New Zealand (NZX) Real Estate Sector Analysis
UpdatedOct 30, 2023
DataAggregated Company Financials
Companies12
- 7D-2.9%
- 3M-13.6%
- 1Y-8.7%
- YTD-6.5%
Over the last 7 days, the Real Estate industry has dropped 2.9%, driven by declines in Goodman Property Trust and Precinct Properties NZ & Precinct Properties Investments of 4.8% and 6.9%, respectively. However, the industry is down 8.7% over the past year. Looking forward, earnings are forecast to grow by 61% 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 |
|---|---|---|---|---|---|---|
| Mon, 30 Oct 2023 | NZ$11.4b | NZ$1.5b | -NZ$1,043,221,000.00 | 13.4x | -10.9x | 7.5x |
| Wed, 27 Sep 2023 | NZ$12.0b | NZ$1.5b | -NZ$1,043,221,000.00 | 13.6x | -11.5x | 7.8x |
| Fri, 25 Aug 2023 | NZ$12.7b | NZ$1.5b | -NZ$1,009,201,000.00 | 11.3x | -12.6x | 8.3x |
| Sun, 23 Jul 2023 | NZ$12.8b | NZ$1.5b | -NZ$514,260,000.00 | 12.1x | -24.9x | 8.3x |
| Tue, 20 Jun 2023 | NZ$12.4b | NZ$1.5b | -NZ$514,260,000.00 | 11.6x | -24x | 8x |
| Thu, 18 May 2023 | NZ$12.2b | NZ$1.6b | NZ$576.8m | 13.1x | 21.2x | 7.8x |
| Sat, 15 Apr 2023 | NZ$12.4b | NZ$1.6b | NZ$576.8m | 12.8x | 21.4x | 7.9x |
| Mon, 13 Mar 2023 | NZ$12.2b | NZ$1.6b | NZ$576.8m | 12.2x | 21.1x | 7.7x |
| Wed, 08 Feb 2023 | NZ$12.7b | NZ$1.5b | NZ$1.0b | 10.3x | 12.2x | 8.4x |
| Fri, 06 Jan 2023 | NZ$12.1b | NZ$1.5b | NZ$1.0b | 10.2x | 11.6x | 8x |
| Sun, 04 Dec 2022 | NZ$12.4b | NZ$1.5b | NZ$1.0b | 10.4x | 12x | 8.2x |
| Tue, 01 Nov 2022 | NZ$12.6b | NZ$1.5b | NZ$2.2b | 6.3x | 5.8x | 8.3x |
| Thu, 29 Sep 2022 | NZ$12.6b | NZ$1.5b | NZ$2.2b | 6.1x | 5.8x | 8.3x |
| Sat, 27 Aug 2022 | NZ$13.8b | NZ$1.5b | NZ$2.1b | 6.7x | 6.4x | 9x |
| Mon, 25 Jul 2022 | NZ$13.6b | NZ$1.5b | NZ$2.4b | 6.3x | 5.6x | 9.1x |
| Wed, 22 Jun 2022 | NZ$13.1b | NZ$1.5b | NZ$2.4b | 6x | 5.4x | 8.7x |
| Fri, 20 May 2022 | NZ$13.7b | NZ$1.5b | NZ$2.8b | 5.4x | 4.9x | 9.1x |
| Sun, 17 Apr 2022 | NZ$14.9b | NZ$1.5b | NZ$2.8b | 5.6x | 5.3x | 10x |
| Tue, 15 Mar 2022 | NZ$14.9b | NZ$1.5b | NZ$2.8b | 5.5x | 5.3x | 10x |
| Thu, 10 Feb 2022 | NZ$15.6b | NZ$1.4b | NZ$2.7b | 6.3x | 5.7x | 11.4x |
| Sat, 08 Jan 2022 | NZ$16.1b | NZ$1.3b | NZ$2.7b | 5.9x | 6x | 12.8x |
| Mon, 06 Dec 2021 | NZ$14.1b | NZ$1.3b | NZ$2.7b | 5.8x | 5.2x | 11.2x |
| Wed, 03 Nov 2021 | NZ$14.4b | NZ$1.2b | NZ$2.2b | n/a | 6.5x | 11.9x |
| Fri, 01 Oct 2021 | NZ$14.4b | NZ$1.2b | NZ$2.2b | 5.8x | 6.5x | 11.9x |
| Sun, 29 Aug 2021 | NZ$14.8b | NZ$1.2b | NZ$2.2b | 6x | 6.6x | 12.2x |
| Mon, 05 Jul 2021 | NZ$13.8b | NZ$1.2b | NZ$2.2b | 5.6x | 6.2x | 11.4x |
| Thu, 08 Apr 2021 | NZ$13.4b | NZ$1.2b | NZ$1.9b | 7.7x | 7x | 11.3x |
| Sun, 10 Jan 2021 | NZ$14.1b | NZ$1.1b | NZ$1.2b | 14.3x | 11.7x | 12.4x |
Price to Earnings Ratio
20x
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 10.0x is higher than the industry's current PS ratio of 7.5x.
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 12% 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 | -2.02% | |
| Real Estate | -2.91% | |
| Specialized REITs | 1.23% | |
| Residential REITs | 0% | |
| Hotel and Resort REITs | 0% | |
| Real Estate | -0.64% | |
| Health Care REITs | -2.19% | |
| Retail REITs | -2.43% | |
| REITS | -3.06% | |
| Industrial REITs | -3.09% | |
| Office REITs | -4.76% | |
Industry PE
- Investors are most optimistic about the Real Estate industry, which is trading close to its 3-year average PE ratio of 11.0x.
- Analysts are expecting annual earnings decline of 4.1%, which is lower than the prior year's growth of 22.0% per year.
Forecasted Growth
- Analysts are most optimistic on the Office REITs industry, expecting annual earnings growth of 96% over the next 5 years.
- In contrast, the Real Estate industry is expected to see its earnings decline by 4.1% per year 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 | |
|---|---|---|---|---|---|
| SPG Stride Property Group | NZ$1.30 | 0.8% +NZ$5.5m | -18.8% | PB0.7x | |
| WIN Winton Land | NZ$2.31 | 0.4% +NZ$3.0m | 2.2% | PE10.6x | |
| NZL New Zealand Rural Land | NZ$0.82 | 1.2% +NZ$1.4m | -22.6% | PB0.5x |