore, Industre, Diversified and SPL. For the revenue earned
from Investore, Industre joint venture and Diversified, refer to note 7.3 on related party disclosures and to note 6.4 on Industre joint operation.
The following is an analysis of Stride’s results, by reportable segments.
SPL
SPL
eliminationsSIML
SIML
eliminations
Unaudited
6 months
30 Sep 21
Segment profit$000$000$000$000$000
Net rental income29,0251,086--30,111
Management fee income--18,130(5,380)12,750
Total corporate expenses
(9,991)3,555(10,698)221(16,913)
Profit before net finance expense, other income and income tax19,0344,6417,432(5,159)25,948
Net finance expense
(7,361)-(64)53(7,372)
Profit before other income and income tax11,6734,6417,368(5,106)18,576
Other income
Net change in fair value of investment properties
12,858500--13,358
Share of profit in equity-accounted investments
37,511---37,511
Gain on disposal of investment properties
31---31
Profit before income tax62,0735,1417,368(5,106)69,476
Income tax expense
(6,057)-(1,908)-(7,965)
Profit after income tax attributable to shareholders56,0165,1415,460(5,106)61,511
Total other comprehensive income after tax
5,681-109-5,790
Total comprehensive income after tax attributable to shareholders
61,6975,1415,569(5,106)67,301
In the current period, the following expenses payable by SPL to SIML have been eliminated in the consolidated statement of comprehensive income:
•direct property operating expenses included in net rental income $1.3 million (30 Sep 20: $1.4 million)
•management and accounting fees included in corporate expenses $3.6 million (30 Sep 20: $2.5 million)
•management fees in respect of capital expenditure on investment properties $0.5 million (30 Sep 20: $0.9 million)
In the current period, the following expenses payable by SIML to SPL have been eliminated in the consolidated statement of comprehensive income:
•corporate overhead expenses in respect of rental charges on 34 Shortland Street, Auckland, $0.2 million (30 Sep 20: nil)
In the prior period, $0.2 million of fees earned on divestment of investment properties was eliminated.
30Stride Property Group
Interim Report for the six months ended 30 September 2021
2.0 Operating Segments (continued)
SPL
SPL
eliminationsSIML
SIML
eliminations
Unaudited
6 months
30 Sep 20
Segment profit$000$000$000$000$000
Net rental income
21,1881,439--22,627
Management fee income
--18,705(5,647)13,058
Total corporate expenses
(3,656)2,489(8,274)-(9,441)
Profit before net finance expense, other income/(expense) and income tax
17,5323,92810,431(5,647)26,244
Net finance expense
(7,353)-(33)10(7,376)
Profit before other income/(expense) and income tax
10,1793,92810,398(5,637)18,868
Other income/(expense)
Net change in fair value of investment properties20,249865--21,114
Share of profit in equity-accounted investments22,345---22,345
Fair value of ineffective cashflow hedges(1,075)---(1,075)
Loss on disposal of investment properties
(4,411)173--(4,238)
Profit before income tax
47,2874,96610,398(5,637)57,014
Income tax expense
(2,628)-(2,855)-(5,483)
Profit after income tax attributable to shareholders
44,6594,9667,543(5,637)51,531
Total other comprehensive income after tax
960-172-1,132
Total comprehensive income after tax attributable to shareholders
45,6194,9667,715(5,637)52,663
Reconciliation of profit after income tax attributable to shareholders to profit after income tax from continuing operations attributable to shareholders
SPL
SPL
eliminationsSIML
SIML
eliminations
Unaudited
6 months
30 Sep 20
Segment profit$000$000$000$000$000
Profit attributable to shareholders
44,6594,9667,543(5,637)51,531
Add back loss from discontinued operations
81---81
Profit after income tax from continuing operations attributable to shareholders
44,7404,9667,543(5,637)51,612
SPL
SPL
eliminationsSIML
SIML
eliminationsTotal
Segment assets and liabilities$000$000$000$000$000
Balance at 30 Sep 21 (Unaudited)
Total assets
1,579,591-17,910(2,491)1,595,010
Total liabilities
530,621(524)4,790(2,060)532,827
Balance at 31 Mar 21 (Audited)
Total assets1,359,0913,86220,665-1,383,618
Total liabilities361,056(2,196)6,972-365,832
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3.0 Property
This section covers property assets which generate Stride’s trading performance.
3.1 Net rental income
Unaudited
6 months
30 Sep 21
Unaudited
6 months
30 Sep 20
SPL$000$000
Gross rental income
Rental income
35,041
23,804
Service charge income recovered from tenants
8,867
5,039
Spreading of fixed rental increases
696
(183)
Capitalised lease incentives
333
322
Lease incentives amortisation
(198)
(134)
Capitalised lease incentives - COVID-19
353
1,477
Lease incentives amortisation - COVID-19
(448)
(268)
Rental income abatement provision due to COVID-19
(3,202)
(2,257)
Total gross rental income
41,44227,800
Direct property operating expenses
Rates and insurance
(5,658)
(3,068)
Property maintenance costs
(2,514)
(1,588)
Utilities
(899)
(611)
Lease incentives amortisation
(62)
(134)
Other non-recoverable property operating expenses
(2,198)
(1,302)
Movement in loss allowance
-
(598)
Total direct property operating expenses
(11,331)(7,301)
Net rental income
30,11120,499
Other non-recoverable property operating expenses represent operating expenses not recoverable from tenants and property leasing expenses. Salaries
and wages costs of $0.7 million (30 Sep 20: $0.7 million) charged by SIML to SPL have been eliminated in the direct property operating expenses.
32Stride Property Group
Interim Report for the six months ended 30 September 2021
3.0 Property (continued)
3.2 Investment properties
OfficeTown CentreIndustrialDevelopmentTotal
SPL$000$000$000$000$000
Balance at 31 Mar 21 (Audited)573,301325,766160,88411,9301,071,881
Disposals
--(12,541)-(12,541)
Property acquisition
152,000---152,000
Recognition of prepayment in investment properties
1,464---1,464
Subsequent capital expenditure
922113279,55710,619
Spreading of fixed rental increases
607(102)191-696
Capitalised lease incentives
12311496-333
Lease incentives amortisation
(84)(172)(4)-(260)
Capitalised lease incentives - COVID-19
34319--353
Lease incentives amortisation - COVID-19
(71)(370)-(7)(448)
Net change in fair value
(17,078)11,54720,369(1,480)13,358
Balance at 30 Sep 21 (Unaudited)
711,218337,215169,02220,0001,237,455
Comprised of:
Investment property at valuation
699,750321,300169,02220,0001,210,072
Lease liabilities
11,46815,915--27,383
Balance at 30 Sep 21 (Unaudited)
711,218337,215169,02220,0001,237,455
On 30 June 2021, SPL acquired an office property at 46 Sale Street, Auckland, for a purchase price of $152.0 million.
In the prior year, SPL acquired an office building at 34 Shortland Street, Auckland. Stride’s head office is located in this building and the value attributable
to this floor has been recognised as property, plant and equipment (refer note 7.5). As at 31 March 2021, there was a $2.3 million prepayment recognised
in relation to future building upgrade works at 34 Shortland Street, Auckland. The total cost of the building upgrade works has been re-assessed as
$1.5 million with the remaining $0.8 million being released to the vendor. During the current period, $0.6 million of building upgrade works has been
completed with $0.8 million of additional works expected to be completed within the next 12 months.
Included in the 30 September 2021 balance of investment property at valuation is an implicit right-of-use asset of $23.5 million (31 Mar 21: $23.5 million) in
relation to a peppercorn ground lease at 55 Lady Elizabeth Lane, Wellington, with an associated immaterial lease liability.
The total lease liabilities amount of $27.4 million (31 Mar 21: $27.4 million) is in respect of the ground leases at NorthWest Shopping Centre, Auckland, and
7-9 Fanshawe Street, Auckland.
The net change in fair value of $13.4 million (31 Mar 21: $43.3 million, being $38.8 million from continuing operations and $4.5 million from discontinued
operations) includes ($34,000) (31 Mar 21: ($33,000)) in relation to the change in the value of the lease liabilities. In the current period, a revaluation
movement of $0.5 million (31 Mar 21: $1.1 million) arising from the elimination of the fees charged by SIML to SPL (refer note 2.0), has been reflected in the
consolidated statement of financial position.
Capital expenditure consists of seismic strengthening, base-build fit-outs and other physical enhancements to the investment properties, with ownership of
such capital amounts being retained by SPL.
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Interim Report for the six months ended 30 September 2021
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3.0 Property (continued)
Unaudited
30 Sep 21
Audited
31 Mar 21
Valuer$000$000
Office
7 - 9 Fanshawe Street, Auckland
CBRE
10,600
10,800
*34 Shortland Street, Auckland
JLL
56,700
57,700
80 Greys Avenue, Auckland
Colliers
22,500
22,700
21 - 25 Teed Street, Auckland
CBRE
27,100
26,900
35 Teed Street, Auckland
JLL
24,300
22,200
46 Sale Street, Auckland
JLL
151,750
-
55 Lady Elizabeth Lane, Wellington
JLL
25,500
42,750
1 Grey Street, Wellington
CBRE
66,300
65,750
215 Lambton Quay, Wellington
Colliers Wellington
85,000
85,000
20 Customhouse Quay, Wellington
Colliers Wellington
230,000
228,000
Office total
699,750
561,800
Town Centre
61 Silverdale Street, Auckland
Savills
100,250
97,000
NorthWest Shopping Centre, Auckland
Colliers
152,000
149,000
NorthWest Two, Auckland
Colliers
41,000
36,500
Johnsonville Shopping Centre, Wellington (50%)
CBRE
28,050
27,350
Town Centre total
321,300
309,850
Industrial (52.15% interest in Industre (joint operation) refer note 6.4) (31 Mar 21: 56.33%)
30 Airpark Drive, Auckland
Bayleys
22,947
22,251
20 Rockridge Avenue, Auckland
Savills
14,863
13,351
25 O’Rorke Road and 15 Rockridge Avenue, Auckland
Savills
66,936
62,190
318 East Tamaki Road, Auckland
JLL
64,276
63,092
Industrial total
169,022
160,884
Development
22 The Terrace, Wellington
JLL
20,000
11,930
1,210,072
1,044,464
* In the prior period, the valuer for 34 Shortland Street, Auckland, was Savills.
3.2 Investment properties (continued)
34Stride Property Group
Interim Report for the six months ended 30 September 2021
3.0 Property (continued)
The investment properties were valued either by CVAS (NZ) Limited (Colliers), CVAS (WLG) Limited (Colliers Wellington), Jones Lang LaSalle Limited
(JLL), Savills (NZ) Limited (Savills), CBRE Limited (CBRE) or Bayleys Valuations Limited (Bayleys) as indicated. The valuations are dated effective
30 September 2021.
The valuers took into account:
•occupancy (leased area as a proportion of the total net lettable area) on individual investment properties (average is 96.9% at balance date)
(31 Mar 21: 97.8%);
•average lease term (weighted average lease term (WALT) at balance date is 6.0 years) (31 Mar 21: 6.2 years);
•discount rates (ranged from 5.63% to 8.88%) (31 Mar 21: 6.00% to 9.00%);
•capital expenditure works of $32.2 million, including $10.2 million incurred at 22 The Terrace, Wellington, $1.0 million incurred at 34 Shortland Street,
Auckland, as well as an estimated $20.5 million allowance to improve the seismic performance at 55 Lady Elizabeth Lane, Wellington.
Capitalisation rates ranged from 3.88% to 8.38% (31 Mar 21: 4.25% to 8.63%).
In addition to the above key unobservable inputs, due to COVID-19, the valuers also made assumptions around rental rebates for tenancy occupancy
disruption. The following table details the rental rebate allowances that have been adopted in the valuations across the various investment classes:
COVID-19
Rental rebates
$000
As at 30 Sep 21 (Unaudited)
Office
(750)
Town Centre
(774)
Industrial
-
Total portfolio
(1,524)
As at 31 March 2021, the independent valuation of SPL's portfolio included one property, being Johnsonville Shopping Centre, Wellington, which was
reported on the basis of 'material valuation uncertainty', meaning less certainty and a higher degree of caution should be applied to the valuations. As
at 30 September 2021, the 'material valuation uncertainty' clause has been removed from the independent valuation of Johnsonville Shopping Centre,
Wellington. The 'material valuation uncertainty' clause is therefore no longer included in any independent valuations of SPL's portfolio, however a number of
the valuations contain a 'market volatility/market risk' clause making reference to the continued uncertainty and unknown impact of COVID-19 on the real
estate market, to which values may change more significantly and rapidly than during standard market conditions.
The estimated sensitivity of the fair value of the total investment property portfolio to changes in the market capitalisation rate and discount rate, assuming
the capitalisation rate or discount rate moved equally on all the properties, is as follows:
Cap rate %Discount rate %
Impact on fair value-0.25+0.25-0.25+0.25
As at 30 Sep 21 (Unaudited)
Change $000
63,994(57,359)23,539(23,421)
Change %
5(5)2(2)
As at 31 Mar 21 (Audited)
Change $00053,535(47,995)20,507(29,073)
Change %5(4)2(3)
In the current period, the properties at 22 The Terrace, Wellington, and 55 Lady Elizabeth Lane, Wellington, have been fair valued by calculating what the
property is expected to be worth on completion of the current and planned works on the property and deducting all expected costs to complete them, being
the Residual Approach. In the prior year, 22 The Terrace, Wellington, was valued on the same approach and 55 Lady Elizabeth Lane, Wellington, was fair
valued by a combination of both the Income Capitalisation and the Discounted Cash Flow approaches in line with the approach taken on all other valuations.
Works are required to improve the seismic performance of the office property at 55 Lady Elizabeth Lane, Wellington, although the exact nature of the works
required is still being confirmed, with engineers undertaking surveys of the property. As a result, the valuation of this property was reduced by the currently
estimated cost of these works, contributing to a devaluation of this property by $17.3 million.
3.2 Investment properties (continued)
Stride Property Group
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3435

