SIML will manage each of the Products and SPL will continue to own an interest in each of the Products. Stride has seen considerable growth in its assets under management since 2016, with assets under management growing from $2.1bn as at 31 March 2017 to $3.6bn as at 31 March 2022, demonstrating the benefit of having distinct, diverse pools of capital for each Stride Product focussed on a defined commercial property class.
Stride’s strategy of creating a group of Products in core commercial property sectors as the basis of its real estate investment management business means that Stride has a diversified platform, providing revenue from all four core commercial property classes (via SPL) as well as its real estate investment management business (via SIML).
This results in Stride having diverse sources of income:
- Real estate investment management fees, comprising asset management fees, which are ongoing recurring fees, and activity based fees, which depend on the activity of the Stride Products, such as leasing and development
- Direct property income from SPL’s directly owned property
- Indirect property income from SPL’s investment in the Stride Products
These diverse sources of income provide Stride with a level of resilience in different market conditions.