PLP - Private Land & Property Fund

[Snow Leopard]

Listing & Quotation Notice (http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/NZXR/340836/307518.pdf)

Lists Wednesday 18-Sep-2019

Discuss :)

[kiora]

Few rural funds make good returns.Typically rural fund investment returns only 3.5% gross.
Most promise a lot but few deliver.Exit strategy & no gearing is the most important part of these. They are only suitable for long term >12-20 years
Mifarm syndicates : hard to cash up.The new Cheery & Hop syndicates look good but time will tell.Targeting 25 % returns/year.Also Rockit .Climate & export market risks.
Total management fees will total 4.7% will take a hefty part of free cash flow + 1% withdrawal fee
https://www.booster.co.nz/booster-investments/private-land-and-propethey alreadyown some good wineriesrty-fund.aspx
Rural Equities has been an exception but well tied down by the Cushings.

What advantages will PLP have?
Looks like they own some good vineyards.
Are these going to be part of it?At what price will they be transferred?.Any debt?
Likely to trade at a discount

[kiora]

http://www.scoop.co.nz/stories/BU1909/S00359/booster-tests-waters-with-nzx-listing-of-property-trust.htm?utm_source=ST&utm_medium=email&utm_campaign=ShareTrader+AM+Update+for+Saturday+14 +September+2019

[turnip]

Does anyone know why PLP is now trading above NTA? (Given that anyone can purchase and redeem units at NTA direct from the fund manager at the beginning of each month?)

[Joshuatree]

What fees are investors charged?
Investors in the Private Land and Property Fund are charged fund charges. In the year to 31 March 2020 these were:




Past Year





Annual return 5.18%





(after deductions for charges and tax)





Annual return 6.18%





(after deductions for charges but before tax)





Market index annual return Not applicable





(reflects no deduction for charges and tax)







% of Net Asset Value






Total fund charges ​4.17%






Which are made up of:






Total management and administration charges 4.17%






Including:






Manager's basic fee 1.00%





Other management and administration charges4 3.17%





Total Performance-based fees 0.00%

[turnip]

The current PDS gives the total fund charges as 1.19% (1.00% mamagement fee + 0.10% "in fund costs" + 0.09% estimated property operating expenses.)

[kiora]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/PLP/348363/316662.pdf
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/PLP/348363/316662.pdf

"Total management and administration charges 4.17%"
"Annual return 5.18%
(after deductions for charges and tax)"

Why do they not give a valuation for each of their properties?
Or trading numbers?

[turnip]

The PDS I am looking at with the 1.19% figure is from the fund manager's website, dated 8 October 2020:

https://www.booster.co.nz/booster-investments/private-land-and-property-fund.aspx#docs

There is information on the property valuations and rents in the "other material information" document at the same link.

(I hold units in this fund. I also hold SEK and TGG, which are in the process of selling and leasing back some of their horticultural properties as they gear up for growth in other areas, so I see including PLP in the mix as a way to maintain some of the original balance betwen property and the other -- hopefully higher growth, but probably also higher risk -- activities of those companies.)

[turnip]

This link has the full set of documents for the fund including financial statements, but I can't seem to link just to the PLP documents:

https://www.booster.co.nz/booster-investments/investment-documents.aspx

From the financial statements, the total expenses including operating expenses, management fees, and supervisor fees for the 15 months to 31 March 2020 were $494,000, which was 1.16% of the net asset value of $42,760,000 for the fund at that date.