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>Precinct's (PCT) FY24 result was largely as expected. The core premium office portfolio continues to perform well, with solid rent growth and stable occupancy.</li><li>Fee and co-investment income was slightly below expectations, but this was offset by lower operating costs, with greater capitalisation as development planning ramps up.</li><li>The key positives were continued progress on capital partnering, with a new Wynyard Quarter JV, pipeline and capital progress on student accommodation, and leasing progress on Downtown carpark all announced. </li></ul>

Precinct's (PCT) FY24 result was largely as expected. The core premium office portfolio continues to perform well, with solid rent growth and stable occupancy.Fee and co-investment income was slightly below expectations, but this was offset by lower operating costs, with greater capitalisation as development planning ramps up.The key positives were continued progress on capital partnering, with a new Wynyard Quarter JV, pipeline and capital progress on student accommodation, and leasing progress on Downtown carpark all announced. 

Precinct Properties NZ - FY24 Result — Keeping Active

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Precinct Properties New Zealand / Equity Capital Markets

<ul>
<li>ADIA, via Haumi Co, is looking to raise NZ$262m (US$160m) from selling its entire stake in <a href="https://www.smartkarma.com/entities/precinct-properties-new-zealand-ltd" target="_blank" data-smartkarma-citation="entities:13997:1" rel="noopener">Precinct Properties New Zealand (PCT NZ)</a>.</li>
<li>While the deal will be a clean-up share sale, the deal is a large one for the firm to digest at 344 days of its three month ADV.</li>
<li>Momentum on the stock hasn’t been great, with the shares continuing to correct since the onset of the pandemic.</li>
</ul>


ADIA, via Haumi Co, is looking to raise NZ$262m (US$160m) from selling its entire stake in Precinct Properties New Zealand (PCT NZ).
While the deal will be a clean-up share sale, the deal is a large one for the firm to digest at 344 days of its three month ADV.
Momentum on the stock hasn’t been great, with the shares continuing to correct since the onset of the pandemic.


Precinct Properties NZ Placement - While the Deal Will Be a Clean-Up, Momentum Hasn't Been Strong

<ul><li>Precinct's (PCT) 1H24 result was uneventful. The slight decline in earnings was expected given recent asset sales into managed partnerships and higher interest costs.</li><li>FY24 DPS guidance of 6.75cps was unchanged and management expressed confidence in achieving the c.+7% half-on-half growth required, supported by completion of the 1 Queen Street hotel and office development.</li><li>PCT has started to increase activity in its residential JV and is progressing Downtown Carpark redevelopment plans. </li></ul>

Precinct's (PCT) 1H24 result was uneventful. The slight decline in earnings was expected given recent asset sales into managed partnerships and higher interest costs.FY24 DPS guidance of 6.75cps was unchanged and management expressed confidence in achieving the c.+7% half-on-half growth required, supported by completion of the 1 Queen Street hotel and office development.PCT has started to increase activity in its residential JV and is progressing Downtown Carpark redevelopment plans. 

Precinct Properties NZ - 1H24 — On Track

Macroeconomics

<ul><li>November was a soft month for the property sector as interest rate volatility continued.</li><li>1H25 results were largely as expected with most companies seeing: (1) slight vacancy rise, softening tenant demand and slowing market rent growth, reflecting the economic backdrop, (2) debt costs beginning to decline, and (3) asset values and cap rates stabilising. We expect these themes will continue to play out over the next year.</li><li>While the property sector continues to trade at compressed spreads to long-bond yields, it is trading on wider yields than some defensive peers and a lower earnings multiple than the broader market. </li></ul>

November was a soft month for the property sector as interest rate volatility continued.1H25 results were largely as expected with most companies seeing: (1) slight vacancy rise, softening tenant demand and slowing market rent growth, reflecting the economic backdrop, (2) debt costs beginning to decline, and (3) asset values and cap rates stabilising. We expect these themes will continue to play out over the next year.While the property sector continues to trade at compressed spreads to long-bond yields, it is trading on wider yields than some defensive peers and a lower earnings multiple than the broader market. 

Real Estate Reflections - From One Cycle to the Next

Thematic (Sector/Industry)

<ul><li>October was a solid month for NZ listed property vehicles (LPVs).</li><li>The Fast-track Approvals Bill breathed some life into Winton's (WIN) Sunfield project, after having its initial approval pathway declined, while Kiwi Property's (KPG) Drury development and Precinct's (PCT) downtown carpark project were both included in the bill.</li><li>Six companies are reporting interim results in November, where we expect higher interest and tax bills to outweigh top-line rental growth across most of the sector. </li></ul>

October was a solid month for NZ listed property vehicles (LPVs).The Fast-track Approvals Bill breathed some life into Winton's (WIN) Sunfield project, after having its initial approval pathway declined, while Kiwi Property's (KPG) Drury development and Precinct's (PCT) downtown carpark project were both included in the bill.Six companies are reporting interim results in November, where we expect higher interest and tax bills to outweigh top-line rental growth across most of the sector. 

Real Estate Reflections - Fast Track to Reporting Season

New Zealand

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

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Precinct Properties New Zealand (PCT NZ)

Precinct Properties NZ - FY24 Result — Keeping Active

Precinct's (PCT) FY24 result was largely as expected. The core premium office portfolio continues to perform well, with solid rent growth and...

Forsyth Barr

Precinct Properties NZ Placement - While the Deal Will Be a Clean-Up, Momentum Hasn't Been Strong

ADIA, via Haumi Co, is looking to raise NZ$262m (US$160m) from selling its entire stake in Precinct Properties New Zealand (PCT NZ).

Clarence Chu

Precinct Properties NZ - 1H24 — On Track

Precinct's (PCT) 1H24 result was uneventful. The slight decline in earnings was expected given recent asset sales into managed partnerships and...

Forsyth Barr

Real Estate Reflections - From One Cycle to the Next

While the property sector continues to trade at compressed spreads to long-bond yields, it is trading on wider yields than some defensive peers and...

Forsyth Barr

Real Estate Reflections - Fast Track to Reporting Season

Our preferred LPVs are hospital landlord Vital Healthcare (VHP) and premium office owner PCT. We are also OUTPERFORM rated on Asset Plus (APL)...

Forsyth Barr

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