Gmt

[SweetJamaica]

Are many ShareTradies invested in GMT? I have been looking for something that invests in the bricks and mortar stuff with stable management and a good look term outlook and this fits the bill surely? This will be my first foray into the stock market..

[unhuman]

http://www.sharetrader.co.nz/showthread.php?2157-Listed-Property-Trusts

[Snow Leopard]

I own GMT - bought a batch in Mar-2009 and another in Aug-2013.

Combined with my holding in three others (ARG, KPG & SPG) they make up less of my portfolio than either Heartland Bank or Scales.

I am seriously considering selling all four property trusts tomorrow independent of what the market as a whole is doing

The proceeds will end up invested in something at some point.

An (Sweet Bean) (https://www.rottentomatoes.com/m/sweet_bean/)
https://resizing.flixster.com/7I7kP0Iym7Qjrjq54rZkes4qFEY=/206x305/v1.bTsxMTY1ODQ3MztqOzE3MTg5OzEyMDA7MTQ2MTsxOTQ4

Best Wishes
Paper Tiger

[kiora]

Great movie that Sweat Bean ;)

[Snow Leopard]

Excellent movie - really enjoyed it and did not cry once :crying:.

Wednesday is After The Storm (https://www.rottentomatoes.com/m/after_the_storm_2016):
https://resizing.flixster.com/6ycqEd66bP5X4BanBwzBcAVyzRw=/206x305/v1.bTsxMTk0MTA4MTtqOzE3MTAzOzEyMDA7MjgwOzM5Mg
Probably have pancakes before hand.

Meanwhile - GMT is as good a bet as the other brick jobs except I would not touch AUG and if you have not looked at VHP you should.

Mostly they are dividend plays and when interest rates go up the price will come down, but a lot of the rest of the market will also fall.

Up to you if and when you pull the trigger, take care and may your time in the market be long and prosperous.

Best Wishes
Paper Tiger

[fungus pudding]

Are many ShareTradies igmt, anvested in GMT? I have been looking for something that invests in the bricks and mortar stuff with stable management and a good look term outlook and this fits the bill surely? This will be my first foray into the stock market..

I'm not a sharetrader but do have reasonable holdings in GMT, ARG, KPG, SPG, IPL, PCT, PFI. They all seem ok but GMT is the last one I would add to.

[Beagle]

Are many ShareTradies invested in GMT? I have been looking for something that invests in the bricks and mortar stuff with stable management and a good look term outlook and this fits the bill surely? This will be my first foray into the stock market..

Welcome to the forum. Good solid company in my view. Industrial type properties have shown excellent returns in recent years and the way they're building new ones at Highbrook and selling off old ones so continually modernising their portfolio appeals to me. Forecast PIE return of 4.925% minimum at $1.35 so not a high return but its fully taxed and very low risk in my opinion. Very low gearing. A good conservative stock IMO. Currently my biggest holding on the NZX with a 14% portfolio allocation. I also hold ARG.

[Snow Leopard]

...I am seriously considering selling all four property trusts tomorrow...

Flipped the ARG which appeared to be the weakling.
If/when I need some more funds it would be a roll of the dice whether it was GMT, KPG or SPG.

Best Wishes
Paper Tiger

[fungus pudding]

I have just returned from their investor presentation. Boring as hell, and that's exactly as it should be with property. Morning tea - 9 out of 10, so I'll go again next year.

[Beagle]

I have just returned from their investor presentation. Boring as hell, and that's exactly as it should be with property. Morning tea - 9 out of 10, so I'll go again next year.

Agree that this is my most boring stock and I like it for exactly that reason. Thanks for the report on morning tea. I will try and get along next time.

[SweetJamaica]

Hi Roger, thanks for your comments (and everyone else's). Always lots to be learned from group discussions. Could anyone recommend any software/accountant that you use to prepare your annual tax requirements/post the link to the appropriate thread?

Thanks

[In4a$]

All my property Stocks down, GMT, KPG, SPG, and VHP a little bit
Is this just a market correction or is there some pending doom, rising interest rates or something driving these stocks down. ?
Any views ?
Looking at topping up.

[unhuman]

Craigs were in the media yesterday stating moves in general on NZX away from dividend yield to growth stocks.

