New Zealand REITs "NZ REITs 2Q26 Update" Campbell

Research evidence excerpt

New Zealand REITs "NZ REITs 2Q26 Update" Campbell

Global Research

17 July 2026ab

New Zealand REITs Equities

New ZealandNZ REITs 2Q26 Update

Real Estate

Phil Campbell

NZ REITs within our coverage underperformed the NZX50 by -1% during 2Q26 Analyst

The NZ REITs we cover returned +5% during the June quarter, compared to +6% for the phil.campbell@ubs.com

NZX50 in the same period. The slight sector underperformance is likely driven by +64-9-913 4872

concerns over tighter monetary policy with OCR increased by 25bpts in July and Bianca Murphy

consensus expecting a further OCR increase 50bpts to ~3.00% by end of the year. Our Analyst

FY27 DPS estimates have remained largely unchanged on average. bianca.murphy@ubs.com

+64-9-913 4864

JLL data points to improving Prime Auckland Office CBD rents Thomas Maclean

The latest JLL data continues to highlight a flight-to-quality trend in Auckland, with Associate Analyst

prime office net rents increasing +0.8% QoQ, driven by gross rent growth (+1.3%) and thomas.maclean@ubs.com

+64-9-913 2000

partially offset by higher OPEX (+2.6% QoQ). The Auckland Industrial segment saw a

similar trend with rents rising ~1% QoQ across prime and secondary partially offset by

mixed OPEX growth (+7.7% in prime and flat in secondary). The retail sub-sector saw

cap rate expansion of ~30bpt across prime CBD and suburban reflecting valuation

softening. Wellington conditions remain more challenging, particularly in office, where

OPEX increased across both prime (+2.4%) and secondary (+3.1%) but was not offset

by rental growth; prime rents remained flat while secondary declined -2.2% QoQ,

resulting in continued pressure on net rents (-1.9% QoQ in prime and -9.0% in

secondary) and extending a ~2 year downtrend.

Three results and a PWC Tower JV update from PCT