IPL - Investore Property

[fungus pudding]

fp - Stride did say the restructure would allow it to expand the management arm while preserving its favourable tax status. There is a cap on non-qualifying income (in this case management fees) if one wants to be a PIE

No doubt you will suss it one day but in meantime have to trust them doing the right thing for you.

Yes, I'm sure they will be. Augusta lost PIE status because of proportional title scheme management. I can't help wondering if stride are planning something along similar lines in future. I think there's more to this announcement than has been released.

[winner69]

Yes, I'm sure they will be. Augusta lost PIE status because of proportional title scheme management. I can't help wondering if stride are planning something along similar lines in future. I think there's more to this announcement than has been released.

Reading a bit more about PIEs and Strides announcements I think you may be right here fp.

[Snow Leopard]

The spin-out of Investore from Stride may not only be a necessary condition of the proposed new purchase, but is also probably desirable as the large format retail has a significantly? different risk to reward ratio from the rest of the Stride portfolio.
I am not saying better, I am not saying worse, just that it is different.

Whether it is a good idea to be pumping your money into new shares depends upon, among other considerations, how you see property valuations going forward.

So you will have two separate and independent shares (one vanilla and one-stapled) and you can take your choice of what mix of holding you want to pursue.


The split of Stride into a property owning company and a property management company is highly desirable for tax purposes and maximizing shareholder returns.

The directors and senior staff will probably do OK as well.

Best Wishes
Paper Tiger

[fungus pudding]

The spin-out of Investore from Stride may not only be a necessary condition of the proposed new purchase, but is also probably desirable as the large format retail has a significantly? different risk to reward ratio from the rest of the Stride portfolio.
I am not saying better, I am not saying worse, just that it is different.

Whether it is a good idea to be pumping your money into new shares depends upon, among other considerations, how you see property valuations going forward.

So you will have two separate and independent shares (one vanilla and one-stapled) and you can take your choice of what mix of holding you want to pursue.


The split of Stride into a property owning company and a property management company is highly desirable for tax purposes and maximizing shareholder returns.

The directors and senior staff will probably do OK as well.

Best Wishes
Paper Tiger

But they're not independent. It will not be possible to hold only str, although you could hold only investore shares.

[Snow Leopard]

But they're not independent. It will not be possible to hold only str, although you could hold only investore shares.

..So you will have two separate and independent shares (one vanilla and one-stapled)...

Sigh, Sometimes I am strangely overcome with feelings of despair which leads me to seek the company of other Tigers:



Best Wishes
Paper Tiger

Drink alcohol products only in moderation, if at all.

[Joshuatree]

Seems excessive?
Management fees and operating costs

• The management fee payable to the Manager
  will equate to 8.1% and 9.6% of revenue in FY17and FY18 respectively and be a material cost.
• Investore incurs other operating expenses,primarily in relation to repairs and maintenanceand valuations.

[RRR]

External management is a big negative as you have mentioned JT! Leverage is also higher than other LPT's (conflict of interest?) - 45-50% compared to 35-40 for other (internally managed) LPT's - so clearly higher risk than other LPTs and no wonder they have priced it accordingly. IPO price is close to book value - other LPTs currently trade at a premium to book value. I am in two minds about this one!

[Joshuatree]

cheers RRR. I make average age of buildings @ 14 years. Anecdotely (sp), have heard Countdown the least favourite supermarket for some. I shop at one because its so quiet hence easy to get groceries from.
Attractive carrot, the IPO price.

[axe]

just a quick thought on the fees. The below is PFI's fee structure - fees as % go down as assets under management go up.

https://www.propertyforindustry.co.n...fee-structure/

The current management fee structure was introduced following shareholder approval in 1999.
PFI's management fee structure is designed to align the interests of the manager and shareholders and to reward the manager for outperformance in the growth of shareholder wealth over time. PFI pays a base management fee plus an incentive fee calculated on total shareholder returns.
The base fee is calculated as:

• 0.725% of total tangible assets under management up to $425 million;
• 0.450% of total tangible assets under management above $425 million and below $775 million; and
• 0.350% of total tangible assets under management above $775 million

The incentive fee is calculated as 10% of the change in shareholder wealth above 10% per annum (2.5% per quarter) and under 15% per annum (3.75% per quarter), calculated and payable on quarterly basis.
The fee is calculated as 10% of the actual increase in shareholder returns which is above 2.5% in a quarter. Where shareholder returns exceed 3.75% in a quarter, no payment is due for the actual amount of the increase above 3.75% but the amount of the increase above 3.75% can be carried forward and added to the calculation of shareholder returns in later quarters. However, if shareholder returns are less than 2.5% in a quarter, the deficit can also be carried forward and subtracted from the calculation of shareholder returns in later quarters.
The management fee is an all-up cost – there are no additional property services or property management fees.
The fees paid to the manager are disclosed in PFI’s annual and interim reports to shareholders.

[fungus pudding]

Restructure a rip-off?

Article in NBR today calls Stride's latest a flawed scheme . It's a paywalled aticle so will try and buy a copy later. Anyone got access?

http://www.nbr.co.nz/

Stride [NZX: STR], formerly DNZ Property Fund, arrived on the NZX in 2010 after a remarkable rescue effort that praised it from the grasp of a parasitical management contract. Six years later, the property company is again trying to imprison shareholders in a lemon-squeezing scheme, writes Tim Hunter.