New Zealand (NZX) Real Estate Sector Analysis
UpdatedJul 26, 2024
DataAggregated Company Financials
Companies12
- 7D1.5%
- 3M-2.1%
- 1Y-10.5%
- YTD-7.0%
The Real Estate industry is up 2.4% in the last week, with Precinct Properties NZ & Precinct Properties Investments up 4.1%. However, the industry is down 9.9% over the past year. Looking forward, earnings are forecast to grow by 56% annually.
Sector Valuation and Performance
Has the New Zealand Real Estate Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 26 Jul 2024 | NZ$12.0b | NZ$1.6b | -NZ$1,149,480,000.00 | 14.5x | -10.4x | 7.6x |
| Sun, 23 Jun 2024 | NZ$11.6b | NZ$1.6b | -NZ$1,149,480,000.00 | 14.8x | -10.1x | 7.4x |
| Tue, 21 May 2024 | NZ$12.0b | NZ$1.5b | -NZ$1,162,174,000.00 | 14.9x | -10.3x | 7.8x |
| Thu, 18 Apr 2024 | NZ$12.4b | NZ$1.5b | -NZ$1,289,591,000.00 | 16.6x | -9.6x | 8.1x |
| Sat, 16 Mar 2024 | NZ$12.3b | NZ$1.5b | -NZ$1,289,591,000.00 | 16.6x | -9.5x | 8x |
| Mon, 12 Feb 2024 | NZ$12.4b | NZ$1.5b | -NZ$1,253,498,000.00 | 14.3x | -9.9x | 8.1x |
| Wed, 10 Jan 2024 | NZ$12.5b | NZ$1.5b | -NZ$1,253,498,000.00 | 15.2x | -10x | 8.2x |
| Fri, 08 Dec 2023 | NZ$11.9b | NZ$1.5b | -NZ$1,253,498,000.00 | 14.2x | -9.5x | 7.8x |
| Sun, 05 Nov 2023 | NZ$11.6b | NZ$1.5b | -NZ$1,043,221,000.00 | 14x | -11.1x | 7.5x |
| Tue, 03 Oct 2023 | NZ$11.9b | NZ$1.5b | -NZ$1,043,221,000.00 | 13.7x | -11.4x | 7.8x |
| Thu, 31 Aug 2023 | NZ$12.4b | NZ$1.5b | -NZ$1,043,221,000.00 | 13.1x | -11.9x | 8.1x |
| Sat, 29 Jul 2023 | NZ$13.1b | NZ$1.5b | -NZ$514,260,000.00 | 12.1x | -25.4x | 8.5x |
| Mon, 26 Jun 2023 | NZ$12.4b | NZ$1.5b | -NZ$514,260,000.00 | 11.8x | -24.2x | 8.1x |
| Wed, 24 May 2023 | NZ$12.3b | NZ$1.6b | NZ$34.7m | 13.1x | 353.7x | 7.7x |
| Fri, 21 Apr 2023 | NZ$12.4b | NZ$1.6b | NZ$576.8m | 12.9x | 21.5x | 7.9x |
| Sun, 19 Mar 2023 | NZ$2.4b | NZ$482.0m | NZ$183.0m | 9.3x | 13.1x | 5x |
| Tue, 14 Feb 2023 | NZ$12.6b | NZ$1.5b | NZ$1.0b | 10.4x | 12.1x | 8.3x |
| Thu, 12 Jan 2023 | NZ$12.2b | NZ$1.5b | NZ$1.0b | 10.2x | 11.7x | 8.1x |
| Sat, 10 Dec 2022 | NZ$12.5b | NZ$1.5b | NZ$1.0b | 10.4x | 12x | 8.2x |
| Mon, 07 Nov 2022 | NZ$12.6b | NZ$1.5b | NZ$2.2b | 6.1x | 5.8x | 8.3x |
| Wed, 05 Oct 2022 | NZ$12.9b | NZ$1.5b | NZ$2.2b | 6.3x | 6x | 8.5x |
| Fri, 02 Sep 2022 | NZ$13.8b | NZ$1.5b | NZ$2.2b | 6.7x | 6.4x | 9x |
| Sun, 31 Jul 2022 | NZ$13.9b | NZ$1.5b | NZ$2.4b | 6.2x | 5.7x | 9.3x |
| Tue, 28 Jun 2022 | NZ$13.3b | NZ$1.5b | NZ$2.4b | 6.2x | 5.5x | 8.9x |
