How are 4 NZX REIT stocks doing amid rising house sales?

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How are 4 NZX REIT stocks doing amid rising house sales?

 How are 4 NZX REIT stocks doing amid rising house sales?
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Highlights 

  • The total number of homes available for New Zealanders for buying has risen by roughly 30% since December 2020.
  • Stride Group finalised the refinancing of its bank facilities across a group of 6 banks in December 2021.
  • Argosy Group paid a cash dividend of 1.6375cps for Q2 of FY22 on 22 December.

 

The latest statistics from property market consultant REINZ showed that the total number of homes available for New Zealanders for buying had risen by roughly 30% since December 2020.

Venessa William, a spokesperson for the property market consultant, stated that the market was then more acceptable for people on the lookout for the property as buyers then had more options in 2022.

Wellington witnessed the largest rise of 206.6% in properties sale YOY in December 2021. This was followed by a 133.7% and 111.8% rise in Manawatu-Whanganui and Wairarapa, respectively.

Let’s skim through the performance of these 4 NZX REIT stocks as more properties are going up for sale

4 NZX REITS and their details

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

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

Stride Group announced last month that it had finalised the refinancing of its bank facilities across a group of 6 banks. The Group has increased its total facilities available from $455 million to $600 million.

Do Read: Stride (NZX:SPG): How did the Company fare in HY22 results?

Out of the total debt facilities, $400 million of the facilities have been categorised as green loan facilities, and its lenders include ANZ, HSBC, MUFG, Westpac, CCB and ICBC.

SPG ended the day 0.48% in green to close at $2.09.

Property for Industry Limited (NZX:PFI) 

On 12 December, PFI reported that their Wellington property at 38 Seaview Road had been sold. The property was offered by Bayleys and sold unconditionally for $10 million.

The divestiture deal is expected to be reached in February.

PFI ended the day 1.37% in green to close at $2.96.

Argosy Property Limited (NZX:ARG)

Argosy reported viable earnings, cashflows and dividends for the half-year ended 30 September 2021. The Group expects to pay a dividend of 6.55cps for FY22 and will begin a new dividend policy on 1 April.

RELATED READ: Are 3 NZX REIT stocks worth considering in 2022?

The Group paid a cash dividend of 1.6375cps for Q2 of FY22 on 22 December. DRP's strike price has been set at $1.518 per share.

ARG ended the day 2.9% in green to close at $1.595.

Asset Plus Limited (NZX:APL) 

Owing to the COVID-19 outbreak, Asset Plus seemed to have a difficult time. It earned $2.52 million in total comprehensive income for the six months ended 30 September 2021, down from $11.53 million in pcp.

ALSO READ: Are these 5 NZX dividend stocks worth considering in 2022?

A gross quarter dividend of 0.519cps was paid. It intends to effectively develop the Munroe Lane project while maintaining a positive cash flow.

APL ended the day 1.61% in red to close at $0.305.

Bottom Line

Stricter bank lending, increasing interest rates and government tax changes are some of the headwinds gathering around the sector. These factors would play out in months ahead.

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

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