5 NZX REIT stocks that can be explored amid Fitch update

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5 NZX REIT stocks that can be explored amid Fitch update

 5 NZX REIT stocks that can be explored amid Fitch update
Image source: ekapol sirachainan, Shutterstock.com

Highlights 

  • FITCH Ratings expects home prices to increase at a moderate pace next year.
  • Argosy delivered viable earnings, cashflows and dividends to shareholders for the 6 months ended 30 September 2021.
  • Vitals’ manager advised that the strike price for its DRP is $2.846240 for Q1FY22.

Credit Rating Agency Fitch announced on Wednesday that it expected home prices to continue to rise in 2022 except China but at a softer pace than in the current year.

The increase in prices is due to low mortgage rates, construction costs, present housing shortages and strong demand.

Most of these factors are likely to remain in the near term. However, Fitch expects some downward strain on home prices in 2022 that will restrict growth.

 5 NZX REITs and their details

Image source: © 2021 Kalkine Media®, Data source- Refinitiv

On this note, let’s explore how these 5 NZX-listed stocks are performing as 2021 ends.

Stride Property Ltd & Stride Investment Management Ltd (NZX:SPG)

Stride opened a $20-million retail offer on 29 November as part of its capital raising plan. Eligible shareholders who have an address in NZ will be qualified to apply for nearly $50K of new stapled securities per shareholder.

RELATED READ: Which are top 5 NZX REIT stocks of 2021?

The Offer will close on 10 December 2021 with the allotment of new securities to be done on 16 December.

SPG ended the day 0.97% in red to close at $2.05.

Precinct Properties New Zealand Limited (NZX:PCT)

Precinct Properties notified on 30 November that its senior secured fixed rate bond, PCT010, would mature on 17 December 2021 and the payment would be made on the same date.

Must Read: Which 3 NZX REIT stocks to explore amid robust housing sales?

PCT ended the day 0.93% in red to close at $1.6.

Vital Healthcare Property Trust (NZX:VHP)

Vital announced on Thursday that its manager NorthWest Healthcare Properties Management Limited had advised that the strike price for its DRP was $2.846240 for Q1FY22.

The pricing is effective for the distribution due on 16 December 2021.

VHP ended the day 0.99% in red to close at $3.01.

Argosy Property Limited (NZX:ARG)

Argosy stayed resilient and delivered viable earnings, cashflows and dividends to shareholders for the 6 months ended 30 September 2021. It posted an NPAT of $127 million, high occupancy of near 99% and an increase in net property income of 5.1%.

Related Read: Which 5 NZX dividend stocks under NZ$5 to consider in 2022?

ARG also announced a cash dividend of 1.6375cps for Q2 FY22, due to be paid on 22 December 2021. It has predicted a dividend of 6.55cps for FY22 with plans to begin a new dividend policy from 1 April 2022.

ARG ended the day 1.66% in red to close at $1.485.

Investore Property Limited (NZX:IPL)

Investore Property delivered a profit before other income/expense of $15.4 million in H1 FY22. IPL’s portfolio valuation stood at $1.5 billion at the end of the period, representing a net valuation gain of 4.1% for H1FY22.

A Quick Read: Do 5 NZX penny stocks have the potential to turn into multibaggers?

The Group paid a dividend of 1.975cps on 1 December and expects an annual cash dividend of 7.9cps for FY22.

IPL ended the day 2.62% in red to close at $1.86.

Bottom Line

Fitch Ratings expect that stronger home price growth in 2022 than predicted may trigger conditions for large corrections.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)

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