3.0 Property (continued)
3.3 Capital expenditure commitments contracted for
As at 30 September 2021, SPL has the following commitments:
•$9.2 million (31 Mar: $15.8 million) to complete seismic and building upgrade works at 22 The Terrace, Wellington.
•$2.3 million for further building upgrades at 34 Shortland Street, Auckland.
•$1.4 million (31 Mar 21: $0.6 million) in total for various other capital expenditure works to be undertaken in this financial year.
SPL’s wholly owned subsidiary, Fabric, has entered into a conditional agreement to acquire a property at 110 Carlton Gore Road, Auckland, from Mansons
CGR Limited for a purchase price of $217.5 million. This property is under construction and is currently expected to be completed in February 2023. The
final purchase price is subject to adjustment following a final rentable area survey of the building on completion.
The agreement remains conditional on Fabric completing an initial public offering on or before 31 March 2022. This condition is for the benefit of SPL,
so remains within SPL’s control to satisfy or waive by 31 March 2022. As at 30 September 2021, Fabric has paid a $0.5 million deposit and intends to
pay an additional $0.5 million deposit on 30 November 2021, with both non-refundable if the agreement does not subsequently become unconditional.
Fabric will pay a further deposit of $8.0 million (less any amounts paid to date) on the date the agreement becomes unconditional. Fabric will advance up to
$186.5 million to the vendor by way of a loan during the period of construction, commencing on the unconditional date, provided certain milestones have
been met. The vendor will pay interest on the amount outstanding from time to time. The amount of the loan will be set off against the purchase price on
settlement, and the remainder of the purchase price (less an amount of $0.5 million) will be paid on settlement, with the final $0.5 million paid following a
defects liability period.
The property will be fully leased on settlement at completion of the development, as the vendor has committed to take a lease of any remaining vacant space
at settlement in accordance with commercial terms agreed between the parties.
Stride has no other material capital commitments as at 30 September 2021.
Subsequent to balance date, SPL has committed to a further $4.3 million in total for capital expenditure works, including $3.7 million at 22 The Terrace,
Wellington, to be undertaken on investment properties in this financial year.
36Stride Property Group
Interim Report for the six months ended 30 September 2021
4.0 Investor Returns
This section sets out Stride’s earnings per share and how distributable profit is calculated. Distributable profit is a non-GAAP measurement and is used
by Stride to calculate profit available for distribution to shareholders by way of dividends.
4.1 Basic and diluted earnings per share (EPS)
Basic and diluted EPS amounts are calculated by dividing profit after income tax attributable to shareholders by the weighted average number of shares
on issue.
Weighted average number of shares for the purpose of diluted EPS has been adjusted for 2,050,746 (30 Sep 20:1,488,630) rights issued under SIML’s
long- term share incentive schemes, short term incentive rights and special grants.
The movement in the weighted average number of shares over the comparable periods reflects the 107,476,635 shares issued during November and
December 2020, resulting from the equity capital raise undertaken by Stride which resulted in a gross amount of $230.0 million raised.
Unaudited
6 months
30 Sep 21
Unaudited
6 months
30 Sep 20
$000$000
Profit after income tax attributable to shareholders - continuing operations
61,511
51,612
Weighted average number of shares for purpose of basic earnings per share (000)
473,174
365,352
Basic earnings per share - SPL
11.85
12.06
Basic earnings per share - SIML
1.15
2.06
Basic earnings per share - weighted (cents)
13.00
14.12
Weighted average number of shares for purpose of diluted earnings per share (000)
475,062
366,579
Diluted earnings per share - SPL
11.80
12.02
Diluted earnings per share - SIML
1.15
2.06
Diluted earnings per share - weighted (cents)
12.95
14.08
Profit after income tax attributable to shareholders - discontinued operations
-
(81)
Weighted average number of shares for purpose of basic earnings per share (000)
473,174
365,352
Basic earnings per share - SPL
-
(0.02)
Basic earnings per share - SIML
-
-
Basic earnings per share - weighted (cents)
-
(0.02)
Weighted average number of shares for purpose of diluted earnings per share (000)
475,062
366,579
Diluted earnings per share - SPL
-
(0.02)
Diluted earnings per share - SIML
-
-
Diluted earnings per share - weighted (cents)
-
(0.02)
Profit after income tax attributable to shareholders - continuing and discontinued operations
61,511
51,531
Weighted average number of shares for purpose of basic earnings per share (000)
473,174
365,352
Basic earnings per share - SPL
11.85
12.04
Basic earnings per share - SIML
1.15
2.06
Basic earnings per share - weighted (cents)
13.00
14.10
Weighted average number of shares for purpose of diluted earnings per share (000)
475,062
366,579
Diluted earnings per share - SPL
11.80
12.00
Diluted earnings per share - SIML
1.15
2.06
Diluted earnings per share - weighted (cents)
12.95
14.06
Stride Property Group
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37
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4.0 Investor Returns (continued)
4.2 Distributable profit
Dividend Policy
Stride’s dividend policy is to target a cash dividend to shareholders that is between 80% and 100% of its distributable profit. Distributable profit is
presented to enable investors to see an earnings measure which more closely aligns to Stride’s underlying and recurring earnings from its operations.
Distributable profit is a non-GAAP measure and consists of profit/(loss) before income tax, adjusted for determined non-recurring and/or non-cash
items, share of profits in equity-accounted investments, dividends received from equity-accounted investments and current tax.
Adjusted Funds From Operations (AFFO) is also a non-GAAP measure and is intended as a supplementary measure of operating performance. Although
there is no standard meaning or measure per GAAP, AFFO has been determined based on guidelines established by the Property Council of Australia.
Cash spent during the period on capital expenditure as part of maintaining a building’s grade/quality, but not expensed as part of distributable profit
after current income tax, is adjusted to enable the investors to see the cash generating ability of the business.
Unaudited
6 months
30 Sep 21
Unaudited
6 months
30 Sep 20
$000$000
Profit before income tax (including discontinued operations note 6.5)69,476
57,014
Non-recurring, non-cash, and other adjustments:
Net change in fair value of investment properties
(13,358)
(21,114)
Reversal of the lease liabilities movement in investment properties
(34)
(33)
(Gain)/loss on disposal of investment properties
(31)
4,238
Project costs relating to Fabric Property Limited
4,811
-
Acquisition, development and disposal fee eliminated in SIML
500
1,742
Share of profit in equity-accounted investments
(37,511)
(22,345)
Dividend income from equity-accounted investments
4,536
2,630
Spreading of fixed rental increases
(696)
209
Capitalised incentives net of amortisation
22
(1,999)
Share based payment expense
545
169
Software asset expense
1,025
-
Software amortisation
-
197
Depreciation
93
309
Lease liabilities for head office
(170)
(196)
Borrowings establishment costs amortisation
220
185
Non-cash interest income received
(144)
-
Finance expense - swap termination expense
-
1,380
Hedge ineffectiveness of cash flow hedges
-
1,075
Elimination of gain on acquisition on head office lease liabilities and assets
-
(12)
Distributable profit before current income tax29,284
23,449
Current tax expense(5,275)
(5,758)
Adjusted for:
Tax expense on bank borrowings capitalised interest
(14)
(50)
Tax expense on depreciation recovered on disposal of investment properties
186
3,814
Income tax movement in cash flow hedges
-
(387)
Distributable profit after current income tax
24,181
21,068
Adjustments to funds from operations:
Maintenance capital expenditure
(1,063)
(1,042)
Adjusted Funds From Operations (AFFO)
23,118
20,026
38Stride Property Group
Interim Report for the six months ended 30 September 2021
4.0 Investor Returns (continued)
4.2 Distributable profit (continued)
Unaudited
6 months
30 Sep 21
Unaudited
6 months
30 Sep 20
$000$000
Weighted average number of shares for the purpose of basic distributable profit per share (000)
473,174
365,352
Basic distributable profit after current income tax per share - weighted (cents)5.11
5.77
AFFO basic distributable profit after current income tax per share - weighted (cents)4.89
5.48
Weighted average number of shares for the purpose of diluted distributable profit per share (000)
475,062
366,579
Diluted distributable profit after current income tax per share - weighted (cents)5.09
5.75
AFFO diluted distributable profit after current income tax per share - weighted (cents)4.87
5.46
4.3 Dividends paid
Unaudited
6 months
30 Sep 21
Unaudited
6 months
30 Sep 20
$000$000
The following dividends were declared and paid by SPL during the period:
Q4 2021 final dividend 1.6075 cents (Q4 2020 2.1575 cents)
7,607
7,882
Q1 2022 interim dividend 1.9345 cents (Q1 2021 1.9275 cents)
9,155
7,042
Total dividends paid - SPL
16,762
14,924
The following dividends were declared and paid by SIML during the period:
Q4 2021 final dividend 0.87 cents (Q4 2020 0.32 cents)
4,117
1,169
Q1 2022 interim dividend 0.543 cents (Q1 2021 0.55 cents)
2,570
2,010
Total dividends paid - SIML
6,687
3,179
Total dividends paid - Stride
23,449
18,103
Stride Property Group
Interim Report for the six months ended 30 September 2021
39
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Interim Report for the six months ended 30 September 2021Interim Report for the six months ended 30 September 2021
3839

