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Highlights
- The NZ government has released a proposal stating a curtailment on the interest deductibility of residential properties.
- Kiwi Property Group to build the country’s first build-to-rent complex.
- CDL Investments New Zealand publishes an impressive half-year report.
Lately, the NZ government authorities had published a draft proposal mentioning the limitation of interest cost reduction of investments related to housing properties.
The above-mentioned move was taken to curb escalating demand for the existing residential properties.
However, newly build properties would not be covered, as per the draft legislation, and would be given a two-decade tax exemption.
With this backdrop, let us take a look at the five NZX REIT stocks.
Image source: © 2021 Kalkine Media New Zealand Ltd, data source- EODHD/Others
Kiwi Property Group Limited (NZX:KPG)
Kiwi Property Group Limited has recently announced its plans to construct New Zealand’s first build-to-rent development, consisting of 295 apartment complexes, which would be in Auckland's Sylvia Park.
Using KPG’s mixed-use strategy, the said site would comprise residential, office as well as retail communities.
Its construction would start towards late 2021 and renting would commence from 2024 onwards.
At the time of writing, on 30 September, Kiwi Property Group rose by 0.44% at NZ$1.150.
Related Read: 5 NZX REIT stocks amid RBNZ’s tightened LVR restrictions
Precinct Properties New Zealand Limited (NZX:PCT)
Precinct Properties New Zealand Limited has notified its shareholders of its plans to hold the Annual General Meeting on 4 November, for which director nominations have already been sent.
At the time of writing, on 30 September, Precinct Properties New Zealand was trading flat at NZ$1.66.
Also Read: Are these 5 NZX mid-cap aiming to become large-cap stocks?
Argosy Property Limited (NZX:ARG)
Argosy Property Limited will distribute an interim dividend of 1.638 cps today. For this, it has fixed its dividend reinvestment plan strike price at NZ$1.5979 per share along with a 2% discount.
At the time of writing, on 30 September, Argosy Property lost 0.61% at NZ$1.625.
Related Read: Why did these 5 stocks trade the most on NZX?
Stride Property Ltd & Stride Investment Management Ltd (NZX:SPG)
Stride Property Ltd & Stride Investment Management Ltd last week conducted its ASM, wherein several resolutions were passed by its shareholders.
Some of them were the election of new directors and re-election of those who retired, plus, increasing the directors’ remuneration.
Moreover, a resolution was also passed for fixing the fees of PricewaterhouseCoopers for being the Company’s auditor for the forthcoming year.
At the time of writing, on 30 September,, Stride Property Ltd & Stride Investment Management was trading low by 0.41% at NZ$2.44.
Related Read: Which are 5 high-volume NZX stocks today?
CDL Investments New Zealand Limited (NZX:CDI)
CDL Investments New Zealand Limited today released its 2021 Interim Report, wherein the Company witnessed a stellar performance. Its operating PAT stood at NZ$20.75 million, while its property sales and other income clocked NZ$61.27 million for the six-month period ended 30 June 2021, underpinned by the prevailing positive strength of the NZ property market.
CDI expects the demand for residential properties to remain high and the management is closely monitoring its portfolio land holdings to always ensure their optimised value.
At the closing bell, on 29 September, CDL Investments New Zealand declined by 1.30% at NZ$1.140.
Must Read: Which are five prominent names in New Zealand’s real estate sector?
Bottom Line
The NZ property market is booming, however, the government is making due efforts to control high property prices.