KPG - Kiwi Property Group Limited

[winner69]

"
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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

[Beagle]

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

That's the $64,000 question. You have to seriously wonder about the caliber of management and whether retail is a very poor sector to invest in ? Perhaps the truth is we are oversupplied with retail already ?

With KPG I think its very easy to get dazzled with the quality of their Sylvia park property, (I know...I fell into that trap myself), with its excellent and very close proximity to on and off ramps in both directors on the Sothern motorway but there's far more to KPG than Sylvia Park !

The reality is some of their regional malls have fallen like a lead balloon in recent years and (not really discussed much before on here), discussed on the call was that subsequent to balance date some further valuation write-down's occurred with these problematic assets. Despite this it appears thus far no deal has been consummated on horribly performing (ghost malls ?) that management are so keen to dismiss.

They dress the sale of these up as a "change of direction and focus" but I hope some shareholders take them to task over why these regional malls have been such an abhorrent failure.

[winner69]

What were the drivers that pushed the KPG share price up to 170 in 2019

About 40% less now ….must be a story behind that as well.

But it’s been 170 before so cheap as now as it starts it rise up 170 again.

Jeez …that was a great race from JUSTASKPERCY ….great place divie but would have loved them win at 15’s as well …never mind KPG next start a certainty

[LaserEyeKiwi]

That's the $64,000 question. You have to seriously wonder about the caliber of management and whether retail is a very poor sector to invest in ? Perhaps the truth is we are oversupplied with retail already ?

With KPG I think its very easy to get dazzled with the quality of their Sylvia park property, (I know...I fell into that trap myself), with its excellent and very close proximity to on and off ramps in both directors on the Sothern motorway but there's far more to KPG than Sylvia Park !

The reality is some of their regional malls have fallen like a lead balloon in recent years and (not really discussed much before on here), discussed on the call was that subsequent to balance date some further valuation write-down's occurred with these problematic assets. Despite this it appears thus far no deal has been consummated on horribly performing (ghost malls ?) that management are so keen to dismiss.

They dress the sale of these up as a "change of direction and focus" but I hope some shareholders take them to task over why these regional malls have been such an abhorrent failure.

They aren’t ghost malls - both the plaza (Palmerston North) and northlands (Christchurch) that are “to be disposed of” are near 100% occupancy and the most popular malls in their respective areas, so the write down in valuations is not due to custom, but I suspect more a combination if increased earthquake risk (and associated strengthening costs), increased insurance costs, anticipated “pandemic risk” leading to the general re-rating if retail you theorized about maybe.

[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]

Xxxxxxxxxxxxxxxx

[LaserEyeKiwi]

Just logged into virtual meeting for the AGM - interesting to see you can ask questions via online meeting.

[LaserEyeKiwi]

KPG management clearly wanting to scream “We are getting out of earthquake vulnerable geographies as soon as possible” but don’t want to scare away buyers for Plaza and northlands.

[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.