New Zealand's listed property sector remained strong last
month (October) and outperformed the NZX-50 which returned
3.3%, Forsyth Barr broker Haley Van Leeuwen said yesterday.
In the last 12 months, property was up a "spectacular" 22%,
ahead of the 20.4% achieved by the NZX-50.
"The property sector continues to appeal to investors focused
on income, given its defensive qualities and attractive gross
yield of 8.1%."
All nine of the listed companies had a positive October, Mrs
Van Leeuwen said.
The strongest performers were National Property Trust (up
7%), Precinct Properties (5.6%), Kiwi Income Property (5.4%)
and Goodman Property (3.9%).
With all of the large listed companies performing well, the
overall sector gross return in October was a strong 4%, she
National Property's gains were driven by a leasing
improvement and the positive revaluation announced during the
The 2013 first-half reporting season was under way, with
Augusta Capital confirming strong growth driven by its
property syndication operation, she said.
The traditional listed property vehicles were expected to
report more subdued results with relatively flat operating
performance for most, and shorter earnings per share
reflecting higher tax and increased units on issue.
A slowly recovering property market, plus an attractive
dividend yield relative to other investments, continued to
drive interest in the sector.
"The defensive quality of the sector's cash flows relative to
the broader equity market also continues to appeal.
"However, returns over the next 12 months are likely to be
more centred on dividends rather than capital gains."
Mrs Van Leeuwen's top picks were Argosy, DNZ Property and