NZ Real Estate Market Conditions And Related Stocks- PFI, SGP, IPL

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Over the past few months, New Zealand has witnessed a sharp increase in house prices. Despite the COVID-19 related challenges, the country continued to see a mammoth rise in property prices owing to lesser interest rates, easy availability of loans, etc.

Source: Copyright © 2021 Kalkine Media Pty Ltd.

NZ based property research firm, CoreLogic, revealed that its house price index reflected a rise of 2.6% in December 2020, amounting to NZ$788,967 in terms of average house price in the country. It assessed the growth of 6.1% for the last quarter of 2020.

An average price for a Hamilton house could yield $$712,717, reflecting a tremendous rise of 97.2% from the market peak of 2007.  Also, since the beginning of the year, the real estate prices in Gisborne have climbed to more than 30%.

The New Zealand government was under pressure over this enormous house price and in February 2021, urged the central bank to fix its monetary and financial policies after taking into the picture this real estate urge.

Source: Copyright © 2021 Kalkine Media Pty Ltd

As a result, on 1 March 2021, the loan-to-value restrictions (LVR) came into effect, specifying 40% deposits with the investors. The move may help to ease out the prevalent rise of the house price bubble.

Let us now take a glance at few NZX property stocks that are under the spotlight.

Property for Industry Limited

Property for Industry Limited (NZX:PFI) is a property investment company specialising in industrial property. With a diversified portfolio reflecting 94 properties and 148 tenants, PFI revealed strong and sturdy 2020 annual results.

The Company’s PAT stood at $113.5 million towards the end of the year. AFFO earnings climbed to 8.03 cps, up 3.1% on the previous year. The Company saw an increase by 15.4 cps with respect to NTA (net tangible assets).

Further, dividend with imputation credits of 0.5141 cps will be paid on 10 March 2021. Also, 0.2333 cps will be paid as a supplementary dividend to the non-resident shareholders.

With a robust balance sheet, the Company has given dividend guidance between 7.85 to 7.90 cps for 2021.

On 9 March 2021, at the end of the trading session, PFI stock was down by 2.11% at $2.78.

ALSO READ: Can’t Buy A House; How About Investing In Property Shares-KPG, PLP, IPL?

Stride Property Ltd & Stride Investment Management Ltd

Another NZ property company, investing in office, retail and industrial property, Stride Property Group (NZX:SPG), constitute Stride Property Limited (SPL) and Stride Investment Management Limited (SIML). The Group witnessed the appointment of Adam Lilley as its new General Manager Investment.

Assuming no further disruptions arising from the pandemic, SPG has assured a combined cash annual dividend amounting to 9.91 cps for FY21. Further, Stride Property Limited (SPL) declared 1.7275 cps as cash dividend for Q3 FY21, (imputation credits being 0.349566 cps), payment of which will be made on 17 March 2021 to its shareholders.

Also, SPL would pay 0.158627 cps as a supplementary dividend to its non-resident shareholders.

Moreover, Stride Investment Management Limited (SIML) will pay a cash dividend of 0.7500 cps for Q3 ended 31 December 2020. This dividend shall carry imputation credits of 0.291667 cps and will be paid on 17 March 2021.  SIML will pay 0.132353 cps as a supplementary dividend to all its non-resident shareholders.

On 9 March 2021, at the end of the trading session, SPG traded fla at $2.210.

ALSO READ: Spotlight on NZX-listed Dividend Stocks- Stride Property, Genesis Energy and Chorus

Investore Property Limited

NZ’s real- estate company, Investore Property Limited (NZX:IPL) witnessed a robust half-yearly result ended 30 September 2020, with PAT amounting to $91.0 million, an increase by $80.1 million Y-o-Y.

The Company recently revealed a cash dividend for Q3 for the year ended 31 March 2021. A dividend of 1.90 cps will be paid to its shareholders on 3 March 2021.

Further, the Group has issued an annual cash dividend guidance of 7.60 cps for FY21, subject to a steady economic conditions.

On 9 March 2021, at the end of the trading session, IPL stock was down by 2.88% at $2.020.

ALSO READ: 4 NZX Dividend Stocks From Real Estate Sector- ARG, PCT, IPL, KPG



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