KPG - Kiwi Property Group Limited

[Rawz]

KPG sometimes has caution linked to it due to their relatively large retail mall holdings. But it's not as if they are holding the dying malls such as MeadowBank, Eastridge, Royal Oak, Pakuranga etc. Their malls are the best- Sylvia Park, LynnMall, The Base etc All with consistently high occupancy and quality international tenants.

[King1212]

Exactly....

[LaserEyeKiwi]

The trailing divided yield is artificially suppressed at the moment as it includes the period where the dividend was skipped during the CV peak. Some investors might not realise this and won't jump in until the trailing dividend yield once again includes the normal half year & full year distributions (so in 6 months time). It only takes a little bit of research (reading the annual report) to realise what the forward 12 months dividend yield likely is, but unfortunately a lot of retail investors do not do even that.

[Beagle]

I think they're pretty sound value here but I am content with all my portfolio allocations going into the holiday season. Its time to kick back and relax for a well earned holiday.

[Waltzing]

A well earned rest for MR B, one of New Zealands most prolific investor commentators.

[Beagle]

Thanks mate. What a year its been !

[King1212]

Follow master Beagle..u all can make big bucks....

[tim23]

Dividend payment next week...will top up once the money received....

Why not join the DRP instead?

[King1212]

They did not offer on this dividend

[tim23]

They did not offer on this dividend

Thanks I hadn't realised that.

[King1212]

That is why sp is pressed till dividend payout n fundies can load up

[dibble]

That is why sp is pressed till dividend payout n fundies can load up

Perhaps you're right, but is that really how investors operate, scrape by until a dividend arrives then immediately pump it back into same stock at the prevailing price? Would have thought it more canny to base one's purchase on the market relationship to one's target price rather than dividend timing.

[King1212]

That is the way the hedge funds work. They need to pay wages too..

[Justin]

South Auckland's Mill Rd highway: Hundreds of homes, businesses in path of $1.4b project
https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=12408992

good news for kpg‘s drury project

[King1212]

Got the dividend...will load up again!

[bull....]

South Auckland's Mill Rd highway: Hundreds of homes, businesses in path of $1.4b project
https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=12408992

good news for kpg‘s drury project

https://www.kiwiproperty.com/corporate/drury/ link to kpg website be a big development 51 hectares

nice div today too

[clown]

Anyone have a subscription for this :D

https://www.nzherald.co.nz/business/leading-questions-what-kiwi-property-group-chief-executive-clive-mackenzie-expects-of-2021/OBWTZD7E6FGIAKPR5ZNAMH54RI/

[JoeM]

Anyone have a subscription for this :D

https://www.nzherald.co.nz/business/leading-questions-what-kiwi-property-group-chief-executive-clive-mackenzie-expects-of-2021/OBWTZD7E6FGIAKPR5ZNAMH54RI/

2020 year of covid, 2021 year of action sums it up

[King1212]

nzherald.co.nz
Website of the Year
BUSINESS
Leading questions: What Kiwi Property Group chief executive Clive Mackenzie expects of 2021
24 Dec, 2020 12:00 PM
4 minutes to read

Kiwi Property chief executive Clive Mackenzie. Photo / Dean Purcell

Anne Gibson
By: Anne Gibson
Property editor, NZ Herald

anne.gibson@nzherald.co.nz
@anneherald
Clive Mackenzie, Kiwi Property Group chief executive, is bracing himself for more disruption in 2021. This Covid year brought massive change for the business and now he's predicting more.

How would you describe 2020 for your business?

It has had plenty of ups and downs, but I'm proud of the way we've supported our tenants and kept moving forward despite the challenges caused by Covid-19. We've achieved some great milestones, including the opening of the new 20,000sq m level one expansion at Sylvia Park, which has performed extremely well since opening. It has taught us a lot about the importance of adaptability and resilience, lessons that we're looking forward to taking into 2021, which is shaping up to be a big one for Kiwi Property.

Read More
Three steps Kiwi Property Group plans next: capitalising on half of Aucklanders renting - NZ He...
Sylvia Park owner Kiwi Property Group pushes up first-half profit 47 per cent - NZ Herald
Kiwi Property to resume dividends as shoppers hit the mall - NZ Herald
What are two key things the Government should do for economic recovery?

It goes without saying, but the sooner we can make a safe vaccine widely available the better, not just from a health perspective, but an economic one as well. Until the population is immunised, business won't get truly back to normal or the borders be fully re-opened. The return of international tourists and students is vital to New Zealand's economic recovery. While we've seen some sectors holding up better than expected, others are under enormous pressure and will remain so until overseas visitors can return.

How is your business planning to tackle 2021?

We have an exciting programme lined up for 2021, as we continue to push ahead with our plans to create mixed-use communities at Sylvia Park, LynnMall, The Base and ultimately Drury. Covid-19 forced us to put a hold on some of the projects we had in store for 2020, but with more certainty in the market and a vaccine on the horizon, we're keen to push ahead. 2020 was the year of Covid and we want 2021 to be a year of action.

What will be the major challenges and/or opportunities for your industry?

ADVERTISEMENT

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There will invariably be challenges ahead, but I'm an optimist by nature and focused on the opportunities 2021 will bring. With more than half of all Aucklanders now renting and the cost of homes continuing to rise, I see huge potential for build-to-rent apartments to help alleviate some of the country's housing crisis. We're hoping to get our first development under way this year and look forward to playing our role in delivering high-quality accommodation for Auckland renters.

What was the most interesting non-Covid story of 2020?

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[clown]

Thanks King and JoeM

[King1212]

Been to Te rapa..holly God...so busy

[clown]

Been to Te rapa..holly God...so busy

Went early to Sylvia park this morning to get ahead, no chance, super busy!

[King1212]

Yup...stopped today on the way back for lunch......wow....$1.20..it is better than any other stocks n banks

[clown]

Yup...stopped today on the way back for lunch......wow....$1.20..it is better than any other stocks n banks

Yep, topped up during last weeks dip. Looking forward to the next announcement...

[King1212]

Lucky u! I missed it...it was being pushed down so fundies can top...

[Waltzing]

1.20 is still cheap.

If a stock drops in price manipulation then two or more parties must have communicated. It possible that money is starting to move about in rebalancing due to international movements or even a local rebalancing.

[NZSilver]

1.15 vs 1.20, in the scheme of things that's nothing if this bricks and mortar retail armageddon everyone is talking about isn't as significant. I believe this is a good contrarian trade.

[King1212]

Here the evidence

Kiwi shoppers are packing out malls and soaking up the annual Boxing Day sales as most of the world grapples with Covid-19-induced restrictions.

At Auckland's Sylvia Park, shoppers were lining up even before the first shops opened at 7am.

Bargain hunters were also seen lining the street outside Dress Smart in Onehunga before its 9am opening.

At Sylvia Park it was humming by 8am when all the stores were open. By midday, centre manager Helen Ronald said it was "probably busier even than last year".

[King1212]

I think fundies are running from electric companies to value stocks.

What a crazy world....

[Waltzing]

still some seem to not believe in this stock. retail sales up and by this time next year the world will look a different place.

[LaserEyeKiwi]

still some seem to not believe in this stock. retail sales up and by this time next year the world will look a different place.

It will eventually get there - Drury development and the build-to-rent options on the table will be good growth drivers. Sale of the Palmerston North mall (currently on the market) will also provide a nice boost to finances (although I wouldn't mind if they didn't sell it - it's a big population growth area)

[HCR20]

still some seem to not believe in this stock. retail sales up and by this time next year the world will look a different place.

One of Milford biggest holdings.

[Waltzing]

we Increased our holdings today in a portfolio. Its been an investment at various times since well before 2008.

[NZSilver]

Will do well, bricks and mortar will still be important going forwards especially kpg with best in class assets. Agree they should keep the plaza in Palmerston, it has a monopoly in palmy. I also still really like ARG at it's current prices for a fairly diversified option.

[Habits]

It will eventually get there - Drury development and the build-to-rent options on the table will be good growth drivers. Sale of the Palmerston North mall (currently on the market) will also provide a nice boost to finances (although I wouldn't mind if they didn't sell it - it's a big population growth area)

I love this stock ... big 50 hectare holding of future commercial/residential development land in Drury for town centre etc. Bought for nicks no doubt. Smaller sites in carbine rd directly around sylvia park as well as their planned build to rents. I would buy more of these but my mother always taught me to 'share'

[Waltzing]

stock up today. pleased we bought some more yesterday.

[Rawz]

Ticking up nicely. Looking forward to the next asset revaluation. The retail holdings should be in for a good bump- they need to make up for the beating they got from the valuers during COVID.

Can't believe you can still buy this stock under NTA.

[Habits]

stock up today. pleased we bought some more yesterday.
Still very cheap from a historical angle ... lower than pre covid but in fact things have advanced since: 1.. retail up post covid both online and physical stores. If online takes off i think youll find brands of any decent mass still need a physical presence to be credible 2.. the company has completed and fully leased the new precinct at sylvia park with top international brands. The big drain financially and on mgmt time is over and producing large net income.

[Waltzing]

Yes performance of SL Park over the next 2 years will be of great interest.

[Waltzing]

orders filling in on this stock like in earlier time frames when it was a heavily support stock.

starting to see those bigger buy order numbers building here.

depth on both sides forming similar pattern to it previous patterns after the GFC.

[LaserEyeKiwi]

FYI: https://www.stuff.co.nz/the-press/news/124061569/christchurch-retail-spending-bounces-back-after-tough-year

"The suburbs with the biggest increase in December spending were Papanui, Lyttelton and Spreydon."

FYI: KPG's Northlands mall is located in Papanui.

[Rawz]

GENERAL: KPG: Kiwi Property reports December sales growth

Kiwi Property today reported the December 2020 sales for its retail
portfolio, including a 4.2% increase on the prior year [Note 1]. Specialty
store sales grew 9.3%, while major retailers recorded a 6.5% year-on-year
uplift.

Sales at Sylvia Park, New Zealand's favourite shopping centre, were up 12.0%
in December, compared to the same time the year before. The newly opened
Level 1 expansion contributed to sales increases at both specialty stores
(+20.7%) and major retailers (+20.1%).

Kiwi Property also provided a sales update for the December quarter. During
the last three months of 2020, sales across the company's shopping centres
increased 6.1% on the prior comparable period, with specialty stores and
major retailers up 9.5% and 8.0% respectively.

