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>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>We reinstate our Precinct (PCT) rating at OUTPERFORM and a NZ$1.34 target price.</li><li>The balance sheet is in a strong position following the recent equity raise and will strengthen further with capital partnering on 256 Queen Street and PwC Tower.</li><li>Valuation is also attractive, trading on a 12-month forward price to AFFO of 18x, a property sector-high 12-month forward gross yield of 8.1% (33% taxpayer), while growing funds from operations (FFO) at a c.+4% CAGR over the next three years.</li></ul>

We reinstate our Precinct (PCT) rating at OUTPERFORM and a NZ$1.34 target price.The balance sheet is in a strong position following the recent equity raise and will strengthen further with capital partnering on 256 Queen Street and PwC Tower.Valuation is also attractive, trading on a 12-month forward price to AFFO of 18x, a property sector-high 12-month forward gross yield of 8.1% (33% taxpayer), while growing funds from operations (FFO) at a c.+4% CAGR over the next three years.

Precinct Properties NZ Paying for Quality

<ul><li>PCT has announced it is raising NZ$310m to progress its NZ$3.7bn of growth opportunities and optimise the timing and approach of its capital partnering strategy.</li><li>The office component of the Downtown development is now 50% pre-leased (all from outside of the PCT portfolio).</li><li>Reaffirmed its FY26 dividend guidance of 6.75cps reflecting a 90%-92% payout of FFO guidance of 7.30cps to 7.50cps (was 7.50cps).</li></ul>

PCT has announced it is raising NZ$310m to progress its NZ$3.7bn of growth opportunities and optimise the timing and approach of its capital partnering strategy.The office component of the Downtown development is now 50% pre-leased (all from outside of the PCT portfolio).Reaffirmed its FY26 dividend guidance of 6.75cps reflecting a 90%-92% payout of FFO guidance of 7.30cps to 7.50cps (was 7.50cps).

Precinct (PCT) | NZ$310m Capital Raise to Progress Growth Opportunities

<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

New Zealand

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

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Precinct Properties New Zealand (PCT NZ)

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

Precinct Properties NZ Paying for Quality

The balance sheet is in a strong position following the recent equity raise and will strengthen further with capital partnering on 256 Queen Street...

Forsyth Barr

Precinct (PCT) | NZ$310m Capital Raise to Progress Growth Opportunities

PCT has announced it is raising NZ$310m to progress its NZ$3.7bn of growth opportunities and optimise the timing and approach of its capital...

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

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)