5.0 Capital Structure and Funding
Stride's capital structure includes debt and equity, comprising shares and retained earnings as shown in the consolidated statement of financial
position. This section sets out how Stride manages its capital structure, funding exposure to interest rate risk and related financing costs (excluding
borrowings within Industre joint operations, refer note 6.4).
5.1 Borrowings
Unaudited
30 Sep 21
Audited
31 Mar 21
$000$000
Current
Bank facility drawn down
170,000
-
Non-current
Bank facility drawn down
259,100
261,000
Unamortised borrowing costs
(1,670)
(1,140)
257,430
259,860
Total net borrowings
427,430
259,860
Weighted average interest rate for debt (inclusive of current interest rate derivatives, margins and line fees) at balance date
2.87%
4.13%
Expiry
date
Interest
rateTotal
Undrawn
facility
Drawn
amount
Fair
value
30 Sep 21 (Unaudited)$000$000$000$000$000$000
Facility A31 Aug 2022Floating
170,000-170,000170,000
Facility B30 Jun 2024Floating
134,93825,838109,100109,100
Facility C11 Dec 2023Floating
150,000-150,000150,000
454,93825,838429,100429,100
31 Mar 21 (Audited)
Facility A31 Aug 2022Floating170,000-170,000170,000
Facility B9 Jun 2021Floating134,938134,938--
Facility C6 Nov 2021Floating
150,00059,00091,00091,000
454,938193,938261,000261,000
SPL’s bank borrowings are via syndicated senior secured facilities with ANZ Bank New Zealand Limited (ANZ), China Construction Bank Corporation (New
Zealand Branch), Commonwealth Bank of Australia (New Zealand Branch), Industrial and Commercial Bank of China Limited, Auckland Branch, MUFG Bank
Limited (Auckland Branch), The Hongkong and Shanghai Banking Corporation Limited, incorporated in the Hong Kong SAR, acting through its New Zealand
Branch, and Westpac New Zealand Limited. The bank security on the facilities is managed through a security agent who holds a first registered mortgage on
all the investment properties directly owned by SPL and a registered first ranking security interest under a General Security Deed over substantially all the
assets of SPL. SPL has been compliant with bank covenants during the respective periods.
Subsequent to balance date, on 9 November 2021, SPL received commitment letters from lenders to increase Facility A to $210.0 million, increasing total
debt facilities to $495.0 million, and extend the expiry to April 2024 (refer note 7.7).
SIML does not have any bank borrowings (31 Mar 21: nil) however, it does have a $3.0 million overdraft facility with ANZ, which has not been utilised during
the current period.
40Stride Property Group
Interim Report for the six months ended 30 September 2021
5.0 Capital Structure and Funding (continued)
Net Debt Reconciliation
Below sets out an analysis of net debt and the movements in net debt.
Unaudited
30 Sep 21
Audited
31 Mar 21
$000$000
Cash and cash equivalents
22,503
23,024
Borrowings - current
(170,000)
-
Borrowings - non-current
(257,430)
(259,860)
Lease liabilities
(27,383)
(27,454)
Net debt
(432,310)
(264,290)
Liabilities from financing activities
BorrowingsLeasesSub TotalCashTotal
$000$000$000$000$000
As at 31 Mar 20 (Audited)
(385,865)(28,109)(413,974)12,098(401,876)
Cash flows125,240504125,74410,926136,670
Re-assessment-151151-151
Other changes
765-765-765
As at 31 Mar 21 (Audited)(259,860)(27,454)(287,314)23,024(264,290)
Cash flows
(168,100)71(168,029)(521)(168,550)
Other changes
530-530-530
As at 30 Sep 21 (Unaudited)
(427,430)(27,383)(454,813)22,503(432,310)
5.2 Derivative financial instruments
Unaudited
30 Sep 21
Audited
31 Mar 21
SPL
$000$000
Outstanding interest rate derivative contracts
Active interest rate derivative contracts
220,000
230,000
Forward dated interest rate derivative contracts
200,000
-
Total notional principal value of interest rate derivative contracts
420,000
230,000
Interest rate derivative assets - non-current
5,960
-
Interest rate derivative liabilities - current
(140)
(553)
Interest rate derivative liabilities - non-current
(1,056)
(1,595)
Fair values of interest rate derivative contracts
4,764
(2,148)
Fixed interest rates ranges
0.39% - 3.40%
0.39% - 3.59%
Weighted average fixed interest rate on active interest rate derivative contracts (excluding margins)
1.43%
1.52%
Percentage of drawn debt fixed
51%
88%
During the current period, interest rate derivative contracts with a notional value of $200.0 million were entered into. All contracts have a forward-start
effective date of 31 December 2021 and a range of termination dates between 31 December 2024 and 31 December 2026.
The fair values of interest rate derivatives are determined from valuations prepared by independent treasury advisors using valuation techniques classified
as Level 2 in the fair value hierarchy (31 Mar 21: Level 2). Judgement is involved in determining the fair value by the independent treasury advisors. The fair
values are based on the present value of estimated future cash flows based on the terms and maturities of each contract and the current market interest
rates as at balance date. Fair values also reflect the current creditworthiness of the derivative counterparties. The valuations were based on market rates
at 30 September 2021 of between 0.65%, for the 90-day BKBM, and 2.24%, for the 10-year swap rate (31 Mar 21: 0.35% and 1.96%, respectively).
There have been no transfers between Level 1 and 2 during the respective periods. There were no changes to these valuation techniques during the
reporting period.
5.1 Borrowings (continued)
Stride Property Group
Interim Report for the six months ended 30 September 2021
41
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4041

