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Highlights

  • Gross rental income of IPL increased by 5.5% YoY to NZD 38.25 million in H1FY25.
  • In H1FY25, pre-tax profit reached NZD 13.53 million, a major turnaround from an NZD 65.11 million loss in pcp.
  • Interim dividend for Q1 FY25 set at 1.625 cps, down from 1.975 cps in Q1FY24.
  • IPL’s property portfolio is valued at NZD 1.0 billion, with a 6.38% capitalisation rate.

Investore Property Limited (NZX:IPL), a New Zealand-based property investment company, has reported a notable financial turnaround in the first half of the fiscal year 2025 (H1FY25). Gross rental income in H1FY25 increased by 5.5% YoY to NZD 38.25 million, up from NZD 36.27 million in the previous corresponding period.

However, direct property operating expenses also rose, reaching NZD 7.06 million compared to NZD 5.89 million in H1FY24. Despite this, the company recorded a pre-tax profit of NZD 13.53 million, a significant improvement from the NZD 65.11 million loss in the prior year.

A major contributor to IPL’s performance in H1FY25 was the completion of 33 rent reviews, leading to an average rental increase of 4.6%. Notably, Woolworths Rotorua underwent a market rent review, resulting in a 10.6% rental uplift, while CPI-based and fixed-rate rent reviews posted a 4.5% increase on prior rentals.

Dividend Performance

The company declared an interim dividend of 1.625 cents per share (cps) for Q1 FY25, reflecting a decline from 1.975 cps in Q1 FY24. However, the company has reaffirmed its full-year FY25 dividend guidance of 6.50 cps, in line with its policy of distributing 80-100% of distributable profits.

Strategic Outlook

Looking ahead, IPL’s Board is committed to targeted growth and strategic investments. The company has indicated plans to evaluate new investment opportunities and consider divestments to recycle capital into higher-value assets.

IPL’s property portfolio is currently valued at NZD 1.0 billion, with an average market capitalisation rate of 6.38% and an initial yield of 6.63%.

Shareholding Structure

IPL’s top 10 shareholders collectively control 45.23% of the company, with the largest stakes held by:

  • Stride Property Limited (18.74%)
  • Accident Compensation Corporation (9.73%)
  • Forsyth Barr Investment Management (9.12%)

Share performance of IPL

IPL shares closed 2.68% higher at NZD 1.15 per share on 10 February 2025. Over the past year, IPL’s share price has dropped by almost 1.71% and in the last three months, it has decreased by nearly 4.1 7%.

52-week high of IPL is NZD 1.29, recorded on 20 August 2024 and 52-week low is AUD 0.97, recorded on 4 June 2024.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 10 February 2025. The reference data in this report has been partly sourced from EODHD/Others.