FY25 Annual Results

IMMEDIATE – 16 May 2025

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Annual Report
2025

Contents
Capitalised terms have
the meaning given in the
glossary on page 100.
Overview2
Chair’s Letter4
Board of Directors8
Manager's Report10
Targeted Growth12
Portfolio Optimisation14
Resilient Rental Income16
Portfolio Overview18
Proactive Capital Management24
Financial Summary26
Consolidated Financial Statements28
Independent Auditor’s Report57
Corporate Governance61
Statutory Disclosures90
Glossary100
Corporate Directory 101
Investore has been designated as a “Non-Standard” (NS) issuer by NZX. A copy of the waivers
granted by NZX from NZX Listing Rules 2.2.1 to 2.8.1 and 2.10.1 in respect of Investore’s “NS”
designation can be found at www.nzx.com/companies/IPL/documents
Investore Property LimitedAnnual Report 2025
1
Investore Property LimitedAnnual Report 2025

Overview
For the 12 months ended 31 March 2025 (FY25)
Investore’s investment property portfolio continued to deliver resilient
operating earnings during FY25. The value of Investore’s portfolio has
remained constant over FY25 due to a positive portfolio valuation movement
offsetting Investore’s net disposals for the year. Investore has delivered on its
strategies of targeted growth and portfolio optimisation through a number
of transactions intended to position the portfolio to capture future growth
opportunities.
4.1%
Weighted average cost of debt as at
31 March 2025
7.58 cents
Distributable Profit
1
per share
Down from 8.39 cents for FY24
38.5%
Loan to Value Ratio
4
as at 31 March 2025
Down from 40.8% as at 31 March 2024
6.50 cents
Per share cash dividend for FY25
In line with guidance
$62.3m
Net rental income
Higher than FY24 at $61.2m
Purchase price
2
for the acquisition of
Bunnings Westgate, representing a passing yield
on acquisition of 6.2%
$51.0m
$35.2m
Profit before other income and income tax
In line with FY24 at $35.1m
Aggregate gross sales price for the divestment of
Woolworths Invercargill, Woolworths Mount Roskill and
Pak’nSave New Plymouth with the combined sales price
being 3.4% above book value as at 31 March 2024
$79.3m
$28.4m
Distributable Profit
1
after current income tax
Down from $31.0m for FY24, primarily due to
the removal of tax deduction for depreciation on
commercial buildings
74%
Debt hedged or subject to a fixed rate of interest as at
31 March 2025
Portfolio value
3
as at 31 March 2025
In line with 31 March 2024 at $1.0bn
$1.0bn$38.4m
Profit after income tax
Up from $(67.1)m loss after income tax for FY24,
primarily due to a net portfolio valuation increase of
$12.1m or 1.2% during FY25
1. See glossary on page 100.
2. Up to a further $3.5 million of Investore shares may be issued as part consideration to the vendor, with shares equal to this value being issued on 1 December 2025 if the
value of Investore’s net tangible assets (NTA) per share as at 30 September 2025 increases by at least 44% from a base NTA per share of $1.57 as at 31 March 2024.
3. Excludes lease liabilities and the value of the rental guarantee receivable in relation to Bunnings Westgate.
4. Loan to Value Ratio (LVR) is calculated based on independent valuations, which exclude lease liabilities.
Investore Property LimitedInvestore Property LimitedAnnual Report 2025Annual Report 2025
23

Chair’s Letter
Dear Investors,
The Board of Directors of Investore is pleased to present the Annual
Report for the year ended 31 March 2025 (FY25). Investore continued to
deliver resilient operating earnings during FY25, and has implemented its
strategies of portfolio optimisation and targeted growth through a number
of transactions intended to position the portfolio to capture future growth
opportunities and enhance Investore’s rental growth profile. The Board has
also undertaken a number of capital management initiatives to proactively
manage capital and maintain a flexible balance sheet for growth.
Growth and Optimisation of
the Portfolio
Investore has continued to deliver on its strategic pillar of
targeted growth during FY25 through the divestment of
two non-core, regionally located properties, Pak’nSave
New Plymouth and Woolworths Invercargill, recycling capital
from the sale of these properties to acquire Bunnings
Westgate in Auckland. Bunnings Westgate is the largest
Bunnings in New Zealand and Auckland’s newest Bunnings
store. This property also has a structured rental growth profile
and the passing yield on acquisition was 6.2%.
During FY25 Investore also divested Woolworths Mount Roskill,
Auckland for a premium to book value of $2.5 million or 11%
(gross of disposal costs) reflecting an initial yield of 5.85%,
below the yield reflected in the Bunnings Westgate acquisition,
despite Bunnings Westgate having a superior rental growth
profile. This divestment resulted in Investore’s LVR
1
as at
31 March 2025 reducing to 38.5%, from 40.8% as at 31
March 2024. Investore intends to continue to progress its
strategy of targeted growth and will look to recycle the
proceeds from this sale into strategic investment opportunities
over time to further enhance Investore's rental and underlying
growth profile.
Investore also continued to enhance its existing portfolio
during FY25 through funding capital works in conjunction with
several Woolworths' store refurbishments. These capital works
projects improve customer amenity at the refurbished stores
and benefit Investore through additional rental income and
increased property value, and in some instances also result in
an increase in lease tenure.
Upgrade works at Woolworths Greenlane, Woolworths
Rangiora and Woolworths Highland Park were undertaken
with Investore receiving a return on cost of 7.5% over the
term of the lease for Woolworths Greenlane and Woolworths
Rangiora and 5.5% over the term of the lease for Woolworths
Highland Park.
Financial Results
Investore delivered resilient operating earnings during FY25,
with net rental income of $62.3 million, higher than FY24 at
$61.2 million. The higher net rental income was due to the
acquisition of Bunnings Westgate in December 2024, the
completed development of the 5 Green Star Design & As
Built rated Woolworths supermarket at Waimakariri Junction
and rental increases from rent review transactions completed,
partially offset by the divestment of three properties during
the year.
A lower portfolio value together with the divestment of
properties during FY25 resulted in lower asset management
fee expense at $(5.2) million, down $0.2 million from FY24.
Net finance expense at $(19.2) million was $(1.2) million
higher than FY24 and reflects the higher cost of debt due
to the maturity of the IPL010 fixed rate bonds in April 2024
refinancing onto higher interest rates.
The resulting profit before other income and income tax for
FY25 of $35.2 million was largely in line with FY24 at
$35.1 million.
Profit after income tax of $38.4 million was $105.5 million
higher than FY24 ($(67.1) million loss after income tax)
resulting from the movement in the net change in fair value
of the portfolio. For FY25, the net change in fair value was
a $12.1 million gain, which compared to a ($98.7) million
devaluation in FY24. Income tax expense for FY25 was
$(10.2) million, compared with $(3.5) million for FY24.
Distributable Profit
1
after current income tax of $28.4 million
was $2.6 million lower than FY24 (FY24: $31.0 million), largely
due to higher current income tax of $(7.8) million compared
with FY24 at $(5.3) million as a result of the removal of the
tax deduction for depreciation on commercial buildings, which
took effect from 1 April 2024.
Net Tangible Assets (NTA) per share as at 31 March 2025
was $1.60, an increase of $0.03 from 31 March 2024 where
NTA per share was $1.57.
Portfolio
Investore’s portfolio
2
comprises 43 properties, ranging from
standalone supermarkets and hardware stores to large format
retail centres, with tenants that comprise a high concentration
of nationally recognised brands and stores that offer
convenience and cater to ‘everyday needs’.
Investore’s total portfolio
3
valuation of $1.0 billion
represents a net gain in fair value of $12.2 million or
1.3% over the 12 months to 31 March 2025. The portfolio
valuation movement reflects a stabilising average portfolio
2

capitalisation rate of 6.3% as at 31 March 2025
(31 March 2024: 6.4%).
The portfolio
2
continues to exhibit strong metrics which
underpin Investore’s underlying earnings, including a
consistently high occupancy rate of 99.0%, a WALT
1
of
6.8 years and minimal lease expiries in the near term with an
average of 3.8% per annum of Contract Rental
1
expiring prior
to FY30, all of which provide income stability and certainty for
investors over the short to medium term.
Investore’s shares have been trading at a market price below
Investore’s NTA per share. Although Investore does not directly
rely on global trade, the Board is aware of the uncertainty that
currently exists across global markets and the effects this has
on the interest rate outlook and liquidity of equity markets. The
Board is confident in the fundamentals of Investore’s portfolio,
with valuations stabilising during FY25 and a defensive
tenant base with a large exposure to non-discretionary retail
categories. The portfolio valuations are also supported by
recent transactional evidence including the three divestments
completed by Investore during FY25.
Proactive Capital Management
The Board takes a proactive approach to capital management,
maintaining a flexible balance sheet for growth. During the
year, Investore implemented a number of capital management
initiatives to manage Investore’s balance sheet, including the
continuation of the Dividend Reinvestment Plan (DRP) which
provides all investors the opportunity to reinvest some or all of
their dividends to acquire shares in Investore without paying
brokerage fees. The DRP operated for two dividends during
FY25, resulting in the retention of $4.2 million of dividends
which were used to reduce Investore’s leverage.
Investore also refinanced $225 million of bank debt facilities
during FY25 which resulted in lower debt funding costs. The
weighted average cost of debt as at 31 March 2025 reduced
to 4.1%, a decrease of 24 basis points from 31 March 2024.
Post balance date, Investore has introduced two new lenders
to its banking syndicate, Commonwealth Bank of Australia
and Bank of China. The introduction of these two new lenders
diversifies Investore’s funding risk and further improves its
weighted average cost of debt.
Investore now has no bank debt maturing until FY30, with its
retail bonds maturing in FY27 and FY28. Investore’s weighted
average maturity of debt was 2.9 years as at 31 March 2025,
increasing to 3.3 years on a pro forma basis as if the post
balance date refinance had occurred as at 31 March 2025.
During FY25, Investore also adopted a Green Finance
Framework and classified its $225 million of bank debt
facilities as green loan facilities, demonstrating its commitment
to its sustainability strategy. The Framework was developed
to ensure consistency with the New Zealand Green Building
Council’s new guidelines on the classification of properties as
‘green’ for the purpose of green financing.
Governance
The Board is committed to maintaining high standards of
corporate governance and ensuring that the Board's skills
meet the needs of Investore. During FY25, all Directors
completed a climate change governance course facilitated
through the Institute of Directors in order to remain current on
the institutions, processes and mechanisms used to address
climate change and its risks.
Following the conclusion of Erika McDonald’s tenure as
a future director, Investore is pleased to announce the
appointment of Caroline Plowman as a Future Director under
the Institute of Directors’ Future Directors Programme. The
Programme is designed to encourage directorship by giving
aspiring directors the opportunity to observe a company board
and receive mentoring from experienced directors. Caroline
attends Board meetings but does not vote or have any rights
or obligations of a Director.
1. See glossary on page 100.
2. Excludes properties categorised as 'Development and Other' in note 2.2 to the
consolidated financial statements.
3. Excludes lease liabilities and the value of the rental guarantee receivable in
relation to Bunnings Westgate.
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45

Chair’s LetterChair’s Letter
The Manager and
Management Fees
Investore is externally managed by Stride Investment
Management Limited (SIML), which is part of the listed Stride
Property Group. SIML has been very active during FY25 in
supporting Investore to achieve its strategic goals, including
managing the acquisition of Bunnings Westgate and the
divestment of Woolworths Invercargill, Woolworths Mount
Roskill and Pak’nSave New Plymouth.
SIML, on behalf of Investore, also completed several other
capital works programmes and completed 59 rent review
transactions which delivered an overall rental increase of 4.2%
on prior rentals. In addition, turnover rent was crystallised into
base rent across six Woolworths stores which resulted in a
13.3% uplift on the prior base rentals for those leases.
Management fees incurred to SIML during FY25 were
$7.0 million, a decrease of $0.4 million from FY24, primarily as
a result of lower asset management fees, which are based on
portfolio value, and the development fees for the development
of Woolworths Waimakariri Junction being incurred in the
prior year, partially offset by higher divestment fees incurred
during FY25.
Investore undertakes an independent review of SIML’s
management fees every two years. During the year in review,
Investore commissioned an independent review of fees
charged by SIML to provide the Board with confidence that
the fees charged are fair and reasonable and consistent
with fees charged for similar services in the market. The
report concluded that, relative to scale, Investore’s current
management expense ratio is broadly consistent with those of
other comparable externally managed property companies in
both New Zealand and Australia.
Sustainability
Investore is focussed on ensuring its portfolio remains
sustainable for the future. Due to the nature of its portfolio
and operations, Investore considers that it has low scope 1
and 2 greenhouse gas emissions, which primarily comprise
carpark lighting and fugitive emissions from air conditioning.
Investore remains committed to reducing these emissions
where possible and has a strategy of removing R22 air
conditioning units across its portfolio and replacing these
with units that use a refrigerant with a lower global warming
potential. Investore is on target to remove all R22 air
conditioning units by the end of FY27.
The new Woolworths supermarket developed by Investore
at Waimakariri Junction achieved a 5 Green Star Design
& As Built rating during FY25, representing New Zealand
excellence standard. This building was designed and
constructed to minimise the environmental impact from the
development and ongoing operations.
Investore collaborates with its tenants where possible to
improve their energy efficiency and lower their greenhouse
gas emissions (scope 3 emissions for Investore) to aid in
New Zealand’s transition towards a lower emissions future.
As part of this tenant collaboration, Investore contributed
funding towards LED lighting upgrades at Woolworths
Highland Park and Bunnings Carr Road, improving the energy
efficiency of the lighting at these stores.
The Investore Board also intends to explore options to further
focus on the reduction of scope 3 emissions during FY26,
which will involve more collaboration with tenants.
Mike Allen
Independent Director
and Chair of the Board
Investore continued its community involvement during FY25
with its sponsorship of the Graeme Dingle Foundation, a
child and youth development charity. The charity provides
school and community-based programmes that help build
self-esteem, promote good values and teach valuable life
skills to young New Zealanders, helping them live to their
full potential.
Investore has prepared a separate Sustainability Report which
includes reporting against the Aotearoa New Zealand Climate
Standards. A copy of this report can be found on Investore’s
website www.investoreproperty.co.nz from 28 May 2025.
Outlook
Investore’s portfolio benefits from having a large exposure
to non-discretionary retail tenants, which provides a level
of stability against a backdrop of economic uncertainty.
The Board intends to continue to pursue its strategy of
targeted growth by investing in high quality assets with
strong rental growth prospects over the medium to long
term, if appropriate opportunities present themselves. Further
divestments may also be considered to strengthen the
balance sheet and provide additional headroom to support
the pursuit of Investore’s targeted growth strategy.
Investore also intends to continue to optimise and enhance
its existing portfolio through collaborating with tenants to
carry out capital refurbishment and improvement works. This
improves Investore’s existing portfolio through driving growth in
income through rentalised returns and increased asset value.
Investore currently expects to pay a cash dividend of
6.50 cents per share for FY26. This represents an 8.6%
1
gross
dividend yield.
On behalf of the Board, I would like to thank investors for their
continued support of Investore.
Woolworths, Waimakariri Junction
Bay Central Shopping Centre, Tauranga
1. Yield assumes a 33% tax rate and a share price based on the 5 day VWAP
(volume weighted average price) ended 14 May 2025.
Investore Property LimitedInvestore Property LimitedAnnual Report 2025Annual Report 2025
67