5.0 Capital Structure and Funding (continued)
5.3 Net finance expense
Unaudited
6 months
30 Sep 21
Unaudited
6 months
30 Sep 20
$000$000
Finance income
Bank interest income
1
19
Other finance income
144
-
145
19
Finance expense
Bank borrowings interest
(6,676)
(5,290)
Bank borrowings interest capitalised
49
179
Finance expense - lease liabilities
(890)
(904)
Finance expense - swap break expense
-
(1,380)
(7,517)
(7,395)
Net finance expense
(7,372)
(7,376)
5.4 Share capital
There is only one class of shares, being ordinary shares, and they rank equally with each other. All issued shares are fully paid and have no par value. Stride
had 473,235,023 shares on issue as at 30 September 2021 (31 Mar 21: 472,828,313).
5.5 SIML equity (non-controlling interest)
Total
Notes$000
Balance 31 Mar 21 (Audited)13,693
Transactions with shareholders:
Dividends paid
4.3
(6,687)
Other movements in reserves
545
Total transactions with shareholders
(6,142)
Total other comprehensive income
109
Profit after income tax
5,460
Total comprehensive income
5,569
Balance 30 Sep 21 (Unaudited)
13,120
Balance 31 Mar 20 (Audited)
5,633
Transactions with shareholders:
Dividends paid
4.3
(3,179)
Other movements in reserves
169
Total transactions with shareholders
(3,010)
Total other comprehensive income172
Profit after income tax
7,543
Total comprehensive income
7,715
Balance 30 Sep 20 (Unaudited)
10,338
42Stride Property Group
Interim Report for the six months ended 30 September 2021
6.0 Investments in Property Entities
This section sets out how the investments in property entities held by SPL are accounted for in Stride.
6.1 Industre
On 1 July 2020, Industre commenced operations. Industre is a joint arrangement between SPL and a group of international institutional investors, through
a special purpose vehicle, advised by J.P. Morgan Asset Management (JPMAM). On 1 July 2020, SPL held a 68.25% interest in Industre. This reduced to
52.15% as at 30 September 2021.
Over the long term, the strategy is for JPMAM to fund further portfolio growth until the respective economic contributions to the portfolio are 75%/25%
(JPMAM/SPL).
The agreement between SPL and JPMAM in relation to their co-ownership requires unanimous consent from both parties for all relevant activities. The
accounting for the arrangements by SPL is a combination of a joint operation (proportionate share of assets, liabilities, revenue and expenses) and joint
venture (equity accounted). SIML is the manager of the joint arrangement.
6.2 Interests in associates and joint venture
Unaudited
30 Sep 21
Audited
31 Mar 21
$000$000
Equity-accounted investments
Investore
152,936
144,923
Diversified
1,767
1,227
Industre joint venture
153,823
119,557
308,526
265,707
Unaudited
6 months
30 Sep 21
Unaudited
6 months
30 Sep 20
$000$000
Share of profit in equity-accounted investments
Investore
10,687
17,224
Diversified
439
617
Industre joint venture
26,385
4,504
37,511
22,345
Stride Property Group
Interim Report for the six months ended 30 September 2021
43
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Interim Report for the six months ended 30 September 2021Interim Report for the six months ended 30 September 2021
4243

6.0 Investments in Property Entities (continued)
6.3 Industre joint venture
Industre joint venture comprises of Industre Property Tahi Limited (Tahi), Industre Property Rua Limited (Rua) and Industre Property Finance Limited (FinCo).
SPL has rights to the net assets of these entities, and consequently, these entities are classified as a joint venture.
Tahi and Rua hold legal and beneficial ownership of certain properties. FinCo is a funding vehicle established to obtain bank borrowings and on-lend the
funds to Tahi, Rua and Industre joint operation. SPL’s wholly owned subsidiary, Stride Industrial Property Limited (SIPL), is a guarantor under the Industre
banking arrangements as SIPL is a beneficial owner of property owned through the unincorporated joint venture of Industre and as such is jointly and
severally liable for Industre bank debt. SIPL has the benefit of, and bears obligations under, a cross indemnity with JPMAM by way of the joint venture
arrangements. As at 30 September 2021, the value of the financial guarantee was nil.
Tahi and Rua are eligible and have elected to be multi-rate PIEs of which the income tax liability arises to the investors. Accordingly, SPL recognises current
and deferred tax as part of its taxes in note 7.1 (rather than as part of the investment in the joint venture).
Summarised financial information for Industre joint venture
Total
$000
SPL’s share in carrying percentages 52.15%
Carrying amount - 31 Mar 21 (Audited)119,557
Movement in cash flow hedges net of tax
483
Share of profit from investment in Industre joint venture
26,385
Deemed equity contribution with a corresponding reduction in SPL’s interest
9,252
Dividends paid
(1,854)
Carrying amount - 30 Sep 21 (Unaudited)
153,823
The below table summarises SPL's share of assets, liabilities, revenues and expenses in Industre joint venture.
Unaudited
30 Sep 21
100%
Unaudited
30 Sep 21
participating
interest
$000$000
Assets
Current assets
4,8682,539
Investment properties
413,608215,702
Other non-current assets
81,11142,300
499,587260,541
Liabilities
Current liabilities
2,8971,513
Borrowings - non-current
199,713104,153
Other non-current liabilities
350182
202,960105,848
Net assets
296,627154,693
Loss on sale of properties in exchange for cash received from Industre joint venture
(870)
Closing carrying amount
153,823
Income
12,3486,685
Expenses
(8,084)(4,374)
Net change in fair value of investment properties
44,99524,074
Net share of profit*
49,25926,385
*Net share of profit information relates to the six month period from 1 April 2021 to 30 September 2021. SPL’s share in the Industre joint venture reduced
from 56.33% as at 31 March 2021 to 52.15% as at 30 September 2021. SPL’s net share of the Industre joint venture’s profit is calculated on the weighted
average participating interest during the period.
44Stride Property Group
Interim Report for the six months ended 30 September 2021
6.0 Investments in Property Entities (continued)
6.3 Industre joint venture (continued)
Audited
31 Mar 21
100%
Audited
31 Mar 21
participating
interest
$000$000
Assets
Current assets5,4763,009
Investment properties322,375181,600
Other non-current assets
79,47432,694
407,325217,303
Liabilities
Current liabilities3,2921,815
Borrowings - non-current189,96194,975
Other non-current liabilities
8442
193,33796,832
Net assets
213,988120,471
Loss on sale of properties in exchange for cash received from Industre joint venture
(914)
Closing carrying amount
119,557
Unaudited
30 Sep 20
100%
Unaudited
30 Sep 20
participating
interest
$000$000
Income2,1281,389
Expenses(1,178)(769)
Net change in fair value of investment properties
5,9503,884
Net share of profit*
6,9004,504
*Net share of profit information relates to the three month period from 1 July 2020 to 30 September 2020. SPL’s share in the Industre joint venture reduced
from 68.25% as at 30 June 2020 to 62.42% as at 30 September 2020. SPL’s net share of the Industre joint venture’s profit is calculated on the weighted
average participating interest during the period.
Stride Property Group
Interim Report for the six months ended 30 September 2021
45
Stride Property GroupStride Property Group
Interim Report for the six months ended 30 September 2021Interim Report for the six months ended 30 September 2021
4445

6.0 Investments in Property Entities (continued)
6.4 Industre joint operation
SPL holds a 52.15% interest in a joint arrangement with JPMAM relating to the investment properties as denoted in note 3.2. The Industre joint operation
holds the beneficial ownership of certain properties. SPL recognises its direct right to the jointly held assets, liabilities, revenues and expenses of the joint
operation as described below.
Summarised financial information for Industre joint operation
The table below summarises the assets, liabilities, revenues and expenses of Industre joint operation, and represent SPL’s share included in the
financial statements:
Unaudited
30 Sep 21
100%
Unaudited
30 Sep 21
participating
interest
$000$000
Assets
Current assets
2,3941,248
Investment properties
324,100169,022
326,494170,270
Liabilities
Current liabilities
1,236644
Borrowings
78,24940,808
79,48541,452
Net assets
247,009128,818
Income
7,2633,933
Expenses
(3,214)(1,738)
Net change in fair value of investment properties
37,91420,369
Net share of profit*
41,96322,564
*Net share of profit information relates to the six month period from 1 April 2021 to 30 September 2021. SPL’s share in the Industre joint operation reduced
from 56.33% as at 31 March 2021 to 52.15% as at 30 September 2021. The average ownership interest for the period has been used to recognise SPL’s
net share of the Industre joint operation's profit.
46Stride Property Group
Interim Report for the six months ended 30 September 2021
6.0 Investments in Property Entities (continued)
6.4 Industre joint operation (continued)
Audited
31 Mar 21
100%
Audited
31 Mar 21
participating
interest
$000$000
Assets
Current assets1,321744
Investment properties
285,600160,884
286,921161,628
Liabilities
Current liabilities1,448816
Borrowings
76,63343,169
78,08143,985
Net assets
208,840117,643
Unaudited
30 Sep 20
100%
Unaudited
30 Sep 20
participating
interest
$000$000
Income3,5652,354
Expenses(1,448)(933)
Net change in fair value of investment properties
10,3026,362
Net share of profit*
12,4197,783
*Net share of profit information relates to the three month period from 1 July 2020 to 30 September 2020. SPL’s share in the Industre joint operation
reduced from 68.25% as at 30 June 2020 to 62.42% as at 30 September 2020. The average ownership interest for the period has been used to recognise
SPL’s net share of the Industre joint operation's profit.
SPL’s portion of the borrowings in the Industre joint operation are with FinCo, which is in the Industre joint venture. This loan is on the same terms as the
banking facility with FinCo.
The below fee income was earned from the Industre joint operation. It represents the participating interest held by the participant AP SG 17 Pte. Limited. The
management fees paid from SPL to SIML are eliminated in the consolidated statement of comprehensive income.
Unaudited
6 Months
30 Sep 21
Unaudited
6 Months
30 Sep 20
$000$000
Asset management fee income
280
88
Performance fee income
272
24
Building management fee income
20
8
Project management fee income
7-
Maintenance fee income
2
1
Acquisition fee income
-
376
581
497
Stride Property Group
Interim Report for the six months ended 30 September 2021
47
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Interim Report for the six months ended 30 September 2021Interim Report for the six months ended 30 September 2021
4647