Linda Trainer, Kiwi Property GM Asset Management, said: "sales have remained
strong at our retail portfolio since the COVID-19 lockdown last year,
including standout Black Friday and December shopping periods.

"While the pandemic has had a significant impact on New Zealand's retail
sector, it's great to see shoppers supporting their favourite brands and we
look forward to that trend continuing in 2021."

---------------------------

Nice update from KPG. As many have said on this thread, some fear malls but those that do forget that KPG only own premium malls with quality (and happy as per above sales numbers) tenants.

On a side note- happy I hold large % of my portfolio in HLG and MHJ. So many signals that retail is booming.

[LaserEyeKiwi]

excellent news!

[HCR20]

Looks like they've sold the PN site. No indication of price.

https://www.stuff.co.nz/business/300219125/investment-company-buys-palmerston-north-shopping-centre

[Grimy]

Downtown is not owned by KPG.......

[HCR20]

My bad apologies.

[Rawz]

KPG pushed through the $1.30 mark this morning. Excellent momentum last couple of months. Feels like it is heading back to pre covid $1.60 level.

[fungus pudding]

KPG pushed through the $1.30 mark this morning. Excellent momentum last couple of months. Feels like it is heading back to pre covid $1.60 level.

All the LPTs might well see a jump as we approach the new tax year with top bracket increasing to 39% on April 1st. PIEs make a lot of sense for many investors.

[Beagle]

All the LPTs might well see a jump as we approach the new tax year with top bracket increasing to 39% on April 1st. PIEs make a lot of sense for many investors.

Good point. Showing my age here but I remember when the top tax rate was 66%, (albeit there was no GST back then).
I think people get pretty grumpy when the Govt gets more of their money than they do, (effective tax rate over 50% which is what we have with the 39% top tax rate plus 15% GST) and people are more inclined to restructure their financial affairs accordingly, such as the legitimate use of PIE's.

Regarding KPG - Good trading update the other day, good employment numbers today and good news on the vaccine front with rollout starting in March and more widespread rollout from July. Might add a few to my modest stake.

[Waltzing]

accumulating for future dividend and defensives.

wait till they roll out the idea of wealth taxes.

Paintings, wine, whatch, gold pens, family silver, land, boats, anything they can think of.

They are short of builders, now they are going to be short of accountants.

[King1212]

Fundies were reducing their holding last couple weeks....that why sp was pressed down. Sp will slowly going up now.

Great update n retailers are performing well.

[Baa_Baa]

Fundies were reducing their holding last couple weeks....that why sp was pressed down. Sp will slowly going up now.

Great update n retailers are performing well.

I don't have evidence of funds selling, volumes are not extraordinary, except maybe being above the post covid falling average. Can you show us what the funds have been doing?

KPG Chart looks good (https://invst.ly/tq1iy), pretty undemanding indicators currently easing, steady medium term up trends, nicely above usual MA's, currently taking a breather from double test of the .61% Fib retrace from the pre-Covid high-close $1.69. I expect with the favourable economic tailwinds, the SP will progress up into the historical SP trading band between $1.30-$1.45 (ish) where it could fluctuate for some time. A rapid push through that seems unlikely at this stage though it would be nice to see pre-Covid highs in due course, with dividends along the way.

Disc: have a few, 6% of portfolio.

[King1212]

Yesterday disclosure yeah au...

[Baa_Baa]

Yesterday disclosure yeah au... Oh yeah saw that, the ANZ funds. The release is virtually incomprehensible, but seems their funds have quit a few million and still hold a truckload.

[King1212]

Vgl....once the fundies reduced...the sp bounced back....

[LaserEyeKiwi]

Sale time! Limited time offer! grab them (cheap shares) while they last!

[Waltzing]

Steady on Cowboy... or you might be right ...:eek2:

[LaserEyeKiwi]

Flash Sale finished.

Congrats to anyone who picked up some good deals on the silly CV temporary selloff.

[Waltzing]

4 week range has a low of only 1.22

range today was nothing much....

the sale is still on... if you have a 12 month view although the 10 year is pushing up.

This stock should rally a lot more from here if dividends return even if the 10 year continues to go up.

Unless rents are down there should be a pick up slowly over the next 24 months to 36 months.

[Baa_Baa]

4 week range has a low of only 1.22

range today was nothing much....

the sale is still on... if you have a 12 month view although the 10 year is pushing up.

This stock should rally a lot more from here if dividends return even if the 10 year continues to go up.

Unless rents are down there should be a pick up slowly over the next 24 months to 36 months.

This is not traders stock, surely anyone buying would have a long term view.

Happy to have a few for the long haul

[Waltzing]

not traders stock for sure. Seems to be a bit under valued still surely.

[Rawz]

Can't seem to get out of the $1.20-$1.30 trading range.
Won't be long until its in a $1.30-$1.40 range with the current interest rate environment. This will be a solid dividend payer over the next decade.

[LaserEyeKiwi]

Back in November the company was forecasting full year ending March 31st dividend would be based on AFFO of 4.95-5.15 cps (which they will pay out ~95% as dividend, or around ~2.7cps on top of the 2.2cps already paid out at half year result). That includes Covid impact on result.

I would expect the dividend for 2021, and especially 2022, will likely be higher as forthcoming vaccinations make lockdowns much less likely. Will also be interesting to see what they do with the proceeds if/when they sell the Palmy shopping centre.

[Waltzing]

Should pay down a bit debt if they sell it.

now its not that good a performer.

slow growth here plenty of time please dont rush in ......:p

DISC: (down ramp post, slow down please...buy in 3 months time).

[Waltzing]

well 1.23 again today... what is it with this stock... could HLG on line sales be dumping on the retail malls?

the longer people are stuck inside the longer they want to go out even to malls as winter approaches those south south aucklanders have only one place to go...they will be sick of on line only shopping soon surely..2023 cruises already starting to book out... cabin fever world wide will be setting in....

did MR B not buy any more?

[Beagle]

well 1.23 again today... what is it with this stock... could HLG on line sales be dumping on the retail malls?

the longer people are stuck inside the longer they want to go out even to malls as winter approaches those south south aucklanders have only one place to go...they will be sick of on line only shopping soon surely..2023 cruises already starting to book out... cabin fever world wide will be setting in....

did MR B not buy any more?

Hi mate, we're seeing the 10 year Govt stocks moving a fair bit north in the US here and in some other countries. I think that's undermining a bit of confidence in REIT's and utilities.
I haven't bought any more at this stage but its on my radar. To be honest concerns expressed at posts #116 and #120 still linger in my mind. Not a big position for me and unlikely to be anything more than a fairly modest one going forward for the reasons expressed in those earlier posts.

[Habits]

Hi mate, we're seeing the 10 year Govt stocks moving a fair bit north in the US here and in some other countries. I think that's undermining a bit of confidence in REIT's and utilities.
I haven't bought any more at this stage but its on my radar. To be honest concerns expressed at posts #116 and #120 still linger in my mind. Not a big position for me and unlikely to be anything more than a fairly modest one going forward for the reasons expressed in those earlier posts.

Trading 20 percent below pre-covid levels. Looks like an absolute bargain, funding is in place at low rates. Foot traffic in malls is up for pcp. Is the low price due to KPG being perceived as 100 percent retail property being out of favour .... buy counter cyclic

[Waltzing]

"10 year Govt stocks " still only 1.29. If the US unloaded 1.9 T then perhaps rate could move again.

yes we saw talk of that yesterday and its faster than expected.

surely with it DIV down and yet to recover its still well undervalued and a short term movement down.

A buying opportunity surely.

"absolute bargain"

yes one would have though so!...

In fact we are thinking its a big buying OP... BIG BUYING OP!

We are thinking of doing what we did for ARG and roll some other investments that are still a bit under water into KPG rather than moving it back off shore.

I can only think that the HLG on line buying is effecting it as see commercial property as real value.

Govt bonds of indebted country's are not on our radar and these government are no longer stable.

But in the end there is nothing like going into a real shop. Body shop and clothes shops have people in them with personality.

These amazing sales people are the best adds for these companies and some of these young sales people are a real assets to those companies.

with demand increasing for housing land; established commercial property in the heart of crowed cities is only going to get more expensive not cheaper, 10 year or no 10 year.

[LaserEyeKiwi]

About 12-13 weeks until Full year results are released, so might bounce around a bit until then. I actually think that will be a good time for a results announcement, as New Zealand's vaccination effort will be ramped up by then and management will have a clearer view that lockdowns will be increasingly unlikely and so can provide a clearer forward guidance picture and dividend program.

[Rawz]

I dont see HLG online sales hurting KPG malls. Yes, retail is transitioning more to online but they will still need to have 'flagship' stores in key retail sites. And KPG have the key retail sites. They have the best malls with international tenants. Just the place HLG want to be.

[Waltzing]

"KPG have the key retail sites. They have the best malls with international tenants."

exactly and therefore the price is just silly and cheap? 10 year or no 10 year..

[Waltzing]

back to 1.20's ... got to be the biggest property stock bargin on the market... almost worth backing up a truck and betting the farm...surely..10 year even at 2% the value of these sites is just not reflected in this price..

10 year is at 1.3%

[Habits]

back to 1.20's ... got to be the biggest property stock bargin on the market... almost worth backing up a truck and betting the farm...surely..10 year even at 2% the value of these sites is just not reflected in this price..

10 year is at 1.3%

SP is headed to trendline price 118 next week before next charge up to 145. I will bet the farm on that

[Baa_Baa]

SP is headed to trendline price 118 next week before next charge up to 145. I will bet the farm on that

Probably right, but my trailer load is in the bottom drawer and deleted from the daily watch list. Along with my other long holds. It’ll do just fine while the property market is so supportive.

[Waltzing]

"Probably right, but my trailer load is in the bottom drawer "

already! some will have loaded up last april and have gone from these sites laughing all the way to the bank..

still a very very good buy at 1.18 and if it goes lower on silly days because the T10 goes higher.

If that 1,9T is passed wonder what that will do to the bond market...

" I will bet the farm on that"

well was going to comment same but thought it was going a bit far..

Betting the whole farm? diary prices are forecast to be up and that farm complete with debt has just brought some relief to the reserve bank.

[Beagle]

Probably not what you want to read but here goes mate...

I don't like the fact that despite reasonable gearing and a reasonable result for FY20 they canned the final dividend based on the fact that a big write-down happened in the value of their assets.

