STR - Stride Property [ex DNZ Property]

[Bev73]

I could be wrong but my understanding is that personal tax rates are 10.5% to $14,000. 17.5% $14k to $48,000 and 30% $48,001 to $70,000.

If your income is above $48,000 then every dollar of income above $48,000 is taxed at 30% or more. Portfolio Listed Entities(PLE) can only attach imputation credits up to 28% of the dividend. I am unsure how it could be beneficial to declare PLE dividends if your income is over $48,000 including PLE dividends, as your tax rate is 30% and the imputation credits are 28% you would need to (unnecessarily) pay the 2% difference.

I would be interested to know how you apply it.

Hi Aaron, I struggled to understand the available info. I eventually relied on the following -
"What makes listed PIEs different to multi-rate PIEs?
Unlike distributions from multi-rate PIEs, dividends paid by listed PIEs are taxable, and are not taxed at your PIR. Listed PIE dividends often include tax credits such as imputation credits, which are calculated based on a 28% tax rate. So even though you don’t need to include listed PIE dividends in your tax return, if your tax rate is less than 28% you can choose to report this income on your tax return in order to claim the excess tax credits."


https://investnow.co.nz/pies-pie-tax-questions-answered/



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[Aaron]

Hi Aaron, I struggled to understand the available info. I eventually relied on the following -
"What makes listed PIEs different to multi-rate PIEs?
Unlike distributions from multi-rate PIEs, dividends paid by listed PIEs are taxable, and are not taxed at your PIR. Listed PIE dividends often include tax credits such as imputation credits, which are calculated based on a 28% tax rate. So even though you don’t need to include listed PIE dividends in your tax return, if your tax rate is less than 28% you can choose to report this income on your tax return in order to claim the excess tax credits."


https://investnow.co.nz/pies-pie-tax-questions-answered/



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If your income is over $48,000 you might want to try calculating with and without the PLE dividends before filing your tax return this year. Or if more than 50% of the PLE dividend will be tax at 30%.

[Bev73]

Hi Aaron, I have checked last year's IR3s. My interpretation may have been incorrect.

Excluding PIE Fund income, the other income, including PIE listed co. dividends, did not breach the $48,000 threshold.

Back to the drawing board.

[Snoopy]

The Meridian building, on the Wellington waterfront, owned by Stride, has been 'destaffed'.

https://www.rnz.co.nz/news/business/466049/hospitality-businesses-worry-about-future-after-wellington-building-vacated-over-quake-risk

A reminder, if one was needed, that a building built to 100% of the earthquake code is designed to save people, not necessarily itself. Meridian have told all of their 180 staff to work from home. Good to see a corporate being pro-active on looking after their staff. Meanwhile the serfs operating the food businesses on the ground floor will 'tough it out'.

"Stride is currently assessing remediation options for the property and intends to provide an update later in the year when the seismic assessment has been completed."

SNOOPY

[winner69]

second newish building to be vacated this week due to seismic problems

Wellington is doomed if this continues

[ronaldson]

You may recall the Kaikoura earthquake led to a $65m+ gross insurance claim by Argosy for non structural damage ( and loss of rents ) to 7 Waterloo Quadrant in Wellington with around an 80% payout in final settlement after adjusting for the deductible. This highlights how risky investment in the capital actually is - damage to services and internals such as lifts can be substantial even if the structure itself stands up, and I believe another $15m has been incurred for facade maintenance subsequently.

In all these cases I don't doubt due diligence was undertaken before acquisition. It's just that, notwithstanding, the risk is always predictably and significantly on the downside in these situations.

[Snoopy]

I have been studying the Stride Annual Report for FY2023, after noticing some inconsistencies in my comparative table in the Listed Property Trust thread (post 1833), and the calculations I performed on Stride figures in post 1807 on the same thread.

Stride own 51.7% of industrial property subsidiary 'Industre' (not listed). AR2023 p31 shows the value industrial property on the Industre books is $785.975m. 51.7% of that interest is:
0.517 x $785.975m= $406.349m.
On the same page the SPL share of the company is noted as $406.636m. I am not sure why the discrepancy, but the two totals are equal to three significant figures. A rounding error in that '51.7%' share?

Now if we move to AR2023 p78, the properties on Industre's books 'Investment Properties' are said to be worth $496.025m. I was wondering if that might include undeveloped land as well? But it looks like it doesn't because if we return to p26 of AR2023.

"$786m as at 31 March 2023 (or $716m excluding properties categorised as ‘Development and Other’ in the financial statements)."
It looks like the $786m already includes the development properties to me.

So I am quite confused as to why 'Investment Properties' are listed as being worth $406.636m (p31) and $496.025m (p78) on different pages of the same report. Can any Stride shareholders help me out here?

SNOOPY

[Snoopy]

I am doing this calculation for the Property Trust thread. I thought it would be more appropriate if I put the detailed calculation here. SPG is a stapled security made up of:

a/ SPL (Stride Property Limited) a PIE AND
b/ SMIL (Stride Investment Management Limited) which is not a PIE


It
Dividend date
09-09-2022
09-12-2022
21-03-2023
22-06-2023
Total Year to 30-06-2023


SPL Net Dividend Amount
1.8455c
2.0702c
1.68083c
1.78083c


SPL Imputation Amount
0.196634c
0.351348c
0.533535c
0.268363c



SPL PIE Gross Dividend Amount
2.5632c
2.8753c
2.3345c
2.4734c
10.246c



SPL Imputation Percentage
9.63%
14.5%
24.1%
26.0%


SMIL Net Dividend Amount
0.6320c
0.4073c
0.16c
0.06c



SMIL Imputation Amount
0.245778c
0.158394c
0.0622222c
0.0233333c


SMIL Gross Dividend Amount
0.8778c
0.5657c
0.2222c
0.0833c
1.749c



SMIL Imputation Percentage
28%
28%
28%
28%


Total Gross Dividend
12.0c



SNOOPY