Asset Plus (APL)

[Sneakybearmarket]

Cant seem to find a thread on here so will start a thread here.

Was wondering what are some of the thoughts of the fund so will kick it off with my take.

One of the smallest (57m market cap) and poorest performers (down ~42% ytd) in the property investment currently listed on the NZX. One of the more unlucky funds which had to withdraw their capital raising in early March that were meant to fund development cost at Murone lane (future office space for Auckland council https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12295344).

Current Portfolio (Aug20)
- Eastgate $47.40m : Chch mall and recently announced a new lease with RBD for a new buidling on site maybe Tacos or KFC? Currently makes up ~39% of their active rental income (sub 95% occupancy)

- Stoddard Road $38.50m : Small shopping center complex in Mt Albert with 100% occupancy ~28% of rental

-35 Graham Street $57.50m Slight problem child, largest valued property currently lease to Auckland council but is due to end in Dec21. They have yet to decide on what development option will be next tho it range from almost a complete rebuild to mild refurbishment, with the earlier requiring a significant capital injection.

Munroe Lane (bare land) $7.50m : Empty land in Albany that was meant to be leased to Council upon completion. Subjective to market condition they would most likely be looking to a capital raise of some sort. (Withdrew capital raising of 100m in Mar)

Kamo (bare land) $2.50m : NM

Their debt level is on the upper end with LVR just about ~34% and are trading at about ~63cps NTA and about 40% discount at current trading price. Being a small property fund they have always traded at a slight discount of about ~10% pre-covid.

Their financials are ok at best, being a small property fund does means they do not enjoy the same level of cost efficiency however have managed in the past to somewhat sustain an annual net dividend payment of 3.6cps however have indicated recently this will likely drop by half for this FY at the minimum, which is still a decent yield.

Their main downside risk would be just the lack of scale in their property portfolio ~7% doesnt generate any income and will need significant capital to do so and their largest income source that is due to have their lease end in the next year. So quite likely to see the dividend tap to be turned off in exchange for more capital being raised.

With all that being said, there are decent value proposition in this company and maybe some potentials to be a takeover target given it size and discount. Also Interesting to note that the properties are all managed by Augusta (recently taken over).

Hopefully this can kick off some discussion and keen to hear what opinions if any might be :)

[caveman]

Any opinions on this new capital raise?

I had resigned these to my bottom drawer...

[HKG2301]

I have a chunk of APL shares, so I'm going to grab the full allotment of the retail Entitlement Offer later this month, to protect my holding. And some, at $0.30 per share.

I'm pondering today's $12M share Placement as well, which is at the same price, $0.30.

Note: that Placement Offer (different from the Entitlement Offer) is today only, and open to all. You do not need to be an existing shareholder, as I read it.

Writing this, I gave Direct Broking a call and they've taken my Placement order over the phone. Added bonus: no brokerage fees. They are all absorbed as part of the placement.

Anyone else buying/bought in...?

[HKG2301]

With all that being said, there are decent value proposition in this company and maybe some potentials to be a takeover target given it size and discount. Also Interesting to note that the properties are all managed by Augusta (recently taken over).

That was my thinking. A prime takeover target...

[caveman]

I think I'll keep the faith and buy my share too.... Alas I missed out on the placement

[Sneakybearmarket]

The new capital raise come with no surprise and it was only a matter of time. The amount being sought after is actually lower then expected as the cost to develop Munroe is in excess of 100m they did highlight that divesting Stoddard is on the table and wouldn't be too surprise if they did.

I expect them to do a further raise in the future as they would need a bit of capital to refurbish or redevelop Graham and for any future development out in Kamo.

Interesting to note that they are committed to their cash dividend of 1.8cps but will be partially funded through debt.

[tim23]

Huge discount to NTA, wonder if Mark Francis and co might have a play at this stock with their takeover funds from Augusta?

[Beagle]

Huge development risk with this one. Size of the new development is double the present market cap. Significant possibility of major construction cost overruns in the current market. Involvement of Mark Francis is a very bad thing as far as I am concerned. Cheap because its very small, very risky and Mark Francis is involved. Not for me.

[HKG2301]

Share price took a huge knock in March - three knocks really, thanks to Covid which struck with impeccable timing.

In the space of a couple of weeks, they had to cancel a 100m capital raise, cancel the dividend and publish a dramatic reduction in portfolio valuation (some would say overly-dramatic) of -$19.1m. The share price has yet to recover.

Last week, the portfolio was revalued again, in time for first half results on 31 Sep. This put $11.35m back on the books and bounced the NTA back up to $0.63 per share.

As of June, Augusta Capital (which manages APL) held almost 20% of APL's shares. Not sure what their holding is now, since they were themselves taken over by ASX-listed Centuria Capital in July. Makes you think, no?

Lastly, Forsyth Barr's research team wrote this of APL back in July: "capital shortage... continues to hamstring APL's strategic progress. The capital dilemma could be resolved through capital partnering, asset sales, and/or a heavily discounted capital raise. As such we prefer to watch from the sidelines".

Well, now we have the capital raise... and at that price, I'm buying.