To me this beggars belief for an income stock as income is income and an unrealized write-down in assets does not affect income nor should it cause a dividend to be completly stopped.

Did they pay an extra dividend in the last year in which a big capital gain was made on their properties ? No of course not, that would be paying out unrealized profit but they are happy to take dividends away from investors when there's a write down even though its an unrealized write-down, go figure ? There's something morally wrong going on here.

So what are they going to do about it for the interim dividend ? Will they make this loss of income up for investors if there is a valuation recovery ? No of course not again. They have said they intend to pay out 90-100% of profit for the interim FY21 result. All good so far you might argue but wait there is more...

From their announcement on 22/06/20
"The interim dividend for the financial year ending 31 March 2021 would be payable in December 2020 and is subject to the absence of material adverse effects (such as disruptions to business activity) or other unforeseen circumstances, including further COVID-19 related lockdowns or significant decreases in asset values or income".

There's something fundamentally wrong with directors that don't understand that investors in an income stock expect that income to be paid out at a certain percentage of income, say 85-90% regardless of unrealized capital movements one way or the other in the capital value of the properties but at the same time they're happy to deprive investors of income they're happy to contemporaneously go on to expend vast resources substantially expanding their mall size in the middle of a serious economic crisis. Hmmm

Investors need to decide for themselves if the directors are really looking after the best interests of investors or themselves ? I am not impressed.

I note ARG seem to have a completely different approach to maintaining dividends and are on a much better yield and are better diversified by property type.


I'm struggling to reconcile this cautious outlook here https://www.nzx.com/announcements/351283 in April, cancellation of the dividend and deferral of non essential capex and other measures with their current almost gung-ho build it and they will come approach http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/KPG/359590/330530.pdf

Sure it would be fair to say they had already committed to the Galleria expansion before Covid hit but its not a good look and on the face of it their expansion and the previous statement of caution is incongruent.

Okay to spend $277 million but can't afford to pay the final dividend ?
Stop the dividend when there's unrealized write down in assets but no extra in previous years when there was massive increases in unrealized gains ?
Major expansion at Sylvia park, so they think the risk from Covid has now passed ?
Future dividend(s) contingent on no major further write-downs or Covid effects... For me that's a deal breaker because it tells me they have no contrition for canceling the last dividend or sympathy for investors need for income.

To me the directors seem to have forgotten why people invest in REIT's...for reliable dividends. Very poor execution of their primary goal to be a reliable investment for shareholders in my opinion. No wonder its at a discount to NTA and very probably deserves to be. If there's another outbreak of Covid in N.Z. or should that read "when there's another outbreak of Covid" malls are the first place people stop going too.

I see plenty of risk here and well below average governance standards and execution of their purpose for existence.

.

Repost of Sep 2020 posts. I am not going to bet the farm or anything like it and the above is why. I'm still a bit grumpy about the above so I will stick with just a very modest allocation to this one.

Pretty sure I read the 10 year Govt stock yield hit 1.5% today.

[Waltzing]

Much discussion on inflation returning but Yellen seems to think major damage without the 1.9T.

we sold KIP some time ago but we think with all the new developments they will be forced to pay something soon if profits return.

july 2019 10 year was over 3 and stock price was 40 cents above.

If they continue down the no payment path we think they will come under pressure.

but certainly someone needs to ask some questions at the next AGM.

NTA alone values this stock well above current price surely even if dividend was suspended.

When no inflation or little comes in 6 to 12 months and the FED does nothing to rates as they want to train to run hot for longer they wont be lifting rates..

Those other commercial property stock they may well get a second wind later in the year.

Definitely some good 1 year options here and time for them to make good on the dividend. It could be a hated share price rally at some point. There may also be an element of arrogance has crept into the management team knowing they have the golden site in south auckland.

Land in south auckland will be a premium going forward and hard to find for either housing or commercial property.


:t_up:

[Scrunch]

I think we will have a dividend coming soon, but I'd like KPG to limit dividends to the size that can be fully imputed. Beyond this level you are starting to destroy shareholder value as 28% of the dividend paid goes to the taxman. Rather than do this money could be returned to shareholders by spend the same amount buying back some existing shares so EPS goes up (particularly when trading below NTA) and shareholders wishing to sell have a buyer.

If shareholders want more cash back, just open a sharesies account, transfer in some KPG shares and do regular little sells to get the cash they want. Now they are only losing at most 0.5% in brokerage, not the 28% of the value lost through non imputed dividends.

An exception being when your sector is exposed to beneficial tax rules meaning you as a company pay basically no company tax. Paying an unimputed dividend in this instance may be sensible because it helps decrease the risk of unfavourable tax changes being made. I'm thinking here of the property companies looking after elderly citizens.

[Scrunch]

...Duplicate

[Habits]

"even if dividend was suspended....time for them to make good on the dividend"

Did they re-start dividends after the sept HY with promise of higher after FY. Would like to see a catchup special div too

[Southern Lad]

I think we will have a dividend coming soon, but I'd like KPG to limit dividends to the size that can be fully imputed. Beyond this level you are starting to destroy shareholder value as 28% of the dividend paid goes to the taxman.

As KPG is a listed PIE, any part of a dividend paid that can’t be imputed is exempt income in shareholders hands, so absolutely no downside in paying dividends that can’t be fully imputed. With the reintroduction of tax depreciation on buildings, the level of imputation credits available should fall, but the benefit can be directly passed onto shareholders where you have a listed PIE.

The other advantage with a listed PIE is that shareholders can choose whether they include fully imputed dividends in their tax returns - where their total taxable income is below $48,000 there is a benefit in doing so because the 28% imputation credits exceeds the final tax rate on the income and they can benefit from the excess credit.

[Southern Lad]

Double up - deleted

[Waltzing]

PIE investments are the way to go as entities can be pass through and be distributed into beneficiaries.

we could see a down side to 1.10 or lower for a while if markets panic on the 10 year but they will recover once the adjustment passes as it always does.

Dividend across the economy im sure we all know will slowly return over the next 5 years and share prices should continue to rise in a bull market.

[Habits]

"bull market"
NZ experience out of lockdown of rising property values is now being felt in Australia and elsewhere. I've been surprised by 6 month lag of aust resi property to low interest rates but fast happening now. Wealth effect spreading.

[fungus pudding]

As KPG is a listed PIE, any part of a dividend paid that can’t be imputed is exempt income in shareholders hands, so absolutely no downside in paying dividends that can’t be fully imputed. With the reintroduction of tax depreciation on buildings, the level of imputation credits available should fall, but the benefit can be directly passed onto shareholders where you have a listed PIE.

The other advantage with a listed PIE is that shareholders can choose whether they include fully imputed dividends in their tax returns - where their total taxable income is below $48,000 there is a benefit in doing so because the 28% imputation credits exceeds the final tax rate on the income and they can benefit from the excess credit.

And an even bigger advantage where taxable income exceeds $180,000 (after 1st April) when top rate will move to 39%. A huge difference from PIE tax of 28%
ARG, GMT, KPG, PCT, PFI and SPG are all LPTs - PIES. No doubt there are others.

[Scrunch]

As KPG is a listed PIE, any part of a dividend paid that can’t be imputed is exempt income in shareholders hands, so absolutely no downside in paying dividends that can’t be fully imputed. With the reintroduction of tax depreciation on buildings, the level of imputation credits available should fall, but the benefit can be directly passed onto shareholders where you have a listed PIE.

The other advantage with a listed PIE is that shareholders can choose whether they include fully imputed dividends in their tax returns - where their total taxable income is below $48,000 there is a benefit in doing so because the 28% imputation credits exceeds the final tax rate on the income and they can benefit from the excess credit.

I bought during the Covid dip so I haven't had any non-full imputed dividend from them yet (Dec was fully imputed). My understanding of PIE's was that the correct tax is deducted so that you don't need to pay any further tax. That's what's happened on PIE interest income I've received so I'm assuming its the same for dividend income. What is received is free of any further tax. If you are a 28% PIE and there is full 28% imputation credits, no further tax would need to be paid. The full value would be received (10,000 shares and a 3.5c dividend would be a $350 payment).

If a 3.5c dividend was paid with no imputation credits, a shareholder with a 28% PIE would only receive $252, it would be excluded income so the shareholder can exclude the income from their tax return and avoid a further 5% (or soon 11%) tax on the income as its moved to 33% or 39%. It is not however untaxed, the taxation just happens before being received. The lack of imputation credits in this example has caused $98 to go to the taxman. The $252 received as a PIE is however better than a normal company dividend with no imputation credits which would be $234.5 (or $213.50 if hit by the new 39% tax rate).

The Nov 2019 dividend of 3.5c had 2.03c with full imputation credits and 1.47c was "excluded income". My guess is therefore that 0.41c of tax (28% if 1.47c) was deducted from the excluded income before being received. The cash received was 3.09c/share and it was tax paid income ($309 for the shareholder with 10,000 shares). If it was actually 3.5c - bonus!!

[LaserEyeKiwi]

Repost of Sep 2020 posts. I am not going to bet the farm or anything like it and the above is why. I'm still a bit grumpy about the above so I will stick with just a very modest allocation to this one.

Pretty sure I read the 10 year Govt stock yield hit 1.5% today.

I think the stated reason for the dividend pause after the large negative asset revaluation was to reduce the chances of breaching their stated gearing ratio for debt to assets. A higher ratio may have impacted negatively on credit rating and associated future interest rates on debt.

At the time I suppose it was a reasonable risk of further large lockdowns and the threat of significantly less profits of retailers going under and vacating shops etc so it was a very cautious move on their part.

Once/if they sell the Palmerston North mall (which is currently on the market) they will be a bit more flush with cash, but who knows whether this means higher dividend or quicker development of the Drury project and/or the build-to-rent apartment complexes (which will be a nice area of diversification.)

[777]

I bought during the Covid dip so I haven't had a dividend from them yet, but my understanding of PIE's was that the correct tax is deducted so that you don't need to pay any further tax. That's what's happened on PIE interest income I've received so I'm assuming its the same for dividend income. What is received is free of any further tax. If you are a 28% PIE and there is full 28% imputation credits, no further tax would need to be paid. The full value would be received (10,000 shares and a 3.5c dividend would be a $350 payment).