Board of Directors
Mike Allen
Chair of the Board
Independent,
Non-Executive Director
Appointed 9 June 2016,
last elected 2022
Mike has considerable governance
experience and is currently a director
of Taumata Plantations Limited and
Chair of Vincent Capital Limited. Prior
to his governance career, he had an
executive career in investment banking
and general management experience
in New Zealand and the United
Kingdom.
Gráinne Troute
Chair of the Audit and Risk
Committee
Independent,
Non-Executive Director
Appointed 19 April 2018,
last elected 2024
Gráinne has over 30 years’
experience in listed and unlisted
organisations, in highly competitive
and customer-focussed sectors,
including McDonald’s New Zealand
and SKYCITY Entertainment Group.
Gráinne is currently a director of
Tourism Holdings Limited and
Summerset Group Holdings Limited
and a board member of Duncan
Cotterill. Gráinne is also an Auckland
Council member of the Institute of
Directors and a member of the NZX
Corporate Governance Institute.
Adrian Walker
Independent,
Non-Executive Director
Appointed 3 April 2020,
last elected 2023
Adrian is a very experienced
commercial property executive with
a strong background in property,
financial planning and strategic
management, with over 30 years’
experience in the property sector,
including 20 years as the General
Manager of Property at Woolworths
NZ. Adrian brings to Investore a
deep knowledge of the property
industry in New Zealand, as well as
the supermarket sector, a sector that
makes up a significant portion of
Investore’s property portfolio.
Tim Storey
SIML Nominee and Non-
Executive Director
Tim has more than 30 years of
experience across a range of
business sectors and has practised
as a lawyer in Australia and New
Zealand. Tim was a partner in
the Bell Gully partnership, having
retired in 2006, and is Chair of
Stride Property Limited and Stride
Investment Management Limited.
Ross Buckley
SIML Nominee and Non-
Executive Director
Ross has a strong background
in auditing and management,
with 27 years as a partner at the
global accounting and consulting
firm KPMG, including nine years
as Executive Chair of KPMG in
New Zealand. Ross is a director
of ASB Bank Limited, Stride
Property Limited, Stride Investment
Management Limited, and Chair
of Service Foods NZ Limited. Ross
also currently chairs the National
Board of the Institute of Directors,
and is an Auckland Council member
of the Institute of Directors. Ross
is a member of Massey University
Council and is Chair of the Auditor
Oversight Committee of the
Financial Markets Authority.
Caroline Plowman
Future Director
Caroline was appointed as a Future
Director of Investore through the
Institute of Directors Future Director
Programme in April 2025. Caroline
is the CEO of National Mini Storage
and has extensive management
experience in the commercial
property sector. Caroline participates
in Investore Board meetings but does
not vote or have any role as a director.
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89

Manager’s Report
Dear Investors,
Stride Investment Management Limited (SIML) is proud to manage
Investore’s portfolio and continue to deliver on Investore’s strategic pillars
of targeted growth and enhancing and optimising the Investore portfolio.
FY25 has been an active year for Investore, despite another
challenging year for transactional activity in the commercial
property market. During the year in review, Investore divested
two non-core, regionally located properties, being Pak’nSave
New Plymouth and Woolworths Invercargill, for a combined
sales price above book value. The proceeds from these
divestments were used to acquire Bunnings Westgate in
Auckland, a recently developed property and the largest
Bunnings in New Zealand, with a passing yield of 6.2% and a
structured rental growth profile.
SIML also successfully negotiated the divestment of
Woolworths Mount Roskill, Auckland, in March 2025, a low
growth asset in Investore’s portfolio, for a premium to
book value of 11% (gross of disposal costs). SIML will
continue to explore options to recycle the capital received
from this divestment into strategic investment opportunities
over time to further enhance Investore’s rental and
underlying growth profile.
During FY25, capital projects involving the expansion of
customer amenities were completed at Woolworths Greenlane
and Woolworths Rangiora, with the construction of new
online fulfilment rooms and new covered pick up bays. These
projects deliver a 7.5% per annum return on cost.
SIML also completed 59 rent reviews on behalf of Investore
during the period in review, which resulted in 4.2% rental
growth on previous rentals. Of these 59 rent reviews,
24 were CPI
1
-linked reviews, delivering a 7.8% increase on
previous rentals for those leases. In addition, turnover rent
was crystallised into base rent across six Woolworths stores,
resulting in a 13.3% uplift on the prior base rental and
providing Investore with additional certainty over this portion
of rental income.
SIML was also pleased to have managed a number of capital
management initiatives on behalf of Investore during FY25,
which included:
• refinancing of Investore’s bank debt facilities, resulting in
lower debt funding costs
• adopting a Green Finance Framework and classification
of bank debt facilities as green loan facilities
• operation of the DRP
• repayment of the IPL010 fixed rate bonds when they
matured in April 2024 with bank debt
SIML continues to support Investore’s sustainability objectives.
Initiatives undertaken during FY25 included preparations for
the removal of air conditioning units using R22 refrigerant
across various properties, and supporting tenant initiatives
to install LED lights as part of store refurbishments. More
information on Investore’s key sustainability activities, together
with Investore’s climate-related disclosures, can be found in
Investore’s FY25 Sustainability Report, which will be available
on Investore’s website, www.investoreproperty.co.nz, from
28 May 2025.
SIML is proud to support Investore in achieving its strategic
objectives and looks forward to continuing to support
Investore’s strategies of targeted growth and portfolio
optimisation into FY26 and the future.
Thank you for your continued support of Investore and SIML
as Manager.

Philip Littlewood
Chief Executive Officer
Stride Investment
Management Limited
Adam Lilley
Investore Fund Manager
Stride Investment
Management Limited
Woolworths, Browns Bay
1. See glossary on page 100.
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1011

Targeted Growth
Investore continues to deliver on its strategic pillar of targeted growth by
recycling capital from the divestment of non-core properties or properties
with a limited rental growth profile into properties located in key metro
locations with stronger growth characteristics.
During FY25, Investore divested two non-core, regionally
located properties, Pak’nSave New Plymouth and Woolworths
Invercargill, for an aggregate sales price of $54.3 million,
which was above the most recent combined book value for
these two properties and represented a combined passing
yield of 6.4%.
Investore recycled the proceeds from these divestments to
acquire Bunnings Westgate, located in Fred Taylor Drive,
Auckland, for an initial purchase price of $51.0 million,
payable in cash
1
.
Bunnings Westgate is the largest and one of the newest
Bunnings in Auckland. The site is fully leased to Bunnings, has
a structured rental growth profile, a weighted average lease
term of 8 years, and a passing yield of 6.2% on acquisition.
The property is located on a high-profile site in Westgate, a
growth area of Auckland, and the acquisition of this property
makes it a favourable addition to the Investore portfolio.
This high quality, high growth asset has delivered strong
valuation gains over FY25, with the valuation
2
as at 31 March
2025 increasing by 6.1% or $3.1 million from the initial
purchase price.
1. Up to a further $3.5 million of Investore shares may be issued as part
consideration to the vendor, with shares equal to this value being issued on
1 December 2025 if the value of Investore’s net tangible assets (NTA) per share
as at 30 September 2025 increases by at least 44% from a base NTA per share
of $1.57 as at 31 March 2024.
2. Valuation includes the rental guarantee receivable provided by the vendor.
Bunnings, Westgate
Bunnings, Westgate
During FY25, Investore also divested Woolworths Mount
Roskill for a sale price of $25.0 million. This price represented
a premium to book value of 11% or $2.5 million (gross of
disposal costs), with a passing yield of 5.85%. While located
in Auckland, the lease for this property had limited rental
growth opportunity and Investore's intention is to recycle the
proceeds from this sale into strategic investment opportunities
to further enhance and strengthen Investore’s longer term
rental and underlying growth outlook.
The three properties sold during FY25 achieved a combined
sales price above book value, demonstrating strong investor
demand for defensive, quality properties in the current
economic cycle, and supporting the independent valuations of
the wider portfolio.
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1213

Portfolio Optimisation
Investore continued to strengthen and enhance its existing portfolio
through improvement projects completed in conjunction with store
refurbishments undertaken by Woolworths. These capital projects improve
customer amenity and benefit Investore through additional rental income.
In some instances, the projects also lead to an increase in lease tenure,
enhancing the certainty of Investore’s rental income profile.
Store-based fulfilment of online sales is a key strategic
focus for Woolworths, with express pick-up, together with
other e-commerce initiatives, supporting strong sales
growth across the Woolworths New Zealand portfolio.
Woolworths' HY25 results
1
for the half year ended 5 January
2025 showed a 14.6% increase in e-commerce sales.
1. www.woolworthsgroup.com.au/content/dam/wwg/investors/reports/f25/
h1/2855266.pdf
2. See glossary on page 100.
Woolworths Rangiora
Investore enjoys a strong, collaborative relationship with
Woolworths, and during FY25 the online expansion
works at Woolworths Rangiora were completed. This
store refurbishment included approximately 169 sqm
of additional NLA
2
, which is used as an online fulfilment
area, as well as five new covered pick up bays for online
shopping. Investore receives a 7.5% per annum return on
cost over the term of the lease. Investore also benefited
from this transaction through securing a four year lease
extension at Woolworths Morrinsville, extending the
current expiry date of this lease to FY29.
Woolworths Greenlane
Online expansion works were completed at Woolworths
Greenlane in Auckland during FY25, which consisted of
approximately 234 sqm of additional NLA
2
for an online
fulfilment room, and eight new covered drive through
pick up bays for online shopping. Investore will receive a
7.5% per annum return on cost for these improvements
over the term of the lease. This transaction also enabled
Investore to secure a six year lease extension at
Woolworths Anglesea Street in Hamilton, with a further
six year right of renewal, extending the current expiry
date of this lease to FY30.
Woolworths Highland Park
Capital works at Woolworths Highland Park in Auckland
included approximately 115 sqm of additional NLA
2

which will be used for a new online fulfilment room,
improved customer accessways, and a dedicated online
pick up area with six pick up bays for online shopping.
In addition, the basement car parking area has been
extended and canopies have been constructed for
upstairs car parks. A new tenancy with approximately
575 sqm NLA
2
has been added to the site which will be
leased to Woolworths. Investore will receive a 5.5%
per annum return on the capital costs associated with
these works, and in addition Woolworths will commit to a
15 year lease term.
Woolworths, Greenlane
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1415

Resilient Rental IncomeTurnover Rental
Investore focusses on optimising its portfolio to improve portfolio
performance and overall investor returns through delivering resilient rental
income. This rental income is derived from Investore's defensive portfolio,
which consists of a large proportion of tenants that provide 'everyday needs'.
Investore delivered $62.3 million net rental income for FY25,
higher than net rental income of $61.2 million for FY24.
Occupancy remained stable over FY25 with an occupancy
rate
1
of 99.0% as at 31 March 2025.
Investore divested three properties totalling approximately
18,000 sqm of NLA
2
during FY25 (representing approximately
7% of the total portfolio NLA
2
), being Woolworths Invercargill,
Woolworths Mount Roskill, and Pak’nSave New Plymouth.
Woolworths leases, which comprise 62% of the Investore
portfolio by Contract Rental
2
, contain turnover-linked rental
mechanisms which entitle Investore to additional rent when
moving annual turnover
4
(MAT) at a store exceeds a specific
threshold.
For some Woolworths stores, turnover rent is crystallised to
base rent at each rent review date, with the base rent being
increased by the average turnover rent paid across the
previous three years. During FY25, $0.7 million of annualised
turnover rent across six Woolworths stores was crystallised
into base rent which resulted in a 13.3% uplift in the base
rental for those stores. Crystallising turnover rent to base
rent provides Investore with certainty of this income, as the
income is converted from a variable income stream to a fixed
income stream.
The loss of Contract Rental
2
from these divestments was
partially offset by the additional rental from the acquisition
of Bunnings Westgate in December 2024 and through the
completion of 59 rent reviews during FY25, resulting in an
increase in rental of 4.2% on prior rentals. Of these 59 rent
reviews, 24 were CPI
2
-linked reviews which delivered an
increase in rental of 7.8% on prior rentals.
When turnover rent crystallises to base rent, it resets the
turnover threshold which results in fewer stores meeting their
respective turnover threshold in the short term.
The total rental income received from Woolworths has
continued to increase across the portfolio on a like-for-like
basis
5
, to $39.1 million for FY25, up from $36.8 million in
FY19, partly as a result of higher turnover at stores driving
higher turnover rent which for some stores has been
crystallised into base rent over time.
As turnover increases, a store is more likely to commence
paying turnover rent, and accordingly Investore tracks stores
that are within 80 to 100% of the turnover rent threshold,
as it provides an indicator of potential future turnover rent
opportunity.
1. Excludes properties categorised as 'Development and Other' in note 2.2 to the consolidated financial statements.
2. See glossary on page 100.
3. Establishment portfolio includes properties held at the date of the 2016 Initial Public Offering of Investore, excluding for each financial year, properties disposed of in, or before
that financial year.
4. MAT is determined by calculating the net sales over a 12 month period from April to March, with the calculation being completed on a rolling basis.
5. Investore’s Woolworths supermarket portfolio on a like-for-like basis which excludes disposed properties and includes properties acquired or developed between 1 April 2018
and 31 March 2025, as if they were acquired, developed or disposed on 1 April 2018. The timing of the rental income has been amended to reflect when rental income was
earned according to the respective leases.
Note: Numbers in charts may not sum due to rounding.
Woolworths Portfolio
Turnover Mix (weighted
by M AT
4
)
Net Contract Rental
2
Establishment Portfolio
3
Acquisitions and
Developments
>100%
80% – 100%
<80% of turnover
threshold
Mar 19
47%
40%
13%
Mar 20
38%
42%
20%
Mar 21
38%
38%
23%
Mar 22
26%
37%
37%
Mar 23
30%
39%
31%
Mar 24
39%
39%
22%
Mar 25
40%
37%
23%
$47.6m
Mar19
$4.9m
$42.7m
$47.5m
Mar 20
$5.4m
$42.1m
$57.1m
Mar 21
$14.3m
$42.8m
$60.2m
Mar 22
$17.5m
$42.7m
$61.8m
Mar 23
$17.9m
$43.9m
$63.7m
Mar 24
$19.6m
$44.1m
$63.0m
Mar 25
$23.4m
$39.6m
Woolworths Base Rent
and Turnover Rent
(like-for-like
5
)
Base rent
Turnover rent
FY19
$0.4m
$36.3m
FY20
$0.8m
$36.5m
FY21
$0.8m
$37.2m
FY22
$1.1m
$37.2m
FY23
$1.2m
$37.3m
FY24
$1.3m
$37.6m
FY25
$1.3m
$37.8m
Combined base rent
and turnover rent, on
a like-for-like basis
5
,
has increased from
$36.8m in FY19 to
$39.1m in FY25.
$36.8m
$37.3m
$38.1m
$38.3m
$38.5m
$38.8m
$39.1m
Investore Property LimitedInvestore Property LimitedAnnual Report 2025Annual Report 2025
1617

Portfolio Overview
Investore’s portfolio
1
comprises 43 properties, from standalone
supermarkets and hardware stores to large format retail centres, with
a high concentration of nationally recognised brands and tenants that
provide ‘everyday needs’.
The Investore portfolio valuation has stabilised over FY25,
with the portfolio valued
2
at $1.0 billion as at 31 March 2025.
This represents a net gain in fair value of $12.2 million or
1.3% from 31 March 2024.
As at 31 March 2025
1
As at 31 March 2024
1
Number of properties
4345
Number of tenants
142144
Net lettable area (NLA) (sqm)
254,684255,898
Net Contract Rental
3
($m)
63.063.7
WA LT
3
(years)
6.87.4
Market capitalisation rate (%)
6.36.4
Occupancy by area
99.099.1
Land area (sqm)
604,034627,677
Portfolio value
4
($000)
965
5
972
1. Excludes properties categorised as 'Development and Other' in note 2.2 to the consolidated financial statements.
2. Excludes lease liabilities and the value of the rental guarantee receivable in relation to Bunnings Westgate.
3. See glossary on page 100.
4. Excludes lease liabilities.
5. Includes the value of the rental guarantee receivable in relation to Bunnings Westgate.
Lower total occupancy costs for tenants compared
with other forms of retail in New Zealand
A high concentration of tenants focussed on ‘everyday
needs’ means demand for tenants’ goods and services
tends to be resilient in variable economic conditions
Anchor tenants draw customers to sites on a regular
basis, driving visitation for associated specialty tenants
Strengths of
the Investore
Portfolio
This stabilisation in valuation is primarily a result of resilient
rental income and transactional market evidence supported
by falling interest rates. The average portfolio
1
capitalisation
rate of 6.3% as at 31 March 2025 is largely consistent with
the average portfolio capitalisation rate at 31 March 2024
of 6.4%.
Mitre 10, Botany
Investore Property LimitedInvestore Property LimitedAnnual Report 2025Annual Report 2025
1819