[HKG2301]

And, perfect timing - Forsyth Barr has a brand new research paper on APL out today, with a rating of NEUTRAL, target price $0.36.

Lots of detail on the capital raise, plus this update on substantial shareholders:

Augusta Capital: 18.9%
Salt Funds Management: 14.7%
ACC: 8.6%

And as I write this, I see APL has released a statement on yesterday's placement which was oversubscribed. Shares will begin trading normally again today and the Retail Entitlement offer for existing shareholders will be open from 15-29 Sep.

https://www.nzx.com/announcements/359586

[HKG2301]

For interest, I've just received my allocation from yesterday's placement and I've been allocated 32.7% of my requested shares.

So I guess the placement was > 3 times over-subscribed?

[tim23]

For interest, I've just received my allocation from yesterday's placement and I've been allocated 32.7% of my requested shares.

So I guess the placement was > 3 times over-subscribed?

Sounds about right to me

[percy]

Cant seem to find a thread on here so will start a thread here.

Was wondering what are some of the thoughts of the fund so will kick it off with my take.

One of the smallest (57m market cap) and poorest performers (down ~42% ytd) in the property investment currently listed on the NZX. One of the more unlucky funds which had to withdraw their capital raising in early March that were meant to fund development cost at Murone lane (future office space for Auckland council https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12295344).

Current Portfolio (Aug20)
- Eastgate $47.40m : Chch mall and recently announced a new lease with RBD for a new buidling on site maybe Tacos or KFC? Currently makes up ~39% of their active rental income (sub 95% occupancy)

- Stoddard Road $38.50m : Small shopping center complex in Mt Albert with 100% occupancy ~28% of rental

-35 Graham Street $57.50m Slight problem child, largest valued property currently lease to Auckland council but is due to end in Dec21. They have yet to decide on what development option will be next tho it range from almost a complete rebuild to mild refurbishment, with the earlier requiring a significant capital injection.

Munroe Lane (bare land) $7.50m : Empty land in Albany that was meant to be leased to Council upon completion. Subjective to market condition they would most likely be looking to a capital raise of some sort. (Withdrew capital raising of 100m in Mar)

Kamo (bare land) $2.50m : NM

Their debt level is on the upper end with LVR just about ~34% and are trading at about ~63cps NTA and about 40% discount at current trading price. Being a small property fund they have always traded at a slight discount of about ~10% pre-covid.

Their financials are ok at best, being a small property fund does means they do not enjoy the same level of cost efficiency however have managed in the past to somewhat sustain an annual net dividend payment of 3.6cps however have indicated recently this will likely drop by half for this FY at the minimum, which is still a decent yield.

Their main downside risk would be just the lack of scale in their property portfolio ~7% doesnt generate any income and will need significant capital to do so and their largest income source that is due to have their lease end in the next year. So quite likely to see the dividend tap to be turned off in exchange for more capital being raised.

With all that being said, there are decent value proposition in this company and maybe some potentials to be a takeover target given it size and discount. Also Interesting to note that the properties are all managed by Augusta (recently taken over).

Hopefully this can kick off some discussion and keen to hear what opinions if any might be :)

Have you walked through Eastgate Mall.?

[dubya]

Have you walked through Eastgate Mall.?

Yeah lol. It's pretty depressing isn't it Percy?!
Every second shop seems to be empty and boarded up.

[Sneakybearmarket]

Have you walked through Eastgate Mall.?

Yea its not the greatest, however given their headroom and the need for future funding... they have already expressed their intention to divest either Eastgate and or Stoddard to fund future development cost. Not sure how much I like the idea of restructuring their portfolio to become much more or entirely exposed to Auckland office sector.

[HKG2301]

... plus this update on substantial shareholders:

Augusta Capital: 18.9%
Salt Funds Management: 14.7%
ACC: 8.6%

...and the Retail Entitlement offer for existing shareholders will be open from 15-29 Sep.

Announcement from Westpac this morning, that they've increased their holding in APL from 18,832,528 shares (11.63%) to 41,105,763 shares (15.96%).

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/APL/359873/330862.pdf

[HKG2301]

And an update from Salt Funds Management Ltd, increasing their holding from 23,812,330 (14.7%) to 51,341,976 (19.9%).

The release also notes: "In addition Salt were allocated (but not yet settled or allotted) 2,000,000shares under the retail offer, with settlement and allotment expected to occur on 02/10/10. Assuch these are not included in this notice".

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/APL/359950/330968.pdf

[HKG2301]

And from ACC, increasing their holding from 13,877,373 (8.57%) to 31,086,689(12.07%).

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/APL/359949/330967.pdf

[tim23]

Encouraging news, like the fact that the council are anchor tenant in new development. Expect price to firm post issue - disc holder.

[HKG2301]

Lots of detail on the capital raise, plus this update on substantial shareholders:

Augusta Capital: 18.9%
Salt Funds Management: 14.7%
ACC: 8.6%


So the latest update on substantial shareholders after the initial placement seems to be:

Augusta Capital: 20% *
Salt Funds Management: 20% *
Westpac: 16%
ACC: 12%

* Allotment of additional shares is calculated to maintain a less than 20% shareholding in order to preserve APL’s PIE status.