If a 3.5c dividend was paid with no imputation credits, a shareholder with a 28% PIE would only receive $252, it would be excluded income so the shareholder can exclude the income from their tax return and avoid a further 5% (or soon 11%) tax on the income as its moved to 33% or 39%. It is not however untaxed, the taxation just happens before being received. The lack of imputation credits in this example has caused $98 to go to the taxman. The $252 received as a PIE is however better than a normal company dividend with no imputation credits which would be $234.5 (or $213.50 if hit by the new 39% tax rate).

The Nov 2019 dividend of 3.5c had 2.03c with full imputation credits and 1.47c was "excluded income". My guess is therefore that 0.41c of tax (28% if 1.47c) was deducted from the excluded income before being received. The cash received was 3.09c/share and it was tax paid income ($309 for the shareholder with 10,000 shares). If it was actually 3.5c - bonus!!

You do not need to include PIE income, no matter where it comes from, on your tax return. You can however declare any part that is imputed and and/or had RWT deducted if your marginal rate is below 28c so you can get a refund on the extra tax paid. This is written on the PIE payment statement.


As explained by Southern Lad in post 331.

[turbo]

KPG paid an interim dividend on Dec 18, 2020

[777]

Scrunch did you not receive the KPG div in early December?

[Scrunch]

Scrunch did you not receive the KPG div in early December?

Getting forgetful. Yes and a nice fully imputed dividend of 2.2c it was too.

[Bjauck]

You do not need to include PIE income, no matter where it comes from, on your tax return. You can however declare any part that is imputed and and/or had RWT deducted if your marginal rate is below 28c so you can get a refund on the extra tax paid. This is written on the PIE payment statement.


As explained by Southern Lad in post 331. You do need to include PIE income and PIE tax in your return if you have had too low a PIR applied (you need to check the income and PIE income levels for several years to find out the appropriate PIR rates.) If you have had PIE tax deducted at too high a rate you do not get a refund as far as I am aware. Definitely DYOR.

[Southern Lad]

Bjauck, that’s the position for multi rate PIE’s such as KiwiSaver funds. The rules for listed PIE’s are different because shareholders don’t use a prescribed investor rate (PIR). With listed PIE’s it’s a case of distributions being imputed at 28% to extent the entity has imputation credits available. This is the same for all shareholders. Distributions that aren’t imputed aren’t taxable to shareholders.

[777]

You do need to include PIE income and PIE tax in your return if you have had too low a PIR applied (you need to check the income and PIE income levels for several years to find out the appropriate PIR rates.) If you have had PIE tax deducted at too high a rate you do not get a refund as far as I am aware. Definitely DYOR.

The assumption was that you had selected the correct PIR but as Southern Lad states no PIR nominated for PIE companies.

[Bjauck]

The assumption was that you had selected the correct PIR but as Southern Lad states no PIR nominated for PIE companies. Fair enough. I was confused by your wording relating to PIE income from all sources and your reference to RWT.

[777]

Fair enough. I was confused by your wording relating to PIE income from all sources and your reference to RWT.

Sorry for the confusion.

[Waltzing]

a study of the ten year in relation to commercial property stock prices doesnt actually seem to be 1:1 at all over a 5 year period. And even over 12 months has no relationship we can find.

Im not the math guy on the team just the overview person. But our math tech guy in zoom on friday doesnt see it either.

[winner69]

a study of the ten year in relation to commercial property stock prices doesnt actually seem to be 1:1 at all over a 5 year period. And even over 12 months has no relationship we can find.

Im not the math guy on the team just the overview person. But our math tech guy in zoom on friday doesnt see it either.

5 year relationship still looking good even though gone a bit wonky last 12 months but then most things have gone wonky lately eh

[value_investor]

I'd say at this moment, this is the best value on the nzx I can find.

Solid dividend play I think, not sure why the market hasn't picked up on the guidance on the dividend but I'm confident that they can pay that this year. I suspect a valuation back up in a massive way in March, the valuations happened in the past year in the peak of the covid angst as we went into Level 4 lockdown, and then again in August when the September valuation happened.

I think a fair value closer to $1.50 is more appropriate for this one. Perhaps they just need to show proof of it through a uplift in valuations and payment of the dividends they have guided for. I'd like to see a plan on the Drury site because this one could be a wildcard to unlock future growth.

Disc: Bought in again at $1.21 on Friday, adding to my position built last year.

[Waltzing]

certainly a lot of interesting and wide ranging views on this stock.

I just had note overnight from our maths man and he says he thinks the market has it wrong to related government US bond rates to AUS/NZ listed public commercial property stocks that arnt tourism and food related..

industrial commercial is his favourite european market portfolio and sees the same for NZ servicing it agri sector industrial hubs such as auckland supplying the upper north island.

[Waltzing]

"gone wonky lately eh"

classic quote by W(n)!

[Waltzing]

"Solid dividend play "

Mr B has outlined his views on that matter in his posted. I think one might says a nuanced view of the managements teams decisions.

[Baa_Baa]

Winner could well be right, I couldn’t find the NZ 10 year bond on my charts so used the Aus as a proxy and Lo and behold the SP of both KPG and ARG are quite closely correlated since 2013 … until covid, then it went wonky. But it does look like it’s trying to realign. Maybe

[Waltzing]

the ten year we whatch is the US ten year.

from our maths guy no alignment between down under commercial and US 10 year that he can find,

thinks is just the panic reaction of investors going to cash in these stocks.

[Baa_Baa]

the ten year we whatch is the US ten year.

from our maths guy no alignment between down under commercial and US 10 year that he can find,

thinks is just the panic reaction of investors going to cash in these stocks.

Maybe the US treasury has little to do with the domestic treasury, if you’re looking for correlation to local share prices. Just saying

[Waltzing]

i will bring the NZ 10 year up next zoom later in the week. Will try to find some good data on the NZ treasury. Perhaps commercial property stock are just hit as collateral damage. We first held KIP in private trusts before the GFC.

NZ performance looks like it can sustain a high debt to GDP which should give investors world wide more confidence in the country for private and public investment.

These stocks should be like the housing market boiling hot.

Americas cup photo op should have them lining up to invest and the government needs to get a move on bringing in the overseas money.

Labour has been slow to understand you cant close the country to progress.

[winner69]

Winner could well be right, I couldn’t find the NZ 10 year bond on my charts so used the Aus as a proxy and Lo and behold the SP of both KPG and ARG are quite closely correlated since 2013 … until covid, then it went wonky. But it does look like it’s trying to realign. Maybe

Baabaa - I used that Smartshares thing NPF for commercial property stock performance

Strong correlation with 10 yr govt stock until covid hit -- then interest rates didn't matter as commercial property was going to collapse. As pointed out share prices getting back to levels in line where the correlation says it should be.

[Waltzing]

https://tradingeconomics.com/new-zealand/government-bond-yield

over a 10 year period i cant see the relationship being anything but im not our maths man...

[winner69]

Must mean something

Smart shares NPF (Comm Property ETF) v 10 Year Govt stock relationship

[Waltzing]

thats only back to 2016..

was looking at 10 years... over 4 stocks.

would have looked at 20 years but global shocks get in the way.

standard deviations looks good there but the wider picture showed me nothing...

the maths people might see something the opposite as in that jpg.

what software did you use to plot the data.

[winner69]

thats only back to 2016..

was looking at 10 years... over 4 stocks.

would have looked at 20 years but global shocks get in the way.

standard deviations looks good there but the wider picture showed me nothing...

the maths people might see something the opposite as in that jpg.

what software did you use to plot the data.

I used that NPF as it covers most listed property companies.

Thought you were looking at relationship between comm prop and 10 year bond rates..... that seemed to suggest interest rates had a large bearing on the sector share valuations

Interested what your maths guy comes up

Same analysis for KPG over 10 years paints same picture but correlation is a bit weaker

I recently upgraded by abacus to a Texas thingie - not too sure what software is built in ...cool eh

[Waltzing]

i would ignore my suggestions because the reason they give me the reins is because they never know where im taking the tardis next.... they like the random journey...

my take was a decreasing 10 year over 10 years.

2016-2018 US 10 year move up 137 - 304 approx roughly. No downside i can see in the NZ comm props.

your standard deviation probably flattened the data for the entire sector. Meaning higher paying stocks bucked the standard deviation and other factors came into play such as the sector they serviced.. Now they are all getting tared with the same brush.

your data flatten and takes the outliners out of the picture and they are the ones that may move again after the selling stops.

yes texas instruments are the best... very cool.

we wont be able to ask him at the moment as he is tied up deep in code. When that is finished ill probably have to ex fil and take the copter out of here if that goes out for consumption in eruope.


https://www.military.com/video/operations-and-strategy/afghanistan-conflict/australian-sasr-exfil-in-tari-kowt/1873340343001

in the mean time you will have to rely on the texas superior blazing high speed computer.


.. i prefer a 80286 myself but each to there own..:scared:

just too many "threads" to be confused by ....


imagine when 32 cores is common... how many next..

i should probably bail end of summer... nice being here.. fab weather..

[Waltzing]

this stock first hit 160 back in 2007 with OCR rates heading north of 7 percent? Amazing to retrace the share price and OCR rates..and of course the 10 year at 6.7

DISC: on and off holders since 2004.

12330

[Waltzing]

some revaluations on PCT today and income reporting... KPG going to make for some very interesting reading.. order building even with short term (next 12 -24 months) pressure from the bond markets.. these stocks usually break away from the 10 year as there yield increases... 10 year acts a bit like a big gravity pull until a stock breaks free

[Habits]

Hi waltzing as you know I was picking 118 low... were 118.5 overnight. They are right now trading at 121 up 2.5 so we might have seen the bottom for now. This time last year KPG was trading at 152.5 and it is a better, stronger company now. Also lower funding costs.

[LaserEyeKiwi]

I think the stock price has been roughly tracking Community case developments over the last few days, but I could be wrong there and seeing patterns in the noise like a crazy person.

[Habits]

I think the stock price has been roughly tracking Community case developments over the last few days, but I could be wrong there and seeing patterns in the noise like a crazy person.

We kiwis are a fickle bunch:t_up:

[Waltzing]

yields comm props are supposed to sell off on 10 year yields according to markets rules.

but we have always made money off them when their yields move higher and there market valuations seem to let them break free of the 10 year.

remember while the reserve banks set the OCR that only a short term money market mover not the longer term 10 to 30 year,

if enough of you believe that VALUE here is cheap then your picks for bottoms will be your bet that 10 year yields arnt strong enough to keep pulling down the price of yield versus value.