6.0 Investments in Property Entities (continued)
6.5 Discontinued operations
Discontinued operations refer to a core part of an entity’s operation that has been divested. In the prior period, SPL's industrial investment properties
were recognised as discontinued operations. The financial performance and cash flow information for the discontinued operations are for the period ended
30 June 2020 (30 Sep 20 column). There is no impact on the results for the six months ended 30 September 2021.
Only JPMAM special purpose vehicle’s participating interest was treated as discontinued in respect of the joint operation as SPL retained a partial direct
ownership interest in the properties. 100% of the Industre joint venture was treated as discontinued.
Unaudited
6 months
30 Sep 20
SPL
$000
Gross rental income
2,529
Direct property operating expenses
(401)
Net rental income2,128
Less corporate expenses
Administration expenses
(7)
Total corporate expenses
(7)
Profit before other income/(expense) and income tax2,121
Other income/(expense)
Net change in fair value of investment properties
4,530
Hedge ineffectiveness of cash flow hedges
(656)
Loss on disposal of investment properties
(4,160)
Profit before income tax1,835
Income tax expense
(1,916)
Loss after income tax from discontinued operations
(81)
Net cash outflow from operating activities(456)
Net cash inflow from investing activities142,234
Net cash outflow from financing activities(196,450)
48Stride Property Group
Interim Report for the six months ended 30 September 2021
7.0 Other
This section contains additional information to assist in understanding the financial performance and position of Stride.
7.1 Income tax
Unaudited
6 months
30 Sep 21
Unaudited
6 months
30 Sep 20
Income tax
$000$000
Current tax
(5,275)
(5,758)
Deferred tax
(2,690)
275
Income tax expense per the consolidated statement of comprehensive income
(7,965)
(5,483)
Profit before income tax (including discontinued operations note 6.5)69,476
57,014
Prima facie income tax using the company tax rate of 28%(19,453)
(15,964)
Decrease/(increase) in income tax due to:
Net change in fair value of investment properties
3,383
5,671
Reversal of lease liability movement
(19)
(32)
Non-taxable income
10,644
4,693
Assessable income
(477)
(64)
Depreciation
3,412
1,799
Depreciation recovered on disposal of investment properties
(186)
(3,814)
Non-deductible expenses
(1,964)
(561)
Expenditure deductible for tax
334
2,689
Temporary differences
(1,063)
(175)
Over provision in prior year
114
-
Current tax expense
(5,275)
(5,758)
Investment property depreciation
(4,044)
(2,058)
Other
1,354
2,333
Deferred tax charged to profit or loss
(2,690)
275
Income tax expense per the consolidated statement of comprehensive income from
continuing and discontinued operations
(7,965)
(5,483)
Income tax expense from continuing operations
(7,965)
(3,567)
Income tax expense from discontinued operations
-
(1,916)
Income tax expense per the consolidated statement of comprehensive income from
continuing and discontinued operations
(7,965)
(5,483)
Income tax expense arising from the Industre joint venture (Tahi and Rua) is ($442,000) (30 Sep 20: ($52,000)).
7.2 Total corporate expenses
Unaudited
6 months
30 Sep 21
Unaudited
6 months
30 Sep 20
$000$000
Corporate overhead expenses include:
Salaries and other short-term benefits
7,449
6,379
Software asset expense (refer note 1.4)
1,025
-
Software amortisation
-
196
Administration expenses include:
Share based payment expense
545
169
Feasibility expenses
597
-
Stride Property Group
Interim Report for the six months ended 30 September 2021
49
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Interim Report for the six months ended 30 September 2021Interim Report for the six months ended 30 September 2021
4849

7.0 Other (continued)
7.3 Related party disclosures
Unaudited
6 months
30 Sep 21
Unaudited
6 months
30 Sep 20
$000$000
The following transactions with a related party took place:
Diversified
Asset management fee income
1,476
1,298
Salaries and wages recovery
1,079
1,103
Project management fee income
995
1,074
Building management fee income
809
691
Leasing fee income
262
696
Accounting fee income
87
88
Licensing fee income
35
35
Total fee income
4,743
4,985
Rent paid
(57)
(58)
Interest income received (reinvested in units)
144
-
Investore
Asset management fee income
2,776
2,383
Performance fee income
1,667
1,446
Building management fee income
218
217
Disposal fee income
128
-
Accounting fee income
125
125
Leasing fee income
61
408
Maintenance fee income
12
19
Project management fee income
3
22
Capital raising fee income
-
89
Total fee income
4,990
4,709
Dividend income
2,682
2,630
Consideration paid for shares
-
(16,522)
Consideration received for the disposal of investment properties
-
140,750
Industre joint venture
Asset management fee income
732
176
Performance fee income
674
17
Acquisition fee income
427
1,266
Building management fee income
38
168
Project management fee income
23
332
Leasing fee income
-
608
Maintenance fee income
-
4
Total fee income
1,894
2,571
Dividend income
1,854
-
Interest expense
(689)
(365)
Consideration received for the disposal of investment properties
-
206,066
Consideration paid for shares
-
(53,028)
50Stride Property Group
Interim Report for the six months ended 30 September 2021
7.0 Other (continued)
7.3 Related party disclosures (continued)
Unaudited
30 Sep 21
Audited
31 Mar 21
$000$000
The following balances were receivable from/(payable to) a related party:
Investore - related party receivable
760
707
Diversified - related party receivable
193
329
Industre joint venture (Tahi/Rua/FinCo) - receivable
941
905
Diversified - interest-bearing loan
3,398
3,398
Industre joint venture (FinCo) - borrowings
(40,808)
(43,169)
Included within trade and other payables is a $5.9 million provision (31 Mar 21: $7.5 million) for seismic works in relation to properties divested to Investore
in the year ended 31 March 2021.
7.4 Trade and other receivables
Unaudited
30 Sep 21
Audited
31 Mar 21
$000$000
Current
Trade and other receivables
3,298
4,445
Less loss allowance
(551)
(551)
Trade and other receivables net of loss allowance
2,747
3,894
Accrued income receivable from AP SG 17 Pte. Limited
2,494
3,000
Related party receivable (refer note 7.3)
1,894
2,174
7,135
9,068
Included in 30 September 2021 trade and other receivables balance is $2.5 million (31 Mar 21: $3.0 million) accrued income expected to be received from
AP SG 17 Pte. Limited, a participant in the Industre joint operation. The income is a result of The Concourse Development Profit as contemplated under the
arrangements between the two participants.
7.5 Property, plant and equipment
Unaudited
30 Sep 21
Audited
31 Mar 21
$000$000
Property, plant and equipment
6,930
6,658
Stride’s head office is located at 34 Shortland Street, Auckland, which is held as an investment property (refer note 3.2). The value attributable to this floor,
of $6.3 million (31 Mar 21: $6.0 million), has been recognised as property, plant and equipment, with a revaluation surplus of $0.3 million recognised within
other comprehensive income on the consolidated statement of comprehensive income.
7.6 Contingent liabilities
Stride has no contingent liabilities at balance date (31 Mar 21: nil).
Stride Property Group
Interim Report for the six months ended 30 September 2021
51
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Interim Report for the six months ended 30 September 2021Interim Report for the six months ended 30 September 2021
5051

7.0 Other (continued)
7.7 Subsequent events
On 9 November 2021, SPL received commitment letters from bank lenders to increase Facility A to $210.0 million, increasing total bank debt facilities to
$495.0 million, and extend the expiry to April 2024.
On 25 November 2021, Stride announced that it is launching a capital raise, comprising a placement for $100.0 million and a retail offer for up to
$20.0 million (with the ability to accept additional applications under each of the placement and retail offer at Stride's discretion), the proceeds of which will
be used initially to reduce drawn bank debt.
On 25 November 2021, SPL declared a cash dividend for the period 1 July 2021 to 30 September 2021 of 1.7475 cents per share, to be paid on
7 December 2021 to all shareholders on SPL’s register at the close of business on 30 November 2021. At 1.7475 cents per share, the total dividend
payment will be $8,269,782. This dividend will carry imputation credits of 0.096911 cents per share. This dividend has not been recognised in the
financial statements.
On 25 November 2021, SIML declared a cash dividend for the period 1 July 2021 to 30 September 2021 of 0.73 cents per share, to be paid on
7 December 2021 to all shareholders on SIML’s register at the close of business on 30 November 2021. At 0.73 cents per share, the total dividend
payment will be $3,454,616. This dividend will carry imputation credits of 0.283889 cents per share. This dividend has not been recognised in the financial
statements. SIML’s equity (non-controlling interest) consists largely of retained earnings and the declared dividend represents 26% of SIML’s equity as at
30 September 2021.
52Stride Property Group
Interim Report for the six months ended 30 September 2021
Independent auditor’s review report
To the shareholders of Stride Property Limited and Stride Investment Management Limited
Report on the consolidated interim financial statements
Our conclusion
We have reviewed the consolidated interim financial statements of Stride Property Group, which consists of Stride Property Limited (SPL) and Stride
Investment Management Limited (SIML) being a “Stapled Entity” (together Stride), which comprise the consolidated statement of financial position as at
30 September 2021, and the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated
statement of cash flows for the six months ended on that date, and significant accounting policies and other explanatory information.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial statements of
the Group do not present fairly, in all material respects, the financial position of the Group as at 30 September 2021, and its financial performance and
cash flows for the six months then ended, in accordance with International Accounting Standard 34 Interim Financial Reporting (IAS 34) and New Zealand
Equivalent to International Accounting Standard 34 Interim Financial Reporting (NZ IAS 34).
Basis for conclusion
We conducted our review in accordance with the New Zealand Standard on Review Engagements 2410 (Revised) Review of Financial Statements
Performed by the Independent Auditor of the Entity (NZ SRE 2410 (Revised)). Our responsibility is further described in the Auditor’s responsibility for the
review of the consolidated interim financial statements section of our report.
We are independent of Stride in accordance with the relevant ethical requirements in New Zealand relating to the audit of the annual financial statements,
and we have fulfilled our other ethical responsibilities in accordance with these ethical requirements. In addition to our role as auditor, our firm carries out
other services for the Group in the areas of tenancy marketing and operating expenditure audits for Stride, the provision of market survey data relating
to executive remuneration levels and have performed an investigating accountant’s role which resulted in the issuance of a limited assurance report. The
provision of these other services has not impaired our independence.
Directors’ responsibility for the consolidated interim financial statements
The Directors of SPL and SIML respectively are responsible, on behalf of Stride, for the preparation and fair presentation of these consolidated interim
financial statements in accordance with IAS 34 and NZ IAS 34 and for such internal control as the Directors determine is necessary to enable the preparation
and fair presentation of consolidated interim financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s responsibility for the review of the consolidated interim financial statements
Our responsibility is to express a conclusion on the consolidated interim financial statements based on our review. NZ SRE 2410 (Revised) requires us to
conclude whether anything has come to our attention that causes us to believe that the consolidated interim financial statements, taken as a whole, are not
prepared in all material respects, in accordance with IAS 34 and NZ IAS 34. A review of consolidated interim financial statements in accordance with NZ SRE
2410 (Revised) is a limited assurance engagement. We perform procedures, primarily consisting of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review procedures.
The procedures performed in a review are substantially less than those performed in an audit conducted in accordance with International Standards on
Auditing and International Standards on Auditing (New Zealand) and consequently does not enable us to obtain assurance that we might identify in an audit.
Accordingly, we do not express an audit opinion on these consolidated interim financial statements
Who we report to
This report is made solely to the shareholders of SPL and SIML, as a body. Our review work has been undertaken so that we might state to the shareholders
of SPL and SIML those matters which we are required to state to them in our review report and for no other purpose. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone other than the shareholders of SPL and SIML, as a body, for our review procedures, for this report, or for
the conclusion we have formed.
The engagement partner on the review resulting in this independent auditor’s review report is Samuel Shuttleworth.
For and on behalf of:
Chartered Accountants
25 November 2021
Auckland
Stride Property Group
Interim Report for the six months ended 30 September 2021
53
Stride Property GroupStride Property Group
Interim Report for the six months ended 30 September 2021Interim Report for the six months ended 30 September 2021
5253

