30 May 2016

Stride Property's full year net profit up a third

2:08 pm on 30 May 2016

Stride Property has seen its full-year net profit rise by more than a third, reflecting increased property values and rents.

Mall escalators, file pic

(File pic) Photo: 123RF

Profits for the company, previously called DNZ Property Fund, rose 34 percent to $92.4 million, and rental income rose 21 percent to $69.2m.

The value of Stride's property portfolio rose just over 5 percent, by $60m to $1.27b.

Stride is an NZX listed investor and manager of New Zealand commercial, retail and industrial real estate.

Stride chief executive Peter Alexander said the company had expanded over the past year with the purchase of retail properties and the opening of the Northwest Shopping Centre in Auckland, with Northwest Two scheduled to open in October.

"The growth of Stride's business during 2016 has provided an excellent platform for continued growth in earnings and profitability," he said.

Chief Executive Officer at Stride Property Limited, Peter Alexander.

Stride Property chief executive Peter Alexander. Photo: LinkedIn

The company also wanted to restructure its business and separate the real estate investment management business from the property investments.

"The programme to reposition the portfolio will continue alongside careful capital management to ensure that market opportunities can be realised when they occur," he said.

Stride proposed to make a one-for-one offer of shares in the newly created Stride Investment Management, at no cost to shareholders, in what is known as a stapling structure - where shares in each business are traded together.

The restructuring is subject to shareholder approval.