New Zealand Professional Investment Services Firm

Forsyth Barr

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.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>Revaluations primarily driven by expanding cap rates: the portfolio devaluation was due to (1) independent revaluations which saw a +67bps increase in portfolio cap rate in 2H23 to 5.70% (+20bps 1H23), and (2) increased allowances for seismic works which contributed -1% of the -12% total movement in portfolio value.</li><li>Asset devaluations largely priced in: the listed equity market had already more than priced this level of cap rate expansion/asset devaluation</li><li>Gearing creeping to the top of management's target range: IPL expects FY23 gearing to be 37% and we calculate committed gearing to be 39%, the top end of IPL's target range of 30%–40% but below its bank debt covenant of 52.5%</li></ul>

Revaluations primarily driven by expanding cap rates: the portfolio devaluation was due to (1) independent revaluations which saw a +67bps increase in portfolio cap rate in 2H23 to 5.70% (+20bps 1H23), and (2) increased allowances for seismic works which contributed -1% of the -12% total movement in portfolio value.Asset devaluations largely priced in: the listed equity market had already more than priced this level of cap rate expansion/asset devaluationGearing creeping to the top of management's target range: IPL expects FY23 gearing to be 37% and we calculate committed gearing to be 39%, the top end of IPL's target range of 30%–40% but below its bank debt covenant of 52.5%

Investore: Large Devaluation Already in the Price

Investore Property

Investore: Large Devaluation Already in the Price