Here are the key changes to know about in the New Zealand equity market; Genesis Energy, Sky Network, EBOS, and the NZX have the biggest gains with Fletcher Building, Mercury Energy, F&P Healthcare, and Kathmandu leading the decliners

Here are the key things you need to know about in the NZX markets over the past 24 hours. Changes are as at 3:00 pm and may change when the market closes at 4:45 pm.

WHAT THE NZX50 INDEX IS DOING
The NZX50 fell -0.4% today but remains up +0.7% over the past five days. The index has gained +8.7% over the last six months, maintaining a solid +13.9% increase year-on-year.

THE MAIN GAINERS
The NZX50 has 41 gainers today. Genesis Energy (GNE, #18) led, rising +2.4% today and +1.4% over the past five days, although the company has seen a -6.2% decline over the last six months. Sky Television Network (SKT, #47) gained +1.6% but remains down -1.2% for the week and -6.2% for the month. EBOS Group (EBO, #7) increased +1.5%, rebounding slightly from a -0.9% decline over the past week. NZX Limited (NZX, #41) added +1.4%, contributing to a +2.8% monthly gain and a strong +38.3% year-on-year performance.

THE MAIN DECLINERS
On the downside, Fletcher Building (FBU, #14) led the decliners, falling -2.9% today, marking a -4.4% loss over the week and a significant -30% decline year-on-year. Mercury Energy (MCY, #5) dropped -1.9%, despite a +2.4% gain over the past week, and is down -2.7% for the month. Fisher and Paykel Healthcare (FPH, #1) decreased -1.5%, though it remains up +69% year-on-year. Kathmandu Brands (KMD, #50) fell -1.2% today, adding to a -15.3% decline for the month and a substantial -47% loss year-on-year.

SMARTSHARES EFTs
 

KEY ANNOUNCEMENTS
Fletcher Building (FBU, #14) announced the resignation of Chief Information Officer (CIO) Joe Locandro. Since joining in 2022, Locandro has significantly advanced the company’s IT infrastructure and digital initiatives. Group CEO Andrew Reding praised his contributions, noting the modernisation efforts that have set the foundation for long-term success. Locandro will be returning to Australia. Michael Butler, currently General Manager of Enterprise and Digital Services and part of Fletcher Building since 2021, has been appointed as the new CIO. He will report to Group CFO Will Wright, aligning with the company’s succession strategy.

Argosy Property (ARG, #32) has released its financial results for the six months ending 30 September 2024, demonstrating stability in a tough economic environment. Key highlights include:

• Net Property Income: Flat at $58.4 million compared to the prior period.
• Revaluation Gain: An $8.7 million increase (0.4% on book value) contrasted with a $50.8 million loss in the same period last year.
• Net Profit After Tax: $33.0 million, including the revaluation gain, compared to a net loss of $(19.3) million in the prior period.
• Net Distributable Income: $27.5 million, down 6.9%, impacted by $1.4 million in additional tax expenses from recent changes to building depreciation deductions.
• Portfolio Metrics: Occupancy at 95.8%, Weighted Average Lease Term (WALT) at 5.0 years, and NTA per share increasing to $1.46.
  
  Sustainability and Awards: Argosy continues to progress towards its goal of a 50% green portfolio by 2031 (currently at 36.7%). The company won the Supreme Award at the Property Council of New Zealand Awards for its 6 Green Star Built property at 8-14 Willis Street.
  
  Strategic Developments: Key projects include:
• Neilson Street: A green industrial estate expected to be completed in phases by 2025, featuring significant solar energy capabilities.
• Mt Richmond: A 10.6-hectare site undergoing master planning.
• New Acquisition: Purchase of a 4.6-hectare site at 291 East Tamaki Road for $61 million, set to be redeveloped.

Banking and Capital Management: Argosy extended its syndicated bank facilities, with debt maturity dates ranging from 2027 to 2029. The company’s weighted average debt tenor is now 3.2 years, with a 5.5% average interest rate.
Dividend: A second-quarter dividend of 1.6625 cents per share has been declared, with imputation credits attached. The total interim dividend for the first half is 3.325 cents per share, with a supplementary dividend for overseas investors. Chairman Jeff Morrison and CEO Peter Mence highlighted the company’s strong operational metrics and ongoing commitment to sustainability, noting Argosy’s focus on green developments and strategic growth in Auckland’s industrial sector.

Vital Healthcare Property Trust (VHP, #24) announced plans to consult on a proposal to restructure into a Dual Listed Trust (DLT), with separate listings on the NZX and ASX. The aim is to create earnings accretion, attract a broader investor base, and enhance governance, making Vital a more appealing investment vehicle.
Key Proposal Highlights:

• Structure: Vital’s New Zealand and Australian assets would be split into separate entities—Vital NZ (listed on the NZX) and Vital AU (listed on the ASX). Existing unit holders would receive units in both trusts, maintaining economic exposure to all assets through equalisation arrangements.
• Investor Benefits: The DLT structure is designed to boost unit price, liquidity, and distribution potential. It also aims to secure inclusion in both the S&P/NZX50 and S&P/ASX 300 indices, broadening demand for Vital’s units.
• Governance: The new structure would retain a majority independent Board and align with ASX equity listing rules while preserving current governance benefits.
  
  Consultation Process: The Manager, led by Independent Chair Graham Stuart, will engage with unit holders, institutional investors, and retail representatives throughout 2024, with a vote anticipated in April 2025. Approval will require a 75% majority.

Arvida Group (ARV) has announced the resignation of its existing directors, effective immediately, following the successful implementation of the scheme of arrangement with Stonepeak Alps BidCo Limited. As the sole shareholder, Stonepeak has appointed a new Board of Directors for Arvida, comprising:

• William (Bill) McDonald: Independent Director
• Darren Keogh: Senior Managing Director, Stonepeak
• Yuexin (Peter) Han: Principal, Stonepeak

Elaine Campbell, Executive General Manager of Access at Chorus (CNU, #12), has announced her resignation to assume the position of Chief Legal, Governance, and External Relations Officer at SkyCity Entertainment Group. Since joining Chorus in 2018, Ms. Campbell has served in several key executive roles, including General Counsel and Chief Corporate Officer. Chorus CEO Mark Aue acknowledged her significant contributions during periods of substantial change and extended best wishes for her future endeavors. Ms. Campbell will remain with Chorus until early 2025, with the search for her successor commencing shortly.

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