Property

Is the party over for REITs?

Brent Melville
Tue, 10 May 2022

Kiwi Property Group's Sylvia Park. (Image: Supplied)

Brent Melville
Tue, 10 May 2022

A 10-year run for New Zealand's listed property sector looks to be running out of steam, with the current earnings cycle set to flatline as interest rates hike up.Investment house Forsyth Barr (Forbar) suggested the sharp upward move in rates is likely to weigh on debt costs and asset values from 2023, meaning this may be the "last of the easy years for the sector".Also, with current forecasts picking a 50 basis point lift in the average cost of debt for the next financial year, Forbar analysts are forecasting a flat performance f...

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