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

<ul><li>Property for Industry (PFI) delivered a strong 1H26, with underlying AFFO up +10% on the prior year and in line with expectations.</li><li>FY26 dividend guidance was upgraded from ‘at least NZ8.90cps’ to ‘at least 9.05cps’ based on a 90% underlying AFFO payout.</li><li>PFI is managing this cycle well given: (1) its portfolio is fully occupied; (2) FY26 lease expiries have been addressed, with solid progress made on FY27; and (3) balance sheet gearing is at manageable levels, given development pipeline flexibility and likely ongoing capital recycling.</li></ul>

Property for Industry (PFI) delivered a strong 1H26, with underlying AFFO up +10% on the prior year and in line with expectations.FY26 dividend guidance was upgraded from ‘at least NZ8.90cps’ to ‘at least 9.05cps’ based on a 90% underlying AFFO payout.PFI is managing this cycle well given: (1) its portfolio is fully occupied; (2) FY26 lease expiries have been addressed, with solid progress made on FY27; and (3) balance sheet gearing is at manageable levels, given development pipeline flexibility and likely ongoing capital recycling.

Property For Industry 1H26 Result—Delivering Again

Thematic (Sector/Industry)

<ul><li>The listed property sector had a second consecutive positive month in June as Middle East tensions and inflation pressures eased.</li><li>However, it has still been a first half to forget, with the sector underperforming the wider market by <em>c.</em>5%.</li><li>Sector valuations remain attractive, trading on a -21% discount to NTA and an 8.2% gross yield.</li></ul>

The listed property sector had a second consecutive positive month in June as Middle East tensions and inflation pressures eased.However, it has still been a first half to forget, with the sector underperforming the wider market by c.5%.Sector valuations remain attractive, trading on a -21% discount to NTA and an 8.2% gross yield.

Real Estate Reflections: A First Half to Forget

<ul><li>March was another weak month for the sector as Middle East hostilities drove up interest rates.</li><li>Over the last six months, the property sector has swung from the third strongest six-month return over the last 30 years to the fifth largest decline.</li><li>In summary, share prices currently imply a c.5% long-bond yield, and we do not expect distributions will need to be cut.</li></ul>

March was another weak month for the sector as Middle East hostilities drove up interest rates.Over the last six months, the property sector has swung from the third strongest six-month return over the last 30 years to the fifth largest decline.In summary, share prices currently imply a c.5% long-bond yield, and we do not expect distributions will need to be cut.

<ul><li>The listed property sector continued its poor start to the year in February, down another -1.1%, taking year-to-date performance to -4.5%.</li><li>Net asset values and balance sheet gearing were largely stable.</li><li>The current discount to NTA is -21% compared to its long-run average of -1%.</li></ul>

The listed property sector continued its poor start to the year in February, down another -1.1%, taking year-to-date performance to -4.5%.Net asset values and balance sheet gearing were largely stable.The current discount to NTA is -21% compared to its long-run average of -1%.

Real Estate Reflections - Weak Share Prices, Stable Fundamentals

<ul><li>The listed property sector finished 2025 up +13%, outperforming the broader NZ market by c.10%.</li><li>The sector is now trading on a -14% discount to net tangible assets (NTA), a gross yield of 7.5% or +300bp spread to long bond rates, and an AFFO multiple of 19x.</li><li>The listed property sector fell -1% in December, underperforming the broader market which was up +0.4%.</li></ul>

The listed property sector finished 2025 up +13%, outperforming the broader NZ market by c.10%.The sector is now trading on a -14% discount to net tangible assets (NTA), a gross yield of 7.5% or +300bp spread to long bond rates, and an AFFO multiple of 19x.The listed property sector fell -1% in December, underperforming the broader market which was up +0.4%.

Real Estate Reflections A Strong Year in Property

New Zealand

Property for Industry Limited is a property company that invests in New Zealand industrial properties. The Company's property portfolio includes sites in Auckland, Hamilton, Tauranga, Wellington and Christchurch.

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Property For Industry (PFI NZ)

Property For Industry 1H26 Result—Delivering Again

Property for Industry (PFI) delivered a strong 1H26, with underlying AFFO up +10% on the prior year and in line with expectations.

Forsyth Barr

Real Estate Reflections: A First Half to Forget

The listed property sector had a second consecutive positive month in June as Middle East tensions and inflation pressures eased. However, it has...

Forsyth Barr

Real Estate Reflections Whipsaw

March was another weak month for the sector as Middle East hostilities drove up interest rates. Over the last six months, the property sector has...

Forsyth Barr

Real Estate Reflections A Strong Year in Property

The sector is now trading on a -14% discount to net tangible assets (NTA), a gross yield of 7.5% or +300bp spread to long bond rates, and an AFFO...

Forsyth Barr

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