All listed property vehicles (LPVs) realised gains in April, with the sector up 1.8% for the month, slightly outperforming the NZX-50 which was up 1.3% in the same period.
In the last 12 months, listed property was up 17.4% in value compared to 2.6% for the NZX-50.
News for the month was predominantly centred on portfolio revaluations, with five LPVs releasing updates, although they appeared to have made little impact on share prices.
AMP NZ Office led the gains, increasing 4.9%, while Vital Healthcare Property Trust was up 4.2% and DNZ Property Fund was up 2.9%.
"With listed property up 17% over the last 12 months, investors continue to chase the attractive dividend yields on offer," Mrs Van Leeuwen said.
The average full-year 2012 yield was 8.6%, compared with 9.6% a year ago. Given the appeal of the dividend yields, and that the net tangible assets were at the bottom of the cycle, Forsyth Barr continued to expect the sector to trade at a premium to its book value.
Mrs Van Leeuwen was forecasting slightly higher dividends on average for the sector in 2013, but that might depend on payout levels. Most LPVs had an underlying dividend payout rate well above "available funds from operations" (AFFO) - essentially the operating cash flow plus an allowance for maintenance capital expenditure.
She expected some LPVs to move to a lower payout level in the near to medium-term.
"A stabilising property market, plus attractive dividends has driven strong performance over the last 18 months. Despite the recovery in share prices, the yields remain attractive in a low interest rate environment," Mrs Van Leeuwen said.
