Why these top NZX REIT stocks of 2021 can be considered

Highlights

  • New home consents across New Zealand have reached record levels for the year ended October 2021.
  • Precinct Properties secured fixed-rate bonds that would be last traded on 3 December.
  • Argosy Property to pay a Q2 dividend in the second half of this month.

According to the latest reports of Stats NZ, new homes consents have risen by 26% to 47,715 for the year ended October 2021.

Ever since March 2021, New Zealand has been witnessing new records in the annual number of new homes consented.

Further, in recent years, a shift towards building bigger houses has been noticed across Kiwiland.

It is noted that Auckland saw the highest number of new homes consented for the year ended October 2021, followed by Canterbury, Waikato, and Wellington.

That said, let us look at the two popular NZX REIT stocks worth looking at.

NZX REIT stocks- PCT, ARG

Image source: © 2021 Kalkine Media, data source- Refinitiv

Precinct Properties New Zealand Limited (NZX:PCT)

Precinct Properties New Zealand Limited is a well-known developer of premier office space across Wellington and Auckland.

Wednesday, it had disclosed that PCT010, its senior secured fixed rate bond, was going to mature on 17 December, payment of which would be made on the very same date.

Related Read: Are these 5 NZX mid-cap aiming to become large-cap stocks?

Further, the last trading date of the said bonds would be 3 December.

At the time of writing, on 2 December, Precinct Properties New Zealand gained 0.96% at NZ$1.575.

Argosy Property Limited (NZX:ARG)

Argosy Property Limited boasts a huge portfolio of commercial properties worth NZ$2.12 billion. It displayed a strong FY22 interim performance, with an NPAT of NZ$127 million and a 5.1% rise in its net property income, for the half-year period ended 30 September 2021.

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

Despite facing challenging conditions imposed by the pandemic, ARG’s portfolio metrics remained high with solid rent reviews and leasing results.

It will pay a Q2 dividend of 1.6375 cps on 22 December. Moreover, ARG has forecasted 6.55 cps as the FY22 dividend.

It remains focused on enhancing its earnings and capital growth.

At the time of writing, on 2 December, Argosy Property fell by 0.34% at NZ$1.465.

Bottom Line

In spite of shortages of labour and materials and increased building costs, new home consents continue to rise across NZ, giving a boost to REIT stocks.

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