Revaluation uplift drives Investore to $105m turnaround

16th May 2025 By Paul Yandall | paul@propertyticker.co.nz | @propertyticker

Investore Property Limited has reported profit after income tax of $38.35m for the year to March 2025, up 157.14% from the $67.1m loss it made for FY24.

The Auckland-based large format retail investor said resilient operating earnings and a positive revaluation outcome helped boost its results, with FY25 evening up 1.64% to $62.25m.

Its portfolio was valued up by $12.1m to $1bn as at 31 March 2025, an increase of 1.3% over the 12 months, compared to a $98.7m devaluation last year – a $110.8m swing.

“Investore has also executed on its strategies of portfolio optimisation and targeted growth through various transactions, recycling capital into assets that exhibit strong rental and capital growth characteristics over the medium to long term,” stated the company.

“The commercial property market is showing clear signs of improvement. Transactional activity has increased, valuations have stabilised and the cost of capital has reduced.

“The Investore board remains of the view that the current point in the cycle is a good time to secure assets that exhibit strong rental and capital growth characteristics over the medium to long term to help further reposition Investore’s portfolio and pursue its targeted growth strategy.”

Investore declared a final cash dividend for the fourth quarter of FY25 of 1.625 cents per share, bringing the total cash dividend for FY25 to 6.50 cents per share, in line with its guidance.

During the period, the company sold two non-core, regionally located properties, Pak’nSave New Plymouth and Woolworths Invercargill, for $79.3m, above book value, and recycled capital from the sales to acquire Bunnings Westgate in Auckland for $51m at a 6.2% passing yield.

Earlier this year, Investore also divested Woolworths Mount Roskill in Auckland, for a premium to book value of $2.5m or 11% (gross of disposal costs) in early 2025.

“Investore intends to continue to progress its strategy of targeted growth and will look to recycle the proceeds from this sale into other high quality strategic investment opportunities,” said the company.

It reported net rental income of $62.3m, up $1m from FY24, an occupancy rate of 99% with an average portfolio market capitalisation rate of 6.3%, with weighted average lease term of 6.8 years.

During FY25, the company refinance $225m bank facilities, with all of its bank debt now classified as green loans. It also added two new lenders to its banking syndicate, Commonwealth Bank of Australia and Bank of China.

The company said that while macroeconomic conditions have been challenging, “sentiment is improving”.

“Investore’s underlying portfolio metrics remain resilient, with a defensive rental income stream predominantly from non-discretionary, ‘everyday needs’ retail tenants supported by proactive capital management and a strong hedging outlook.”