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>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

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

<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.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Stride Property (SPG NZ)

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

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

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

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)