Stride Property Stili sees FY dividend share 8 NZ cents

Stride Property Stili sees FY dividend share 8 NZ cents

Stride Property Group Maintains 8-Cent FY25 Dividend Amid Stabilizing Market Conditions

Stride Property Group (SPG) has confirmed its commitment to a combined annual cash dividend of 8.0 cents per stapled security for the fiscal year ending 31 March 2025 (FY25), aligning with prior guidance and market expectations. This follows the release of FY25 results, which highlighted a profit after income tax of $21.7 million, a significant improvement from the $56.1 million loss reported in FY24. The dividend, comprising 1.5625 cents per share for Stride Property Limited (SPL) and 0.4375 cents per share for Stride Investment Management Limited (SIML), represents a 93% payout of distributable profit and 106% of adjusted funds from operations (AFFO).

Financial performance in FY25 was bolstered by a smaller net reduction in investment property valuations and a positive share of profits from equity-accounted investments, despite higher tax expenses due to policy changes, including the removal of tax deductions for commercial building depreciation. Distributable profit for FY25 totaled $48.3 million, down 18% year-on-year, though the company noted this was largely attributable to one-off items and restructuring impacts at Industre, its industrial property joint venture.

Capital management remained a priority, with SPL maintaining a loan-to-value ratio (LVR) of 29.0% on a balance sheet basis and 38.7% on a bank LVR basis, reflecting prudent debt management amid ongoing property upgrades. The group also announced plans to refinance SPL's bank debt facilities, which are expected to extend the weighted average tenor of debt from 2.1 to 5.0 years and reduce the cost of debt.

Sustainability initiatives progressed, with scope 1 and 2 emissions 12.3% below FY20 baseline levels, despite a temporary increase due to refrigerant leaks in air conditioning systems. The board emphasized that lower interest rates and stabilizing property markets position Stride to capitalize on growth opportunities in FY26, though dividends for the next fiscal year remain subject to market conditions.

The dividend reinvestment plan (DRP) was suspended for FY25's fourth-quarter payouts, a decision consistent with the company's adaptive approach to capital distribution. With a focus on asset repositioning and development pipelines, Stride Property Group aims to balance resilience and growth in an evolving economic landscape.