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

Thematic (Sector/Industry)

New zealand Real estate / Thematic (Sector/Industry)

<ul><li>The listed property sector continues to struggle. Sticky inflation is pushing out expectations for interest rate relief and the softer economic backdrop is starting to weigh on operating metrics, with slower (and in some cases downward) rent growth and some increases in vacancy.</li><li>While broad sector metrics have not yet looked attractive this downcycle, outside of industrial, better value is emerging. We upgraded Vital Healthcare (VHP) to OUTPERFORM in June as selling pressure from index removal provided an attractive opportunity.</li><li>Our other preferred sector picks are Precinct (PCT) due to its high quality portfolio and growing asset management business, Asset Plus (APL) given its large discount to NTA and likely capital return, and Winton (WIN) due to its solid pre-sales book and Northbrook opportunity. </li></ul>

The listed property sector continues to struggle. Sticky inflation is pushing out expectations for interest rate relief and the softer economic backdrop is starting to weigh on operating metrics, with slower (and in some cases downward) rent growth and some increases in vacancy.While broad sector metrics have not yet looked attractive this downcycle, outside of industrial, better value is emerging. We upgraded Vital Healthcare (VHP) to OUTPERFORM in June as selling pressure from index removal provided an attractive opportunity.Our other preferred sector picks are Precinct (PCT) due to its high quality portfolio and growing asset management business, Asset Plus (APL) given its large discount to NTA and likely capital return, and Winton (WIN) due to its solid pre-sales book and Northbrook opportunity. 

Real Estate Reflections -Another Tough Month