Corporate Directory
Board of Directors
Tim Storey (Chair)
John Harvey
Michelle Tierney
Philip Ling
Nick Jacobson
Jacqueline Cheyne
Ross Buckley (appointed 9 August 2021)
Registered Office
Level 12, 34 Shortland Street, Auckland 1010
PO Box 6320, Victoria Street West
Auckland 1142, New Zealand
T +64 9 912 2690
W strideproperty.co.nz
Auditor
PwC
PwC Tower
15 Customs Street West, Auckland 1010
Private Bag 92162, Auckland 1142
Share Registrar
Computershare Investor Services Limited
Level 2, 159 Hurstmere Road, Takapuna
Private Bag 92119,
Victoria Street West, Auckland 1142
T +64 9 488 8777
F +64 9 488 8787
E enquiry@computershare.co.nz
Legal Adviser
Bell Gully
Level 21, Vero Centre
48 Shortland Street, Auckland 1010
PO Box 4199, Auckland 1140
Bankers
ANZ Bank New Zealand Limited
China Construction Bank Corporation (New Zealand Branch)
Commonwealth Bank of Australia (New Zealand Branch)
Industrial and Commercial Bank of China Limited, Auckland Branch
MUFG Bank Limited (Auckland Branch)
The Hongkong and Shanghai Banking Corporation Limited (New Zealand Branch)
Westpac New Zealand Limited
54Stride Property Group
Interim Report for the six months ended 30 September 2021
Stride Property Group
Interim Report for the six months ended 30 September 2021
54

Stride Property Group
Level 12, 34 Shortland Street, Auckland 1010
PO Box 6320, Victoria Street West, Auckland 1142
New Zealand
T +64 9 912 2690
W strideproperty.co.nz

---

Stride Property Group Interim Results for the six months ended 30 September 2021 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
1
Stride Property Group
Interim Results
for the six months ended 30 September 2021
and Capital Raising

Stride Property Group Interim Results for the six months ended 30 September 2021 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
2
This presentation has been prepared by Stride Property Limited (SPL) and Stride Investment Management Limited (SIML) (SPL
and SIML together, Stride Property Group or Stride) in relation to: (1) the interim results of Stride for the six months ended 30
September 2021; and (2)an offer of new stapled securities of Stride Property Group, each comprising one ordinary share in SPL
and one ordinary share in SIML (New Stapled Securities) by way of: a placement to eligible institutional and other selected
investors (Placement); and a retail share offer to existing eligible securityholders of Stride Property Group with a registered
address in New Zealand (RetailOffer), in New Zealand in reliance on clause 19 of Schedule 1 to the Financial Markets Conduct
Act 2013 (FMCA) and in reliance on a waiver issued by NZX Regulation in favourof Stride dated 25 November 2021 (the
Placementand the Retail Offer, together, are referred to as the Offer).
Information:This presentation contains summary information about Stride and its activities that is current as of the date of this
presentation. The information in this presentation is of a general nature and does not purport to be complete nor does it contain
all the information which a prospective investor may require in evaluating a possible investment in Stride or that would be
required in a product disclosure statement for the purposes of the FMCA. Stride is subject to disclosure obligations under the
NZX Listing Rules that require it to notify certain material information to NZX Limited (NZX). This presentation should be read in
conjunction with Stride's other periodic and continuous disclosure announcements released to NZX (which are available at
www.nzx.com/companies/SPG). No information set out in this presentation will form the basis of any contract.
Interim Results:The information in this presentation is intended to constitute a summary of certain information relating to the
performance of Stride Property Group for the six months ended 30 September 2021. Please refer to Stride Property Group's
Interim Report HY22 for further information in relation to the six months ended 30 September 2021.
Financial data:All dollar values are in New Zealand dollars (NZ$ or NZD) unless otherwise stated. This presentation includes
certain financial measures that are "non-GAAP (generally accepted accounting practice) financial information". Such financial
information and financial measures (including Distributable Profit, Adjusted Funds From Operations (AFFO), profit before net
finance expense, other income/(expense) and income tax, and profit before other income/(expense) and income tax) do not have
standardisedmeanings prescribed under New Zealand equivalents to International Financial Reporting Standards (NZ IFRS) or
International Financial Reporting Standards (IFRS) and therefore, may not be comparable to similarly titled measures presented
by other entities, and should not be construed as an alternative to other financial measures determined in accordance with NZ
IFRS or IFRS.
NZX:The New Stapled Securities will be quoted on the NZX Main Board following completion of the relevant allotment
procedures for the Placement and the Retail Offer. NZX accepts no responsibility for any statement in this presentation. NZX is a
licensed market operator, and the NZX Main Board is a licensed market under the FMCA.
Non-Standard designation:Stride has been designated as a "Non-Standard" (NS) issuer by NZX due to its stapled structure.
Further details of the waivers from the NZX Listing Rules that have been granted by NZX to give effect to that stapled structure
and the implications of investing in stapled securities of Stride Property Group are included on pages 153 to 155 of Stride's
Annual Report for the financial year ended 31 March 2021.
Not financial product advice:This presentation does not constitute legal, financial, tax, accounting, financial product advice or
investment advice or a recommendation to acquire stapled securities in Stride (including the New Stapled Securities) and has
been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment
decision, prospective investors should consider the appropriateness of the information having regard to their own objectives,
financial situation and needs and consult a financial adviser, solicitor, accountant or other professional adviser if necessary.
Investment risk:An investment in stapled securities in Stride is subject to investment and other known and unknown risks, some
of which are beyond the control of Stride. The Key Risks section on pages 30 to 34 of this presentation ("Key Risks") includes a
non-exhaustive summary of certain key risks associated with Stride and the Offer. Stride does not guarantee its performance or
any return on its securities.
Not an offer:This presentation is not a prospectus or product disclosure statement or other offering document under New
Zealand law or any other law (and will not be lodged with or approved by the Registrar of Financial Service Providers or any
regulatory authority in any jurisdiction). This presentation is for information purposes only and is not an invitation or offer of
securities for subscription, purchase or sale in any jurisdiction. Any decision to purchase New Stapled Securities in the Retail
Offer must be made on the basis of all information provided in relation to the Offer, including information to be contained or
referred to in a separate offer document which will be available following its release via NZX (Offer Document). Any eligible
securityholder who wishes to participate in the Retail Offer should consider the Offer Document in deciding to apply under that
offer. Anyone who wishes to apply for New Stapled Securities under the Retail Offer will need to apply in accordance with the
instructions contained in the Offer Document and the application form.
Restrictions on distribution:This presentation is not for distribution or release in the United States. This presentation does not
constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States. The distribution ofthis
presentation outside New Zealand may be restricted by law. Any recipient of this presentation who is outside New Zealand must
seek advice on and observe any such restrictions. Refer to the section "International Offer Restrictions" of this presentation for
information on restrictions on eligibility criteria to participate in the Offer.
Disclaimer:None of SPL, SIML, Goldman Sachs New Zealand Limited or their related companies and affiliates including, in
each case, their respective shareholders, directors, officers, employees, agents and advisers, as the case may be (Specified
Persons), have independently verified or will verify any of the content of this presentation and none of them are under any
obligation to you if they become aware of any change to or inaccuracy in the information in this presentation.
To the maximum extent permitted by law, each Specified Person disclaims and excludes all liability (whether in tort (including negligence) or
otherwise) for any direct or indirect loss, damage or other consequence (whether foreseeable or not) suffered by any person: from the use of or
reliance on the information contained in, or omitted from, this presentation; from refraining from acting because of anythingcontained in or
omitted from this presentation or otherwise arising in connection therewith (including for negligence, default, misrepresentation or by omission
and whether arising under statute, in contract or equity or from any other cause). To the maximum extent permitted by law, noSpecified Person
makes any representation or warranty, either express or implied, as to the currency, fairness, accuracy, completeness or reliability of the
information contained in this presentation. You agree that you will not bring any proceedings against or hold or purport to holdany Specified
Person liable in any respect for this presentation or the information in this presentation and waive any rights you may otherwise have in this
respect.
This presentation contains data sourced from and the views of independent third parties. In such data being replicated in this presentation, no
Specified Person makes any representation, whether express or implied, as to the accuracy of such data. The replication of any views in this
presentation should not be treated as an indication that Stride or any other Specified Person agrees with or concurs with such views.
Past performance:Past performance information provided in this presentation is given for illustrative purposes only and should not be relied
upon as (and is not) a promise, representation, warranty or guarantee as to the past, present or future performance of Stride.
Forward-looking statements:This presentation contains certain forward-looking statements with respect to the financial condition, results of
operations and business of Stride. Forward-looking statements can generally be identified by the use of words such as 'project','foresee', 'plan',
'expect', 'aim', 'intend', 'anticipate', 'believe', 'estimate', 'may', 'should', 'will' or similar expressions. Forward-looking statements in this presentation
include statements regarding the timetable, conduct and outcome of the Offer and the use of proceeds thereof, statements about the plans,
objectives and strategies of the management of Stride and statements about the future performance of Stride's business. Any indications of, or
guidance or outlook on, future earnings or financial position or performance and future distributions are also forward-looking statements. All such
forward-looking statements involve known and unknown risks, significant uncertainties, assumptions, contingencies, and other factors, many of
which are outside the control of Stride, which may cause the actual results or performance of Stride to be materially different from any future
results or performance expressed or implied by such forward-looking statements. Such forward-looking statements speak only as ofthe date of
this presentation. Except as required by law or regulation (including the NZX Listing Rules), Stride undertakes no obligationtoupdate these
forward-looking statements for events or circumstances that occur subsequent to the date of this presentation or to update or keep current any of
the information contained herein. Any estimates or projections as to events that may occur in the future (including projections of revenue,
expense, net income and performance) are based upon the best judgement of Stride from the information available as of the date of this
presentation. A number of factors could cause actual results or performance to vary materially from the projections, including the risk factors set
out in this presentation. Investors should consider the forward-looking statements in this presentation in light of those risks and disclosures. You
are strongly cautioned not to place undue reliance on any forward-looking statements, particularly in light of the current economic climate and the
significant volatility, uncertainty and disruption caused in relation to Stride and otherwise by the COVID-19 pandemic.
Lead Manager and Underwriter:In connection with the bookbuild to be conducted in respect of the Placement (Bookbuild), one or more
investors may elect to acquire an economic interest in the New Stapled Securities (Economic Interest), instead of subscribingfor or acquiring the
legal or beneficial interest in those stapled securities. Goldman Sachs New Zealand Limited or its affiliates may, for their ownaccount, write
derivative transactions with those investors relating to the New Stapled Securities to provide the Economic Interest, or otherwise acquire stapled
securities of Stride in connection with the writing of such derivative transactions in the Bookbuild and/or the secondary market. As a result of such
transactions, Goldman Sachs New Zealand Limited or its affiliates may be allocated, subscribe for or acquire New Stapled Securities or stapled
securities of Stride in the Bookbuild and/or the secondary market, including to hedge those derivative transactions, as well as hold long or short
positions in such shares. These transactions may, together with other stapled securities of Stride acquired by Goldman SachsNew Zealand
Limited or its affiliates in connection with its ordinary course sales and trading, principal investing and other activities,result in Goldman Sachs
New Zealand Limited or its affiliates disclosing a substantial holding and earning fees.
Goldman Sachs New Zealand Limited and its affiliates are full service financial institutions engaged in various activities, which may include
trading, financing, corporate advisory, financial advisory, investment management, investment research, principal investment,hedging, market
making, brokerage and other financial and non-financial activities and services. Goldman Sachs New Zealand Limited and its affiliates have
provided, and may in the future provide, financial advisory, financing services and other services to Stride and to persons and entities with
relationships with Stride, for which they received or will receive customary fees and expenses. In the ordinary course of its various business
activities, Goldman Sachs New Zealand Limited and its affiliates may purchase, sell or hold a broad array of investments and actively trade
securities, derivatives, loans, commodities, currencies, credit default swaps and other financial instruments for their own account and for the
accounts of their customers, and such investment and trading activities may involve or relate to assets, securities and/or instruments of Stride,
and/or persons and entities with relationships with Stride. Goldman Sachs New Zealand Limited and its affiliates may also communicate
independent investment recommendations, market colouror trading ideas and/or publish or express independent research views in respect of
such assets, securities or instruments and may at any time hold, or recommend to clients that they should acquire, long and/or short positions in
such assets, securities and instruments.
General:For the purposes of this Disclaimer and Important Notice, "presentation" means the slides, any oral presentation of the slides by Stride,
any question-and-answer session that follows that oral presentation, hard copies of this presentation and any materials distributed at, or in
connection with, that presentation. The information and opinions contained in this presentation are provided as at the date of this presentation
and are subject to change without notice. Stride reserves the right to withdraw, or vary the timetable for, the Placement and/or the Retail Offer,
without notice.
Acceptance:By attending or reading this presentation, you agree to be bound by the foregoing limitations and restrictions and, in particular, will
be deemed to have represented, warranted, undertaken and agreed that: (i) you have read and agree to comply with the contents of this
Disclaimer and Important Notice; (ii) you are permitted under applicable laws and regulations to receive the information contained in this
presentation; (iii) you will base any investment decision solely on information released by Stride via NZX (including, in thecase of the Retail Offer,
the Offer Document); and (iv) you agree that this presentation may not be reproduced in any form or further distributed to any other person,
passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose.
Disclaimer and Important Notice

