KPG - Kiwi Property Group Limited

[LaserEyeKiwi]

$100-150 million of spending of “non-return” spending recently (earthquake strengthening in Chch & Wlg) had negative impact on returns over last few years.

nice to hear them spell it out loud in an obvious way that they hadn’t previously.

[Grimy]

Bond set at 2.85% minimum.
So. 2.85% most probably

[Habits]

Bond set at 2.85% minimum.
So. 2.85% most probably

Those for whom yield is impt should buy the shares and benefit from the falling bond rate. Others who want capital return will buy the bond regardless

[LaserEyeKiwi]

Interesting situation that the longer it takes to sell Northlands and plaza, the better the short term financial performance (because they are high yielding assets)

[LaserEyeKiwi]

Like I suspected the green bond is going to lead to a drop in interest costs

[Beagle]

"

Now is only one point in time but investing in KPG shares over the last few years has been a disaster compared to investing in their bonds Winner69"

Perhaps more to the point investing in KPG over the last five years (and my biggest concern is this has happened when capitalization rates have fallen dramatically which is normally consistent with strongly rising share prices and NTA) has been a complete unmitigated disaster compared to any other form of property investment as the following comparative detail illustrates.

Share price 5 years ago - share price now, percentage change
ARG 114, 169 up 48%
GMT 132, 244 up 85%
VHP 214, 331 up 55%
PCT 125, 170 up 36%
PFI 160, 293 up 83%
KPG 153, 119 down 23%

Not a recent phenomenon either. As previously posted the share price of KPG was $1.18 on 31 March 1994, more than 27 years ago !

People invest for many reasons but a common theme with property investment is people generally invest hoping to get yield and capital gains. I don't think KPG's business model works other than for those investing just for yield.

[winner69]

"
.

Share price 5 years ago - share price now, percentage change
ARG 114, 169 up 48%
GMT 132, 244 up 85%
VHP 214, 331 up 55%
PCT 125, 170 up 36%
PFI 160, 293 up 83%
KPG 153, 119 down 23%

.

Those numbers put KPG in bad light eh

There's a very strong correlation between NZ 10 year bond rate and Listed Property stocks - as interest rates fall share prices move uo

NPF is the Smartshares Property Fund ETF -- 5 years ago when 10 Bond rate was around 3% pa NPF was trading around $1.10

Now 10 year rates are about 1.5%/1.6% and NPF is $1.55

So NPF up 40% odd while interest rates have fallen. The 40% probably would have been higher if KPG had performed

So why is KPG so far out of wack with its peers?

Suppose every sector needs a dog and KPG sure is the dog of property stocks

[winner69]

ASM meeting Monday

Sure to be an upbeat affair with happy investors - last 12 months 20% plus returns and prospects of even more in the next months

And when progress on the new strategy is outlined that'll get the faithful salivating (especially when they put up some pictures of Drury)


I see it's online ..... weather forecast not too good so might tune in to see how it goes .....somebody might even ask where the cash for the missing dividend went

[LaserEyeKiwi]

ASM meeting Monday

Sure to be an upbeat affair with happy investors - last 12 months 20% plus returns and prospects of even more in the next months

And when progress on the new strategy is outlined that'll get the faithful salivating (especially when they put up some pictures of Drury)


I see it's online ..... weather forecast not too good so might tune in to see how it goes .....somebody might even ask where the cash for the missing dividend went

Haven’t we satisfactory answered the “missing cash” query already? It’s fairly basic explanation that it was used for general operations instead of using funds from debt.

[winner69]

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