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.

Equity Bottom-Up

Precinct Properties New Zealand / Equity Bottom-Up

<ul><li>The property sector had a soft start to 2026, falling -3.6% in January.</li><li>We expect February reporting season to highlight solid operational performance with stable vacancy, continued rent growth, and lower debt costs.</li><li>Following the recent sell-off in the property sector, valuations are looking more attractive.</li></ul>

The property sector had a soft start to 2026, falling -3.6% in January.We expect February reporting season to highlight solid operational performance with stable vacancy, continued rent growth, and lower debt costs.Following the recent sell-off in the property sector, valuations are looking more attractive.

Real Estate Reflections Stumbling Out Of The Blocks

<ul><li>After a strong run in 2025, the listed property sector took a step back in November, falling c.-3% in the month partly driven by longer-term interest rates, which retraced some of their recent declines.</li><li>The sector is now trading at a -12% discount to asset values and a gross yield of 7.4%, which is a +300bp spread to long bond rates, broadly in line with history.</li><li>Our sector preference remains Precinct (PCT) for its high-quality portfolio, attractive gross yield and its third-party capital strategy, and Stride (SPG) for its attractive yield and improving management fee income streams.</li></ul>

After a strong run in 2025, the listed property sector took a step back in November, falling c.-3% in the month partly driven by longer-term interest rates, which retraced some of their recent declines.The sector is now trading at a -12% discount to asset values and a gross yield of 7.4%, which is a +300bp spread to long bond rates, broadly in line with history.Our sector preference remains Precinct (PCT) for its high-quality portfolio, attractive gross yield and its third-party capital strategy, and Stride (SPG) for its attractive yield and improving management fee income streams.

Real Estate Reflections Stumbling Towards the Finish Line

Equity Capital Markets

Precinct Properties New Zealand / Equity Capital Markets

<ul><li>The listed property sector was broadly flat in October after delivering a +18% total return year-to-date.</li><li>Precinct (PCT) raised NZ$325m of additional equity in the month, which weighed on sector performance as investors looked for funders, and the risk of further capital raisings weighed on sentiment.</li><li>Our analysis of the sector’s long-term development pipelines and potential funding options highlights a divide between those with access to capital (PCT, Goodman (GMT)) and those without, who may need to recycle non-core assets or tap into additional sources of capital to fund growth aspirations.</li></ul>

The listed property sector was broadly flat in October after delivering a +18% total return year-to-date.Precinct (PCT) raised NZ$325m of additional equity in the month, which weighed on sector performance as investors looked for funders, and the risk of further capital raisings weighed on sentiment.Our analysis of the sector’s long-term development pipelines and potential funding options highlights a divide between those with access to capital (PCT, Goodman (GMT)) and those without, who may need to recycle non-core assets or tap into additional sources of capital to fund growth aspirations.

Real Estate Reflections Taking a Breather

<ul><li>The NZ-listed property sector continued its run in August, having now outperformed the broader NZ market by +12% year to date.</li><li>Over the month, we downgraded Precinct and Winton from OUTPERFORM to NEUTRAL, with the former trading on a full but fair +8% premium to NTA, and the latter due to the residential downcycle.</li><li>We also upgraded SPG from NEUTRAL to OUTPERFORM on valuation grounds, given its discount to NTA, our conservative NAV, and its solid 9.3% gross yield.</li></ul>

The NZ-listed property sector continued its run in August, having now outperformed the broader NZ market by +12% year to date.Over the month, we downgraded Precinct and Winton from OUTPERFORM to NEUTRAL, with the former trading on a full but fair +8% premium to NTA, and the latter due to the residential downcycle.We also upgraded SPG from NEUTRAL to OUTPERFORM on valuation grounds, given its discount to NTA, our conservative NAV, and its solid 9.3% gross yield.

Real Estate Reflections Closing The Discount

<ul><li>The listed property sector had another strong month in July with a broad based lift in share prices.</li><li>We do not expect any major surprises with rental growth fixed, occupancy stable, and interest costs falling.</li><li>This should support the continued re-rate towards net tangible assets (currently at a -17% discount).</li></ul>

The listed property sector had another strong month in July with a broad based lift in share prices.We do not expect any major surprises with rental growth fixed, occupancy stable, and interest costs falling.This should support the continued re-rate towards net tangible assets (currently at a -17% discount).

Real Estate Reflections Another Step Forward

New Zealand

Kiwi Property Group Ltd is a property trust that invests in, manages and develops a portfolio of diversified properties throughout New Zealand. The Trust's properties include office, retail and industrial properties.

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Kiwi Property (KPG NZ)

Real Estate Reflections Stumbling Out Of The Blocks

We expect February reporting season to highlight solid operational performance with stable vacancy, continued rent growth, and lower debt costs.

Forsyth Barr

Real Estate Reflections Stumbling Towards the Finish Line

The sector is now trading at a -12% discount to asset values and a gross yield of 7.4%, which is a +300bp spread to long bond rates, broadly in...

Forsyth Barr

Real Estate Reflections Taking a Breather

Precinct (PCT) raised NZ$325m of additional equity in the month, which weighed on sector performance as investors looked for funders, and the risk...

Forsyth Barr

Real Estate Reflections Closing The Discount

The NZ-listed property sector continued its run in August, having now outperformed the broader NZ market by +12% year to date.

Forsyth Barr

Real Estate Reflections Another Step Forward

The listed property sector had another strong month in July with a broad based lift in share prices.We do not expect any major surprises with...

Forsyth Barr

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