Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • The company has inked an agreement to acquire Silverdale Centre, NZD 62.5 million raised through convertible notes.
  • The catchment area of the Silverdale Centre is projected to expand to approximately 125,000 individuals by 2048
  • Net cash from operating activities declined 12.2% YoY to NZD 27.01 million in FY25.

Investore Property Limited (NZX:IPL), a property investment company, started operations in October 2015 after acquiring 19 Countdown supermarket locations from Antipodean Supermarkets Limited and Antipodean Properties Limited.

As at 30 September 2025, the company conducted independent valuation throughout 25 of its 43 properties. Draft portfolio value of NZD 1.0 billion was recorded excluding lease liabilities.

Financial Performance

For the financial year 2025 (FY25), IPL achieved a gross rental income of NZD 76,112,000, marking a 4.5% rise from NZD 72,823,000 recorded in FY 2024. Profit before accounting for net finance costs, other income or expenses, and income tax grew by 2.4%, reaching NZD 54,377,000. Net cash generated from operating activities fell by 12.2% YoY, amounting to NZD 27,009,000, down from NZD 30,752,000 in FY 2024. During the year, IPL pursued its portfolio optimisation approach and growth initiatives, including the sale of two non-core properties—Pak’nSave New Plymouth and Woolworths Invercargill—both of which were disposed of at values exceeding their book valuations as of 31 March 2024.

Key Positives and Negatives

The company reported a higher net margin of 50.4% in FY25 compared with the industry median of 48%. Return on equity turned around to 6.4% in FY25 from negative 10.6% in FY24. However, the company’s debt-to-equity ratio increased to 0.65x in FY25, compared with the industry median of 0.37x. Direct property operating expenses also rose to NZD 13.8 million in FY25 from NZD 11.5 million in FY24.

Business outlook

IPL finalised a sale and purchase agreement with SPL to acquire the Silverdale Centre for NZD 114 million, with an initial yield of 6.8%. The catchment area of the Silverdale Centre is projected to expand to approximately 125,000 individuals by 2048, representing a 48% increase from 2023.

Following the closure of its Shareholder Priority Offer for subordinated convertible notes, IPL allocated NZD 2.5 million of Notes and combined with the General Offer issuance of NZD 60 million, the total Notes issued amounted to NZD 62.5 million. The proceeds from this Offer are expected to be used for repaying existing bank debt, providing IPL with additional debt capacity for future acquisitions, including the purchase of the Silverdale Centre from Stride Property Limited, as well as for general corporate purposes.

Share Performance of IPL

On 7 October 2025, IPL shares traded at NZD 1.2850 per share. Over the past year, the stock has grown by 7.91%, while in the last six months it has risen 23.33%. In the past three months, the stock has gained 7.02%. The 52-week high for IPL was NZD 1.300, recorded on 7 October 2025, and the 52-week low was NZD 1.00, reached on 23 April 2025.

Support and Resistance Summary

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 07 October 2025. The reference data in this report has been partly sourced from EODHD/Others.

 

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.