Rising bond yields internationally I believe was the quote.

Assuming this is correct then REIT's obviously effected.

[In4a$]

Craigs were in the media yesterday stating moves in general on NZX away from dividend yield to growth stocks.

Rising bond yields internationally I believe was the quote.

Assuming this is correct then REIT's obviously effected.
Thanks unhuman, that makes sense. Might take a punt and top up GMT anyway.

[Timesurfer]

For a boring stock this one seems to be heading in one direction - and that direction looks better than a boy band to me.

[Cricketfan]

For a boring stock this one seems to be heading in one direction - and that direction looks better than a boy band to me.

Yeah these 'boring' REITs are my best performers recently. GMT up over 40% in the last year. Things will no doubt change once interest rates go up again, but who knows when that will be. Glad I bought in GMT and ARG when they were both around $1, I don't think I'd buy any now though.

[RGR367]

It's a pity we can only subscribe up to a max of $50K on the latest share offer. That 13 cents difference on today's sp closing is substantial if GMT continues on its uptrend. GL to all participating holders.

[Beagle]

OFFER: GMT: GMT Retail Unit Offer Oversubscribed

Goodman (NZ) Limited (Manager of Goodman Property Trust) is pleased to advise
that the Retail Unit Offer, targeting $15 million of new equity, has now
closed.

Strong demand has resulted in the offer being significantly oversubscribed
with applications exceeding the offer maximum of $25 million by $35 million
or 140%. As a result of the high level of participation applications will be
scaled in accordance with the rules of the offer (contained in the Offer
Document dated 26 September 2019).

Keith Smith, Chairman and Independent Director of Goodman (NZ) Limited said,
"GMT's retail investors have shown overwhelming support for this new offer,
it's a positive endorsement of an investment strategy now exclusively focused
on the Auckland industrial market."

The New Units will be allotted on 25 October 2019 with refunds of the excess
application monies being made on 1 November 2019.

We live in interesting times. Last reported NTA of this property company is just $1.57 and yet people are falling over themselves to throw more money at the company at $2.10 and the shares are trading at $2.24. Dividend yield at $2.24 is 2.98%. Its a PIE so that's free of tax but even so, that's an amazingly low yield for a REIT.

[Soolaimon]

I applied for 12000 units and got 1255. Hardly worth the time and effort filling in the forms and travelling to the cop shop for the confirmation signing etc.

[GTM 3442]

We live in interesting times. Last reported NTA of this property company is just $1.57 and yet people are falling over themselves to throw more money at the company at $2.10 and the shares are trading at $2.24. Dividend yield at $2.24 is 2.98%. Its a PIE so that's free of tax but even so, that's an amazingly low yield for a REIT.

You might find that there are a few holders whose purchase price is less than the current NTA, and for whom their average purchase price is still lower than NTA even after participating in the SPP.

[Beagle]

You might find that there are a few holders whose purchase price is less than the current NTA, and for whom their average purchase price is still lower than NTA even after participating in the SPP.

Of course there are...so they should just keep holding even though the shares are at a massive premium to NTA now and get a whopping 2.98% ?
Industrial REIT's have definitely been flavour of the year for quite some time now. If one looks at a five year chart they have been steadily rising from $1.10 five years ago to about $1.50 in January 2019. The dramatic steepening of the ascent in the chart, (up nearly 50% since January) is a very strong response to the perceived safety of an industrial REIT in very uncertain times.
We have seen a similar response in 2019 from some of the quality gentailiers like MEL.
All I am suggesting is this is quite a "crowded position" and many investors have taken a view that they need to go really defensive with their portfolio allocation. This has served them extremely well this year but Trump, (who is a power crazed pure narcissist with questionable mental health in my opinion), is desperate to get elected again and I think he will move heaven and earth to do some sort of trade deal with the Chinese soon. What happens to these "flavour of 2019" risk off stocks if its risk on in 2020 ?

Back to a more rational slight premium to NTA like $1.70 ?

[tim23]

I applied for 12000 units and got 1255. Hardly worth the time and effort filling in the forms and travelling to the cop shop for the confirmation signing etc.

10000 and got 1255 also, I should have rec'd fewer?

[GTM 3442]

10000 and got 1255 also, I should have rec'd fewer?

