New Zealand Professional Investment Services Firm, Forsyth Barr

Forsyth Barr

New Zealand Professional Investment Services Firm

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

Thematic (Sector/Industry)

<ul><li>High interest rates and low transactions volumes has created uncertainty around commercial property valuations</li><li>Our analysis suggests that most property balance sheets can withstand a significant decrease in asset values with Argosy (ARG), Goodman Trust (GMT), and Property for Industry (PFI) the most resilient given low current gearing and/or limited capital commitments.</li><li>Kiwi Property (KPG), Stride (SPG), and Vital Healthcare (VHP) have the least resilient balance sheets owing to either higher initial gearing and/or significant capital commitments</li></ul>

High interest rates and low transactions volumes has created uncertainty around commercial property valuationsOur analysis suggests that most property balance sheets can withstand a significant decrease in asset values with Argosy (ARG), Goodman Trust (GMT), and Property for Industry (PFI) the most resilient given low current gearing and/or limited capital commitments.Kiwi Property (KPG), Stride (SPG), and Vital Healthcare (VHP) have the least resilient balance sheets owing to either higher initial gearing and/or significant capital commitments

Equity Bottom-Up

<ul><li>Investore (IPL) reported 1H23 adjusted funds from operations (AFFO) +14% on the prior period and in line with our expectations</li><li>IPL is managing its balance sheet with gearing towards the middle of its target range and heightened property valuation uncertainty</li><li>IPL currently trades on attractive gross yield of 7.8% and a 33% discount to its book value</li></ul>

Investore (IPL) reported 1H23 adjusted funds from operations (AFFO) +14% on the prior period and in line with our expectationsIPL is managing its balance sheet with gearing towards the middle of its target range and heightened property valuation uncertaintyIPL currently trades on attractive gross yield of 7.8% and a 33% discount to its book value

Investore: 1H23 Result — Shopping for Value

<ul><li>Investore (IPL) has reported 1H23 adjusted funds from operations (AFFO) +14% to NZ$14.6m.</li><li>The operating result was slightly below our expectations but lower tax and maintenance capex saw AFFO in line with our forecast.</li><li>IPL continues to collect solid turnover rent (NZ$0.6m in 1H23) with Countdown sales supported by food price inflation</li></ul>

Investore (IPL) has reported 1H23 adjusted funds from operations (AFFO) +14% to NZ$14.6m.The operating result was slightly below our expectations but lower tax and maintenance capex saw AFFO in line with our forecast.IPL continues to collect solid turnover rent (NZ$0.6m in 1H23) with Countdown sales supported by food price inflation

Investore: 1H23 Result – Initial Thoughts

<ul><li>Cap rates expanding, NAVs rebased: Interest rates continue to place upward pressure on cap rates and downward pressure on asset values and NTA</li><li>Looking forward to the reporting season: Six LPVs will be reporting interim results in September</li><li>LPVs had a mixed month in the market: The NZ LPV sector was down -2% in October, and underperformed the broader market by 4%</li></ul>

Cap rates expanding, NAVs rebased: Interest rates continue to place upward pressure on cap rates and downward pressure on asset values and NTALooking forward to the reporting season: Six LPVs will be reporting interim results in SeptemberLPVs had a mixed month in the market: The NZ LPV sector was down -2% in October, and underperformed the broader market by 4%

Real Estate Reflections Time for a Check Up

<ul><li>Bond yields have continued to dictate listed property share performance</li><li>Long bond yields rose +30bp in September, returning to mid-June highs, resulting in a broad based sell-off of the property names</li><li>As a result of some large share price movements the property sector dividend yield spreads to 10 year interest rates expanded slightly</li></ul>

Bond yields have continued to dictate listed property share performanceLong bond yields rose +30bp in September, returning to mid-June highs, resulting in a broad based sell-off of the property namesAs a result of some large share price movements the property sector dividend yield spreads to 10 year interest rates expanded slightly

Real Estate Reflections: Déjà Vu All Over Again

New Zealand

Investore Property Limited operates as a real estate investment company. The Company invests in retail property assets. Investore Property also provides leasing services. Investore Property serves clients in New Zealand.

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Investore Property (IPL NZ)

Listed Property Insights: In the Balance

High interest rates and low transactions volumes has created uncertainty around commercial property valuations, which has manifested in the NZ...

Forsyth Barr

Investore: 1H23 Result — Shopping for Value

Investore (IPL) reported 1H23 adjusted funds from operations (AFFO) +14% on the prior period and in line with our expectations; it currently trades...

Forsyth Barr

Investore: 1H23 Result – Initial Thoughts

Investore (IPL) has reported 1H23 adjusted funds from operations (AFFO) +14% to NZ$14.6m; the operating result was slightly below our expectations...

Forsyth Barr

Real Estate Reflections Time for a Check Up

It was another roller coaster month for the listed property sector - the sector sold off as long bond yields peaked at 4.7% mid-month before a ...

Forsyth Barr

Real Estate Reflections: Déjà Vu All Over Again

Bond yields have continued to dictate listed property share performance; Long bond yields rose +30bp in September, returning to mid-June highs,...

Forsyth Barr

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