Portfolio Overview (cont.)
Strong Tenant Profile
The Investore portfolio
1
has consistently maintained a high occupancy
rate of 99% or above since its inception in 2016. Approximately 84%
of Contract Rental
2
expires in FY30 and beyond. Investore has minimal
lease expiries in the near term with an average of 3.8% per annum of
Contract Rental expiring prior to FY30. This favourable lease expiry profile
combined with a consistently high occupancy rate provides Investore with
certainty of income over the medium to long term.
Lease Expiry Profile
1,3
by Contract Rental
2
as at 31 March 2025
Portfolio Tenant Classification by Contract Rental
2
as at 31 March 2025
Investore’s portfolio includes a large proportion of tenants
that focus on 'everyday needs'. Investore’s tenants include
nationally recognised brands such as Woolworths, Bunnings,
New World, Mitre 10, Animates and Briscoes, which tend to be
largely resilient over the economic cycle.
Investore’s two retail centres encompass over 50 individual
tenancies, including several anchor tenants, and are
conveniently located in the prime metropolitan areas of
Tauranga and Mount Wellington in Auckland.
1. Excludes properties categorised as 'Development and Other' in note 2.2 to the consolidated financial statements.
2. See glossary on page 100.
3. Represents the scheduled expiry for each lease, excluding any rights of renewal that may be granted under each lease, for the
portfolio as at 31 March 2025 as a percentage of Contract Rental (see glossary on page 100 for definition).
Anchor tenants represent
a high proportion (87%) of
Investore’s total Contract
Rental
2
, providing Investore
with security of income.
Everyday Needs
65%
Hardware
21%
General
Merchandise/
Retail 8%
Food &
Beverage /
Other 4%
Health &
Wellbeing 2%
Note: Numbers in charts may not sum due to rounding.
Vacant
1.1%
3.4%
FY26
3.8%
FY27
5.6%
FY28
2.4%
FY29
17.9%
FY30
6.6%
FY31
0.3%
FY32
25.0%
FY33
25.8%
FY35
2.1%
FY36
6.1%
FY34
WALT 6.8 years
84% of Contract Rental
2

expiring in FY30 and beyond
15% of Contract Rental
2

expiring prior to FY30
Anchor Tenant Concentration by Contract Rental
2
as at 31 March 2025
Woolworths
62%
64%
Bunnings
17%
13%
3%
3%
2%
3%
3%
4%
Mitre 10
Briscoes Group
Foodstuffs
As at 31 Mar 24
As at 31 Mar 25
Investore Property LimitedInvestore Property LimitedAnnual Report 2025Annual Report 2025
2021

AUCKLAND
CBD
CHRISTCHURCH
CBD
WELLINGTON
CBD
LOWER
HUTT
UPPER
HUTT
Portfolio Overview (cont.)
Investore's portfolio is geographically diversified across New Zealand, with
the majority of the portfolio located in highly populated urban areas.
Spread of New Zealand Population
1
vs Investore Properties
Map of Investore Properties
Geographical Location of
Investore Portfolio by
Contract Rental
2
New Zealand population
by region (%)
Investore properties by
NLA
2
(%)
Wellington
Other North Island
Canterbury & Otago
Other South Island
Auckland
Bay of Plenty
Waikato
1. www.stats.govt.nz/information-releases/
subnational-population-estimates-at-30-
june-2024-2018-base/.
2. See glossary on page 100.
85% of the Investore
portfolio by Contract Rental
2

is located in the North Island
and 15% is located in the
South Island.
85%
15%
13%
10%
8%
11%
2%
38%
18%
Auckland
Canterbury
Wellington
Waikato
Manawatu
Bay of Plenty
Gisborne
Marlborough
West Coast
Tasman
Nelson
Otago
Northland
Hawkes Bay
Taranaki
Southland
35%
40%
30%
25%
20%
15%
10%
5%
0%
Wellington
Auckland
Christchurch
North
Island
South
Island
North
Island
South
Island
Woolworths
Woolworths + Specialty Retail
Bunnings
Multi Retail
Other
+
1
+
1
+
1
+
1
Investore Property LimitedInvestore Property LimitedAnnual Report 2025Annual Report 2025
2223

Proactive Capital Management
Investore’s strategy is to proactively manage its capital to maintain a
healthy and flexible balance sheet for growth, while preserving sustainable
returns to investors.
FY25 was another active year, with the implementation of
several initiatives to proactively manage risk and optimise
Investore’s cost of debt.
$225 million of bank debt facilities refinanced,
resulting in lower debt funding costs
Classification of bank debt facilities as
green loan facilities
$100 million of new hedging entered into
Operation of DRP
1
During FY25, Investore adopted a Green Finance
Framework and classified its $225 million of bank
debt facilities as green loan facilities, demonstrating its
commitment to its sustainability strategy. The Framework
was developed to ensure consistency with the New Zealand
Green Building Council’s new guidelines on classification of
properties as ‘green’ for the purpose of green financing.
The guidelines focus on ongoing sustainability performance,
with sustainability ratings required to be obtained on an
annual basis.
Investore also capitalised on favourable bank debt pricing by
refinancing its total bank debt facilities, resulting in reduced
bank debt funding costs. Investore constantly monitors market
conditions and maintains strong relationships with its bank
lenders to ensure it is well positioned to manage financing
risk and take advantage of favourable conditions. As part
of this ongoing monitoring, post balance date Investore
introduced two new lenders to Investore’s banking syndicate,
Commonwealth Bank of Australia and Bank of China,
increasing Investore’s funding diversification and further
improving its weighted average cost of debt.
Investore’s weighted average cost of debt as at 31 March
2025 was 4.1%, which compares favourably with the
weighted average cost of debt of 4.3% as at 31 March
2024. Taking into account the refinance which occurred post
balance date, the pro forma weighted average cost of debt
as at 31 March 2025 decreases to 4.0%. As at 31 March
2025, Investore’s weighted average tenor remaining on its
debt facilities, including bonds was 2.9 years, or 3.3 years on
a pro forma basis as if the post balance date refinance had
occurred on 31 March 2025. Investore has no debt maturing
until FY27, and no bank debt maturing until FY29 (which after
the post balance date refinancing, extends to FY30).
During FY25, Investore continued to operate the DRP
1
which
allows investors to reinvest all or some of their dividends to
acquire shares without paying brokerage fees. The DRP
1

operated for the second and third FY25 quarterly dividends.
The average DRP
1
participation rate was 35%, resulting in
$4.2 million being retained by Investore. The retained funds
were used to reduce Investore’s leverage, balancing income
returns for investors while retaining additional capital to aid
balance sheet resilience and provide opportunity for growth.
Investore’s $100 million senior secured fixed rate bonds
(IPL010 bonds) matured in April 2024 and were repaid using
the bank debt facilities that had been proactively secured
in FY24 in advance of the bond maturity date. Investore
will continue to actively monitor the bond market and may
consider a new bond issue when conditions are favourable.
As at 31 March 2025, Investore has an LVR
2
of 38.5%,
compared to 40.8% as at 31 March 2024. The reduction
in LVR is primarily due to the divestment of Woolworths
Mount Roskill for $25.0 million, the proceeds of which have
initially been used to repay bank debt, with an intention to
recycle the proceeds from this sale into strategic investment
opportunities to further enhance Investore’s longer term rental
and underlying growth outlook.
1. See glossary on page 100.
2. Loan to Value ratio (LVR) is calculated based on independent valuations,
which exclude lease liabilities.
3. Includes bank debt facilities and retail bonds.
4. Includes retail bonds and interest rate swaps.
As at 31 March 2025
3
As at 31 March 2024
3
Facility limit ($m)
475575
Debt facilities drawn ($m)
379403
Weighted average debt maturity (years)
2.92.1
LV R
2
(%) (Covenant: 55%)
38.540.8
Weighted average interest rate (%)
4.14.3
Interest ratio cover (Covenant: 1.75x)
2.8x2.9x
% of drawn debt fixed
7488
Weighted average fixed rate maturity (years)
4
2.02.3
Fixed Rate Interest Profile as at 31 March 2025Debt Maturity Profile as at 31 March 2025
Green loan facilities
Retail bonds
Post balance date refinanced facilities
Notional fixed rate debt
Weighted average interest rate of fixed rate debt (excl.
margin and line fees)
FY29
$225m
FY28
$125m
FY27
$125m
FY26
Mar 26
$300m
Mar 25
$280m
1.76%
1.97%
FY30
$130m
Mar 27
$250m
FY31
$95m
Mar 28
$75m
2.04%
3.66%
Investore Property LimitedInvestore Property LimitedAnnual Report 2025Annual Report 2025
2425

Financial Summary
The Five Year Financial Summary table reflects the numbers in the
financial statements for each respective year.
Woolworths, Browns Bay
Values in the table above are calculated based on the numbers in the financial statements for each respective financial year and
may not sum accurately due to rounding.
The Five Year Financial Summary contains certain information which is contained in the audited financial statements of each
respective year. Further information can be obtained by referring to those audited financial statements.
Financial Summary
The Five Year Financial Summary table reflects the numbers in the financial statements for each
respective year.
20252024202320222021
Five Year Financial Summary($m)($m)($m)($m)($m)
Net rental income
62.3
61.260.358.355.8
Profit before net finance expense, other income/
(expense) and income tax
1
54.4
53.151.448.346.6
Net finance expense
(19.2)
(18.0)(16.2)(14.0)(16.6)
Profit before other income/(expense) and income tax
1
35.2
35.135.234.329.9
Other income/(expense)
13.4
(98.8)(185.3)91.5139.0
Profit/(loss) before income tax
48.5
(63.6)(150.1)125.8169.0
Income tax expense
(10.2)
(3.5)(0.1)(7.6)(7.7)
Profit/(loss) after income tax
38.4
(67.1)(150.2)118.2161.3
Basic earnings per share - weighted
10.24 cents
(18.17) cents(40.85) cents32.10 cents44.60 cents
Distributable Profit
2
before income tax
36.2
36.436.034.833.1
Distributable Profit
2
after income tax
28.4
31.031.029.929.1
Basic distributable profit after income tax per share
- weighted
7.58 cents
8.39 cents8.44 cents8.11 cents8.05 cents
Investment properties value
3
988.6
989.41,062.11,201.31,037.9
Drawn debt facilities and bonds
378.6
402.8387.6355.0280.0
Borrowings loan to value ratio
4
38.5%
40.8%36.5%29.5%26.8%
NTA per share
$1.60
$1.57$1.84$2.32$2.08
Adjusted NTA per share
5
$1.60
$1.57$1.84$2.32$2.08
Values in the table above are calculated based on the numbers in the financial statements for each respective financial year and
may not sum accurately due to rounding.
The Five Year Financial Summary contains certain information which is contained in the audited financial statements of each
respective year. Further information can be obtained by referring to those audited financial statements.
1Profit before net finance expense, other income/(expense) and income tax and Profit before other income/(expense) and income tax are non-GAAP measures and have been presented to assist
investors in understanding the different aspects of Investore's financial performance.
26Investore Property Limited
Annual Report 2025
1. Profit before net finance expense, other income/(expense) and income tax and Profit before other income/(expense) and income tax are non-GAAP measures and have been
presented to assist investors in understanding the different aspects of Investore's financial performance.
2. See glossary on page 100.
3. Excludes lease liabilities.
4. Calculated based on independent valuations, which excludes lease liabilities and 507 Pakuranga Road, Auckland, Development asset, and includes the rental guarantee
receivable on 21 Fred Taylor Drive, Auckland. See note 2.2 to the consolidated financial statements.
5. Excludes after tax fair value of interest rate derivatives.
Investore Property LimitedInvestore Property LimitedAnnual Report 2025Annual Report 2025
2627

Consolidated
Financial Statements
Consolidated Statement of
Comprehensive Income30
Consolidated Statement of
Changes in Equity31
Consolidated Statement of
Financial Position32
Consolidated Statement of
Cash Flows33
Notes to the Financial Statements35
Independent Auditor’s Report57
Investore Property LimitedInvestore Property LimitedAnnual Report 2025Annual Report 2025
2829

Consolidated Statement of Comprehensive Income
For the year ended 31 March 2025
20252024
Notes
$000$000
Gross rental income
76,112
72,823
Direct property operating expenses
(13,862)
(11,577)
Net rental income
2.1
62,250
61,246
Less corporate expenses
Asset management fee expense
4.0
(5,151)
(5,376)
Administration expenses
(2,722)
(2,759)
Total corporate expenses
(7,873)
(8,135)
Profit before net finance expense, other income/(expense) and income tax54,377
53,111
Net finance expense
5.2
(19,205)
(17,980)
Profit before other income/(expense) and income tax35,172
35,131
Other income/(expense)
Net change in fair value of investment properties
2.2
12,125
(98,733)
Net change in fair value of derivative financial instruments
171
(24)
Gain on disposal of investment properties
1,061
-
Profit/(loss) before income tax48,529
(63,626)
Income tax expense
7.2
(10,179)
(3,487)
Profit/(loss) after income tax attributable to shareholders38,350
(67,113)
Other comprehensive (loss)/income:
Items that may be reclassified subsequently to profit or loss
Movement in cash flow hedges, net of tax
5.5
(852)
148
Total comprehensive income/(loss) after tax attributable to shareholders
37,498
(66,965)
Basic and diluted earnings per share (cents)
3.1
10.24
(18.17)
The attached notes form part of and are to be read in conjunction with these financial statements.
30Investore Property Limited
Annual Report 2025
Consolidated Statement of Changes in Equity
For the year ended 31 March 2025
Notes
Cents
per share
Number
of shares
000
Share
capital
$000
Retained
earnings
$000
Cash flow
hedge
reserve
$000
Total
$000
Balance 31 Mar 24373,822564,07322,162816587,051
Transactions with shareholders:
Q4 2024 final dividend
1.625--(6,075)-(6,075)
Q1 2025 interim dividend
1.625--(6,075)-(6,075)
Q2 2025 interim dividend
1.6251,7311,966(6,075)-(4,109)
Q3 2025 interim dividend
1.625
2,0702,212(6,103)-(3,891)
Total transactions with shareholders
5.4
3,8014,178(24,328)-(20,150)
Other comprehensive loss:
Movement in cash flow hedges, net of tax
5.5
---(852)(852)
Total other comprehensive loss---(852)(852)
Profit after income tax
--38,350-38,350
Total comprehensive income/(loss)
--38,350(852)37,498
Balance 31 Mar 25
377,623568,25136,184(36)604,399
Balance 31 Mar 23
367,503557,219117,133668675,020
Transactions with shareholders:
Q4 2023 final dividend1.975--(7,258)-(7,258)
Q1 2024 interim dividend1.9752,0602,465(7,258)-(4,793)
Q2 2024 interim dividend1.9752,2922,318(7,299)-(4,981)
Q3 2024 interim dividend1.625
1,9672,071(6,043)-(3,972)
Total transactions with shareholders
5.4
6,3196,854(27,858)-(21,004)
Other comprehensive income:
Movement in cash flow hedges, net of tax
5.5
---148148
Total other comprehensive income
---148148
Loss after income tax
--(67,113)-(67,113)
Total comprehensive (loss)/income
--(67,113)148(66,965)
Balance 31 Mar 24
373,822564,07322,162816587,051
The attached notes form part of and are to be read in conjunction with these financial statements.
Annual Report 2025
Investore Property Limited31
Investore Property LimitedInvestore Property LimitedAnnual Report 2025Annual Report 2025
3031

