KPG - Kiwi Property Group Limited

[Baa_Baa]

KPG’s Build-to-rent complex at Sylvia Park (Residio) featured in a one news item on the 6 o’clock news tonight.

https://www.1news.co.nz/2024/05/04/b...th-law-change/

A good watch, bodes well for the future, can't build em fast enough to meet demand!

[percy]

A good watch, bodes well for the future, can't build em fast enough to meet demand!

Reminds me of what people were saying a few years about retirement villages.?

[Baa_Baa]

Reminds me of what people were saying a few years about retirement villages.?

A few years ago, was before the arse fell out of the property market. We're moving on now, finally, with inflation falling, unemployment rising, OCR stalled and on the verge of declining, listed property sector investments imo present the best forward opportunity and I'm loading up while the prices are good. KPG is one of my fav's.

Yeah, plenty of other substantial companies/funds piling into the BTR market as well. Good that KPG is a first mover in BTR and will satisfy early demand. Drury is truely inspiring, particularly the wrap around commercial, retail and community spaces.

Very happy to be invested in KPG and accumulating at a massive discount to NTA, while also enjoying quarterly gross dividends at 8.5%. Also encouraging in this dire property market that KPG early April recording a 0.1% or $3.6 million increase in the fair value of its property portfolio, which was expected to be worth $3.2 billion at the end of the period.

[percy]

"Yeah, plenty of other substantial companies/funds piling into the BTR market as well."


Next up a build to rent retirement villas.?

[winner69]

This is encouraging news, this is the 2nd executive position they have eliminated recently - I think it shows they are serious on cost control.

https://www.nzx.com/announcements/430356

“Kiwi Property today advised that Ian Passau, GM Development, will be leaving the company following a restructuring of its development function.

Kiwi Property Chief Executive Officer, Clive Mackenzie, said: “Ian has made a huge contribution to Kiwi Property over the past seven and a half years, leading major initiatives such as the Sylvia Park galleria expansion, the construction of our Resido build-to-rent scheme and the successful upzoning and commencement of development at our Drury landholding.“

“Unfortunately, given our focus on cost reduction and with no new development projects commencing in the short term, we’ve been forced to make some tough decisions. I want to thank Ian for everything he has done for the business and we wish him all the best for the future."

Ian will remain at Kiwi Property until mid-August 2024.”

Hope Ian got a very generous redundancy payment ….probably was on a decent salary and 7 years service

[kiwikeith]

Hope Ian got a very generous redundancy payment ….probably was on a decent salary and 7 years service

I am sure he was on a decent salary. I hope he did not get a generous redundancy payment. Anyone who works corporate development should be well aware that it is not a function that is guaranteed to last forever. As a shareholder I will be happy when Kiwi reverts back to being more of a property investor rather than property developer.

I do wonder if any Aucklanders on this site have been along to have a look at KPG's Resido BTR properties. Any feel for the supply/demand dynamic?

[Baa_Baa]

[snip] As a shareholder I will be happy when Kiwi reverts back to being more of a property investor rather than property developer.

I do wonder if any Aucklanders on this site have been along to have a look at KPG's Resido BTR properties. Any feel for the supply/demand dynamic?

They're getting there, imo it's more about a rebalance rather than B&W property investor vs property developer. I trust that they will continue with their strategy to develop the properties disclosed, and that returns margins to investors, but also investment in the long term rental returns. Either way, KPG have a substantial portfolio and continue to reward investors with 8.5% gross dividend returns, while also reshaping their strategy and portfolio. Impressive imo.

You don't have to be an Aucklander to have had a look at the new BTR properties, they are classy accomodation and as KPG said just this week, demand is strong. Just a matter of completing them and filling the property with happy renters.

[SPC]

A yeild of 8.5% calculated on a heavily depressed share price of 82c that is...(6.8c p/share). Not complaining.