How are 5 NZX REIT stocks faring amid Government’s housing boost?

Highlights

• The NZ Government will fund five Auckland suburbs from the Housing Acceleration Fund.
• Precinct Properties posted strong results in FY21 despite COVID-19 challenges.
• Vital healthcare notified that the unit purchase plan offered by its manager had closed on 3 November.

Housing Minister Dr Megan Woods announced on 9 November that five Auckland suburbs would get a major government housing support from the Housing Acceleration Fund. The funds will be used for investment in primary housing infrastructure like pipes and roads.

The Government will spend $282 million on large-scale projects in Mangere, Mt Roskill, Oranga, Northcote and Tāmaki in Auckland’s first big amount of funding.

The financing will enable near 1,260 extra homes on top of 2500 additional homes already backed by Government funding.

Let’s glance through how these 5 NZX REITs have been performing amid this housing boost.

Image source: © 2021 Kalkine Media, Data source- EODHD/Others

Kiwi Property Group Limited (NZX:KPG)

Kiwi Property made an announcement last month to procure a property for $27.5 million, which is located adjacent to Sylvia Park Lifestyle in Auckland. This will open up many prospects to the west of Sylvia Park.

The Group will announce its interim results on 22 November.

KPG shares, at the time of writing, were trading 0.88% in green at $1.15.

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

Stride’s portfolio is valued at $1216.4 million as of 30 September 2021, indicating a net valuation movement of +1.1%. The Group has also affirmed a cash dividend of 9.91cps for FY22.

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It has also entered into an agreement with Vector Limited and Metlifecare Limited to lease space for a total of nearly 7,140sqm.

SPG shares, at the time of writing, were trading 0.43% in red at $2.3.

Argosy Property Limited (NZX:ARG)

Argosy will announce its interim results for the 6 months ended 30 September 2022 on 23 November 2021. The results will be filed with the NZX before the market opens on this date.

ARG shares, at the time of writing, were trading 1.32% in green at $1.53.

Precinct Properties New Zealand Limited (NZX:PCT) 

Precinct Properties delivered strong results in FY21 despite COVID-19 challenges, showing investor confidence and portfolio resilience of the Group.

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PCT also completed many capital management projects, including its first green bond issue, a $250-million equity raise, and the sale of the remaining 50% of the ANZ Centre in Auckland. PCT expects a dividend of 6.7cs for FY22, up 3.1% YOY.

PCT shares, at the time of writing, were trading flat at $1.6.

Vital Healthcare Property Trust (NZX:VHP)

Vital notified that the unit purchase plan provided by its manager, NorthWest Healthcare Properties Management Limited, had closed on 3 November.

Do Read: How are 5 NZX REIT stocks faring amid falling rents?

The settlement and allocation of the new units, issued under the UPP, are likely to happen on 10 November 2021.

VHP shares, at the time of writing, were trading 0.68% in red at $2.94.

Bottom Line

First-time home buyers are benefitting from strong financial incentives to purchase houses and taking a chance to get into the housing market when tighter lending limits led to a drop in mortgaged investors’ market share.

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