Consolidated Statement of Financial Position
As at 31 March 2025
20252024
Notes
$000$000
Current assets
Cash
5,406
6,633
Debtors and other receivables
7.3
1,063
558
Prepayments
821
1,048
Other current assets
7.6
5,377
2,287
Derivative financial instruments
5.3
142
-
12,809
10,526
Non-current assets
Investment properties
2.2
1,001,709
1,002,646
Deposits on investment properties
-
145
Derivative financial instruments
5.3
150
1,099
1,001,859
1,003,890
Total assets
1,014,668
1,014,416
Current liabilities
Borrowings
5.1
-
99,989
Trade and other payables
7.4
15,600
11,174
Current tax liability
1,565
1,262
Lease liabilities
2.3
111
100
Derivative financial instruments
5.3
-
173
17,276
112,698
Non-current liabilities
Borrowings
5.1
377,148
301,012
Lease liabilities
2.3
13,046
13,161
Deferred tax liability
7.2
2,537
494
Derivative financial instruments
5.3
262
-
392,993
314,667
Total liabilities
410,269
427,365
Net assets604,399
587,051
Share capital
568,251
564,073
Retained earnings
36,184
22,162
Reserve
5.5
(36)
816
Equity
604,399
587,051
For and on behalf of the Board of Directors of Investore Property Limited, dated 16 May 2025:
Mike Allen
Chair of the Board
Gráinne Troute
Chair of the Audit and Risk Committee
The attached notes form part of and are to be read in conjunction with these financial statements.
32Investore Property Limited
Annual Report 2025
Consolidated Statement of Cash Flows
For the year ended 31 March 2025
20252024
$000$000
Cash flows from operating activities
Gross rental received
75,260
73,024
Bank interest received
217
194
Direct property operating and corporate expenses
(21,051)
(20,448)
Interest paid
(19,440)
(17,203)
Borrowings establishment costs
(409)
(195)
Income tax paid
(7,568)
(4,620)
Net cash provided by operating activities
27,009
30,752
Cash flows from investing activities
Capital expenditure on investment properties
(6,746)
(20,566)
Interest paid capitalised to investment properties
(302)
(490)
Net proceeds from disposal of investment properties
77,742
-
Acquisition of investment properties
(52,066)
(1,974)
Deposit and other prepayments on investment properties
(2,410)
-
Net cash provided by/(applied to) investing activities
16,218
(23,030)
Cash flows from financing activities
Drawdown of bank borrowings
320,800
20,200
Repayment of bank borrowings
(245,000)
(5,000)
Repayment of fixed rate bonds
(100,000)
-
Dividends paid net of dividends reinvested
(20,150)
(21,004)
Lease liabilities payments
(104)
(87)
Net cash applied to financing activities
(44,454)
(5,891)
Net (decrease)/increase in cash held(1,227)
1,831
Opening cash
6,633
4,802
Closing cash at balance date
5,406
6,633
Cash comprises:
Cash at bank
5,214
6,329
Cash held for retentions
192
304
Cash at balance date
5,406
6,633
Certain comparative amounts have been reclassified to conform with the current year's presentation.
The attached notes form part of and are to be read in conjunction with these financial statements.
Annual Report 2025
Investore Property Limited33
Consolidated Statement of Financial Position
As at 31 March 2024
20242023
Notes
$000$000
Current assets
Cash at bank
6,633
4,802
Trade and other receivables
7.4
558
608
Prepayments
1,048
909
Other current assets
2,287
1,961
10,526
8,280
Non-current assets
Investment properties
2.2
1,002,646
1,070,451
Deposits on investment properties
145
79
Derivative financial instruments
5.3
1,099
1,478
1,003,890
1,072,008
Total assets
1,014,416
1,080,288
Current liabilities
Borrowings
5.1
99,989
-
Trade and other payables
7.5
11,174
8,355
Current tax liability
1,262
622
Lease liabilities
2.3
100
75
Derivative financial instruments
5.3
173
-
112,698
9,052
Non-current liabilities
Borrowings
5.1
301,012
385,037
Lease liabilities
2.3
13,161
8,242
Deferred tax liability
7.3
494
2,219
Derivative financial instruments
5.3
-
718
314,667
396,216
Total liabilities
427,365
405,268
Net assets587,051
675,020
Share capital
564,073
557,219
Retained earnings
22,162
117,133
Reserve
5.5
816
668
Equity
587,051
675,020
For and on behalf of the Board of Directors of Investore Property Limited, dated 17 May 2024:
Mike Allen
Chair of the Board
Gráinne Troute
Chair of the Audit and Risk Committee
The attached notes form part of and are to be read in conjunction with these financial statements.
38Investore Property Limited
Annual Report 2024
Investore Property LimitedInvestore Property LimitedAnnual Report 2025Annual Report 2025
3233

Consolidated Statement of Cash Flows (continued)
For the year ended 31 March 2025
Reconciliation of profit/(loss) after income tax attributable to shareholders to net cash flows from operating activities
20252024
Notes
$000$000
Profit/(loss) after income tax attributable to shareholders38,350
(67,113)
Add/(less) non-cash items:
Movement in deferred tax
7.2
2,308
(1,773)
Net change in fair value of investment properties
(12,125)
98,733
Gain on disposal of investment properties
(1,061)
-
Spreading of fixed rental increases
324
268
Capitalised lease incentives net of amortisation
23
126
Movement in loss allowance
7.3
157
(125)
Borrowings establishment costs amortisation
756
959
Accrued interest movement in derivative financial instruments
(50)
7
Net change in fair value of derivative financial instruments
(171)
24
28,511
31,106
Less activities reclassified from operating activities:
Movement in working capital items relating to investing activities
(2,454)
(3,203)
Movement in borrowings costs classified as operating activities
(409)
(195)
25,648
27,708
Movement in working capital:
(Increase)/decrease in debtors and other receivables
(505)
50
Increase in prepayments and other current assets
(2,863)
(465)
Increase in trade and other payables
4,426
2,819
Increase in current tax liability
303
640
Net cash provided by operating activities
27,009
30,752
Certain comparative amounts have been reclassified to conform with the current year's presentation.
The attached notes form part of and are to be read in conjunction with these financial statements.
34Investore Property Limited
Annual Report 2025
Notes to the Financial Statements
For the year ended 31 March 2025
1.0General Information
36
1.1Reporting entity36
1.2Basis of preparation36
1.3Basis of consolidation36
1.4New standards, amendments and interpretations36
1.5Changes to accounting policies and disclosure of material accounting policies36
1.6Significant judgements, estimates and assumptions36
1.7Fair value estimation37
1.8Significant events and transactions37
1.9Non-GAAP measures37
2.0Property
38
2.1Net rental income38
2.2Investment properties39
2.3Lease liabilities44
2.4Capital expenditure commitments contracted for44
3.0Investor Returns
45
3.1Basic and diluted earnings per share (EPS)45
3.2Distributable profit45
4.0Related Party Disclosures
46
5.0Capital Structure and Funding
47
5.1Borrowings47
5.2Net finance expense48
5.3Derivative financial instruments49
5.4Share capital50
5.5Reserve50
5.6Capital risk management50
6.0Risk Management
51
6.1Financial instruments51
6.2Financial risk management51
6.3Credit risk52
6.4Interest rate risk52
6.5Liquidity risk52
7.0Other
53
7.1Corporate expenses53
7.2Tax53
7.3Debtors and other receivables55
7.4Trade and other payables55
7.5Operating segments55
7.6Contingent transaction56
7.7Subsequent events56
Annual Report 2025
Investore Property Limited35
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3435

1.0 General Information
This section sets out Investore’s accounting policies that relate to the consolidated 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 Investore Property Limited (the Parent) and its 100% owned subsidiary Investore Property
(Carr Road) Limited (the Subsidiary) (together referred to as Investore). Both companies are domiciled in New Zealand and registered under the
Companies Act 1993. The Parent is also an FMC reporting entity under Part 7 of the Financial Markets Conduct Act 2013.
Investore’s principal activity is property investment in New Zealand. Investore is managed by Stride Investment Management Limited (SIML).
The financial statements were approved for issue by the Board of Directors of the Parent (the Board) on 16 May 2025.
1.2 Basis of preparation
The financial statements have been prepared in accordance with the requirements of Part 7 of the Financial Markets Conduct Act 2013, the
NZX Main Board Listing Rules and Generally Accepted Accounting Practice in New Zealand (GAAP). The financial statements comply with New
Zealand Equivalents to International Financial Reporting Standards (NZ IFRS), other New Zealand accounting standards and authoritative notices
that are applicable to entities that apply NZ IFRS. The financial statements also comply with International Financial Reporting Standards Accounting
Standards (IFRS Accounting Standards). Investore is a for-profit entity for the purposes of financial reporting.
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.
1.3 Basis of consolidation
The financial statements have eliminated in full all intra-group transactions and balances between group companies on consolidation.
1.4 New standards, amendments and interpretations
On 23 May 2024, the New Zealand Accounting Standards Board of the External Reporting Board issued NZ IFRS 18 Presentation and Disclosure
in Financial Statements (NZ IFRS 18) (effective for annual reporting periods beginning on or after 1 January 2027). This standard replaces
NZ IAS 1 Presentation of Financial Statements and primarily introduces a defined structure for the statement of comprehensive income, disclosure
of management-defined performance measures (a subset of non-GAAP measures) in a single note, together with reconciliation requirements.
Investore has not early adopted this standard and is yet to assess its impacts.
At the date of authorisation of these financial statements, Investore has not applied any new or revised NZ IFRS standards and amendments that
have been issued but are not yet effective.
1.5 Changes to accounting policies and disclosure of material accounting policies
No changes to accounting policies have been made during the year and policies have been consistently applied to all years presented.
1.6 Significant judgements, estimates and assumptions
In the application of NZ IFRS, the Board and SIML are required to make judgements, estimates and assumptions about carrying values of assets and
liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on experience and other factors
that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements. Actual results may differ
from the judgements, estimates and assumptions made by the Board and SIML.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which
the estimate is revised and in any future periods affected.
Judgements made by the Board and SIML in the application of NZ IFRS that have significant effects on the financial statements and estimates
with a significant risk of material adjustments in the next year are disclosed, where applicable, in the relevant notes to the financial statements.
In particular, information about significant areas of estimation uncertainty that have the most significant effect on the amount recognised in the
financial statements is disclosed in the relevant notes as follows:
•Investment properties (note 2.2);
•Lease liabilities (note 2.3);
•Derivative financial instruments (note 5.3); and
•Deferred tax (note 7.2).
36Investore Property Limited
Annual Report 2025
1.0 General Information (continued)
1.7 Fair value estimation
Investore classifies its fair value measurement using a fair value hierarchy that reflects the significance of the inputs used in making measurements.
The fair value hierarchy has the following levels:
Level 1quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (as prices) or
indirectly (derived from prices); and
Level 3inputs for the asset or liability that are not based on observable market data.
The Board and SIML review significant unobservable inputs and valuation adjustments. If third party information is used to measure fair values, then
the Board and SIML assess the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of
NZ IFRS, including the level of the fair value hierarchy in which such valuations should be classified.
1.8 Significant events and transactions
The financial position and performance of Investore was affected by the following events and transactions that occurred during the current year:
Dividend reinvestment plan (DRP)
During the reporting period, 3,801,703 (2024: 6,319,023) ordinary shares were issued in accordance with the DRP (refer note 5.4).
Bond maturity
On 18 April 2024, the IPL010 fixed rate bonds of $100.0 million matured and were repaid with bank debt (refer note 5.1).
Bank debt refinance
On 30 September 2024, Investore refinanced its $225.0 million syndicated bank facilities, extending the tenor on all facilities to November 2028. In
accordance with Investore's Green Finance Framework, the facilities are classified as green loan facilities (refer note 5.1).
Divestment of investment properties
Investore divested the investment properties located at 172-186 Tay Street, Invercargill, and 53 Leach Street, New Plymouth, on 31 October 2024
and 19 November 2024, respectively, for an aggregate price of $54.3 million.
Investore divested the investment property located at 112 Stoddard Road, Auckland, on 25 March 2025 for $25.0 million.
Acquisition of investment property
Investore acquired Bunnings Westgate, located at 21 Fred Taylor Drive, Auckland, on 4 December 2024 for an initial purchase price of
$51.0 million, payable in cash. Up to a further $7.0 million of Investore shares may be issued as part consideration to the vendor, with shares
equal to half of this value being issued on 30 May 2025 if the value of Investore’s net tangible assets (NTA) per share increased by at least 21%
as at 31 March 2025, with the remainder being issued on 1 December 2025 if the value of Investore’s NTA per share increases by at least 44%
as at 30 September 2025, from a base NTA per share of $1.57 as at 31 March 2024. As at 31 March 2025, the NTA per share condition has
not been met and as a result no additional consideration was due. No liability, contingent or otherwise, has been recognised in relation to the
30 September 2025 NTA per share condition.
The initial acquisition has been accounted for as investment property of $50.6 million. The vendor has provided a rental guarantee for a period of
three years from the settlement date, amounting to $0.4 million as at 31 March 2025, which has been recognised in debtors and other receivables
in the consolidated statement of financial position (refer note 7.3).
1.9 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 Investore’s financial performance.
Note 3.2 sets out Investore’s calculation of distributable profit and Adjusted Funds From Operations (AFFO) which are both non-GAAP measures.
Distributable profit is presented to enable investors to see an earnings measure which more closely aligns to Investore’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 period.
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.
Annual Report 2025
Investore Property Limited37
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2.0 Property
This section covers property assets which generate Investore’s trading performance.
2.1 Net rental income
Accounting Policy
Investment property is leased by Investore to tenants under operating leases with rent payable monthly. Rental income from investment
properties is recognised on a straight-line basis over the lease term. Lease incentives provided in relation to letting the investment properties
are capitalised to the respective investment properties in the consolidated statement of financial position and amortised on a straight-line
basis over the non-cancellable portion of the lease to which they relate, as a reduction of rental income. Where a lease provides for fixed
rental increases over the term of the lease, they are amortised on a straight-line basis over the non-cancellable portion of the lease to which
they relate.
Income generated from service charges recovered from tenants is included in the gross rental income with the service charge expenses to
tenants shown in the direct property operating expenses. Such revenue is recognised in the accounting period the underlying expenses are
incurred in accordance with the contractual terms.
20252024
$000$000
Gross rental income
Rental income
67,771
65,826
Service charge income recovered from tenants
8,688
7,373
Spreading of fixed rental increases
(324)
(268)
Capitalised lease incentives
253
116
Lease incentives amortisation
(276)
(224)
Total gross rental income
76,112
72,823
Direct property operating expenses
Service charge expenses relating to tenants
(9,693)
(8,490)
Movement in loss allowance
(157)
125
Lease incentives amortisation
-
(18)
Other property operating expenses
(4,012)
(3,194)
Total direct property operating expenses
(13,862)
(11,577)
Net rental income
62,250
61,246
Certain comparative amounts have been reclassified to conform with the current year's presentation.
Other property operating expenses include property maintenance and operating expenses not recoverable from tenants and property
leasing expenses.
As a lessor, Investore has determined that it retains substantially all the risks and rewards of ownership of properties and has therefore classified all
leases as operating leases. The future aggregate minimum rentals receivable under non-cancellable operating leases are as follows:
2025
Restated
2024
$000$000
Within one year
62,243
63,702
Between one and two years
60,903
61,386
Between two and three years
56,680
60,098
Between three and four years
55,394
55,598
Between four and five years
52,216
52,996
Later than five years
155,013
194,765
Future rentals receivable
442,449
488,545
The future rentals receivable for the year ended 31 March 2024 has been restated to reflect fixed contractual rental increases. This resulted in an
increase to future rentals receivable of $7.3 million (from $481.3 million to $488.5 million).
38Investore Property Limited
Annual Report 2025
2.0 Property (continued)
2.2 Investment properties
Accounting Policy
Investment properties are held either to earn rental income or for capital appreciation or both. Investment property is initially stated at cost,
including related transaction costs, and then at fair value as determined at least every 12 months by an independent registered valuer.
Subsequent expenditure is capitalised to the asset's carrying amount only when it is probable that future economic benefits associated with
the item will flow to Investore and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed to the
consolidated statement of comprehensive income during the period in which they are incurred.
The fair value of an investment property represents the estimated price for which a property could be sold for at the date of valuation in an
orderly transaction between willing market participants. Any gain or loss arising from a change in the fair value of the investment property is
recognised in the consolidated statement of comprehensive income within net change in fair value of investment properties.
Investment properties are de-recognised when they have been disposed of. The net gain or loss on disposal is calculated as the difference
between the carrying amount at the time of the disposal and the net proceeds on the disposal and is included in the consolidated statement of
comprehensive income in the reporting period in which the disposal occurs.
Right-of-use assets are measured on initial recognition as the initial lease liability, plus any initial indirect costs incurred, less any lease
incentives received. Right-of-use assets that meet the definition of investment property are presented within investment property at fair value.
Investment property is adjusted for cash flows relating to lease liabilities already recognised separately on the consolidated statement of
financial position and also reflected in the investment property valuations.
CoreNon-core
Development
and OtherTotal
$000$000$000$000
Balance at 31 Mar 23
750,831290,68628,9341,070,451
Property acquisitions1,900-1,8293,729
Re-measurement of lease liabilities-5,031-5,031
Recognition of deposits on investment properties--7979
Capital expenditure3,5852,84016,05822,483
Spreading of fixed rental increases(206)(62)-(268)
Capitalised lease incentives net of amortisation(109)(17)-(126)
Transfer28,322-(28,322)-
Net change in fair value
(73,983)(23,637)(1,113)(98,733)
Balance at 31 Mar 24710,340274,84117,4651,002,646
Property acquisitions
50,732-1,33452,066
Disposals
(22,500)(54,250)-(76,750)
Recognition of deposits on investment properties
--145145
Capital expenditure
6,4546284,74211,824
Spreading of fixed rental increases
(197)(127)-(324)
Capitalised lease incentives net of amortisation
(9)(14)-(23)
Transfer
(730)-730-
Net change in fair value
9,0213,318(214)12,125
Balance at 31 Mar 25
753,111224,39624,2021,001,709
Comprised of:
Investment properties per valuations or at cost
709,720262,20017,465989,385
Lease liabilities (refer note 2.3)
62012,641-13,261
Balance at 31 Mar 24
710,340274,84117,4651,002,646
Investment properties per valuations or at cost
752,500211,85024,202988,552
Lease liabilities (refer note 2.3)
61112,546-13,157
Balance at 31 Mar 25
753,111224,39624,2021,001,709
All valuations are dated effective 31 March 2025. The net change in fair value of $12.1 million (2024: $(98.7) million net reduction) includes
$0.1 million (2024: $0.1 million) in relation to the change in the value of the lease liabilities. Investment property measurements are categorised
as Level 3 in the fair value hierarchy. During the year, there were no transfers of investment properties between levels of the fair value hierarchy
(2024: nil transfers).
The following tables provide a summary of the valuation of the investment properties, their net lettable area (NLA), market capitalisation rate
(cap rate), contract yield, occupancy and weighted average lease term (WALT) for the purpose of providing further detail of the assets which are
considered to be the most relevant to the operations of Investore. Properties classified as 'Non-core' are considered to have characteristics that
are not aligned with Investore's long-term strategy, including those in regional locations or with leasehold ownership elements. 'Development and
Other' properties relate to Investore's development and portfolio initiatives. The NLA, cap rate %, contract yield %, occupancy %, and WALT years
are not applicable for properties classified as 'Development and Other'. The cap rate %, contract yield %, occupancy % and WALT years for the total
investment properties are weighted averages. The totals may not sum due to rounding.
Annual Report 2025
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2.0 Property (continued)
2.2 Investment properties (continued)
NLA
Cap
rate
Contract
yieldOccupancyWALT
As at 31 Mar 25m
2
$000%%%years
Core
24 Anzac Road, Auckland4,382
23,250
5.635.68100.09.9
326 Great South Road, Auckland4,641
32,500
5.635.57100.09.9
35A St Johns Road, Auckland4,538
20,900
6.005.6698.210.0
507 Pakuranga Road, Auckland4,812
16,600
5.886.90100.09.9
3 Averill Street, Auckland5,435
35,500
6.006.12100.09.4
Cnr Te Irirangi Drive & Bishop Dunn Place, Auckland12,205
35,500
5.636.27100.05.7
226 Great South Road, Auckland7,362
36,500
7.007.1297.64.8
20-26 Neville Street, Auckland3,816
24,000
6.256.1898.17.2
2 Carr Road, Auckland11,693
39,000
5.636.94100.02.2
4 Carr Road, Auckland5,332
26,300
5.755.59100.06.3
295 Penrose Road, Auckland9,014
40,000
7.256.5695.62.8
21 Fred Taylor Drive, Auckland16,980
53,750
5.755.83100.07.7
Cnr Bridge & Anglesea Streets, Hamilton4,200
18,400
6.887.02100.08.1
Cnr Hukanui & Thomas Roads, Hamilton4,506
15,600
6.386.99100.07.0
446 Te Rapa Road, Hamilton12,763
34,500
5.635.75100.04.9
65 Chapel Street, Tauranga17,095
49,000
7.757.9499.63.5
45-49 Jackson Street, Wellington4,605
26,750
6.006.56100.07.5
47 Bay Road, Wellington3,460
12,000
6.006.40100.09.9
91 Johnsonville Road, Wellington6,312
22,400
6.505.5087.910.2
13-19 Queen Street, Upper Hutt3,427
15,500
6.256.65100.09.9
261 High Street, Lower Hutt5,078
20,200
6.256.49100.09.9
Cnr Hanson Street, John Street & Adelaide
Road, Wellington4,881
27,000
6.006.30100.06.9
3 Main Road, Wellington4,200
17,000
6.506.91100.08.0
87-97 Hilton Street, Kaiapoi3,025
11,200
7.008.04100.09.9
6 & 21 Hakarau Road, Kaiapoi5,992
21,500
6.256.39100.010.6
219 Colombo Street, Christchurch3,976
18,000
6.256.74100.09.9
40-50 Ivory Street, Rangiora3,786
16,750
6.756.91100.07.7
Cnr Rolleston & Masefield Drives, Rolleston4,251
20,250
6.257.31100.07.7
309 Cumberland Street, Dunedin
4,123
22,650
5.755.75100.09.9
Core total
185,888
752,500
6.246.4599.27.1
Non-core total
68,796
211,850
6.576.7998.75.8
Development and Other
6 & 21 Hakarau Road, Kaiapoi (Land)
5,800
507 Pakuranga Road, Auckland (Development asset)
5,902
Other properties
12,500
Total254,684988,5526.316.5399.06.8
40Investore Property Limited
Annual Report 2025
2.0 Property (continued)
2.2 Investment properties (continued)
NLA
Cap
rate
Contract
yieldOccupancyWALT
As at 31 Mar 24m
2
$000%%%years
Core
24 Anzac Road, Auckland4,38223,2005.635.70100.010.9
326 Great South Road, Auckland4,64130,2505.635.97100.010.9
35A St Johns Road, Auckland4,53821,0006.135.4598.210.7
507 Pakuranga Road, Auckland4,81216,1006.507.45100.010.9
3 Averill Street, Auckland5,43532,5006.006.64100.010.4
Cnr Te Irirangi Drive & Bishop Dunn Place, Auckland12,20534,5005.635.71100.06.7
112 Stoddard Road, Auckland4,20022,5006.386.51100.03.9
226 Great South Road, Auckland7,36235,5007.137.50100.05.7
20-26 Neville Street, Auckland3,81624,2506.256.1698.18.0
2 Carr Road, Auckland11,69338,5005.636.85100.03.2
4 Carr Road, Auckland5,33226,0005.755.66100.07.4
295 Penrose Road, Auckland9,01442,0007.005.7487.72.6
Cnr Bridge & Anglesea Streets, Hamilton4,20018,0007.007.47100.09.1
Cnr Hukanui & Thomas Roads, Hamilton4,50615,6006.506.94100.07.7
446 Te Rapa Road, Hamilton12,76333,6005.635.76100.05.9
65 Chapel Street, Tauranga17,36050,0007.507.1099.73.0
45-49 Jackson Street, Wellington4,60525,7506.006.6397.88.2
47 Bay Road, Wellington3,46012,0006.256.40100.010.9
91 Johnsonville Road, Wellington6,31221,7506.256.87100.010.0
13-19 Queen Street, Upper Hutt3,42715,0006.006.55100.010.9
261 High Street, Lower Hutt5,07819,5006.256.37100.010.9
Cnr Hanson Street, John Street & Adelaide
Road, Wellington4,88127,5006.136.16100.07.9
3 Main Road, Wellington4,20017,0006.506.90100.09.0
87-97 Hilton Street, Kaiapoi3,02511,5007.007.83100.010.9
6 & 21 Hakarau Road, Kaiapoi5,99221,5706.006.83100.011.5
219 Colombo Street, Christchurch3,97617,9006.256.78100.010.9
40-50 Ivory Street, Rangiora3,78615,0006.757.23100.08.7
Cnr Rolleston & Masefield Drives, Rolleston4,25120,2506.256.75100.08.7
309 Cumberland Street, Dunedin
4,12321,5005.755.99100.010.9
Core total
173,374709,7206.276.4999.27.7
Non-core total
82,524262,2006.636.7298.96.5
Development and Other
6 & 21 Hakarau Road, Kaiapoi (Land)5,340
507 Pakuranga Road, Auckland (Development asset)1,160
Other properties
10,965
Total
255,898989,3856.376.5599.17.4
Annual Report 2025
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4041

