PFI

[troyvdh]

Am I missing something ? (some may call it ramping-don't care)

PFI come out with
-Doubling its net profit
-EPS up by 126 % to 21.09 cps
-NTA up to 96.5 cps
-occupancy 99.9 %
-debt at 27.5 %

and the share price goes down ?
have been in this MKT for 20 + yrs and this leaves me beat....

[Lawso]

PFI today went ex the 2c quarterly dividend. The dividend is up slightly and I think the coy is in good shape.

[Phaedrus]

Over the last 10 years, PFI has gone up by an average of 2.3% per year. This stock has never been a bolter and nothings changed. Just thank your lucky stars that you haven't been holding PFI for your 20+ years in the market!

[troyvdh]

Firstly, Phaedrus I have enormous respect for your postings (you would have to be a Labour voter not to ) however please consider the following
- most of my dosh is in SMM,MET,NOG,CEN,PFI $300000 +

-Im in my late 40's and I've come to the realisation that if one actually maintains any capital invested your actually doing alright.You only need to scan the returns fron Funds blah blah and those por suckers with Money managers et al to see that a positive return is OK.PFI (given that some of the most expensive realestate in the world is near Heathrow.....) is I think OK.

[Lawso]

There's nothing wrong with a 2.3% p.a. average capital gain, on top of a div yield of, say, 7.5% to 8.5% (depending on when you bought). I'm v happy to have PFI as one small and reliable holding - approx 5% of the total portfolio. Much the same with KIP and MGP (which is turning out to be the most interesting of the three).

Troy: the relevance of your reference to Heathrow escapes me.

[troyvdh]

Lawso.

Sorry, What I was attempting to convey is the proximity to an air field being an advantage....(I could be wrong).Given that I would rather stick pins in my eyes ( than to live in A) I can appreciate that given the growth propects for that place the prospects for considerable price appreciation are considerable.

[Mick Jagger]

PFI's result was as expected, and very close to analyst forecasts, hence no share price reaction...

PFI is the most reliable and prudently managed property stock in NZ... and also the only one that has shown consistent dividend growth every year since being formed. No other NZ property stock has been able to achieve that.

Agree with comment re MGP being interesting, article in herald this morning.

[Tyke]

I have held this since it floated, perticipated in the DRP and bought on the market from time to time. True, it did not perform well in the first few years of existence returning only 7.2% pa (dividends and capital) in the first five years, the sp going as low as 62c in 1998. However in the last five years my return has been 16% pa. Over the whole period it has been 10.5% pa which to me is satisfactory on a low risk type investment.


quote:Originally posted by Phaedrus

Over the last 10 years, PFI has gone up by an average of 2.3% per year. This stock has never been a bolter and nothings changed. Just thank your lucky stars that you haven't been holding PFI for your 20+ years in the market!

[Lawso]

To endorse the comments above I'll outline my experience with PFI. I started by buying 10,000 at around 78c in early 1999.and a year later went into the DRiP scheme. With subsequent purchases and and shares allotted, I now hold 36,867 shares worth $38,710. My cash outlay since '99 totals $23,629. I'm not complaining. And I'm looking forward to accelerating growth as the m p inches up and compounding takes effect. Not exciting but v acceptable.

Phaedrus: What do you think my stake will be worth after holding for 20 years?[8D]

[nelehdine]

Shares are really performing well at the moment, in stark contrast to most other property stocks ( KIP dn after AMP paid 20c more for CNZ stake than they did, sometimes the market just doesn't make sense !! ). PFI is well run, low key, and a useful component of any balanced portfolio.

Disc: Hold PFI, KIP

Attn Lawso: ... just added some more CAV's at 412 mate, keep smiling !!

[Lawso]

Good on yer, neleh. Thinking of doing the same at these prices, even though I'm already overweight - in CAV I mean ;)

PS. Just watched an item on 60 Minutes, TV3, about fly strike in Australia and how some mad vegans aim to wreck the Aussie wool industry because of allegedly cruel treatment of sheep. If CAV's prolonged R & D on a fly strike
remedy comes good, then watch the price go thru the roof!