DISC: holding and looking to hold more.

[Waltzing]

Look like there is selling coming on in the afternoon across some prop stocks today driving down the price.

fed will want to see equity yields keep up with rising bond yields.

[Waltzing]

FED might need to buy the long end of the curve and sell the short to control spikes in yields. QE might need to be brought to bear on the US T market if the FED want to keep interest rates low for full employment.

[Waltzing]

Comp Props holding under a lot of pressure from the spiking 10 years today.

[Rawz]

$1.155. unbelieve price.
NTA (based on last years reval) was $1.29.

11% gain on the table just to square up the ledger.
NTA soon to be in the low $1.30s on next valuation.

[Waltzing]

There was always going to be an adjustment until the market settles and that could take a year or 2.

When rates settle back to 1.9 and a bit above and dividends start to power away prices should move up for some comp props...

Some will slowly decline. This one should move up but its anyone guess when.

[Habits]

$1.155. unbelieve price.
NTA (based on last years reval) was $1.29.

11% gain on the table just to square up the ledger.
NTA soon to be in the low $1.30s on next valuation.

Can I get a refund of the $1.18 price ones and buy those cheaper ones instead ��

[Rawz]

Can I get a refund of the $1.18 price ones and buy those cheaper ones instead ��

$1.18 bargain mate.
SP already bounced back from $1.155. Congrats to the lucky ones that caught that.

[Waltzing]

good demand today across the COM Props .. we were waiting for 213 on GMT and nothing..

good demand on this stock today shows that even with rate on the rise demand for good retail and commercial property stocks is still holding on the NZX.

GMT would have been a good trade today.

[LaserEyeKiwi]

good demand today across the COM Props .. we were waiting for 213 on GMT and nothing..

good demand on this stock today shows that even with rate on the rise demand for good retail and commercial property stocks is still holding on the NZX.

GMT would have been a good trade today.

Retail & Office assets are currently changing value on much more immediate concerns such as Covid lockdown likelihood. We are in the homestretch of the ever shrinking possible lockdown window, with vaccinations rolling out the threat of lockdowns impacting retail and office operations will soon be a thing of the past - after which assets should return to their appropriate long term valuations.

Edit to add: Friday trade saw the late afternoon announcement of Auckland coming out of level 3, and rest of country coming out of level 2, and hence KPG bounced on that news.

[Crypto Crude]

Laser kiwi eye,
You owe the Tesla thread an explanation
...

[LaserEyeKiwi]

Laser kiwi eye,
You owe the Tesla thread an explanation
...

Don't see how - I said that stock would be extremely volatile for years to come.

[Habits]

Can I get a refund of the $1.18 price ones and buy those cheaper ones instead ��

Can I refund those $1.155 shares and buy the cheaper $1.14 discounted shares. Thank you.

[Baa_Baa]

Can I refund those $1.155 shares and buy the cheaper $1.14 discounted shares. Thank you.

No you can’t, but in case you hadn’t noticed the SP had a good look below the 200MA today and closed above it. That’s encouraging, especially if it gives a floor to the SP and bounces here.

[Rawz]

Share price now well below NTA.
It will one day revert to the mean. And one day trade well above NTA, for a period.

I'm lucky I have new capital to invest each month so will continue to top up at these levels.

[Waltzing]

Some international and Insto's will be rebalancing at this time in the reflation causing a lot of dislocation in the next 12 months.

[Baa_Baa]

Share price now well below NTA.
It will one day revert to the mean. And one day trade well above NTA, for a period.

I'm lucky I have new capital to invest each month so will continue to top up at these levels.

There’s not many company’s you can buy below NTA. Question is why this one is?

Disc have a few

[Waltzing]

its dividend might not be seen as high enough for it to pull away from the black hole of the 10 year across most markets accelerating. Once that levels out and its dividend can get away over 4% that might be enough for it to move back to 130 and above.

GMT has so far been the worst hit but it seems to be holding in the 2.12 -2.25 range. ARG is also getting hit and even PCT hasnt been able to move back up.

[Rawz]

From 2014 to 2019 the dividend increased each year like clockwork.
KPG paid a 7cent dividend in 2019.

Forget about the covid impacted year 2020.

The board should look to get back to a 7 cent dividend asap which is a 6.1% gross yield at todays prices.
You wont get anywhere near that in a term deposit anytime soon, no matter the talk of yields increasing. And KPG will come with NTA growth.

[Beagle]

There’s not many company’s you can buy below NTA. Question is why this one is?

Disc have a few

I think the elephant in the room nobody wants to talk about is the potential for us to yo-yo in and out of lockdown for some time to come. Malls would be hit hard in that scenario.

[Waltzing]

I was hoping MR B would comment on this company from his technical Financial point of view. We are looking at roll out of GMT which we trade and move into this stock as is the last to revalue in this sector.

I think the black hole 10 year is weighting on this sector and you may have noticed there is volume sales sometimes in the afternoon after 3am local time as asian markets come on line.

last 2 days a small rally in GMT after 4 am as late afternoon selling abated.

we actually have some stuff coming along that MR B may be interested in at some stage.

[Scrunch]

I think the elephant in the room nobody wants to talk about is the potential for us to yo-yo in and out of lockdown for some time to come. Malls would be hit hard in that scenario.

Experience so far says kiwis like good malls so any effects are a temporary small reduction in immediate earnings. That should be a few cents reduction in fair value not ten's of cents. If mass vac. Is mainly done in 2021 then 2022 impacts should also be limited. I'm struggling to see how there would be 2023 and onwad effects. Also when those exposed to the border and their immediate families have a vac. another layer of protection against lockdowns is added.

[Waltzing]

we think the 10 yr black hole has taken money out of the comp props... look at the 5 year chart. overseas investors are moving money at this time in the cycle.

[bull....]

traditionally property companies should trade at a discount to NTA , if they trade above they are expensive. in a reflation environment lease duration is important in valuation of these stocks. i dont hold any of these types of stocks at the moment due to the reflation trade

[fungus pudding]

traditionally property companies should trade at a discount to NTA ,

Why should they?

[winner69]

we think the 10 yr black hole has taken money out of the comp props... look at the 5 year chart. overseas investors are moving money at this time in the cycle.

Your maths guru done any more work

Share price /10 year relationship playing out

[Rawz]

Experience so far says kiwis like good malls so any effects are a temporary small reduction in immediate earnings. That should be a few cents reduction in fair value not ten's of cents. If mass vac. Is mainly done in 2021 then 2022 impacts should also be limited. I'm struggling to see how there would be 2023 and onwad effects. Also when those exposed to the border and their immediate families have a vac. another layer of protection against lockdowns is added.

I agree. I went to Sylvia Park on sunday once Auckland went back into level 2 and guess what- it was pumping. People couldnt wait to get back to Auckland's best mall after the 6 day lockdown. 2022 we are likely to see little to no lockdowns.

And KPG has traded at one point each year above its NTA for the last 5 years.

KPG oversold.

[Beagle]

Probably is oversold, (and people's comments about vaccine roll-out are fair enough), but the speed of the increase in the 10 year Govt stock rate has spooked investors, was under 1% just on a month ago and 1.9% yesterday...that rate of increase is "interesting" to say the least. Where will the 10 year rate be at year end, 3% ?, maybe even 4% :scared:

[LaserEyeKiwi]

I think the era of lockdowns is quickly coming to an end Beagle, we are talking a few more months and then we will be well into vaccination of general population making lockdowns increasingly unnecessary. I think we all have been looking past CV anyway to see what good value KPG is under normal operating conditions, and paying out 90-100% for the divi.

I'm actually more curious about the office portfolio in the era of increased work-from-home environment persisting - but I don't see it as a major issue as the location of the office towers are all prime real estate which in a worst case scenario could be repurposed to residential (adding to KPGs nascent build-to-rent residential ambitions).

Also worth remembering the Palmerston North Mall is currently on the market.

[Beagle]

Yeah I hear ya....I think you might be talking me around. I don't know how others feel but I'm finding it hard to work up much appetite for fresh share investment allocation at the moment after 6 straight weeks of losses on the NZX. To me I feel at this moment in time, I'd like to see some forward momentum in my portfolio to give me confidence to invest more. (Sitting on a fairly high cash allocation which ahs been a good thing in recent weeks).

[Rawz]

Yeah I hear ya....I think you might be talking me around. I don't know how others feel but I'm finding it hard to work up much appetite for fresh share investment allocation at the moment after 6 straight weeks of losses on the NZX. To me I feel at this moment in time, I'd like to see some forward momentum in my portfolio to give me confidence to invest more. (Sitting on a fairly high cash allocation which ahs been a good thing in recent weeks).

I was going to throw a Warren Buffett quote at you regarding your trepidation for investing your cash, but im sure you have heard them all..

There are some deals in the market on some good performing companies. These deals wont be around for long. TRA is a prime example. Could have purchase $3.11-$3.12 last week. Then another profit upgrade and the buying opportunity is gone(ish).

KPG, OCA, MHJ, FPH good value imo.
EVO and TRA was good value last week.

[Joh13]

KPG seems pretty good value at the moment. I’m in for a small parcel.

[Beagle]

WHS look like they are about to post some startlingly good numbers. Bought a few more this morning. Agree this one is fair - good value at present but lets see where the 10 year Govt stock rate settles.

[Waltzing]

winner (n), no sorry he is busy revamping new requirements for our brand new software language product. However i did spent 2 hours with a french man today who was the foil design for american magic today. Very interesting chat and i might have an invite down to brittany. the meeting was regarding using the software in sport science.

i will put up some charts and data for our man to look at .. hard to find a good data source these days. we used to keep the data daily back in the 2008's but not anymore, pitty it was very valuable.

[clown]

Kiwi Property today increased its 2021 financial year AFFO [NOTE 1] earnings guidance to 5.50 – 5.60 cents per share [NOTE 2], up from the 4.90 – 5.15 cents per share range forecast at the half-year.

https://www.nzx.com/announcements/369015

[Rawz]

Excellent. A timely announcement after this thread was talking about how undervalued KPG was only a couple of days ago.

