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>Last year was a turbulent time for listed property vehicles (LPVs) - the sector was down -26% in the year as it adjusted to the higher interest rate environment</li>
<li>Valuations remain above historical relationships with bond yields, and the growth outlook has moderated</li>
<li>The sector is trading c-30% below its net asset backing but we consider this largely priced in.</li>
</ul>


Last year was a turbulent time for listed property vehicles (LPVs) - the sector was down -26% in the year as it adjusted to the higher interest rate environment
Valuations remain above historical relationships with bond yields, and the growth outlook has moderated
The sector is trading c-30% below its net asset backing but we consider this largely priced in.


Real Estate Reflections: Five Themes for the Year Ahead

<ul><li>1H23 listed property results highlighted solid operational outcomes, but we are starting to see higher interest rates impact forward earnings expectations and capital management strategies</li><li>Development is being delayed, non-core assets sold and distribution growth moderated</li><li>While results were generally in line with our expectations, we lowered our earnings and dividend forecasts for most of the sector</li></ul>

1H23 listed property results highlighted solid operational outcomes, but we are starting to see higher interest rates impact forward earnings expectations and capital management strategiesDevelopment is being delayed, non-core assets sold and distribution growth moderatedWhile results were generally in line with our expectations, we lowered our earnings and dividend forecasts for most of the sector

Real Estate Reflections: Adjusting to a Higher Rates Environment

<ul><li>High interest rates and low transactions volumes has created uncertainty around commercial property valuations</li><li>Our analysis suggests that most property balance sheets can withstand a significant decrease in asset values with Argosy (ARG), Goodman Trust (GMT), and Property for Industry (PFI) the most resilient given low current gearing and/or limited capital commitments.</li><li>Kiwi Property (KPG), Stride (SPG), and Vital Healthcare (VHP) have the least resilient balance sheets owing to either higher initial gearing and/or significant capital commitments</li></ul>

High interest rates and low transactions volumes has created uncertainty around commercial property valuationsOur analysis suggests that most property balance sheets can withstand a significant decrease in asset values with Argosy (ARG), Goodman Trust (GMT), and Property for Industry (PFI) the most resilient given low current gearing and/or limited capital commitments.Kiwi Property (KPG), Stride (SPG), and Vital Healthcare (VHP) have the least resilient balance sheets owing to either higher initial gearing and/or significant capital commitments

Equity Bottom-Up

<ul><li>Investore (IPL) reported 1H23 adjusted funds from operations (AFFO) +14% on the prior period and in line with our expectations</li><li>IPL is managing its balance sheet with gearing towards the middle of its target range and heightened property valuation uncertainty</li><li>IPL currently trades on attractive gross yield of 7.8% and a 33% discount to its book value</li></ul>

Investore (IPL) reported 1H23 adjusted funds from operations (AFFO) +14% on the prior period and in line with our expectationsIPL is managing its balance sheet with gearing towards the middle of its target range and heightened property valuation uncertaintyIPL currently trades on attractive gross yield of 7.8% and a 33% discount to its book value

Investore: 1H23 Result — Shopping for Value

<ul><li>Investore (IPL) has reported 1H23 adjusted funds from operations (AFFO) +14% to NZ$14.6m.</li><li>The operating result was slightly below our expectations but lower tax and maintenance capex saw AFFO in line with our forecast.</li><li>IPL continues to collect solid turnover rent (NZ$0.6m in 1H23) with Countdown sales supported by food price inflation</li></ul>

Investore (IPL) has reported 1H23 adjusted funds from operations (AFFO) +14% to NZ$14.6m.The operating result was slightly below our expectations but lower tax and maintenance capex saw AFFO in line with our forecast.IPL continues to collect solid turnover rent (NZ$0.6m in 1H23) with Countdown sales supported by food price inflation

Investore: 1H23 Result – Initial Thoughts

New Zealand

Investore Property Limited operates as a real estate investment company. The Company invests in retail property assets. Investore Property also provides leasing services. Investore Property serves clients in New Zealand.

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Investore Property (IPL NZ)

Real Estate Reflections: Five Themes for the Year Ahead

Last year was a turbulent time for listed property vehicles (LPVs) - the sector was down -26% in the year as it adjusted to the higher interest...

Forsyth Barr

Real Estate Reflections: Adjusting to a Higher Rates Environment

1H23 listed property results highlighted solid operational outcomes, but we are starting to see higher interest rates impact forward earnings...

Forsyth Barr

Listed Property Insights: In the Balance

High interest rates and low transactions volumes has created uncertainty around commercial property valuations, which has manifested in the NZ...

Forsyth Barr

Investore: 1H23 Result — Shopping for Value

Investore (IPL) reported 1H23 adjusted funds from operations (AFFO) +14% on the prior period and in line with our expectations; it currently trades...

Forsyth Barr

Investore: 1H23 Result – Initial Thoughts

Investore (IPL) has reported 1H23 adjusted funds from operations (AFFO) +14% to NZ$14.6m; the operating result was slightly below our expectations...

Forsyth Barr

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