[Dazza]

clearly looking at the chart... CAV is sick... super sick... its clearly in a downward trend, way below the EMA 200 line, OBV is slowly treddin down... aint touching that for awhile... better fishes out there to catch, throw this one back and let it grow for a bit :D

[nelehdine]

I see the DRIP price was released this morning ... 98.4c, very nice bonus, especially with the shares well bid at 108c !!

[nelehdine]

I agree Dazza that CAV has traded horribly the last few months, but at 412 the dividend yield is almost 7% , I can live with that even if the shares fall a little further, CAV will be around for many more years, and when the next residential building boom comes around in a few years and the shares are trading at $7,$8, $9 I won't care about the fact that I bought a few cents too early back in '05

[Lawso]

This thread seems to have evolved into a CAV discussion. Oh well . . .

Today's NZ Herald reports retail sales for three months ended Jan 31, showing furniture & floor covering sales up 18.2% compared to 12 months earlier, second only to appliances with 19.1%. This would suggest CAV domestic sales are at least holding their own - no sign of the dreaded slowdown - at least not yet. CAV's half-year result was solid and the two int divs have been steady. The full year report will be interesting. I'm picking a flat result, which will be OK considering the stellar performance of recent years - and the great div yield at the current price.

Back to PFI: The coy has advised the NZX that under the DRiP scheme chairman P Masfen and his missus have been allotted a mere 63,331 shares, taking their total to 3,521,801. Poor dears.

Holders like neleh and me will just have to get buy on our pittance but I agree that the 98.4c allotment price is a nice bonus.

Sorry for the ramble.

[Lawso]

I couldn't make it to the agm this morning so would be interested to hear comments from anyone who was there. I see the s p shot up 4c today, an unusually big jump for this stock.

I've just reread my and others' comments above and have to say that my PFI love affair is cooling off. It's not the big yield stock that it used to be; in fact of eight comparable listed property entities PFI with 7.68% has the second worst gross div yield, better only than CNZ. MGP offers nearly 12%, URB better than 12% and a couple of others are over 9%. Surprisingly, some of the top blue chips - TEL, FPA, SKC and STU for example - now do better than this.

I've raved in the past about the DRP scheme but last month the chairman advised that the discount on shares issued under the scheme was being cut from 5% to 2.5%. In my observation, a 5% discount is pretty standard. Masfen & Co are being pretty stingey in this regard.

PS. "stingey" - now there's a word I haven't heard or used in many moons.

[troyvdh]

Fair comments,the closing sp is an all time high.Re the div..as mentioned previously the payouts have always increased..consistently...as the dark clouds gather is when we will see who continues to be consistent....there has never been (?) a special divvy etc..who knows...maybe soon..I hope that Gareth dosen't fall of his bike or get trampled by a runaway camel.

[Mick Jagger]

actually the average yield in the property sector is about 8.2% and PFI is just below that at 8.0%... fair when it is very low risk with an unbeatable track record... MGP is only 8.3%, URB is about 8.6%, not sure where you are getting your info...

[Lawso]

NZ Herald. Probably wrong again. I see PFI actually closed at 110, up 5c.
Fair comments, Mick. I'm just saying that PFI directors are being a bit lousy and it's not the great yield stock it used to be - 9.1% in 2000 according to the annual report. After all the company is basically a landlord and shouldn't need to hoard cash like a more aggressive developer, e.g. KIPTrust.

[Lawso]

I'm still wondering about the reason for yesterday's uncharacteristic 5c rise. There doesn't seem to have been an announcement to NZX and of course there's no report of yesterday's meeting in this morning's paper. I emailed nzx last night for a copy of the chairman's address and have received in reply pages and pages of b/s about Prime Infrastructure [V] which I'm not in the least interested in.

[Mick Jagger]

think of the prop stocks as bonds... they trade just that way... the fact that its got a low yield is nothing to do with how well they opertate their business... the market sees PFI as such a low risk that peiople are willing to pay that amount for the stock...