2.0 Property (continued)
2.2 Investment properties (continued)
Investore is conscious of the need to identify the impact of climate risk on its business and assets and has continued to place a high focus
on sustainability and climate change initiatives, noting that it may face physical and transitional climate-related risks in the future. During the
current year, Investore invested in the installation of LED lights as part of two store refurbishments, the cost of which has been included in capital
expenditure. Work is underway on the removal of air conditioning units using R22 refrigerant (which has a high global warming potential) at a
number Investore properties, with the target of completing the removal of all R22 refrigerants from all Investore sites by 31 March 2027.
The independent valuers that valued Investore’s investment properties have considered ‘Environmental, Social and Governance’ (ESG) factors and
the associated impact on the value of a property. The valuers are not ESG experts but consider market transactional data as part of their valuation
assessment and that market values may be impacted by environmental and climate risk factors, building impacts on the health and wellbeing of
tenants and local communities, and how a building is managed to encourage sustainable practices. For example, higher green rated properties,
or properties with sustainable features, or which are less vulnerable to climate risk, potentially may have higher market values than an equivalent
property without such features. Accordingly, valuations can take these factors into account as part of the overall assessment of a property's market
value. Apart from the consideration of the factors above, the valuers have made no explicit adjustment in respect of ESG and climate risk factors.
Independent engineers have previously provided seismic strength assessments for investment properties located in high or medium earthquake
risk zones. The independent valuations allow for additional seismic capital expenditure where required. In some instances, the valuer has assessed
additional costs for potential works to buildings which have not been subject to a complete Detailed Seismic Assessment.
At each reporting date, SIML verifies all major inputs to the independent valuation reports and assesses property valuation movements when
compared to the prior year's valuation reports. SIML’s executive team review the valuations performed by the independent registered valuers for
financial reporting purposes. This team reports directly to the SIML Chief Executive Officer. Discussions of valuation processes and results are
held between members of the SIML executive team and the independent valuers, and the SIML Chief Executive Officer and Investore’s Audit and
Risk Committee, at least once every six months, in line with Investore’s reporting dates. This review includes a review of specific independent
valuations and discussions with the independent valuers as considered necessary. Ultimately, the Board is responsible for reviewing and approving
the investment property valuations.
Valuations are performed by independent registered valuers who hold an annual practising certificate with the Valuers Registration Board and are
members of the New Zealand Institute of Valuers. Valuers are engaged on terms ensuring that no valuer values the same investment property for
more than three consecutive years.
20252024
Breakdown of valuations by valuer$000$000
CBRE Limited
-
67,500
CVAS (NZ) Limited
143,200
281,800
CVAS (WLG) Limited
57,950
65,250
Jones Lang LaSalle Limited
246,350
150,615
Savills (NZ) Limited
317,400
229,110
Bayleys Valuations Limited
217,750
193,950
Investment properties per independent valuations
982,650
988,225
Investment properties at cost
5,902
1,160
Total
988,552
989,385
Predominant valuation methods used:
•Income Capitalisation approach - is based on the current contract and market rental and an appropriate market yield or return for the
particular investment property. Adjustments are then made to the value to reflect under or over renting, pending capital expenditure, and
upcoming lease expiries, including allowances for lessee incentives and leasing expenses.
•Discounted Cash Flow approach - adopts a ten-year investment horizon and makes appropriate allowances for rental income growth and
leasing expenses on expiries, with an estimated terminal value at the end of the investment period. The terminal yield is used to derive the
terminal value. Terminal yield rate estimates are based on comparable transaction data and also consider matters such as building age and
the market environment at the end of the investment period. The present value reflects the market based rental and expenditure projections,
discounted at a rate of return referred to as a discount rate. In selecting the discount rate many factors are considered, including the degree of
apparent risk, market attitudes toward future inflation, the prospective rates of return for alternative investments and the rates of return earned
by comparable properties in the past.
The adopted market value is a combination of both the Income Capitalisation and the Discounted Cash Flow approaches, other than as follows.
In August 2023, Investore acquired the title to land adjacent to Investore's property at 507 Pakuranga Road, Auckland, from General Distributors
Limited (GDL). Investore is committed to reimburse GDL for the costs of the development of a new car park and other related works on this land
up to an amount of $7.5 million (refer note 2.4), and GDL will pay improvements rental on this contribution. This property has been fair valued
utilising the Residual approach, calculating what the property is expected to be worth on completion of the works and deducting all expected
costs to complete the works, including the $7.5 million commitment to GDL payable on completion of the works. As at 31 March 2024, the acquired
land was valued at $1.9 million and a corresponding liability was recognised. As at 31 March 2025, an additional $5.6 million (2024: $1.2 million)
has been recognised at cost within 'Development and Other', representing development works completed by GDL, with a corresponding liability,
recognised in trade and other payables (refer note 7.4).
The property at 6 & 21 Hakarau Road, Kaiapoi, has been fair valued utilising two valuation approaches. For the Woolworths supermarket
component, a combination of both the Income Capitalisation and the Discounted Cash Flow approaches has been utilised. The separate
speciality unit land within Stage one and the residual land pertaining to Stage two of the development have been fair valued utilising the Land
approach which involves direct comparison with other property transactions and has been disclosed within 'Development and Other'. In the prior
year, the separate speciality unit within Stage one was valued under the Residual approach to account for the works remaining on the unit. These
works have been put on hold in the current year.
42Investore Property Limited
Annual Report 2025
2.0 Property (continued)
2.2 Investment properties (continued)
A valuation is determined based on a range of unobservable inputs which are not freely available or explicit in the market and are developed by
analysing transactional data. The following table details the key unobservable inputs and the ranges adopted (excluding properties classified as
'Development and Other'), along with their sensitivity to significant increase or decrease:
Valuation input range
Fair value measurement
sensitivity to significant:
Significant inputDescription20252024
Increase
in input
Decrease
in input
Valuation
method
Cap rateThe cap rate is applied to the market
rental to assess an investment property’s
value. It is derived from detailed analysis
of factors such as comparable sales
evidence and leasing transactions in
the open market taking into account
location, tenant covenant - lease term and
conditions, WALT, size and quality of the
investment property.
5.63-11.00 %
5.63-11.00 %DecreaseIncreaseIncome
Capitalisation
Discount rateThe discount rate is applied to future
cash flows of an investment property to
provide a net present value equivalent. The
discount rate adopted takes into account
recent comparable market transactions,
prospective rates of return for alternative
investments and apparent risk.
6.25-10.75 %
5.50-10.75 %DecreaseIncreaseDiscounted
Cash Flow
Gross
market rental
The valuer’s assessment of gross market
rental for both occupied and vacant areas
of the investment property.
194-560 $/m²
159-563 $/m²IncreaseDecreaseIncome
Capitalisation
and
Discounted
Cash Flow
Rental growth rateThe rental growth rate applied to the
market rental in the 10-year cash
flow projection.
0.00-2.78 %
0.00-2.95 %IncreaseDecreaseDiscounted
Cash Flow
Terminal yieldThe rate used to assess the terminal value
of the property.
5.38-12.50 %
5.25-12.50 %DecreaseIncreaseDiscounted
Cash Flow
When calculating fair value using the Income Capitalisation approach, the gross market rental has a strong interrelationship with the adopted cap
rate, given the methodology involves assessing the total gross market rental receivable from the investment property, deducting total outgoings
to achieve a net market rental and capitalising this in perpetuity to derive a capital value. An increase in the gross market rental and an increase
(softening) in the adopted cap rate could potentially offset the impact to the fair value. A decrease in the gross market rental and a decrease
(tightening) in the adopted cap rate could also potentially offset the impact to fair value. A directionally opposite change in the gross market rental
and the adopted cap rate could potentially magnify the impact to the fair value.
When assessing a discounted cash flow, the adopted discount rate and adopted terminal yield have a strong interrelationship in deriving a fair value,
given the discount rate will determine the rate at which the terminal value is discounted to the present value. An increase (softening) in the adopted
discount rate and a decrease (tightening) in the adopted terminal yield could potentially offset the impact to the fair value. A decrease (tightening)
in the adopted discount rate and an increase (softening) in the adopted terminal yield could also potentially offset the impact to fair value. A
directionally similar change in the adopted discount rate and the adopted terminal yield could potentially magnify the impact to the fair value.
The estimated sensitivity of the fair value of the total investment property portfolio to changes in the cap rate and discount rate, assuming the cap
rate or discount rate moved equally on all the properties, is provided below (excluding properties classified as 'Development and Other'). The metrics
chosen are those where movements are likely to have the most significant impact on fair value.
Cap rate %Discount rate %
-0.25+0.25-0.25+0.25
As at 31 Mar 25
Change $000
39,868(36,828)33,612(31,402)
Change %
4(4)4(3)
As at 31 Mar 24
Change $00039,533(36,547)33,760(31,566)
Change %4(4)3(3)
Annual Report 2025
Investore Property Limited43
Investore Property LimitedInvestore Property LimitedAnnual Report 2025Annual Report 2025
4243