[Bjauck]

Kiwi Property today increased its 2021 financial year AFFO [NOTE 1] earnings guidance to 5.50 – 5.60 cents per share [NOTE 2], up from the 4.90 – 5.15 cents per share range forecast at the half-year.

https://www.nzx.com/announcements/369015

There was a boost to the SP in late trade yesterday. I am sure that is a coincidence as there is no insider trading in NZ and the NZX rigorously enforces its rules.

[Waltzing]

the shock of the 10 year has eased pressure in the last few days across the global. Money is also flowing back into the big wide world. Com Props are defensive stocks.

[clown]

There was a boost to the SP in late trade yesterday. I am sure that is a coincidence as there is no insider trading in NZ and the NZX rigorously enforces its rules.

Yeah noticed that too, didn't keep an eye on the volume though.

[LaserEyeKiwi]

excellent! well done management on superbly navigating a very uncertain 12 months!

[Waltzing]

while welcome is perhaps a little understated. Surely this is what the market investors have been hoping for. All the deficit spending brought forward to float the economy is being reflected at last in NZ's most populated demographic region.

Very pleased we have moved some small holdings into this sector but travel has been the out performer this week. It may will continue to be hit by the 10 year going forward as it hits 2%.

[bull....]

im still making my mind up if malls will go the way of dinoursaurs with the big push to everything online and with digital frontier companies like roblox wanting everyone to congregate in the digital world in stead of in reality

[Waltzing]

vol up on the opening. Malls are closing across the US. Only room for premium offering in the market. Everything else can sit in a warehouse ready for shipping.

GMT, ARG , PCT and KIP.

Consolidation across the sector to increase no doubt.

Our small holding positions are coming into profit already.

Wonder if MR B increased his holding at 1.12.

[Habits]

"The revised guidance reflects stronger than anticipated trading conditions,
with Kiwi Property's retailers performing ahead of expectations, despite......."

The good news keeps coming

Those who bought this week at bargain basement have made a very good investment

[LaserEyeKiwi]

vol up on the opening. Malls are closing across the US. Only room for premium offering in the market. Everything else can sit in a warehouse ready for shipping.

GMT, ARG , PCT and KIP.

Consolidation across the sector to increase no doubt.

Our small holding positions are coming into profit already.

Wonder if MR B increased his holding at 1.12.

The US is not the rest of the world though. The US is vastly over served / oversupplied with malls, having 2-3x the retail space per capita compared to any other country, so consolidation there is going to be brutal. The rest of the world has nowhere near that situation.

For instance USA has 23.5 square feet of retail per person, whereas Australia has only 11.2 square feet of retail per person.

EDIT TO ADD: New Zealand has only 5.4 square feet of retail per person! so we are pretty safe from mall consolidation I suspect.

[Habits]

The US is not the rest of the world though. The US is vastly over served / oversupplied with malls, having 2-3x the retail space per capita compared to any other country, so consolidation there is going to be brutal. The rest of the world has nowhere near that situation.

For instance USA has 23.5 square feet of retail per person, whereas Australia has only 11.2 square feet of retail per person.

Dropped into Sylvia early one morning this week... I could not believe how busy it was

[Getty]

im still making my mind up if malls will go the way of dinoursaurs with the big push to everything online and with digital frontier companies like roblox wanting everyone to congregate in the digital world in stead of in reality

While women want an excuse to dress up & be seen, there will always be a place for the malls.

I do see the odd one down there in their pyjamas tho, is that the start of a new trend?

[LaserEyeKiwi]

If KPGs assets are performing better than expected, then it follows a positive asset revaluation is also likely right?

[Getty]

The US is not the rest of the world though. The US is vastly over served / oversupplied with malls, having 2-3x the retail space per capita compared to any other country, so consolidation there is going to be brutal. The rest of the world has nowhere near that situation.

For instance USA has 23.5 square feet of retail per person, whereas Australia has only 11.2 square feet of retail per person.

EDIT TO ADD: New Zealand has only 5.4 square feet of retail per person! so we are pretty safe from mall consolidation I suspect.

Good data to have.
Thanks Laser.

[Waltzing]

If the new generation Kiwi is now laser eyed it is surely as a result of evolution?

As sure as night follows day and GMT delivered a whopping 400 odd Million reval then KPG might also get a lift.

As for malls NZ has only 3 main cities and a population that can easily reach the country side and coast. The Kiwi has a different habitation pattern up to this point and hence does not live in malls.

Yes NZ is not the US and we arnt suggesting anything other than balance sheet leverage allows investment consolidation such as the Base.

[Rawz]

This mall issue has been discussed before. The guts of it is the KPG malls are the best malls with international tenants, dining lanes, retailers 'flagship' stores and large department stores (farmers, kmart etc).

The malls that are dying are the suburban malls such as meadowbank, eastridge, royal oak etc. These malls basically have a supermarket, pharmacy, maybe a bank and then a whole lot of discount junk stores.

[Waltzing]

"KPG malls are the best malls with international tenants, dining lanes, retailers 'flagship' stores and large department stores (farmers, kmart etc)."

well i dont know if i would call centre place the best but they saw the light and invested in the base.

Investible in the nearest best tourist spot to the south pole for sure... north land is surely one of the greatest coastal beaches areas in the world.

The tourist will flood back to this paradise in the south seas and when they do those malls will be visited on the way to those most sort after paradises .


A very very investible country.

Remove the loud motor bikes and get the place locked down. I get asked where young people should visit in NZ all the time when in europe.

[Beagle]

Well done to those who bought around $1.15. I got caught napping with this one. https://www.bing.com/images/search?view=detailV2&ccid=5xZIOY%2fc&id=77587A2E2684E584EB642FE5ED767BD3EE8E987E&thid=OIP.5xZIOY_cvHQ6OnPZcESNjAHaKH&mediaurl=https%3a%2f%2fth.bing.com%2fth%2fid%2fRe7 1648398fdcbc743a3a73d970448d8c%3frik%3dfpiO7tN7du3 lLw%26riu%3dhttp%253a%252f%252fbuzzsharer.com%252f wp-content%252fuploads%252f2015%252f04%252fsleeping-beagle-cute.jpg%26ehk%3drWSGyRygCPj2X8ibSYP6YSm4vmJGrayVV Nt8O6Lzhyg%253d%26risl%3d%26pid%3dImgRaw&exph=1000&expw=732&q=sleeping+beagle&simid=608007420941894211&ck=7238D5FD22CC5442BA04933608A186B8&selectedIndex=0&FORM=IRPRST&idpp=overlayview&ajaxhist=0

[Waltzing]

well MR B i dont think you made a mistake. Our average price over 3 portfolios is about 1.24 but we still see the 10 year hitting this sector pushing it down for short periods of time.

Bonds are going to rebalance in there favour and overnight the US 10 year performed strongly. Your favourite man MR S will know doubt beat the drum on CNBC any time now.

1.12 was its recent bottom?

Its a long term defensive stock not a stock for high growth or a big share price rise.

We havnt bought enough travel and we are looking to increase travel stocks very shortly as our picks have moved into profits.

[value_investor]

Well that update really validates me starting to buy this last year from $1.00. Went to Sylvia Park recently and the place is hustling and bustling.

I'm happy to keep holding, expecting some big revaluation gains in the portfolio when it comes to it. Also interested in the build to rent opportunities and the future plans with Drury.

Disc: Have continued to build this position and will continue at current prices (as long as things don't get too crazy).

[LaserEyeKiwi]

Latest GDP report for December quarter is out. Key quote for KPG:

"On an annual basis, retail was up by 2.5 percent"

[LaserEyeKiwi]

Kiwi Property today announced the outcome of its draft property portfolio valuations, delivering an expected fair value gain of $100 million (+3.1%) for the six months ending 31 March 2021. The Company’s mixed-use, office, retail and other properties will be worth $3.3 billion following confirmation of the asset valuations at year-end.

Following the latest valuations, the overall fair value gain on Kiwi Property’s portfolio for the 2021 financial year is approximately $110 million (including the $9.2 million uplift recorded in the six months to 30 September 2020).

Chief Executive Officer, Clive Mackenzie said it was pleasing to see a rebound in the Company’s asset values, following a stabilisation of trading conditions.

“While COVID-19 continues to impact the sector, the outlook is far more positive than it was when valuations were last undertaken in September 2020, especially with the vaccine rollout now underway. Encouragingly, recent transaction evidence suggests investor confidence has returned to the property markets, allowing valuers to remove ‘material valuation uncertainty’ clauses across many of our assets.”

The draft valuations are expected to result in the following movements over the six-month period ending 31 March 2021:

Mixed-use portfolio
Draft valuations show the Company’s mixed-use portfolio, which comprises Sylvia Park, Sylvia Park Lifestyle, LynnMall and The Base, has experienced a fair value increase of approximately 2.4% or $38 million to $1,623 million. The weighted average capitalisation rate for these assets has firmed four basis points to 5.79%.

Office portfolio
Kiwi Property’s office portfolio proved the most resilient of the Company’s asset classes, with draft valuations increasing approximately 5.4%, or $52 million, to $1,002 million. The uplift is assisted by a 28 basis point capitalisation rate firming to 4.99%, with the Company’s Auckland assets growing in value by 5.6%, and Wellington assets increasing 4.9%.

Retail portfolio
Kiwi Property’s retail portfolio experienced a fair value decline of approximately 1.7% or $8 million to $461 million, according to the draft valuations. The reduction in portfolio value was generally driven by an increase in seismic-related capital expenditure and a softening in market rents. On a positive note, the weighted average capitalisation rate of the Company’s retail assets has firmed 30 basis points to 7.75%, assisted by stronger than expected retail sales.

Other properties
Kiwi Property holds a portfolio of other properties, outside of its investment-grade assets, including the Company’s Drury and Sylvia Park industrial holdings. This portfolio recorded draft valuation growth of approximately 8.0%, or $18 million, to $245 million for the period.

Overall portfolio
Following the draft valuations, the capitalisation rate of Kiwi Property’s investment portfolio has firmed 18 basis points, from 6.00% to 5.82%, while net tangible asset backing per share will increase by approximately six cents from $1.29, as at 30 September 2020, to $1.35.

The draft 31 March 2021 property valuations are determined by independent valuers and are subject to external audit. They will be confirmed in the Company’s audited financial statements for the year ended 31 March 2021, scheduled for release on
24 May 2021.

>Ends

Note:
The fair value movements referred to above relate to independent property valuation movements and exclude any fair value movement arising from accounting for lease liabilities under NZIFRS16.

