"We are still left with a substantial property portfolio," he said.
"The increase we have had in investment management income would mean we would have too much non-qualifying income. Instead of owning this property through a fully-owned subsidiary we will have a cornerstone stake in Investore."
Investore will have a portfolio of 39 large format retail properties, including 14 Countdown stores it intends to acquire from Shopping Centres Australasia Property Group for $267 million. That acquisition is subject to a successful capital raising and demerging of Investore from Stride, and the company expects it to become unconditional on June 30.
The remaining 25 properties are standalone large format retail shops such as supermarkets and hardware stores, located around New Zealand, and they share characteristics such as long-weighted average lease terms, Alexander said.
Stride shares closed at $2.265, up 4c, and have gained 5 per cent this year. The company sold shares at 97c in a $45 million capital raising when it listed in 2010, using the funds to internalise its management contract and corporatise its structure.