Stride Property Group Interim Results for the six months ended 30 September 2021 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
3
Capitalised and technical terms are defined in the glossary on page 39
Contents
4
Capital Raise Overview
6
HY22 Highlights
17
Interim Financial Results
22
Capital Management
25
Capital Raise
35
Conclusion
39
Glossary
41
Appendices

Stride Property Group Interim Results for the six months ended 30 September 2021 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
4
Capital Raise Overview

Stride Property Group Interim Results for the six months ended 30 September 2021 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
5
46 Sale Street, Auckland
Capital raise
•Stride today announces a $120m raiseconsisting of a $100m underwritten placement
1
and a
$20m retail offer
2
(the Offer)
•The underwritten issue price for the Placement of $2.00 per share represents a discount of:
o8.5% to the closing price on 24 November 2021 of $2.185 (ex-dividend)
o7.6% to the 5-day VWAP up to and including 24 November 2021 of $2.164
(ex-dividend)
SPG outcomes
•Offer proceeds will reduce bank debt, with pro forma LVR reducing to 29.8%upon
completion of the Offer
•Capital raise provides Stride with greater flexibility and options for the establishment of its
office fund, Fabric, as well as progressing other strategic initiatives as part of Stride’s broader
investment management strategy
•FY22 DPS guidance of 9.91cps maintained,factoring in Stride’s anticipated costs of COVID-
19 restrictions for the remainder of FY22
Fabric update
•Stride continues to actively assess the potential options and next steps for establishing its office
fund, Fabric
•Fabric has a conditional agreement to acquire 110 Carlton Gore Road for $217.5m, conditional
on the successful completion of an initial public offering of Fabric, which is within Stride’s
control to satisfy or waive
Capital Raise
Stride is undertaking a capital raise to provide greater flexibility
in pursuing its strategic objective of growing its investment
management business
20 Customhouse Quay,
Wellington
1.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.
2.With the ability to accept additional applications at Stride’s sole discretion.

Stride Property Group Interim Results for the six months ended 30 September 2021 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
6
HY22 Highlights

Stride Property Group Interim Results for the six months ended 30 September 2021 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
7
1.Net of management fees received from SPL.
2.Excludes lease liabilities. Includes Stride’s 52.2% interest in the joint operation component of the Industre Property Joint
Venture and the value of Level 12, 34 Shortland Street, which houses Stride’s head office and is shown in the consolidated
interim financial statements as property, plant and equipment.
HY22 financial highlights
•$30.1m net rental income, up 46.9% from HY21 ($20.5m) due to $532m
property acquisitions undertaken since September 2020
•$12.8m management fee income
1
, down 2.4% on HY21 ($13.1m), cycling
from a high level of activity-based income in HY21. Underlying recurring
base fee income of $8.2m was up 24.2% from HY21 ($6.6m) due to
strong growth in external AUM to $2.4bn, up 25.1% from 30 September
2020 ($1.9bn)
•$18.6m profit before other income/(expense) and income tax from
continuing operations, up 10.9% from HY21 ($16.7m)
•$61.5m profit after income tax from continuing operations, up 19.2% from
HY21 ($51.6m)
•$24.2m Distributable Profit after current income tax, up 14.8% from HY21
($21.1m)
•COVID-19 rental abatement allowance of $3.2m for the period to
30 September 2021
•Net valuation movement
2
of $13.7m, up 1.1% from 31 March 2021
•Net Tangible Assets (NTA) per share of $2.24, which does not include the
value of SIML’s management contracts, up 4.2% on 31 March 2021
Profit after income tax from
continuing operations
$61.5m
Distributable Profit after current
income tax
$24.2m
Net tangible assets per share
$2.24
Stride Property Group (Stride) –Consolidated
Performance
Management fee income
1
$12.8m

Stride Property Group Interim Results for the six months ended 30 September 2021 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
8
34 Shortland Street, Auckland
Stride Property Limited (SPL)
Places
Acquisitions
•46 Sale Street, Auckland –Office property acquired in June 2021 for $152m
Refurbishment and upgrades
•22 The Terrace, Wellington-SPL is upgrading this building to 100% NBS and
targeting 5 Star Green Star and 5 Star NABERSNZ ratings. Base build practical
completion due December 2021
•34 Shortland Street, Auckland–SPL is undertaking various improvements,
including upgrading the building to 100% NBS
•55 Lady Elizabeth Lane, Wellington –works are required to improve the seismic
performance of this property. The current estimated cost of these works has
contributed to a -$17.3m devaluation in the property as at30 September 2021
Portfolio valuations
•Total portfolio valuation
1
of $1,216.4m as at30 September 2021, reflecting a net
valuation movement of +$13.7m / +1.1% from 31 March 2021, which includes:
•Town Centre+$11.5m / +3.7%
•Fabric Office Portfolio -$1.0m / -0.15%
2
•SPL’s 52.2% share of Industrejoint operation portfolio +$20.4m / +13.7%
1.Excludes lease liabilities. Includes Stride’s 52.2% interest in the joint operation component of the Industre Property Joint Venture and the value of Level 12, 34
Shortland Street, which houses Stride’s head office and is shown in the consolidated interim financial statements as property, plant and equipment.
2.Excludes 55 Lady Elizabeth Lane, Wellington, which does not form part of the Fabric Office Portfolio.

