Sharechat Logo

Daily ShareChat: Property Gross Index

By Jenny Ruth

Friday 22nd January 2010

Text too small?
 Jenny Ruth

Following a massive 17% gain in the September quarter, the NZX Property Gross Index gained only 1.8% in the December quarter compared with the 2.4% quarterly gain for the benchmark Top 50 Index, says Jeremy Simpson at Forsyth Barr.

Over calendar 2009, the property index gained 12.9% compared with the Top 50's 20.5% gain. Most listed property vehicles showed strong gains in the December quarter (Goodman Property Trust gained 9.2% and ING Property Trust climbed 5.2%) but dragging the property index down was AMP Office Trust which fell 8.5% in the quarter. The AMP trust also fell 13.2% through the year, making it the only property company to produce a negative annual return.

The sector started the year with significant uncertainty and fear, given the extent of the global property correction and tight credit markets," Simpson says. Share prices continued to fall until May, amounting to more than two years of share price declines, he says.

"Activity levels and investor confidence slowly picked up through the year."

After sizeable downgrades, valuations are now stablilising but will remain weak for a while as market rents continue to fall and vacancy pressures continue to build, particularly in the CBD and CBD office fringe markets, he says.


BROKER CALL: Forsyth Barr rate Kiwi Income Property Trust (buy), AMP Office Trust (accumulate) and Goodman Property Trust (accumulate).




  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

VCT - Operational performance for the year ended 30 June 2024
Challenge to banks the way to go
Bigger returns or lower risk?
NPH - Director Appointment
July 19th Morning Report
Wellington International Airport Ltd (“WIA040”) - Maturity
Devon Funds Morning Note - 18 July 2024
CNU - Commerce Commission releases draft Price Quality decision
Precinct FY24 Annual Results and Webcast Details
Scott Technology appoints new CEO