[Habits]

Kiwi Property portfolio valuation update - NZX, New Zealand’s Exchange
https://www.nzx.com/announcements/369731

Very promising +100m but still lower than the 2020 -ve reval of -290m. Leaves room for more growth.
Cap rates are moving in the right direction.

[FTG]

Fibonacci "Poetry in Motion" on the chart makes one a little cautious however. The weekly chart technicals don't look so strong to me (yet?)

Sorry. No chart inserted here.

High of $1.70 (2/9/19)
Low of $0.74 (24/3/20)

That 96 cent downward swing has now been corrected a PERFECT (to the cent) 61.8%....
Taking it to $1.33 (11/11/20).

Now, for the last 4 1/2 mths it has basically been treading water, clearly respecting that level & coiling up for the next move.

What will it be; Red or Black ?

[Waltzing]

love fibonacci

we bought more even though comp props get hit by the 10 YR.

overnight inflation in the US did not drive the 10 YR up.

a look back at the comp prop over the last 17 years against the 10 year provides an interesting back drop to where we are now.

if rates stay down expect this stock to move up but its a buy big at 1 - 1.10.

Its a defensive trade.

[Waltzing]

comp props holding up even as the US 10 year moves back up 1.7%

some defensives should come into play as some future investment funds that might have gone to rental move to commercial.

Gmt moving back up 2.27..big move from a month ago considering the interest rate rises.

Perhaps NZRB might have to consider negative rates again if Banks decrease loans and increase holdings at the RBNZ.

[LaserEyeKiwi]

https://www.nzx.com/announcements/370146 (https://www.nzx.com/markets/NZSX/announcements)

interesting development. I like the mixed use nature of the proposal with residential (build-to-rent?) getting a mention.

[Waltzing]

surely even with the 10 year pressing down on all assets as insto will move with the excepted status quo which seems ridiculous, this stock is just a bargin.

Thinking of proposing to our team we move into KPG over ARG which we have weight 10% from defensive last may.

[Rawz]

surely even with the 10 year pressing down on all assets as insto will move with the excepted status quo which seems ridiculous, this stock is just a bargin.

Thinking of proposing to our team we move into KPG over ARG which we have weight 10% from defensive last may.

History tells us that it will again one day trade above NTA for a period. It's guaranteed gains in my opinion buying at $1.23 when NTA is $1.35

[LaserEyeKiwi]

Godzilla vs Kong grossed over $1 million at New Zealand cinemas last weekend.

This will seem a bit off-topic for the KPG thread on the face of it, but it is directly related as it speaks to the health of a key category of mall tenant (cinemas) that I think will now be able to resume normal level of rent payments to mall operators (like KPG) now that revenue is flowing back into the industry with the blockbuster titles returning to the release schedule. Also of course helps the food court operators inside malls as well, and of course retailers as cinema attendees make purchases before/after their movie.

We really have to thank the fast US vaccination effort for this I suppose, with studios now confident they can release their long delayed titles to suitable audience numbers.

[fungus pudding]

https://www.nzx.com/markets/NZSX/announcements

interesting development. I like the mixed use nature of the proposal with residential (build-to-rent?) getting a mention.

Doesn't seem to be much of a relationship between your message and the link you included.

[LaserEyeKiwi]

Doesn't seem to be much of a relationship between your message and the link you included.

Apologies was referring to this:

https://www.nzx.com/announcements/370146

[Waltzing]

Never seen a Kip mall with such a dearth of custom as this evening as in central hamilton. Even the staff on at the LIDO said they had hardly seen anyone in the mall.


Will do a survey next week of the base if we get the chance.

[fungus pudding]

Never seen a Kip mall so dead as this evening as in central hamilton. Even the staff on at the LIDO said they had hardly seen a sole.



How could they? People would be standing on top of them.

[Habits]

How could they? People would be standing on top of them.

Huge lolz hahaha

[Getty]

Someone's put their foot in it...

[Getty]

The shoe store in that mall is soled out..

[Waltzing]

served us right for not whatching the keyboard but we never do.

when the servers are all running there are 3 screen running per server.

anyway what we were trying to say was ...

if that is the foot traffic that will persist this winter they might as well shut early.

[Habits]

served us right for not whatching the keyboard but we never do.

when the servers are all running there are 3 screen running per server.

anyway what we were trying to say was ...

if that is the foot traffic that will persist this winter they might as well shut early.

Whats your view of the mixed-use resi-commercial redevelopment plan they announced for centre place

[Waltzing]

Would like to read more on that as none of our people have any expertise in property development. The one who had has passed away.

Lots of software and data moving about doesnt mean we are any the wiser.

Sometimes it can just leave you more confused.

A chap with no experience waltzed up the other day and said youd be mad to buy anything other than MFT and EBOS...had bought himself a new carpet for the house on some profits....

He invests with Craigs in hamilton and is now a very happy investor. Hes 75 and hardly knows what a computer is.

Would that plan depend also on what the hamilton city council has in mind for the CBD?

I know some of the elected council and one was very keen on getting Amazon into hamilton.

Is the development of the cultural centre going ahead?

And will Sky City finally move on the building of hotel facilities. Surprising that SK City hamilton has increased its profits. Not bad performance for a casino in a small regional rural based city.

[Habits]

Not a lot living in cbd at present but is increasing through Vialou and Anglesea streets. Needs more life thN just student parties ;) Hamilton use to be my home town... its a great place and growing

[Waltzing]

yes would be interesting to know the number of office and business worker in the CBD. The roads in and around the CBD are probably at near capacity already. When the new circle road system is complete a lot of traffic from auckland will by pass the city all together which might solve the through traffic problems. Residential could increase in the CBD if they can create more night light that is safe and that means hamilton cultural people getting involved in promoting all aspects of a vibrant society. Im sure there are a lot of talented people wanting to move out of crowed cities like auckland.

[fungus pudding]

The shoe store in that mall is soled out..

Next you'll be telling us the fish shop has no soul.

[Getty]

The Pet shop has been sold a pup.

[teabag]

The dairy has been milked dry

[LaserEyeKiwi]

The products in the Godfreys store all really suck.

[Getty]

The Flight Centre is just the ticket.

[Waltzing]

House of Travel was across the road from KIP mall and may have closed. Used to have 6 staff and then there was 2 and now maybe 0.

HA DET BRA.

[fungus pudding]

yes would be interesting to know the number of office and business worker in the CBD. The roads in and around the CBD are probably at near capacity already. When the new circle road system is complete a lot of traffic from auckland will by pass the city all together which might solve the through traffic problems. Residential could increase in the CBD if they can create more night light that is safe and that means hamilton cultural people getting involved in promoting all aspects of a vibrant society. Im sure there are a lot of talented people wanting to move out of crowed cities like auckland.

Surely all night light is safe. It's the dark that encourages bad behaviour.

[Waltzing]

like i said we dont look at the keyboards looking for over 90 percent to hit the screen. look like the hit rate is higher. havnt tried a blind fold yet.


HA DET BRA.

[fungus pudding]

like i said we dont look at the keyboards looking for over 90 percent to hit the screen. look like the hit rate is higher. havnt tried a blind fold yet.


HA DET BRA.






Who or what is we? Surely it is you.. But you, who, it or what sure comes up with a large number of incomprehensible postings. I don't know why he,she, it, they or you bother.

[Getty]

An Aussie man of steel, who happens to be single, is stealing the limelight.

[dibble]

Who or what is we? Surely it is you.. But you, who, it or what sure comes up with a large number of incomprehensible postings. I don't know why he,she, it, they or you bother.

Ha, classic. I thought it was just me.
Quite some time ago I concluded it was the royal we, what more fun than sitting in your cold Castle on a dark night in 400,000 lonely Scottish acres than concocting riddles on a website based at the extremity of your realm.

[Waltzing]

KPG 's chart looks like a BUY to US.

DISC: holding and accumulating.

We will look to hook up historical data feeds to the new abstract scripting models this winter for charting.

Getting the data into a consolidated SQL and XML database will take some time. Once setup we can then access it with runtime scripts for quick automated charting.

Note: We, is used here in this instance in relation to several entities defined by company law and statue. IE private companies as stated already in a post on this forum.

If in this day and age i have assumed the public of New Zealand is educated in technologies used to process data then that is something the NZ Government needs to address and quickly.


A quick note if allowed. An "abstract scripting model" is one where the base scripting engine can change its language format at runtime. The power this provides means WE not ME, can process a lot of data in in many data formats.

Now back to KIP. I not WE hope visit the base every week this winter on one day a week to get a sense of numbers.

[Habits]

Found myself at centre place Hamilton on saturday afternoon. I would call it extremely busy like runup to xmas ... pleasant surprise after your observations last week waltzingironman

[Waltzing]

To MR Habits.

Many thanks for that. I not WE was at centre place on thursday night 6.30 to 7.30 PM.

DISC: WE is several private companies and since a lot of intellectual property is involved i see no reason to disclose that here. If Vince requires i will cease posting.

[arekaywhy]

was in Sylvia Park over the weekend. Place looks like it is completely back to normal. Tills ticking over at both HLG stores too... Food joints virtually full. Movement along the mall impeded by slow pokes of all types

[Getty]

[QUOTE=Waltzingironmansinlgescul;880856]
I not WE hope visit the base every week this winter on one day a week to get a sense of numbers. Nothing better then actually seeing the foot traffic.

Yes, I've got a foot, but I don't use it as a rule..

[Habits]

To MR Habits.

Many thanks for that. I not WE was at centre place on thursday night 6.30 to 7.30 PM.

DISC: WE is several private companies and since a lot of intellectual property is involved i see no reason to disclose that here. If Vince requires i will cease posting.

Tbh I thought you might be at CA office. Not sure what made you say that but I appreciate your comments/views and I am sure that ST execs would too. Ignore the critics

[Waltzing]

To Mr H.

Yes CA Office many decades ago but i am not a register ACA like MR B.

Now we are invested in several private companies that create technologies. I would like to take credit for those technologies but I am not the designers, merely a director and shareholder.

I have noticed some people sensors used in parks and reserves in the central north island. A technician was downloading data into a laptop on friday.

I am sure these types of information gathering systems will be deployed by malls if they havnt already. These stats may already be published by the mall operators but i havnt seen them.

Yes there are some very witty individuals in the cloudy islands.