Stride Property Group Interim Results for the six months ended 30 September 2021 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
9
HY22 highlights
•Net valuation growth +4.1% to $1.15bn
1
•$73.3m new acquisitions completed
•Dividend growth +3.9% to 7.90cps
1.Portfolio value excludes: (1) seismic works to be completed by SPL and rental underwrites provided by SPL (total: $5.6m) in relation to the three large format retail properties acquired by Investore from SPL on 30 April 2020; and (2) lease
liabilities.
2.Weighted average market capitalisation rate.
Portfolio snapshot
As at30 Sep 2131 Mar 21
Number of assets
4443
Portfolio value
1
$1,148.6m$1,037.9m
WACR
2
4.9%5.2%
WALT
9.5 years9.8 years
Net Lettable Area
249,784 sqm246,272 sqm
Occupancy (by area)
99.0%99.1%
HY22 highlights
•Net valuation growth +3.1% to $508.4m
•Queensgate rebuild with cinema
reopening expected 3Q 2022
Portfolio snapshot
As at30 Sep 2131 Mar 21
Number of assets
44
Portfolio value
$508.4m$465.6m
WACR
2
6.9%7.0%
WALT
3.2 years3.4 years
Net Lettable Area
105,061 sqm105,064 sqm
Occupancy (by area)
93.8%93.8%
HY22 highlights
•Net valuation growth +12.7% to $737.7m
•$42.7m new acquisitions completed
•$54.7m of developments and acquisitions
Portfolio snapshot
As at30 Sep 2131 Mar 21
Number of assets
2118
Portfolio value
$737.7m$610.0m
WACR
2
4.3%4.8%
WALT
9.2 years9.7 years
Net Lettable Area
178,197 sqm173,330 sqm
Occupancy (by area)
99.1%97.3%
Products

Stride Property Group Interim Results for the six months ended 30 September 2021 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
10
Developments are becoming an increasingly meaningful source of AUM growth in Stride’s Products,
with a focus on sustainability becoming embedded into Stride’s development process
1.As at 30 September 2021.
2.Green projects are defined as projects that are targeting a minimum 4 Star Green Star rating or 4 Star NABERSNZ rating.
Developments
Completions
(last 12
months)
Committed
projects
Remaining
spend
-$40m$16m
-$37m$37m
-$146m$19m
$50m$47m$44m
Total
1
$50m$269m$115m
Green projects
2
-$110m$85m
439 Rosebank Road, Auckland –Industre development.
Artist’s impression of completed development

Stride Property Group Interim Results for the six months ended 30 September 2021 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
11
$726m
$321m
$508m
$1,149m
$738m
$254m
$37m
$19m
$55m
$1,301m
$1,185m
$527m
$792m
Office
Retail Shopping Centres/Town Centre
Large Format Retail
Industrial
Acquisitions and developments
Since 31 March 2021, Stride’s AUM has grown by $439m to $3.4bn with external AUM increasing
from $2.1bn to $2.4bn as at30 September 2021. Current potential acquisitions and developments
would further increase Stride’s AUM to $3.8bn
Sector focus:Office and Town Centre
1
Large Format RetailRetail Shopping CentresIndustrial
SPL investment:100%18.8%2.1%52.2%
1.Stride office and town centre property excludes SPL's interest in the Industre joint operation portfolio which is reported aspart of the assets of SPL in the consolidated interim financial statements (see note 3.2 to the consolidated interim
financial statements for further information).
Products
Portfolio composition by value as at 30 September 2021

Stride Property Group Interim Results for the six months ended 30 September 2021 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
12
SIML Management Contracts Value
The value of SIML’s management
contracts are not included on Stride’s
balance sheet and therefore not
captured in Stride’s NTA of $2.24
Select examples of
Australasian
transactionsCountryTypeDate
Price paid
for mgmt.
contract
3
AUM
% of
AUM
Aventus
AUSMergerOct-21AUD163mAUD2.3bn7.1%
APN
AUSAcquiredMay-21AUD166mAUD2.9bn5.7%
Primewest
AUSMergerApr-21AUD452mAUD5.0bn9.0%
PrecinctProperties
NZInternalisedMar-21NZD215mNZD3.5bn
4
6.1%
Augusta Capital
NZAcquiredJul-20NZD94mNZD1.8bn5.1%
1.Based on acquisitions and developments of Industre, Investore and Diversified outlined on
page 11.
2.Additional base fees expected to be earned in the six months following the demerger of
Fabric Property Limited, if this occurs.
3.Excludes any net tangible assets acquired.
4.Precinct Property’s $3.5bn AUM was pro forma for committed projects, 1 Queen Street
and the sale of a non-core asset.
Source: ASX & NZX company announcements
•HY22 external AUM growth of $0.3bn and capital
commitments will deliver growth in recurring
management fees payable to SIML
•SIML’s external AUM is $2.4bn as at 30 September
2021
•Recurring, or base, fees will continue to grow as
SIML’s Products’ portfolios grow and new Products,
such as Fabric, are established
•Recent Australasian transaction activity
demonstrates an active market for investment
management contracts
$6.7m
$6.6m $6.6m
$8.2m
$11.7m
$0.6m
$2.6m
$6.5m
$4.6m
$4.6m
$0.6m
$0.2m
$2.6m
$7.3m
$9.2m
$13.1m
$12.8m
$16.3m
HY19HY20HY21HY22Higher base
fees from
portfolio
growth
(6 months)
Base fees
from future
acquisitions &
developments
(6 months)¹
Estimated
Fabric
base fees
(6 months)²
Pro forma
HY22
SIML management fees income growth
Activity and performance fees
Base fees

Stride Property Group Interim Results for the six months ended 30 September 2021 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
13
Office
63%
Retail
37%
Auckland
59%
Wellington
41%
SPL Portfolio
1
As at
30 Sep 21
As at
31 Mar 21
Properties (no.)
1514
Tenants (no.)
342347
Net Lettable Area (sqm)
145,781135,350
Net Contract Rental($m)
60.954.5
WALT (years)
5.65.5
Occupancy (% by area)
96.597.6
Portfolio Valuation
2
($m)
1,047.4889.6
Weighted average capitalisation rate (%)
5.55.8
1.Excludes SPL’s 52.2% interest in the Industrejoint operation portfolio which is reported as part of the assets of
SPL in the consolidated interim financial statements (see note 3.2 to the consolidated interim financial statements
for further information).
2.Excludes lease liabilities and includes the value of Level 12, 34 Shortland Street, which houses Stride’s head
office, and is shown in the consolidated interim financial statements as property, plant and equipment.
3.Sales data is not collected for all tenants at Silverdale Centre as not all tenants are obliged to provide this
information under the terms of their lease.
Office
•New letting and renewals completed across 7,000sqm resulting in an
increase on previous rentals of +6.2%
•Rent reviews completed across 26,000sqm resulting in an increase on
previous rentals of +3.0%
Town Centre
•NorthWestMAT was +0.9% for the year to 31 October 2021 when compared
to the same period to 31 October 2020, with specialty retail MAT +7.0%,
noting 21.4% of trading days were lost due to Alert Levels 3 and 4 in
Auckland, and -8.5% and -9.2% respectively compared to 31 October 2019,
(HY21 lost trading days: 18.5%)
•Silverdale MAT
3
was +1.4% for the year to 31 October 2021 when compared
to the same period to 31 October 2020, with specialty retail MAT +8.5%
noting the abovementioned loss of trading days, and +6.7% and +10.0%
compared to 31 October 2019
By location
By sector
SPL Places
SPL –Office and Town Centre portfolios
8%
14%
9%
12%
11%
47%
FY22FY23FY24FY25FY26FY27+
Lease expiry profile by Contract Rental
as at 30 September 2021
Portfolio weighting by Contract Rental
as at 30 September 2021

Stride Property Group Interim Results for the six months ended 30 September 2021 and Capital RaisingNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
14
$726m$726m
$321m$321m
$508m
$11m
$1,149m
$216m
$738m
$385m
$1,047m
$2,395m
$1,659m
Directly heldProductsWeighted look-through
Portfolio value
When SPL’s directly held investment properties are combined
with SPL’s look-through holdings in the other Stride Products,
SPL’s $1.7bn look-through portfolio
1
shows strong investment
metrics, including 97.7% occupancy and a WALT of 6.7 years
1.As at 30 September 2021.
2.SPL’s look-through holdings are calculated as 100% of SPL’s directly-held office and retail portfolio plus SPL’s percentage interest in the portfolio of each of the Stride Products: Investore, Industre and Diversified.
3.Stride’s revenue comprises SIML management fees and SPL revenue. SPL revenue comprises income derived from SPL’s directly-held property plus revenue derived from its interests in the Stride Products which is calculated based on
net Contract Rental on a look-through basis as at 30 September 2021. Base management fees comprise estimated FY22 management fees from Stride Products (i.e. excluding fees from SPL in relation to the office and retail portfolio) and
exclude capex fees, planned maintenance fees, leasing fees, development fees, performance fees and other one-off or activity-based fees.
2.1%
18.8%
52.2%
SPL Portfolio Metrics
$321m
Office
44%
Industrial
23%
Large Format
Retail
13%
Retail
Shopping
Centre
20%
SPL's look-through portfolio value
2
Office
37%
Industrial
14%
Large
Format
Retail
11%
Retail
Shopping
Centre
22%
Base
management
fees
16%
Stride look-through revenue sources
3