| Thu, 26 May 2022 | NZ$13.6b | NZ$1.5b | NZ$2.5b | 5.8x | 5.5x | 9.1x |
| Sat, 23 Apr 2022 | NZ$14.9b | NZ$1.5b | NZ$2.8b | 5.6x | 5.3x | 10x |
| Mon, 21 Mar 2022 | NZ$15.2b | NZ$1.5b | NZ$2.8b | 5.6x | 5.4x | 10.2x |
| Wed, 16 Feb 2022 | NZ$15.4b | NZ$1.4b | NZ$2.7b | n/a | 5.6x | 11.3x |
| Fri, 14 Jan 2022 | NZ$16.0b | NZ$1.3b | NZ$2.7b | 16x | 5.9x | 12.7x |
| Sun, 12 Dec 2021 | NZ$14.6b | NZ$1.3b | NZ$2.7b | 6x | 5.4x | 11.6x |
| Tue, 09 Nov 2021 | NZ$14.2b | NZ$1.2b | NZ$2.2b | n/a | 6.3x | 11.7x |
| Thu, 07 Oct 2021 | NZ$14.5b | NZ$1.2b | NZ$2.2b | 5.8x | 6.5x | 12x |
| Sat, 04 Sep 2021 | NZ$14.8b | NZ$1.2b | NZ$2.2b | 5.9x | 6.6x | 12.3x |
| Mon, 02 Aug 2021 | NZ$14.2b | NZ$1.2b | NZ$2.2b | 5.7x | 6.4x | 11.8x |
Price to Earnings Ratio
6.4x
Current Industry PE
- Investors are pessimistic on the New Zealander Real Estate industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The 3-year average PS ratio of 9.0x is higher than the industry's current PS ratio of 7.6x.
Past Earnings Growth
- Total earnings for the Real Estate industry have declined over the last three years, with the industry now making a loss overall.
- Meanwhile revenues have grown 9.4% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the New Zealand Real Estate sector?
| NZ Market | 0.32% | |
| Real Estate | 1.54% | |
| Office REITs | 4.15% | |
| REITS | 3.07% | |
| Retail REITs | 1.95% | |
| Real Estate | 1.46% | |
| Specialized REITs | 1.11% | |
| Health Care REITs | 1.05% | |
| Residential REITs | 0% | |
| Hotel and Resort REITs | 0% | |
| Industrial REITs | -0.20% | |
Industry PE
- Investors are most optimistic about the Real Estate industry, which is trading close to its 3-year average PE ratio of 13.9x.
- Analysts are expecting annual earnings growth of 14.6%, which is higher than its past year's earnings decline of 47.6% per year.
Forecasted Growth
- Analysts are most optimistic on the Office REITs industry, expecting annual earnings growth of 95% over the next 5 years.
- In contrast, the Specialized REITs industry is expected to see its earnings growth to stay flat over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| KPG Kiwi Property Group | NZ$0.89 | 3.5% +NZ$47.9m | -6.3% | PB0.8x | |
| PFI Property For Industry | NZ$2.25 | 4.2% +NZ$45.2m | -7.8% | PB0.8x | |
| IPL Investore Property | NZ$1.18 | 8.3% +NZ$33.6m | -19.7% | PB0.8x | |
| SPG Stride Property Group | NZ$1.27 | 2.4% +NZ$16.8m | -15.9% | PB0.7x | |
| CDI CDL Investments New Zealand | NZ$0.76 | 4.1% +NZ$8.8m | -1.3% | PE16.5x |