Investore Property annual earnings up

INVESTORE Property, the largeformat retail landlord spun out of Stride Property, boosted annual earnings 16% as the acquisition of three Bunnings stores added to rental income and reduced its reliance on Countdown supermarkets.

Distributable profit, a favoured measure of listed property firms which strips out revaluation movements and the impact of property sales, rose to $20.5 million in the 12 months ended March 31 from $17.6 million a year earlier, largely in line with its 2016 prospectus forecasts. Net rental income rose 27% to $44.5 million as the company’s property portfolio grew to 40 sites with 78 tenants, up from 39 properties with 73 tenants a year earlier.

Net profit jumped 62% to $46.2 million, tracking ahead of the $27 million forecast in the firm’s offer document, which included a $23.1 million gain on the value of the portfolio and a $2.9 million gain on the sale of properties. The portfolio was valued at $738.3 million as at March 31, up from $660.4 million a year earlier, with a weighted average lease term of 13.1 years.

Investore started diversifying its portfolio last year with the acquisition of the Bunnings sites and a development property in Timaru, while selling two South Island supermarkets, which it said would diversify its customer base from the Woolworths Groupowned Countdown supermarkets that account for almost threequarters of its rents.

‘‘The board considers that Investore’s current portfolio provides an excellent basis for considered growth,’’ chair Mike Allen said in the annual report. ‘‘We have an exceptionally stable underlying portfolio, which puts Investore in a great position to maintain predictable income streams and gives us the ability to consider growth opportunities.’’