Applied for 5000 and received 1255. Anybody out there receive any number other than 1255? Or is 1255 the new "42"?

G*d I loathe and despise SPPs!

[Jaa]

Applied for 5000 and received 1255. Anybody out there receive any number other than 1255? Or is 1255 the new "42"?

G*d I loathe and despise SPPs!

Using a placement and SPP is a real black mark for a company that is internally managed and thus supposedly investor friendly.

[Grimy]

I'm sort of glad I didn't bother applying...…..Was going to go for the $50,000 worth thinking there would be scaling and perhaps ending up with $25,000-$30,000, but it certainly seems to have been brutal.

[tim23]

Applied for 5000 and received 1255. Anybody out there receive any number other than 1255? Or is 1255 the new "42"?

G*d I loathe and despise SPPs!

Had your refund yet?

[GTM 3442]

Of course there are...so they should just keep holding even though the shares are at a massive premium to NTA now and get a whopping 2.98% ?

. . . . . . snip . . . . . . .

Back to a more rational slight premium to NTA like $1.70 ?

I suppose it depends how you structure your portfolio, Beagle. Property is in my "income" bucket, so the only reason for me to sell is capital preservation, and a trailing stop takes care of that - as it did on the GFC.

[RGR367]

Applied for 5000 and received 1255. Anybody out there receive any number other than 1255? Or is 1255 the new "42"?

G*d I loathe and despise SPPs!
Haven't heard anything to the contrary since 14 October when I was told by ASB that my request for maximum units of 23,809 was acted on or processed, I would say I got what I applied for. Or maybe because they kept telling me I'm an "ASB premium client".

[jg8512]

Using a placement and SPP is a real black mark for a company that is internally managed and thus supposedly investor friendly.

I applied for the max and got 3334. I think the allocation formula related to your entitlement in the rights offer (which in turn was determined by your pre-rights-offer holding level).

Refunds due on Friday.

I have to say GMT's offer was one of the shabbiest ever, IMHO. The paperwork, the need for certification, thus no online application option, and then really small allocations. A big FAIL all around. GMT management hang your heads in shame.

[Sideshow Bob]

https://www.nzx.com/announcements/353836

Under new policy at least 5.3 cents to be paid FY21.

Fairly solid result??

[dibble]

That's odd, move to 80-90% of cash, I thought they already had a policy of around 80% payout. Perhaps the change is just adding "to 90". Yes solid but note the payout this year is 107% of free cash. No explanation as to what (if anything) went wrong. Wonder if thats why its taking a minor pasting today

[winner69]

There is a GMT thread

Revaluations $500m and to add 36 cents to NTA

Good for share price

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/GMT/379645/355356.pdf

[peat]

There is a GMT thread

Revaluations $500m and to add 36 cents to NTA

Good for share price



share price is approximately already that above NTA though innit? still eh not a bad thing to make half a bill on a 4 bill portfolio!

[winner69]

share price is approximately already that above NTA though innit? still eh not a bad thing to make half a bill on a 4 bill portfolio!

Just have to be forward thinking and anticipate what the next upwards revaluation will be

[Onion]

There is a GMT thread

Revaluations $500m and to add 36 cents to NTA

Good for share price

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/GMT/379645/355356.pdf

Yeah, right!!

It seems exactly the opposite.

[winner69]

At the ASM a shareholder asked about the dividend yield being lower than bank deposits. Response was something along the lines that the share price had held up and the market seems to regard quality (of the portfolio) better than yield.

Wonder what that shareholder thinks of that, esp when you look at the big red numbers on LEK performance table.

[LaserEyeKiwi]

At the ASM a shareholder asked about the dividend yield being lower than bank deposits. Response was something along the lines that the share price had held up and the market seems to regard quality (of the portfolio) better than yield.

Wonder what that shareholder thinks of that, esp when you look at the big red numbers on LEK performance table.

Trading at 20% discount to NTA, share price down 20% year to date (the worst of the listed property stocks) and yet still only a 3.2% dividend yield.

It would take a lot for me to take a position in this one.

[fungus pudding]

Trading at 20% discount to NTA, share price down 20% year to date (the worst of the listed property stocks) and yet still only a 3.2% dividend yield.

It would take a lot for me to take a position in this one.

That IS your position.

