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>Listed property vehicles (LPVs) who reported in August generally delivered a solid set of results, although interest rates continue to be a key headwind for the sector</li><li>Operational outcomes were more positive with solid like-for-like income growth driven by strong market rent reviews and leasing outcomes</li><li>Long-bond yields moved higher over August and only modest moves in share prices resulted in the sector yield spread contracting to a 14-year low</li></ul>

Listed property vehicles (LPVs) who reported in August generally delivered a solid set of results, although interest rates continue to be a key headwind for the sectorOperational outcomes were more positive with solid like-for-like income growth driven by strong market rent reviews and leasing outcomesLong-bond yields moved higher over August and only modest moves in share prices resulted in the sector yield spread contracting to a 14-year low

Real Estate Reflections: Debt Costs Rising

<ul><li>Leading into reporting season, listed property stocks have rallied but still slightly underperformed the broader market in July</li><li>Generally positive operating trends</li><li>A drop in bond rates has spurred property sector rally </li></ul>

Leading into reporting season, listed property stocks have rallied but still slightly underperformed the broader market in JulyGenerally positive operating trendsA drop in bond rates has spurred property sector rally 

Real Estate Reflections: A Look Under the Hood (10-Aug-2022)

Equity Bottom-Up

<ul><li>Stride Property (SPG) has announced that the sale of 22 The Terrace is now unconditional (NZ$29.4m, 7.1% yield) and has advised of the unconditional sale of two industrial assets from its Industre Property JV, at 22 Ha Crescent and 15 Ride Way.</li><li>The aggregated sale price of the two industrial properties is NZ$43.5m (22 Ha Crescent NZ$22m, 15 Ride Way NZ$21.5m).</li><li>SPG has stated that the sale of 22 The Terrace reduces pro-forma gearing to c.36%</li></ul>

Stride Property (SPG) has announced that the sale of 22 The Terrace is now unconditional (NZ$29.4m, 7.1% yield) and has advised of the unconditional sale of two industrial assets from its Industre Property JV, at 22 Ha Crescent and 15 Ride Way.The aggregated sale price of the two industrial properties is NZ$43.5m (22 Ha Crescent NZ$22m, 15 Ride Way NZ$21.5m).SPG has stated that the sale of 22 The Terrace reduces pro-forma gearing to c.36%

Stride Property (SPG): Asset Sales Update

<ul><li>Strong operational result but portfolio devaluations and reduced activity weighs on management fees</li><li>Balance sheet overhang largely put to bed: SPG's FY23 bank covenant gearing was 36.3% and we estimate c.39% including its capital commitments. </li><li>Focus moving back to asset management strategy execution: With the balance sheet under repair investor attention will shift back to progress on SPG's strategy of becoming a real estate asset manager which has also hit a speed bump.</li></ul>

Strong operational result but portfolio devaluations and reduced activity weighs on management feesBalance sheet overhang largely put to bed: SPG's FY23 bank covenant gearing was 36.3% and we estimate c.39% including its capital commitments. Focus moving back to asset management strategy execution: With the balance sheet under repair investor attention will shift back to progress on SPG's strategy of becoming a real estate asset manager which has also hit a speed bump.

Stride Property: FY23 Result — Steps in the Right Direction

<ul><li>Stride Property Group (SPG) delivered a solid FY23 result with adjusted funds from operations +3% to NZ$51.6m and in line with our expectations.</li><li>SPG recorded solid rent growth with no COVID abatements in the period and rent reviews delivering solid outcomes for balance sheet portfolio with Office +6% and Town Centre +8% for both CPI linked reviews and releasing.</li><li>Asset management income was -5% with higher base fees being offset by a drop off in activity fees.</li></ul>

Stride Property Group (SPG) delivered a solid FY23 result with adjusted funds from operations +3% to NZ$51.6m and in line with our expectations.SPG recorded solid rent growth with no COVID abatements in the period and rent reviews delivering solid outcomes for balance sheet portfolio with Office +6% and Town Centre +8% for both CPI linked reviews and releasing.Asset management income was -5% with higher base fees being offset by a drop off in activity fees.

Stride Property Group: FY23 Result – Initial Thoughts

New Zealand

Stride Stapled Group operates as a real estate investment company. The Company invests in a portfolio of places with enduring demand, as well as acquires retail properties. Stride Stapled conducts business in New Zealand.

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Stride Property (SPG NZ)

Real Estate Reflections: Debt Costs Rising

Listed property vehicles (LPVs) who reported in August generally delivered a solid set of results, although interest rates continue to be a key...

Forsyth Barr

Real Estate Reflections: A Look Under the Hood (10-Aug-2022)

Leading into reporting season, listed property stocks have rallied but still slightly underperformed the broader market in July

Forsyth Barr

Stride Property (SPG): Asset Sales Update

Stride Property (SPG) has announced that the sale of 22 The Terrace is now unconditional (NZ$29.4m, 7.1% yield) and has advised of the...

Forsyth Barr

Stride Property: FY23 Result — Steps in the Right Direction

SPG's balance sheet is being repaired with non-core assets either being marketed for sale or under contract to be sold; With gearing issues almost...

Forsyth Barr

Stride Property Group: FY23 Result – Initial Thoughts

SPG recorded solid rent growth with no COVID abatements in the period and rent reviews delivering solid outcomes for balance sheet portfolio with...

Forsyth Barr

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