Listed property romps ahead of NZX50
Strong property fundamentals push listed property past NZX50 over past year.
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Hawke’s Bay
The listed property sector is performing strongly, beating the NZX50 by a whopping 14.7% over the past year.
In the quarter to March 31, the sector gained 5.1%, just slightly behind the NZX at 5.2%.
Figures in the latest Forsyth Barr NZX Index Review shows listed property has galloped ahead of the NZX50 on the back of improving property fundamentals, the country’s economic growth and low interest rates. Development activity and investor interest remains high for property in the office, industrial and retail sectors.
Topping the index with a return of 45.4% in the past year is $588 million Vital Healthcare. Vital Healthcare, the country's biggest listed medical and healthcare property investor, has most of its assets in Australia.
DNZ, valued at $580 million, is nearly 10% behind with a return of 35.8% and close behind is Argosy Property with a market cap of $913 million and a return of 34.5%.
Forsyth Barr says over the past year there has been a chase for yield and the higher-dividend yielding listed property vehicles have subsequently outperformed the NZX50.
It sees the sector as fully valued, with a supportive property market which is producing good dividend yields.
Sally Lindsay
Wed, 08 Apr 2015
Wed, 08 Apr 2015
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Listed property romps ahead of NZX50
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