PROPERTY TALK: Lower return but listed property still top of the pops
The listed property sector is still outperforming the NZX50 even though its year-to-date return has been a flat 0.2%.
By comparison, the NZX is down 1.5%.
Forsyth Barr analyst Jeremy Simpson says the defensive characteristics of listed property show through when there is market volatility.
He says over the past month there have been some high performers and Kiwi Property Group [NZX: KPG], National Property Trust [NZSX: NPT] and Augusta Capital [NZX: AUG] have all been rated to outperform.
“Kiwi Property Group is the most attractive stock of the larger caps from a valuation perspective while small caps National property Trust and Augusta continue to offer relative value.”
Mr Simpson says there have also been other standout performers, such as Vital Healthcare, in a market that last month showed mixed results at the distributable profit line.
Investor interest remains high for property in the office, industrial and retail sectors.