2.0 Property (continued)
2.3 Lease liabilities
Accounting Policy
Lease liabilities are measured based on the present value of the fixed and variable lease payments, less any cash lease incentives receivable.
Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit or loss over the lease period so as
to produce a constant rate of interest on the remaining balance of the liability for each period.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, the lessee's
incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset
of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.
Investore is committed under ten (2024: ten) operating leases where Investore is the lessee:
•Corner of Anglesea and Liverpool Streets, Hamilton (seven);
•Corner of Bridge and Anglesea Streets, Hamilton (one);
•70 Studholme Street, Morrinsville (one); and
•51 Arthur Street, Blenheim (one).
The leases relate to ground rent on leasehold properties and contain renewal and termination options exercisable only by Investore. In determining
the lease term, Investore considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a
termination option. Extension options are only included in the lease term if the lease is reasonably certain to be extended (or not terminated).
The lease term is re-assessed if an option is actually exercised (or not exercised) or Investore becomes obliged to exercise (or not exercise) it.
The assessment of reasonable certainty is only revised if a significant event or a significant change in circumstances occurs, which affects this
assessment, and that is within the control of the lessee.
20252024
Lease liabilities$000$000
Opening balance13,261
8,317
Re-measurement of lease liabilities
-
5,031
Cash lease payments
(957)
(782)
Finance lease interest
853
695
Closing balance
13,157
13,261
Current
111
100
Non-current
13,046
13,161
Total lease liabilities
13,157
13,261
2.4 Capital expenditure commitments contracted for
As at 31 March 2025, Investore has no material capital expenditure commitments.
As at 31 March 2024, there were commitments of:
•$4.9 million towards the redevelopment and store refurbishment at 507 Pakuranga Road, Auckland, including a car park, improved customer
access and a dedicated online pick-up area. The total cost of the development is $8.0 million, including $7.5 million that Investore has
committed to reimburse GDL for the costs incurred by GDL in developing these works. As at 31 March 2025, $8.0 million has been recognised
in trade and other payables (refer note 7.4).
•$3.0 million towards dedicated online pick-up areas at 326 Great South Road, Auckland, and 40-50 Ivory Street, Rangiora. This capital
expenditure has been incurred as at 31 March 2025.
•$1.1 million to complete Stage one development at 6 & 21 Hakarau Road, Kaiapoi. As at 31 March 2025, this commitment has been removed
from the valuation due to the development being paused, pending more suitable market conditions.
•$1.2 million for various other capital expenditure. This capital expenditure has been incurred as at 31 March 2025.
Subsequent to balance date, Investore has committed to a further $1.2 million for other various capital expenditure.
44Investore Property Limited
Annual Report 2025
3.0 Investor Returns
This section sets out Investore’s earnings per share, and how distributable profit is calculated. Distributable profit is a non-GAAP
measure (refer note 1.9) and is used by Investore to calculate profit available for distribution to shareholders by way of dividends.
3.1 Basic and diluted earnings per share (EPS)
Basic and diluted EPS amounts are calculated by dividing profit/(loss) after income tax attributable to shareholders by the weighted average
number of shares on issue. The movement in the weighted average number of shares in the current year reflects the 3.8 million ordinary shares
(2024: 6.3 million) issued under the DRP (refer note 1.8).
20252024
$000$000
Profit/(loss) after income tax attributable to shareholders38,350
(67,113)
Weighted average number of shares for the purpose of basic and diluted EPS
374,445
369,320
Basic and diluted EPS - weighted (cents)10.24
(18.17)
3.2 Distributable profit
Accounting Policy
Investore’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 Investore’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 (including non-recurring adjustments for incentives payable to anchor tenants for lease extensions) and
current tax.
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 investors to see the cash generating ability of the business.
20252024
$000$000
Profit/(loss) before income tax48,529
(63,626)
Non-recurring, non-cash and other adjustments:
Net change in fair value of investment properties
(12,125)
98,733
Reversal of lease liabilities movement in net change in fair value of investment properties
(104)
(87)
Gain on disposal of investment properties
(1,061)
-
Net change in fair value of derivative financial instruments
(171)
24
Spreading of fixed rental increases
324
268
Capitalised lease incentives net of amortisation
23
126
Borrowings establishment costs amortisation
756
959
Rental guarantee income
73
-
Distributable profit before current income tax36,244
36,397
Current income tax (refer note 7.2)(7,762)
(5,260)
Adjusted for:
Tax expense on capitalised interest
(85)
(137)
Distributable profit after current income tax
28,397
31,000
Adjustments to funds from operations
Maintenance capital expenditure
(2,360)
(3,741)
Seismic works
(407)
(2,306)
Incentives and associated landlord works
(988)
(382)
AFFO
24,642
24,571
Weighted average number of shares for the purpose of basic and diluted distributable profit per share (000)
374,445
369,320
Basic and diluted distributable profit after current income tax per share - weighted (cents)7.58
8.39
AFFO basic and diluted distributable profit after current income tax per share - weighted (cents)6.58
6.65
Annual Report 2025
Investore Property Limited45
Investore Property LimitedInvestore Property LimitedAnnual Report 2025Annual Report 2025
4445

4.0 Related Party Disclosures
This section sets out the transactions that have occurred during the relevant periods between Investore and SIML, as manager of
Investore, and Stride Property Limited (SPL), which owns a cornerstone shareholding in Investore. The shares in each of SIML and
SPL are stapled securities and together they comprise the Stride Property Group.
20252024
The following transactions with a related party took place$000$000
SIML
Asset management fee expense
(5,151)
(5,376)
Disposal fee expense
(396)
-
Building management fee expense
(446)
(443)
Accounting fee expense
(250)
(250)
Leasing fee expense
(253)
(257)
Project management fee expense
(272)
(776)
Other fee expenses
(183)
(224)
Total
(6,951)
(7,326)
SPL
Dividends paid
(4,581)
(5,245)
Dividends reinvested
792
1,305
The following balance was payable to a related party
SIML
(141)
(103)
Other fee expenses include maintenance and sustainability fees (2024: maintenance, sustainability and share buyback fees).
Investore has appointed SIML as its exclusive provider of ongoing real estate investment management services. Investore does not have any
employees, and accordingly, there are no senior managers of Investore who have a relevant interest in the shares of Investore.
SIML did not receive a performance fee for the year ended 31 March 2025 (2024: $nil). The carried forward return for the performance fee
calculation for the quarter ending 30 June 2025 is a 31.4% deficit (2024: quarter ended 30 June 2024 41.7% deficit) which has been calculated in
accordance with the management agreement.
During the current year, 0.7 million ($0.8 million) shares (2024: 1.2 million ($1.3 million) shares) were issued to SPL under the DRP. As at
31 March 2025, SPL's shareholding in the Parent was 18.8%, being 71.1 million shares (2024: 18.8%, being 70.4 million shares).
In the current year, Directors in total received dividends of $14,319 (2024: $13,728). Directors' fees recognised in administration expenses
comprise the following:
20252024
$000$000
Directors' fees
226
222
Chair's fees
107
104
333
326
No other benefits have been provided by Investore to a Director for services as a Director or in any other capacity, other than those amounts
disclosed above.
46Investore Property Limited
Annual Report 2025
5.0 Capital Structure and Funding
Investore'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 Investore's funding exposure to interest rate risk and related
financing costs.
5.1 Borrowings
Accounting Policy
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost;
any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the consolidated statement of
comprehensive income over the period of the borrowings using the effective interest method. Borrowings are classified as current liabilities
unless Investore has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.
Cashflows as a result of transfers between existing bank facilities are presented net within the consolidated statement of cash flows.
20252024
$000$000
Current
Fixed rate bonds
-
100,000
Unamortised borrowings establishment costs
-
(11)
Total current
-
99,989
Non-current
Bank facility drawn down
128,600
52,800
Fixed rate bonds
250,000
250,000
Unamortised borrowings establishment costs
(1,452)
(1,788)
Total non-current
377,148
301,012
Total net borrowings
377,148
401,001
Weighted average cost of debt (inclusive of current interest rate derivatives, bonds, bank margins and line
fees) at balance date
4.10%
4.34%
Total
amount
Undrawn
facility
Drawn
amount
Fair
value
As at 31 Mar 25Issue dateExpiry dateInterest rate$000$000$000$000
Bank Facility A30 Nov 2028Floating
50,00050,000--
Bank Facility B30 Nov 2028Floating
42,500-42,50042,500
Bank Facility C30 Nov 2028Floating
52,500-52,50052,500
Bank Facility D30 Nov 2028Floating
80,00046,40033,60033,600
Bonds IPL02031 Aug 202031 Aug 20272.40%
125,000-125,000116,761
Bonds IPL03025 Feb 202225 Feb 20274.00%
125,000-125,000122,456
475,00096,400378,600367,817
As at 31 Mar 24
Bank Facility A30 Nov 2025Floating70,00057,20012,80012,800
Bank Facility D16 Apr 2025Floating50,00050,000--
Bank Facility F31 May 2026Floating40,000-40,00040,000
Bank Facility G31 May 2026Floating65,00065,000--
Bonds IPL01018 Apr 201818 Apr 20244.40%100,000-100,00099,893
Bonds IPL02031 Aug 202031 Aug 20272.40%125,000-125,000108,499
Bonds IPL03025 Feb 202225 Feb 20274.00%
125,000-125,000116,498
575,000172,200402,800377,690
Annual Report 2025
Investore Property Limited47
Investore Property LimitedInvestore Property LimitedAnnual Report 2025Annual Report 2025
4647

5.0 Capital Structure and Funding (continued)
5.1 Borrowings (continued)
Bank borrowings
Investore’s bank borrowings are via syndicated senior secured facilities with ANZ Bank New Zealand Limited, China Construction Bank Corporation,
New Zealand Branch, Industrial and Commercial Bank of China Limited, Auckland Branch, and Westpac New Zealand Limited (Westpac).
On 30 September 2024, Investore refinanced its $225.0 million syndicated bank facilities, extending the tenor on all facilities to November 2028.
In accordance with Investore's Green Finance Framework (Framework) the facilities are classified as green loan facilities. The Framework has been
developed to be consistent with the Asia Pacific Loan Market Association Green Loan Principles (2025) and International Capital Market Association
Green Bond Principles (2021 with June 2022 Appendix) and with consideration of the NZGBC Green Finance Guidance for Green Buildings (2024).
Fixed rate bonds
IPL010 fixed rate bonds matured in April 2024 and were repaid with $100.0 million of bank facility drawdowns.
The remaining fixed rate bonds are quoted on the NZX Debt Market and their fair value is based on their listed market price as at balance date.
Interest on the 7 year fixed rate bonds issued in 2020 (IPL020) and the 5 year fixed rate bonds issued in 2022 (IPL030) are payable quarterly in
August, November, February, and May, in equal instalments.
Security
The bank borrowings and fixed rate bonds are managed through a security agent who holds a first registered mortgage on all the investment
properties owned by the Parent and the Subsidiary and a registered first ranking security interest under a General Security Deed over substantially
all the assets of the Parent and the Subsidiary.
20252024
Summary of net debt$000$000
Cash
5,406
6,633
Borrowings - current
-
(99,989)
Borrowings - non-current
(377,148)
(301,012)
Lease liabilities
(13,157)
(13,261)
Net debt
(384,899)
(407,629)
5.2 Net finance expense
Accounting Policy
Interest income is recognised on a time-proportional basis using the effective interest rate.
Where Investore borrows funds specifically for the purpose of obtaining a qualifying asset, the amount of borrowing costs capitalised are the
actual borrowing costs incurred on that borrowing, less any investment income on the temporary investment of those borrowings. A qualifying
asset is one that takes six months or longer to prepare for its intended use or sale. Where Investore borrows funds generally and uses them
to fund a qualifying asset, the amount of borrowing costs capitalised is determined by applying a capitalisation rate to the expenditure on that
asset. The capitalisation rate is the weighted average of the borrowing costs applicable to the borrowings that are outstanding during the
period, other than borrowings made specifically for the purpose of funding a qualifying asset.
Other interest costs charged on borrowings are recognised as incurred. Costs associated with the establishment of borrowings are amortised
over the term of the relevant borrowings.
20252024
$000$000
Finance income
Bank interest income
217
194
Total finance income
217
194
Finance expense
Bank borrowings interest
(10,123)
(4,749)
Bank borrowings interest capitalised
302
490
Fixed rate bonds interest
(8,748)
(13,220)
Lease liabilities interest
(853)
(695)
Total finance expense
(19,422)
(18,174)
Net finance expense
(19,205)
(17,980)
Certain comparative amounts have been reclassified to conform with the current year's presentation.
In the current year, $0.3 million (2024: $0.5 million) of bank borrowing interest expense has been capitalised using an average capitalisation rate of
4.24% (2024: 3.95%).
48Investore Property Limited
Annual Report 2025
5.0 Capital Structure and Funding (continued)
5.3 Derivative financial instruments
Accounting Policy
Interest rate derivatives (derivative financial instruments) are initially recognised at fair value on the date a derivative contract is entered into
and are subsequently measured at their fair value at each reporting date. Fair value of over-the-counter derivatives, such as interest rate
derivatives, is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on
entity-specific estimates.
Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments
to ensure that an economic relationship exists between the hedged item and hedging instrument.
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in the cash
flow hedge reserve within equity. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss, within the
consolidated statement of comprehensive income.
When a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity
and is recognised when the forecast transaction is ultimately recognised in profit or loss.
20252024
$000$000
Interest rate derivative contracts - fixed rate payer start dates commenced
30,000
30,000
Interest rate derivative contracts - fixed rate payer forward starting
125,000
25,000
Interest rate derivative contracts - fixed rate receiver
-
25,000
Total notional principal value of interest rate derivative contracts
155,000
80,000
Interest rate derivative assets - current
142
-
Interest rate derivative assets - non-current
150
1,099
Interest rate derivative liabilities - current
-
(173)
Interest rate derivative liabilities - non-current
(262)
-
Fair value of interest rate derivative contracts
30
926
Fixed interest rates payer (including forward starting interest rate derivatives)
2.84%-3.83%
2.84%-3.83%
Fixed interest rate receiver
-
4.40%
Weighted average fixed interest rate (excluding margins, including forward starting interest rate derivatives)
2.35%
2.12%
Percentage of drawn debt fixed
74%
88%
During the year ended 31 March 2025, Investore entered into the following forward-starting interest rate agreements:
•two year pay fixed agreement with a notional value of $25.0 million and an effective date of 31 July 2025;
•two year pay fixed agreement with a notional value of $25.0 million and an effective date of 28 February 2027; and
•two year pay fixed agreement with a notional value of $50.0 million and an effective date of 28 February 2027.
Investore enters into interest rate derivatives that have similar critical terms as the hedged item, such as reference rate, reset dates, payment dates,
maturities and notional amount. As all critical terms matched during the period, the economic relationship was 100% effective, with the exception
of a $25.0 million fixed rate receiver interest rate derivative which matured in April 2024. Investore does not hold derivative financial instruments for
trading purposes.
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 (2024: Level 2). These 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 31 March 2025 of between 3.61%, for the 90-day BKBM, and
4.11% for the 10-year swap rate (2024: 5.64% and 4.37%, respectively). There were no changes to these valuation techniques during the
reporting period.
The following sensitivity illustrates the impact on equity as a result of the change in fair value of the interest rate derivatives and shows the effect if
the market interest rates had been 0.25% higher or lower, with other variables remaining constant. There is no impact on profit for the current or
comparative year.
20252024
Gain/(loss) on
+0.25%
Gain/(loss) on
-0.25%
Gain/(loss) on
+0.25%
Gain/(loss) on
-0.25%
$000$000$000$000
Impact on equity595(602)
198(200)
Annual Report 2025
Investore Property Limited49
Investore Property LimitedInvestore Property LimitedAnnual Report 2025Annual Report 2025
4849