[Getty]

[QUOTE=Waltzingironmansinlgescul;880856]KPG 's chart looks like a BUY to US.

I not WE hope visit the base every week this winter on one day a week to get a sense of numbers.

"Once a jolly data man camped by a mall of KPG,
Under the shade of a money tree.
And he sang as he watched and he waited till his blood boiled,
You'll come a Waltzingironman with me.

Down come a Sharsies seller to sell at the market,
Up jumped the data man, and grabbed them with glee,
And he sang as he stowed the parcel in his portfolio,
You'll come a Waltzing ironman with me..."

[LaserEyeKiwi]

To MR Habits.

Many thanks for that. I not WE was at centre place on thursday night 6.30 to 7.30 PM.

DISC: WE is several private companies and since a lot of intellectual property is involved i see no reason to disclose that here. If Vince requires i will cease posting.

Wouldn't most stores in a mall be closed by 6.30pm on a Thursday night? For instance the major mall in Wellington (Queensgate - not a KPG property) closes at 6pm.

[Waltzing]

Closing times.

All shops were open and thursday night is late night at Cen Place Hamilton.

Entered some time soon after 6PM i think.

https://www.kiwiproperty.com/centre-place/en/opening-hours/

[Waltzing]

Property Developments for Central Hamilton.

https://www.stuff.co.nz/waikato-times/business/124858815/major-new-innercity-build-planned-for-hamilton

[Habits]

Property Developments for Central Hamilton.

https://www.stuff.co.nz/waikato-times/business/124858815/major-new-innercity-build-planned-for-hamilton

Currently vacant lot? Hamilton devlpr Matt Stark is a busy boy, with this and other work he is doing. I bought some more KPG shares yesterday, very good prospects... this company holds a certain shine

[Habits]

Something tells me this Kiwi (KPG) can fly. The shareprice is holding steady and consolidating for now after the gap up one month ago. FY results due in 3 to 4 weeks

[Rawz]

A timely reminder that net tangible asset backing per share as at 30 September 2020 is $1.35. Verse today's share price of $1.24. Previously you could accumulate under $1.20 but seems like the 'good' buying now is under $1.25.

Historically this stock has traded at least at its NTA at one point in every year for the past 6 years.

[Waltzing]

As we all know its a race between science and the virus.

So far the virus is winning.

Not sure it time to go all in but its certainly something to consider.

[Habits]

As we all know its a race between science and the virus.

So far the virus is winning.

Not sure it time to go all in but its certainly something to consider.

Which is probably the reason why property stocks except argosy are below precovid shareprices. Investing public are still very nervous and having the aussies over may just heighten those nerves. But not me I feel more than ok and have topped up twice over last 2 months. I think i recall posts from you extolling KPG aka KIP so whats brought on this hesitancy for ya WM

[Waltzing]

To Mr H.


Caution due to the increasing number of viral mutations that maybe resisting vaccines.

Expecting demand to remain hot for commercial property.

However wont be investing in west cost south island property.

Bigger vols today on ARG, GMT and KPG.

[Habits]

"Bigger vols today on ARG, GMT and KPG"

Did not know... i will check it out. Maybe its high demand from retail investors hahah ... get it... retail investors pun nah forget it.

[Waltzing]

excellent pun.

[LaserEyeKiwi]

visited KPG-owned The Plaza mall on Monday. Absolutely jam packed. Property is currently on the market, should get a good price if this sort of foot traffic is any indication.

Was pleasantly surprised to see the large amount of EV charging points in the carpark - a long row of standard EV chargers, and a dedicated 4 bay supercharging area for Teslas. Hoping this becomes standard across all KPG owned properties.

[LaserEyeKiwi]

https://www.nzx.com/announcements/370992



KPG gives green light to new Sylvia Park office building

21/4/2021, 9:22 amGENERALSylvia Park took another step on its mixed-use journey today, with Kiwi Property announcing it will begin construction of a second office building at the site.

Resource Consent for the $63 million project has been granted, with construction scheduled to commence in October 2021. The 7,450 square metre, six-storey development will target a 6 Green Star rating and has been designed with the flexibility to accommodate a range of tenants, including health and medical services.
The new office building is expected to deliver a stabilised yield of approximately 6% and an IRR of approximately 9%.

Kiwi Property GM Development, Ian Passau, said the new office building had been designed in response to tenant feedback.

“COVID-19 has changed what some businesses want or need from their office environment. While a CBD ‘hub’ continues to be important for many corporates, others are telling us they also want the flexibility to base employees at a city fringe ‘spoke’ office. This ‘hub and spoke’ model enables staff to work, meet and collaborate, without commuting into the city centre. Sylvia Park is ideally placed to meet this requirement.”

“Following the success of ANZ Raranga, we’re continuing to experience strong demand for office space at Sylvia Park, due to its convenience, facilities and links to public transport. Sylvia Park is well on its way from being a place people visit to a true mixed-use community, where people can work, play and ultimately stay,” Passau concluded.


>Ends

[Waltzing]

Its an ARG play.

In the future GMT may buy into some distribution hubs in the central north island.

[fungus pudding]

Its an ARG play.

In the future GMT may buy into some distribution hubs in the central north island.

Congratulations on an outstanding prediction:
also in the future Tip-Top may produce a new ice cream flavour.
Man may land on Mars.
Motor vehicles will have enhanced safety futures.
We will have a new Governor General.
That's just the start - I have a longer list.

[Getty]

visited KPG-owned The Plaza mall on Monday. Absolutely jam packed. Property is currently on the market, should get a good price if this sort of foot traffic is any indication.

Was pleasantly surprised to see the large amount of EV charging points in the carpark - a long row of standard EV chargers, and a dedicated 4 bay supercharging area for Teslas. Hoping this becomes standard across all KPG owned properties.

How much are they charging?

[fungus pudding]

How much are they charging?

All the way if you can wait long enough.

[Habits]

How much are they charging?

Hahaha you're a bright spark

[Waltzing]

"In the future GMT may buy into some distribution hubs in the central north island."

kompliziert

GMT needs to get a move on as KIP will do more deals with the investment group from the base.

One reason might be the issues related to development costs as recently highlighted by Gallagher Industries in recent submissions to the Hamilton City Council.

Of course it will be some time before getting the train from hamilton to auckland will be anything like taking it from copenhagen to berlin. You have to change at least once as its not direct.


https://www.youtube.com/watch?v=4Wmqhm6a9r4

Dont suggest the do any deals in the south island unless its on the east coast and they get the Japanese in to do the construction.

[Getty]

Hahaha you're a bright spark

Watts this about you having power to make people great?

[Habits]

Watts this about you having power to make people great?

I am your constant companion.
I am your greatest helper or heaviest burden.
I will push you onward or drag you down to
failure.
I am completely at your command.
Half of the things you do you might as well turn
over to me and I will do them - quickly and
correctly.
I am easily managed - you must be firm with me.
Show me exactly how you want something done
and after a few lessons, I will do it automatically.
I am the servant of great people,
and alas, of all failures as well.
Those who are great, I have made great.
Those who are failures, I have made failures.
I am not a machine though
I work with the precision of a machine
plus the intelligence of a person.
You may run me for profit or run me for ruin -
it makes no difference to me.
Take me, train me, be firm with me, and
I will place the world at your feet.
Be easy with me and I will destroy you.
Who am I? I am Habit ... aka Habits


When I first heard this, was waiting to hear how it ended and thought it was really well done

[Getty]

https://youtu.be/L80XYgxjIw8

Just for you.

[dibble]

DISC: Holding ARG, KPG and GMT across multiple entity portfolios.

Is that "we are" or "I am" holding...?
We're/I'm dying to know.

Thankyou/yous

[fungus pudding]

Is that "we are" or "I am" holding...?
We're/I'm dying to know.

Thankyou/yous

I can only speak for myselves. We aren't.

[Waltzing]

https://www.stuff.co.nz/waikato-times/news/124824437/gallagher-to-city-council-companys-future-in-hamilton-not-certain


God Kvall

Development costs in central north island an issue for some prominent businesses.

Large warehouses have been built recently on pastoral land south of hamilton.

Finding suitable land for inland ports might be also be holding back companies like GMT and other commercial property developers.

A Waikato Councillor made it very clear in discussions this evening that the battle for land use in the Waikato is becoming a major issue for them.

[Habits]

https://youtu.be/L80XYgxjIw8

Just for you.

Excellent. I couldnt possibly agree but i do think you would look good in a canary yellow dinner jacket from Hallensteins like that one :D

[Getty]

It may not be power dressing, but it would sure lighten up a few rooms.

[Habits]

I think light and bright colours used to be popular... but now not current

[Getty]

No doubt if I wore that jacket today, it would generate some resistance, but I've got the energy to see the light at the end of the tunnel.

[Habits]

No doubt if I wore that jacket today, it would generate some resistance, but I've got the energy to see the light at the end of the tunnel.

If I could beat that positive post Getty, I would feel on top of the earth :D

[Getty]

Or volting over the moon.

[Getty]

You're in charge of keeping KPG energised with your conduct.

We better tone it down before someone blows a fuse!

[X-men]

Recent upgrade around AFFO 5.50 to 5.60c pershare. KPG's new dividend payout is 95% of AFFO

So we are looking around 5.3c per share dividend in the next 4 weeks. That would make the yield around 6 %.....

Very good yield if you compared with other real estate shares

[Bob50]

Recent upgrade around AFFO 5.50 to 5.60c pershare. KPG's new dividend payout is 95% of AFFO

So we are looking around 5.3c per share dividend in the next 4 weeks. That would make the yield around 6 %.....

Very good yield if you compared with other real estate shares

5.3c per share less the 2.2c interim dividend paid December 2020 so aren’t we looking around 3.1c per share in the next 4 weeks?
At least it’s heading in right direction in November the board was expecting the full year AFFO to be in the range of 4.9 to 5.15c per share.

[tim23]

Recent upgrade around AFFO 5.50 to 5.60c pershare. KPG's new dividend payout is 95% of AFFO

So we are looking around 5.3c per share dividend in the next 4 weeks. That would make the yield around 6 %.....

Very good yield if you compared with other real estate shares

How did you arrive @ 6%?

[X-men]

It broke $1.25 resistance....next stop will be $1.30

[LaserEyeKiwi]

I'm not a chart / TA guy, but KPG closing at 1.27 after hitting 1.28 earlier today seems quite bullish - highest levels in 10 weeks.