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>Strong month for the property sector: The NZ LPV sector had a strong June, rising +3.7% and outperforming the NZX 50 which was up +0.8%. </li><li>A flurry of annual shareholder meetings: There were a number of annual shareholder meetings in June where FY24 distribution guidance was reiterated.</li><li>Mixed valuation signals: The property sector continues to look attractive relative to other yield stocks but fully priced vs. bond yields.</li></ul>

Strong month for the property sector: The NZ LPV sector had a strong June, rising +3.7% and outperforming the NZX 50 which was up +0.8%. A flurry of annual shareholder meetings: There were a number of annual shareholder meetings in June where FY24 distribution guidance was reiterated.Mixed valuation signals: The property sector continues to look attractive relative to other yield stocks but fully priced vs. bond yields.

Real Estate Reflections: Property Jumps Ahead of the Pack

<ul><li>Property sector softer through reporting season: The NZ LPV sector was down -0.7% in May, outperforming the NZX50 which was down -1.7%.</li><li>Dust settles on May reporting season: Six property companies reported full year results in May. The results were broadly in line with our expectations as solid tenant demand continues to drive strong operational outcomes.</li><li>Sector valuation remains mixed: The property sector continues to look attractive relative to other yield stocks but still remains above its long-run valuation metrics relative to bond yields.</li></ul>

Property sector softer through reporting season: The NZ LPV sector was down -0.7% in May, outperforming the NZX50 which was down -1.7%.Dust settles on May reporting season: Six property companies reported full year results in May. The results were broadly in line with our expectations as solid tenant demand continues to drive strong operational outcomes.Sector valuation remains mixed: The property sector continues to look attractive relative to other yield stocks but still remains above its long-run valuation metrics relative to bond yields.

Real Estate Reflections: Reporting on Property

Equity Bottom-Up

<ul><li>FY23 result was largely irrelevant: APL reported a slight loss for FY23 with adjusted funds from operations (AFFO) of -NZ$0.3m.</li><li>Converting assets to cash: After a busy 12 months APL is now effectively a single asset vehicle</li><li>Capital return the most likely scenario: The key message from the result was a broad indication that a return of capital is the most likely outcome following the sell down of assets.</li></ul>

FY23 result was largely irrelevant: APL reported a slight loss for FY23 with adjusted funds from operations (AFFO) of -NZ$0.3m.Converting assets to cash: After a busy 12 months APL is now effectively a single asset vehicleCapital return the most likely scenario: The key message from the result was a broad indication that a return of capital is the most likely outcome following the sell down of assets.

Asset Plus: FY23 Result — A Capital Return Equation

<ul><li>Flat month for the property sector: The NZ LPV sector was broadly flat in April, underperforming the NZX50G which was up +1.1%.</li><li>Looking ahead to the May reporting season: Low vacancy, solid tenant demand, and the high cost of new supply all continue to underpin solid rent growth.</li><li>Sector valuations track sideways: The property sector continues to look attractive relative to other yield stocks, however, spreads remain compressed when compared to long-term relationships to bond yields</li></ul>

Flat month for the property sector: The NZ LPV sector was broadly flat in April, underperforming the NZX50G which was up +1.1%.Looking ahead to the May reporting season: Low vacancy, solid tenant demand, and the high cost of new supply all continue to underpin solid rent growth.Sector valuations track sideways: The property sector continues to look attractive relative to other yield stocks, however, spreads remain compressed when compared to long-term relationships to bond yields

Real Estate Reflections: Gearing Up for Reporting Season

<ul><li>Munroe Lane is the last asset standing: APL announced that Stoddard Road has been conditionally sold for NZ$36.8m or a c.7.5% passing yield.</li><li>Portfolio valuation falls: The portfolio devaluation of -NZ$13m was driven by (1) Munro Lane now being valued on an as complete cap rate of 6.0% (was c.5.2% and 5.5% yield on cost), and adjusted for remaining cost to complete (May completion), and (2) reducing Stoddard Rd's book value to its conditional sale price less divestment costs</li><li>What might a 'return of capital' scenario look like?: The contracted sale of Graham St dictates the timing of any capital return, with first potential settlement date 1 December 2023, and the second a year later.</li></ul>

Munroe Lane is the last asset standing: APL announced that Stoddard Road has been conditionally sold for NZ$36.8m or a c.7.5% passing yield.Portfolio valuation falls: The portfolio devaluation of -NZ$13m was driven by (1) Munro Lane now being valued on an as complete cap rate of 6.0% (was c.5.2% and 5.5% yield on cost), and adjusted for remaining cost to complete (May completion), and (2) reducing Stoddard Rd's book value to its conditional sale price less divestment costsWhat might a 'return of capital' scenario look like?: The contracted sale of Graham St dictates the timing of any capital return, with first potential settlement date 1 December 2023, and the second a year later.

New Zealand

Asset Plus Limited carries on the business of a property company that invests in and manages commercial, industrial and retail properties. The Company's investment property portfolio consists of retail, commercial, and industrial properties located in New Zealand.

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Asset Plus (APL NZ)

Real Estate Reflections: Property Jumps Ahead of the Pack

June was a strong month for the property sector despite a slight lift in long bond yields - NZ-listed property vehicles (LPVs) have now...

Forsyth Barr

Real Estate Reflections: Reporting on Property

The results of listed property vehicles (LPVs) that reported in May was largely in line with expectations; Strong tenant demand underpinned strong...

Forsyth Barr

Asset Plus: FY23 Result — A Capital Return Equation

Asset Plus' (APL) FY23 result was largely irrelevant, with the market focussed on asset sales and the potential for a capital return; The key...

Forsyth Barr

Real Estate Reflections: Gearing Up for Reporting Season

April was a flat month for the listed property sector; Long-bond yields have been range bound for the last eight months, as tight yield spreads...

Forsyth Barr

Asset Plus: One Asset, Plus Cash

Asset Plus (APL) announced progress on its sell-down strategy with the conditional divestment of Stoddard Rd. APL's remaining asset is its Munroe...

Forsyth Barr

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