5.0 Capital Structure and Funding (continued)
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.
During the current year, 3.8 million (2024: 6.3 million) ordinary shares were issued in accordance with the DRP. Investore had 377,623,361 shares
on issue as at 31 March 2025 (2024: 373,821,658).
5.5 Reserve
20252024
Cash flow hedge reserve$000$000
Opening balance816
668
Movement in fair value of interest rate derivatives
(1,117)
194
Tax on fair value movement
265
(48)
Transferred to profit or loss
-
2
Closing balance
(36)
816
Gains and losses recognised in the cash flow hedge reserve in equity, on interest rate derivative contracts as at 31 March 2025, will be reclassified
in the same period in which the hedged forecast cash flows affect profit or loss, until the repayment of the underlying borrowings.
5.6 Capital risk management
Investore’s objectives when managing capital are to safeguard Investore’s ability to continue as a going concern in order to provide returns for
shareholders, and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, Investore
may adjust the amount of dividends paid to shareholders, operate a dividend reinvestment plan, return capital to shareholders, buy back shares,
issue new shares or sell assets to reduce borrowings. As part of its capital risk management, Investore is required to comply with covenants (interest
cover ratio, loan to value ratio and green loan ratio) imposed under its banking facilities and its fixed rate bonds. The Board regularly monitors these
covenants and provides six monthly compliance certificates to the banks and the Bond Supervisor as part of this process. Investore has complied
with these covenants during the relevant periods.
50Investore Property Limited
Annual Report 2025
6.0 Risk Management
This section sets out Investore's exposure to financial assets and liabilities that potentially subject Investore to financial risk and
how Investore manages those risks.
6.1 Financial instruments
A financial instrument is recognised if Investore becomes a party to the contractual provisions of the instrument. Financial assets are de-recognised
if Investore’s contractual rights to the cash flows expire, or if Investore transfers them without retaining control or substantially all risks and rewards
of the asset. Financial liabilities are de-recognised if Investore’s obligations specified in the contract are extinguished.
Investore classifies its financial assets and financial liabilities in the following measurement categories:
•those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss); and
•those to be measured at amortised cost.
Classification is determined at initial recognition and this designation is re-evaluated at every reporting date.
The carrying values of all financial assets and liabilities in the consolidated statement of financial position approximate their estimated fair values,
apart from the fixed rate bonds (refer note 5.1).
The following financial assets and liabilities that potentially subject Investore to financial risk have been recognised in the financial statements:
2025
Restated
2024
Summary of financial instruments$000$000
Financial assets at amortised cost
Cash
5,406
6,633
Debtors and other receivables
713
558
Other current assets
5,377
2,287
Total financial assets at amortised cost
11,496
9,478
Held at fair value through profit and loss
350
-
Derivative financial instruments
Used for hedging
292
1,099
Total financial assets
12,138
10,577
Financial liabilities at amortised cost
Trade and other payables
14,061
9,693
Lease liabilities
13,157
13,261
Borrowings
377,148
401,001
Total financial liabilities at amortised cost
404,366
423,955
Derivative financial instruments
Used for hedging
262
171
Held at fair value through profit and loss
-
2
Total financial liabilities
404,628
424,128
Comparatives for the year ended 31 March 2024 have been restated to; include other current assets, and exclude prepaid rental income and Goods
and Services Tax payable from trade and other payables. The amounts removed have been excluded on the basis they do not meet the definition of
financial instruments as they will not result in future contractual cash outflows.
6.2 Financial risk management
Investore’s activities expose it to a variety of financial risks: credit risk, interest rate risk and liquidity risk. Investore’s overall risk management
strategy focuses on minimising the potential negative economic impact of unpredictable events on its financial performance.
Risk management is the responsibility of the Board. The Board identifies and evaluates financial risks in close co-operation with SIML management.
The Board provides written principles for overall risk management, as well as written policies covering specific areas, such as interest rate risk,
credit risk, use of derivative financial instruments and non-derivative financial instruments, and investing excess liquidity.
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6.0 Risk Management (continued)
6.3 Credit risk
Investore incurs credit risk from debtors and transactions with financial institutions including cash balances and interest rate derivatives.
The risk associated with debtors is managed with a credit policy which includes performing credit evaluations on customers requiring credit and
ensures that only those customers with appropriate credit histories are provided with credit. In addition, receivable balances are monitored on an
ongoing basis, with the result that Investore’s exposure to bad debts is not significant.
As Investore’s tenant GDL contributes most of Investore’s portfolio contract rental, Investore is exposed to a significant concentration of credit risk.
GDL is a large national retailer, the operator of Woolworths supermarkets in New Zealand, and an ultimate subsidiary of Woolworths Group Limited.
The risk from financial institutions is managed by placing cash and deposits with high credit quality financial institutions only. Investore has placed its
cash and deposits with Westpac, which is AA- rated (Standard & Poor’s).
With respect to the credit risk arising from interest rate derivative agreements, there is limited risk as all counterparties are registered banks in
New Zealand whose credit ratings are all AA- (Standard & Poor’s).
Financial assets held at fair value through profit or loss are considered to hold limited risk as the amount of exposure is not significant.
Investore is not exposed to any other concentrations of credit risk. The maximum exposure to credit risk is the carrying amount of each class of
financial assets as reported in note 6.1.
6.4 Interest rate risk
As Investore has no significant interest bearing assets, its operating income is substantially independent of changes in market interest rates.
Investore’s interest rate risk arises from bank borrowings (refer note 5.1) which are issued at variable rates and expose Investore to cash flow
interest rate risk. Investore's long term interest rate hedging policy provides bands that are applied on a rolling basis, which provide for both a
high level of fixed interest rate cover over the near term, as well as a lengthy period of known fixed interest rate cover for a portion of term debt.
Investore manages its cash flow interest rate risk by predominately using floating to fixed interest rate derivatives which have the economic effect of
converting bank borrowings from floating to fixed rates.
As Investore holds interest rate derivatives, there is a risk that their economic value will fluctuate because of changes in market interest rates. The
value of interest rate derivatives is disclosed in note 5.3. At balance date, the total drawn debt was 74% fixed (2024: 88% fixed).
Investore’s exposure to variable interest rate risk and the weighted average interest rate for interest bearing financial assets and liabilities is
as follows:
20252024
Interest rates applicable at balance date$000$000
Cash at bank
0.55%
2.30%
Bank borrowings
4.77%
6.65%
Weighted average cost of debt (inclusive of current interest rate derivatives, bonds, bank margins and
line fees)
4.10%
4.34%
Debtors and other receivables and trade and other payables are interest free and have settlement dates within one year. All other assets and
liabilities are non-interest bearing.
6.5 Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit
facilities, and the ability to close out market positions. Investore’s liquidity position is monitored by SIML on a regular basis and is reviewed quarterly
by the Board to ensure compliance with internal policies and covenants per Investore’s banking facilities and fixed rate bonds.
Investore generates sufficient cash flows from its operating activities to meet its obligations arising from its financial liabilities and has the bank
facilities available to cover potential shortfalls (refer note 5.1). The following table outlines Investore’s liquidity profile, as at 31 March, based on
contractual undiscounted cash flows. Refer note 6.1 for explanation of restatement of comparatives.
Total0-6 mths6-12 mths1-2 yrs2-5 yrs>5 yrs
$000$000$000$000$000$000
As at 31 Mar 25
Trade and other payables
14,06114,061----
Bank borrowings
147,5123,3733,2025,705135,232-
Fixed rate bonds
266,7644,0004,000132,514126,250-
Lease liabilities
15,6794984609572,83210,932
Derivative financial instruments
9,4824346842,0886,276-
453,49822,3668,346141,264270,59010,932
As at 31 Mar 24 (Restated)
Trade and other payables9,6939,693----
Bank borrowings57,9781,8421,77116,27638,089-
Fixed rate bonds374,984104,2204,0008,000258,764-
Lease liabilities16,6364984609572,85211,869
Derivative financial instruments
3,0143904265231,675-
462,305116,6436,65725,756301,38011,869
52Investore Property Limited
Annual Report 2025
7.0 Other
This section contains additional information to assist in understanding the financial performance and position of Investore.
7.1 Corporate expenses
20252024
$000$000
Administration expenses includes:
PricewaterhouseCoopers' remuneration
Audit and review of financial statements
192
192
Other assurance services - operating expense audits
19
18
Total PricewaterhouseCoopers' remuneration
211
210
7.2 Tax
Accounting Policy
Income tax expense comprises current and deferred tax and is recognised in the consolidated statement of comprehensive income for the
year. Current and deferred tax is calculated on the basis of the laws enacted or substantively enacted at the reporting date.
The Parent is a listed Portfolio Investment Entity for the purposes of the Income Tax Act 2007 and is required to pay tax to Inland Revenue as
required by the Income Tax Act 2007.
20252024
Income tax$000$000
Current tax expense
(7,762)
(5,260)
Depreciation recovered on sale
(109)
-
Deferred tax (expense)/benefit
(2,308)
1,773
Income tax expense per the consolidated statement of comprehensive income
(10,179)
(3,487)
Profit/(loss) before income tax48,529
(63,626)
Prima facie income tax using the company tax rate of 28%(13,588)
17,815
Decrease/(increase) in income tax due to:
Net change in fair value of investment properties
3,395
(27,645)
Gain on disposal of investment properties
297
-
Reversal of lease liabilities movement in investment properties
29
24
Movement in fair value of derivative financial instruments
48
(7)
Assessable income
(20)
-
Non-taxable income
35
11
Other permanent differences
163
277
Depreciation
1,936
4,209
Non-deductible expenses
(250)
(168)
Expenditure deductible for tax
85
137
Temporary differences
23
32
Prior year adjustment
85
55
Current tax expense
(7,762)
(5,260)
Depreciation recovered on sale(109)
-
Investment properties depreciation
(2,334)
1,722
Other
26
51
Deferred tax (charged)/credited to profit or loss
(2,308)
1,773
Income tax expense per the consolidated statement of comprehensive income
(10,179)
(3,487)
Imputation credits available for use in subsequent reporting periods
1,728
1,325
Imputation credits available for use in subsequent reporting periods are based on a rate of 28% and represent the balance of the imputation
account as at the end of the reporting period, adjusted for imputation credits arising from provisional income tax paid.
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7.0 Other (continued)
7.2 Tax (continued)
Accounting Policy
Deferred tax is provided, using the liability method, on all temporary differences between the tax base of assets and liabilities and their carrying
amounts for financial reporting purposes. Temporary differences include:
•tax liability arising from accumulated depreciation claimed on investment properties, where applicable;
•tax liability arising from certain prepayments and other assets; and
•tax asset/liability arising from the unrealised gains/losses on the revaluation of interest rate derivatives.
For deferred tax liabilities or assets arising on investment property measured at fair value, it is assumed that the carrying amounts of the
investment property will be recovered through sale. Investment properties are independently valued each year and the valuation includes a
split between the land and building components. Deferred tax is provided on the depreciation claimed to date on the building component of
the investment properties and this places reliance on the valuation split provided by the valuers.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset and when the deferred tax assets and liabilities
relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an
intention to settle the balances on a net basis.
20252024
$000$000
Deferred tax assets
Derivative financial instruments
73
10
Other temporary differences
157
131
230
141
Deferred tax liabilities
Depreciation on investment properties
(2,701)
(367)
Derivative financial instruments
(66)
(268)
(2,767)
(635)
Net deferred tax liability
(2,537)
(494)
54Investore Property Limited
Annual Report 2025
7.0 Other (continued)
7.3 Debtors and other receivables
Accounting Policy
Debtors and other receivables are recognised at their fair value and subsequently measured at amortised cost using the effective interest rate
method. Investore has applied the simplified approach to measuring expected credit loss as prescribed by NZ IFRS 9 Financial Instruments,
which uses a lifetime expected loss allowance. A loss allowance is made when there is objective evidence (such as the probability of insolvency
or significant financial difficulties of the debtor) that Investore will not be able to collect all of the amounts due under the original terms of
the invoice.
20252024
$000$000
Current
Debtors and other receivables
998
686
Less loss allowance
(285)
(128)
713
558
Rental guarantee receivable in relation to 21 Fred Taylor Drive, Auckland (refer note 1.8)
350
-
1,063
558
Less than 30 days due
811
385
Over 30 days due
252
173
Carrying amount
1,063
558
7.4 Trade and other payables
Accounting Policy
Trade and other payables represent unsecured liabilities for goods and services provided to Investore prior to the end of the financial period
which are unpaid. Trade and other payables are usually paid within 30 days of recognition. The carrying amounts of trade and other payables
are assumed to be the same as their fair values, due to their short-term nature.
20252024
$000$000
Current
Unsecured liabilities
Trade payables
488
73
Related party payables (refer note 4.0)
141
103
Development and capital expenditure payables and accruals
11,003
6,212
Retention accruals
192
304
Interest expense accruals
1,005
1,728
Other accruals and payables
2,771
2,754
15,600
11,174
Development and capital expenditure payables and accruals include an $8.0 million payable to GDL (2024: $3.1 million) in relation to
507 Pakuranga Road, Auckland.
Other accruals and payables include Goods and Services Tax, tenant deposits, direct property operating expense accruals and other corporate
expense accruals.
7.5 Operating segments
Investore is reported as a single operating segment, which is consistent with the internal reporting provided to the chief operating decision-maker,
identified as the Board. Investore’s revenue streams are earned from investment properties owned in New Zealand, with no specific exposure
to geographical risk. Two tenants contribute more than 10% of Investore’s portfolio contract rental as at 31 March 2025: GDL (Woolworths)
contributes 62% (2024: 64%); and Bunnings Limited contributes 17% (2024: 13%).
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7.0 Other (continued)
7.6 Contingent transaction
In March 2025, Investore entered into an agreement to acquire an investment property. Settlement of the acquisition is contingent upon the tenant
of the property issuing a works upgrade notice (in accordance with the terms of the lease) by mid June 2025. There is no certainty that this notice
will be issued. The aggregate cost associated with this agreement is $49.0 million. A refundable deposit of $2.2 million was paid in March 2025 and
is included within other current assets on the consolidated statement of financial position.
7.7 Subsequent events
On 30 April 2025, Investore's $225.0 million bank debt facilities were refinanced, extending the maturity of each facility to between 31 May 2029
and 31 May 2030. As part of this refinance, Commonwealth Bank of Australia, New Zealand Branch, and Bank of China Limited, Auckland Branch,
joined the banking syndicate.
On 8 May 2025, Investore entered into a forward-starting two year fixed interest rate swap agreement with a notional value of $25.0 million and an
effective date of 28 February 2027.
On 16 May 2025, the Parent declared a cash dividend for the period 1 January 2025 to 31 March 2025 of 1.625 cents per share, to be paid on
5 June 2025 to all shareholders on the Parent’s register at the close of business on 26 May 2025. This dividend will carry imputation credits of
0.457615 cents per share. This dividend has not been recognised in the financial statements.
On 16 May 2025, the Parent resolved that the DRP will not operate for the dividend for the period 1 January 2025 to 31 March 2025.
There have been no other material events subsequent to balance date.
56Investore Property Limited
Annual Report 2025
Independent auditor’s report
To the shareholders of Investore Property Limited
Our opinion
In our opinion, the accompanying consolidated financial statements (the financial statements) of Investore Property Limited (the Company),
including its controlled entities (the Group), present fairly, in all material respects, the financial position of the Group as at 31 March 2025, its
financial performance, and its cash flows for the year then ended in accordance with New Zealand Equivalents to International Financial Reporting
Standards (NZ IFRS) and International Financial Reporting Standards Accounting Standards (IFRS Accounting Standards).
What we have audited
The Group's financial statements comprise:
•the consolidated statement of financial position as at 31 March 2025;
•the consolidated statement of comprehensive income for the year then ended;
•the consolidated statement of changes in equity for the year then ended;
•the consolidated statement of cash flows for the year then ended; and
•the notes to the financial statements, comprising material accounting policy information and other explanatory information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)) and International Standards on Auditing
(ISAs). Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements
section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group in accordance with Professional and Ethical Standard 1 International Code of Ethics for Assurance Practitioners
(including International Independence Standards) (New Zealand) (PES 1) issued by the New Zealand Auditing and Assurance Standards Board and
the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics
Standards Board for Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements.
In our capacity as auditor, our firm provides review and other assurance services. The firm has no other relationship with, or interests in, the Group.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the
current year. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters.
PricewaterhouseCoopers, PWC Tower, 15 Customs Street West, Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000, www.pwc.co.nz
Annual Report 2025
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Independent auditor’s report (continued)
Description of the key audit matterHow our audit addressed the key audit matter
Valuation of investment properties
As disclosed in Note 2.2 of the financial statements,
the valuation of the Group’s investment properties
totalled $989 million (excluding lease liabilities), which
represents the majority of the assets held by the Group
as at 31 March 2025.
The valuation of the Group’s property portfolio is
inherently subjective due to, amongst other factors,
the individual nature of each property, location and
the expected future rental income for each property.
A relatively small percentage difference in any one of
the key individual assumptions used in the property
valuations, as disclosed in Note 2.2, when aggregated,
could result in a material misstatement of the overall
valuation of investment properties. Considering the
significance of investment property to the Group, this is
a key audit matter.
The valuations were performed by independent
registered valuers (the Valuers), as engaged by
Stride Investment Management Limited (the Group’s
Manager). The Valuers engaged by the Manager are
reputable and experienced in the markets in which
the Group operates and are rotated for individual
properties on a three-yearly cycle.
In determining a property’s valuation, the Valuers
predominantly used two approaches to determine
the fair value of an investment property: the Income
Capitalisation approach and the Discounted Cash Flow
approach to arrive at a range of valuation outcomes,
from which the Valuers derive a point estimate.
For each property, the Valuers take into account
property-specific information such as the current
tenancy agreements and rental income earned by the
asset as well as recent comparable transactions where
available. They then apply assumptions in relation to
capitalisation rate, discount rate, gross market rental,
rental growth rate and terminal yield. For properties
that require seismic strengthening works, the valuation
incorporates an additional seismic capital expenditure
and a profit and risk allowance (where applicable).
In assessing the individual valuations, we performed the procedures outlined below.
We held discussions with the Group’s Manager to understand:
•the movements in the Group’s investment property portfolio;
•changes in the condition of each property;
•the impact of climate change and related risks on the portfolio; and
•the controls in place over the valuation process.
We read the valuation reports for all properties. We also held separate discussions
with each of the Valuers in order to gain an understanding of the assumptions and
estimates used and the valuation methodology applied. We also sought to understand
and consider restrictions imposed on the valuation process (if any) and the market
conditions at the balance date.
We also assessed the Valuers’ qualifications, expertise and their objectivity and we
found no evidence to suggest that the objectivity of any Valuer, in their performance of
the valuations, was compromised.
Our work over the assumptions focused on the properties in the portfolio where the
assumptions used and/or year-on-year fair value movement suggested a possible
outlier versus market data. On a sample basis, we:
•obtained an understanding of the key valuation inputs;
•agreed contractual rental and lease terms to lease agreements with tenants; and
•considered whether seismic assessments and/or capital maintenance
requirements had been taken into account in the valuations with reference to
supporting documentation.
We engaged our own in-house valuation specialist to critique and independently
assess the work performed and assumptions used by the Valuers, on a sample basis.
We considered whether or not there was a bias in determining significant assumptions
in individual valuations and found no evidence of bias.
We confirmed that the valuation approach for each property was in accordance with
accounting standards and suitable for use in determining the fair value of investment
properties at 31 March 2025. 
We also considered the appropriateness of disclosures made in the
financial statements.
Our audit approach
Overview
Overall group materiality: $1,800,000, which represents approximately 5% of profit before income tax excluding the net
change in fair value of investment properties.
We chose profit before income tax excluding the net change in fair value of investment properties as the benchmark because,
in our view, it is the benchmark against which the performance of the Group is most commonly measured by users of the
financial statements.
We performed a full scope audit over the consolidated financial information of the Group.
As reported above, we have one key audit matter, being Valuation of investment properties.
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. In particular,
we considered where management made subjective judgements; for example, in respect of significant accounting estimates that involved making
assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override
of internal controls, including among other matters, consideration of whether there was evidence of bias that represented a risk of material
misstatement due to fraud.
58Investore Property Limited
Annual Report 2025
Independent auditor’s report (continued)
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance about whether the
financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall Group materiality for the
financial statements as a whole as set out above. These, together with qualitative considerations, helped us to determine the scope of our audit,
the nature, timing and extent of our audit procedures, and to evaluate the effect of misstatements, both individually and in the aggregate, on the
financial statements as a whole.
How we tailored our group audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the financial statements as a whole,
taking into account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates.
Other information
The Directors are responsible for the other information. The other information comprises the information included in the Annual Report, but does not
include the financial statements and our auditor’s report thereon. Other than the Sustainability Report and Climate-Related Disclosures which we
will receive at a later date, we have received all the other information expected to be included in the Annual Report.
Our opinion on the financial statements does not cover the other information and we do not and will not express any form of audit opinion or
assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether
the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be
materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there
is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
When we read the other information not yet received, if we conclude that there is a material misstatement therein, we are required to communicate
the matter to the Directors and use our professional judgement to determine the appropriate action to take.
Responsibilities of the Directors for the financial statements
The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of the financial statements in accordance with
NZ IFRS and IFRS Accounting Standards, and for such internal control as the Directors determine is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as
applicable, matters related to going concern, and using the going concern basis of accounting unless the Directors either intend to liquidate the
Group or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements, as a whole, are free from material misstatement, whether
due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs (NZ) and ISAs will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located at the External Reporting Board’s website at:
https://www.xrb.govt.nz/standards/assurance-standards/auditors-responsibilities/audit-report-1-1/
This description forms part of our auditor’s report.
Who we report to
This report is made solely to the Company’s shareholders, as a body. Our audit work has been undertaken so that we might state those matters
which we are required to state to them in an auditor’s 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 Company and the Company’s shareholders, as a body, for our audit work, for this report, or for the
opinions we have formed.
The engagement partner on the audit resulting in this independent auditor’s report is Philip Taylor.
For and on behalf of:
PricewaterhouseCoopersAuckland
16 May 2025
Annual Report 2025
Investore Property Limited59
Materiality
Group
scoping
Key audit
matters
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Corporate
Governance
Woolworths, Warkworth
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Corporate Governance
The Investore Board has established a framework of policies, practices,
and processes as part of its governance framework that are intended to
ensure that Investore implements best practice standards of corporate
governance. The Board sets the strategic direction and objectives for
the business, and identifies and manages risks. This section of the
Annual Report provides an overview of those corporate governance
policies, practices and processes adopted and followed by Investore. This
statement is current as at 1 May 2025.
Overview of Investore
Investore is a New Zealand incorporated company, whose
fully paid ordinary shares are quoted on the NZX Main Board
equity securities market under the ticker code ‘IPL’, with a
‘non-standard’ (NS) designation. Investore has a ‘non-standard’
designation due to certain waivers that have been granted
from the Listing Rules, which reflect the nature and operations
of Investore. These waivers are described on page 98.
Investore was established by Stride Property Limited (SPL) as
a separate listed company in 2016 to invest in large format
retail property throughout New Zealand. In August 2021,
Investore acquired all of the shares in Investore Property
(Carr Road) Limited, which owns the property at 4 Carr Road,
Mount Roskill, Auckland. This Corporate Governance section
refers to Investore and its subsidiary, Investore Property (Carr
Road) Limited.
Investore is a listed Portfolio Investment Entity (PIE) for
taxation purposes.
Investore’s assets and operations are externally managed by
Stride Investment Management Limited (SIML), a real estate
investment management business that is part of the NZX
listed stapled group, Stride Property Group (Stride). SIML, as
Manager, has appointed two Directors to the Investore Board,
Tim Storey and Ross Buckley.
Investore does not have any employees and has appointed
SIML as the manager of Investore’s portfolio and its
business pursuant to a Management Agreement. Under
this Management Agreement, SIML is responsible for the
management and maintenance of Investore’s property
portfolio and its business, negotiating the acquisition and
disposal of property, development management, sustainability
initiatives, treasury and capital management, and ensuring
Investore meets its financial, reporting, and other statutory and
regulatory obligations.
Corporate Governance
This section of the Annual Report provides an overview of
Investore’s corporate governance framework and includes
commentary on Investore’s compliance with each of the eight
corporate governance principles and recommendations of the
NZX Code for the year ended 31 March 2025, together with
other legal and regulatory disclosures.
Investore’s corporate governance framework and practices
are materially consistent with the NZX Code, subject to the
following exceptions, which are consistent with practices
reported in previous years’ Annual Reports:
• A Remuneration Policy has not been adopted (NZX
Code Recommendation 5.2), as Investore does not have
any employees. Director remuneration is considered
by the Board as a whole and then recommended to
shareholders for approval.
• As there is no Chief Executive of Investore, the
requirement to disclose the remuneration arrangements
in place for the Chief Executive does not apply (NZX
Code Recommendation 5.3).
Investore’s Website:
For additional information on Investore’s corporate
governance framework or to obtain a copy of
Investore’s key policies and charters, please refer to
the Investor Centre on Investore’s website at
www.investoreproperty.co.nz
Diagram 1: Governance Framework
External Stakeholders
External Auditor
Investore Board of Directors


