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>Precinct (PCT) has entered into an agreement to sell a 50% interest in PwC Tower to its existing capital parent PAG.</li><li>PCT will be the investment and asset manager of the new partnership with fees at market levels.</li><li>The transaction is conditional on OIO approval and settlement is expected in 1H27.</li></ul>

Precinct (PCT) has entered into an agreement to sell a 50% interest in PwC Tower to its existing capital parent PAG.PCT will be the investment and asset manager of the new partnership with fees at market levels.The transaction is conditional on OIO approval and settlement is expected in 1H27.

Thematic (Sector/Industry)

<ul><li>The listed property sector continued its soft year with August down -1.1%, taking year-to-date performance to -7.3%.</li><li>August reporting season was largely as expected; solid occupancy, underlying rent growth, and slightly lower interest costs supported earnings growth.</li><li>We continue to view the sector as attractive trading at a discount to the book value of assets and replacement cost and offering a strong tax-efficient yield when compared to other dividend-focused sectors and fixed-income alternatives.</li></ul>

The listed property sector continued its soft year with August down -1.1%, taking year-to-date performance to -7.3%.August reporting season was largely as expected; solid occupancy, underlying rent growth, and slightly lower interest costs supported earnings growth.We continue to view the sector as attractive trading at a discount to the book value of assets and replacement cost and offering a strong tax-efficient yield when compared to other dividend-focused sectors and fixed-income alternatives.

Real Estate Reflections Rates Weighing on the Sector

<ul><li>Precinct (PCT) reported a softer-than-expected 1H26 result, though this largely reflected the timing of the 22 Stanley Street transaction.</li><li>Positively, FY26 funds from operations (FFO) and dividend per share guidance were maintained.</li><li>We retain our OUTPERFORM rating, with PCT trading at a -13% discount to our NAV, an above-average gross yield of 9.2% (33% taxpayer), and FY25–28E FFO CAGR of +3%.</li></ul>

Precinct (PCT) reported a softer-than-expected 1H26 result, though this largely reflected the timing of the 22 Stanley Street transaction.Positively, FY26 funds from operations (FFO) and dividend per share guidance were maintained.We retain our OUTPERFORM rating, with PCT trading at a -13% discount to our NAV, an above-average gross yield of 9.2% (33% taxpayer), and FY25–28E FFO CAGR of +3%.

Precinct Properties NZ 1H26 Result—Line Of Sight On 2H26

<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

New Zealand

Precinct Properties New Zealand Ltd. invests in manages and leases commercial office properties. The Company invests in properties in Auckland and Wellington.

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Precinct Properties New Zealand (PCT NZ)

Precinct (PCT): Sale Of 50% Of PwC Tower

Precinct (PCT) has entered into an agreement to sell a 50% interest in PwC Tower to its existing capital parent PAG. PCT will be the investment...

Forsyth Barr

Real Estate Reflections Rates Weighing on the Sector

The listed property sector continued its soft year with August down -1.1%, taking year-to-date performance to -7.3%. August reporting season was...

Forsyth Barr

Precinct Properties NZ 1H26 Result—Line Of Sight On 2H26

We retain our OUTPERFORM rating, with PCT trading at a -13% discount to our NAV, an above-average gross yield of 9.2% (33% taxpayer), and FY25–28E...

Forsyth Barr

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

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