[LaserEyeKiwi]

That IS your position.

Ha ha touché

[Waltzing]

Moving up nicely could be putting in a bottom and ARG seems to have bottomed for now also.

[Sideshow Bob]

https://www.nzx.com/announcements/411604

Goodman (NZ) Limited, the manager of Goodman Property Trust (GMT or Trust) is pleased to announce the Trust’s financial and operational results for the year ended 31 March 2023.

Customer demand for well-located warehouse and logistics space has ensured earnings targets were achieved, while new investment and capital management initiatives have made GMT a more sustainable and resilient business.

Highlights include:

+ Sustained customer demand contributing to a 6.9% increase in operating earnings to $126.5 million before tax
+ A $237.7 million reduction in the fair value of its property assets has contributed to a statutory loss of $135.4 million after tax compared to a profit of $748.6 million in FY22 (including fair value gains of $660.4 million from property valuations)
+ Net tangible assets of 245.2 cents per unit
+ Substantial balance sheet capacity, with a loan to value ratio of 25.9% and $739 million of available liquidity at 31 March 2023
+ A 6.6% increase in cash earnings to 7.1 cents per unit and a 7.3% increase in cash distributions, to 5.9 cents per unit
+ Guidance for FY24 includes a further 4% increase in cash earnings to around 7.4 cents per unit with a 5% increase in cash distributions to approximately 6.2 cents per unit
+ A $4.8 billion property portfolio providing over one million square metres of warehouse and logistics space, with occupancy of 99.5% and a weighted average lease term of more than six years
+ Positive progress in the sustainability programme with an improved climate score of A- from CDP and New Zealand’s first industrial 6 Green Star Design rating, awarded to two development projects at Highbrook Business Park
+ Further development activity with $209.7 million of new project commencements at Roma Road Estate in Mt Roskill and Savill Link in Ōtāhuhu, with $461.1 million of work in progress (total project cost)
+ New capital management initiatives including $450 million of green bonds and loans to support sustainable development.

[kiwikeith]

Seems a well run company but the dividend yield makes it difficult to get enthusiastic over the shares.

[nztx]

Over a quarter of a Billion dollar reduction in Unrealised Revaluation Slush Fund ? ;)

How could that have happened ?

[Sideshow Bob]

https://www.nzx.com/announcements/426788

The Board of Goodman (NZ) Limited (“GNZ”) has entered into an agreement to internalise the management of Goodman Property Trust (“GMT”) to support its future growth strategy ("Internalisation Proposal").

[winner69]

https://www.nzx.com/announcements/426788

The Board of Goodman (NZ) Limited (“GNZ”) has entered into an agreement to internalise the management of Goodman Property Trust (“GMT”) to support its future growth strategy ("Internalisation Proposal").

Always suspicious of Internalisation Management proposals

[Sideshow Bob]

Always suspicious of Internalisation Management proposals

Seems like a whole lot of money.....

9.1x earnings!!


y terms of the Internalisation Proposal include:+ Goodman Group will be paid $272.4 million to relinquish its management rights, for the shares in GPSNZ and for the associated co-operation arrangements and services. Net of tax, the $199.3 million consideration represents a 9.1x multiple of the $22.0 million normalised FY24 savings GMT expects to realise, which is consistent with precedent transactions.

+ An additional $17.6 million will also be paid to Goodman Group to settle GMT’s performance fee obligations, to acquire its interest in co-owned (with GMT) investment properties and for the net tangible assets of GPSNZ.

+ Goodman Group will use the total consideration of $290 million to subscribe for new units in GMT at $2.14 per unit (being the 5-day VWAP to 20-Feb-24), increasing its cornerstone investment in GMT to 31.8%.

[kiwikeith]

Seems like a whole lot of money.....

9.1x earnings!!


Saves $22m per year in expenses. That is what always put me off GMT. The management fee seemed excessive. You have to wonder exactly what goodman did for the $22m annual fee.

[Jenny Ruth]

Hi all. The latest column published on my Substack, Just the Business, this morning looks at the proposal to internalise Goodman Property Trust's management contract. The headline is: Goodman proposal is a $500m “vote of confidence in NZ”
And you can find it here:
https://justthebusinessjennyruth.substack.com/p/goodman-proposal-is-a-500m-vote-of