ShareholdersBondholders
Management Agreement
Audit and Risk Committee
Risk Management
/Internal Controls
Delegations of Authority
Other SIML
Managed Fund
Other SIML
Managed Fund
(3x Independent and
2x SIML Nominee Directors)
SIML/Manager
SIML CEO/Management
Appointment
of Directors
Accountability
Risk Management Framework
SPL 18.8%
(as at 31 March 2025)
Other SIML
Managed Fund
Investore
Large Format Retail
Woolworths, Newtown
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Principle 1: Code of Ethical Behaviour
“ Directors should set high standards of ethical behaviour, model this
behaviour and hold management accountable for these standards being
followed throughout the organisation.”
Recommendation 1.1
The board should document minimum standards of
ethical behaviour to which the issuer’s directors and
employees are expected to adhere (a code of ethics).
Investore has adopted a Code of Ethics which sets the
standard expected by Investore of its Directors and the
employees of the Manager when conducting business on
behalf of Investore. The Code of Ethics also outlines internal
reporting procedures if a Director or an employee of the
Manager becomes aware of, or suspects, a breach of the Code.
This ethics-based approach to Investore’s operations and
decision-making is reinforced through a number of policies in
addition to the Code of Ethics, including the Securities Trading
Policy, Market Disclosure Policy (see Principle 4: Reporting and
Disclosure for a description of the Market Disclosure Policy),
Human Rights Policy, Modern Slavery Policy, and the Manager’s
Conflicts Policy, Protected Disclosures Policy and Gifts and
Hospitality Policy. Employees of the Manager can access
Investore’s Code of Ethics, together with other supporting
policies, on the SIML intranet, and are regularly provided with
training in relation to the Code of Ethics and its supporting
policies. Investore’s Code of Ethics is also available in the
Investor Centre on Investore’s website,
www.investoreproperty.co.nz.
The Board reviews the Code of Ethics at least every two
years to ensure it remains appropriate and continues to set
the standard of ethical behaviour expected by Investore of
its Directors and of the employees of the Manager when
conducting business on behalf of Investore. The Code of Ethics
was last reviewed by the Investore Board in March 2025.
Key principles Underpinning Investore’s
Code of Ethics
Act with honesty and personal integrity and
demonstrate respect for others
Act in the best interests of Investore, protect
its assets, resources and property, including its
confidential or sensitive information
Ensure compliance with all applicable laws,
regulations, rules and policies
Ensure all documentation and records are accurate
Make health and safety a priority
Make every effort to protect the reputation of
Investore and avoid a conflict between an individual’s
private financial activities and the business activities
of Investore
Recommendation 1.2
An issuer should have a financial product dealing
policy which applies to employees and directors.
Securities Trading Policy
The Board has adopted a Securities Trading Policy which
contains processes and procedures governing trading in
Investore securities. The Securities Trading Policy raises
awareness of the insider trading provisions contained within
the Financial Markets Conduct Act 2013 and reinforces
those legislative requirements as well as additional internal
compliance requirements. Directors of Investore and directors
and employees of SIML who wish to trade in quoted financial
products of Investore must comply with the Securities Trading
Policy. This Policy imposes limited trading windows and
requires that all persons to whom the Policy applies obtain
approval prior to trading. Speculative trading is not permitted.
A minimum hold period of six months for any securities
acquired is imposed, except in exceptional circumstances
and only with the prior approval of the Company Secretary
of SIML, the Manager. Investore’s Securities Trading Policy is
available in the Investor Centre on Investore’s website,
www.investoreproperty.co.nz.
Directors and employees of the Manager are regularly
reminded of the obligations regarding trading in Investore
securities and given notification of the trading windows
when applicable.
Conflicts of Interest
Investore and the Board are very aware of the risks posed by
actual or perceived conflicts of interest, and the management
of conflicts of interest is an integral feature of Investore’s
day-to-day governance practices. This is particularly pertinent
given the relationship between Investore, Stride, and other
entities managed by SIML. The principles that govern the
management of conflicts of interest are addressed in a
number of Investore’s governance documents, including
the Constitution, the Board Charter, the Code of Ethics, and
internal policies of SIML, the Manager.
SIML has adopted a Conflicts Policy which Investore
has approved, and which guides SIML in identifying and
managing conflicts of interest in its operations, including its
management of the business of Investore and other entities
managed by SIML.
Protected Disclosures Policy
Investore does not have a whistleblower policy, as it has no
employees. SIML has a Protected Disclosures Policy which
provides a safe process for SIML employees to make an
allegation of serious wrongdoing within Investore, Stride and/or
other entities managed by SIML. Regular training is provided by
SIML, the Manager, to its employees in relation to the Protected
Disclosures Policy, the steps to be taken when employees wish to
make a protected disclosure, and the protections provided when a
disclosure is made in accordance with the Policy.
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Principle 2: Board Composition and Performance
“ To ensure an effective board, there should be a balance of independence,
skills, knowledge, experience and perspectives.”
The Board is responsible for overseeing the effective
management and operation of Investore. The Board’s role is to
represent the interests of Investore’s stakeholders and ensure
that the operations of Investore are managed in a way that is
consistent with the achievement of Investore’s strategy and
business objectives, within a framework of regulatory, legal
and ethical compliance.
Recommendation 2.1
The board of an issuer should operate under a written
charter which sets out the roles and responsibilities
of the board. The board charter should clearly
distinguish and disclose the respective roles and
responsibilities of the board and management.
The Board’s roles and responsibilities are formalised in its
Board Charter, which is available in the Investor Centre on
Investore’s website, www.investoreproperty.co.nz.
The Board Charter outlines the functions that are solely
reserved for the Board and those that are formally delegated
to SIML, as Manager. The Board reviews the Board Charter
annually, to ensure it remains consistent with the Board’s
objectives, roles and responsibilities and to ensure it maintains
an appropriate balance between governance matters for which
the Board retains responsibility, and operational matters which
have been delegated to SIML, as Manager. As part of the
Board Charter, the Board commits to maintaining the highest
standards of governance, operational quality and accountability
in order to promote investor confidence.
The Board retains responsibility for setting the strategic
direction of Investore and overseeing the performance of
Investore and communications to the market. The Board
delegates the day-to-day management of Investore’s business
to SIML, as Manager, by way of a Management Agreement.
The Management Agreement ensures SIML has appropriate
operating parameters through formal delegations of authority.
The relationship between the Board and SIML and their
respective roles and responsibilities is depicted in Diagram 2.
Board sets strategic direction,
operating frameworks and
overall governance
SIML implements the Board’s
strategy and follows approved
policies and procedures
Board oversees operations of
Investore and implementation
of strategic objectives and
performance
Adopts policies, processes and
systems to ensure the business of
Investore is operated in an honest,
ethical, safe and responsible manner
Oversees day-to-day operations of
Investore’s portfolio and assets
Ensures Investore has adequate
resources to meet its objectives and
obligations
Adopts and reviews an appropriate
risk management framework
Ensures Investore is meeting its
legal, regulatory, financial reporting
and other statutory obligations
Reviews and approves budgets,
major capital expenditure, business
plans, dividend policy and financial
forecasts and oversees Investore’s
capital management
Delegates day-to-day operations to
SIML within a formal delegation of
authority
Makes recommendations to the
Board on company strategy and
initiatives
Monitors the financial performance
of Investore and oversees
accounting and reporting systems
(including external audit)
Oversees development, adoption
and communication of strategic
direction
Reports to the Board on Investore’s
operating performance; prepares
budgets and business plans for
Board approval
Implements effective audit and risk
management systems
Appointment of the Chair of the
Board
Manages business risk in
accordance with the risk appetite
adopted by the Board
Reviews and approves market
communications
Implements a formal and transparent
process for Director remuneration
reviews
Implements health and safety
policies and procedures
Sets and monitors Investore’s
sustainability policy and reviews
and approves the integration of
environmental and social principles
into the governance of Investore
Diagram 2: Board and Manager Roles and Responsibilities
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