The Retail Offer closes on 29 Sep with settlement on 2 Oct 20.

[nztx]

When did APL go Ex for the Retail CI ?

[tim23]

When did APL go Ex for the Retail CI ?

15 September I think was 1st ex rights trading day

[Sneakybearmarket]

14 sept was the record date

[Jamie]

NZSA not thrilled.....?

1. Munroe Lane Development (as set out in the Notice of Meeting).This resolution is to ratify and approve the agreement to develop and lease the development and toundertake the development. NZSA notes its ongoing concerns around the tenanting of the developmentonce completed.

[HKG2301]

Yeah, worth reading the NZSA notes concerning their proxy votes for the Special Shareholders meeting on 29 Sep.

Particularly relating to Resolution 2, where they note that "Even if retail shareholders take up all their entitlement, they will still be diluted", which sets a fairly dodgy precedent:

https://www.nzshareholders.co.nz/pdf/proxies/_APL_PVI_2020_SSM_.pdf

I'm covered in that respect, having bought extra shares through the initial placement on 10 Sep, but still a concern so I will leave my proxy with NZSA for the meeting and see how this pans out...

[HKG2301]

Yeah, worth reading the NZSA notes concerning their proxy votes for the Special Shareholders meeting on 29 Sep.

Particularly relating to Resolution 2, where they note that "Even if retail shareholders take up all their entitlement, they will still be diluted", which sets a fairly dodgy precedent:

https://www.nzshareholders.co.nz/pdf/proxies/_APL_PVI_2020_SSM_.pdf

I'm covered in that respect, having bought extra shares through the initial placement on 10 Sep, but still a concern so I will leave my proxy with NZSA for the meeting and see how this pans out...

A good reminder - if one were needed - to be a member of NZSA and support their best efforts on our behalf!

[APH1]

Larger then normal volume today

Total Trades
Total Volume
Last Trade
V.W.A.P.


64
2,008,768
30
29.99

[Ltw]

Latest announcements state the are going unconditional on a number of deals.
I thought this would have given the stock a bit more of a bounce.... Thoughts?

[bottomfeeder]

I bought in a month ago $50k bought in at .305. I dont see a quick profit in this. In it for the long term and dividend yield. I think will take at least two years for efficiencies and inflation to start the SP moving with any great moment. Too new a company. They dont manage their properties it appears, Augusta is creaming some off the top.

Ive only looked at it in a cursory way.

[Bev73]

Bottomfeeder, this is National Property Trust with a new name.

[Ltw]

Someone decided to throw 45k at it aswell bottom feeder.
I agree on the long term idea it looks to be strengthening its outlook that's for sure

[Ltw]

Some good volume pumped through today

[bung5]

Some good volume pumped through today


Would expect this to settle around 40-50c in the next 12 months. however it doesn't happy to be buying more at current price.
My expectation is that it will be providing good profit dividends 2022 onwards

[Nigel]

Trading at 42% discount to NTA. Munroe Lane development good to go. Happily holding with expectations of big things to come.

[Ltw]

Looks like there is a few following suit in topping up

[Ltw]

Nice:

Dividend
A quarterly dividend has been declared, with the record date set for 4
December 2020 and payment on 11 December 2020. This represents a pay out
ratio of 89% for the first half reflecting the increased shares on issue.

The gross dividend for the quarter is 0.56 cents per share.

[bottomfeeder]

Good result, shows promise for the future. Long term hold for me. Good dividend yield. Looking for SP of 50 cents, within next 18 months.

[Ltw]

SP of 50 cents will be nice BF I jumped into this not to long ago and it is serving me well

[Jantar]

I have taken a small nibble at this as well. Mainly for the dividend and that it is trading at less than NTA, so it appears to have little downside risk.

[Ltw]

Another Dividend coming up..... Cher Cher

[JohnnyTheHorse]

6.5% gross at current price and a substantial discount to NTA. Trades at a discount due to it's smaller size (less diversification) and development risk. With the way property prices are going I expect to see this discount shrink.

[Nigel]

Most stocks in my portfolio got hammered in March 2020 and then recovered. However, APL is still way down on its pre-COVID levels. As mentioend above, it is at a massive discount to NTA, and it has approvals and tenants in place for its flagship Albany development. Yes, a bit riskier than ARG/GMT/PCT etc due to its smaller size, but well worth a look at these levels.

[Ltw]

APL got the fire stoked this morning. :t_up:

[Jamie]

7/30 = 23.33%

[klid]

But Taco Bell is coming :t_up:

[nztx]

Name change after this ? .. perhaps 'Asset Minus One' ? ;)

[HKG2301]

Most stocks in my portfolio got hammered in March 2020 and then recovered. However, APL is still way down on its pre-COVID levels. As mentioend above, it is at a massive discount to NTA, and it has approvals and tenants in place for its flagship Albany development. Yes, a bit riskier than ARG/GMT/PCT etc due to its smaller size, but well worth a look at these levels.

I agree, but reckon there's a fair overhang of shares yet to be sold by investors who bought into the retail entitlement offer at $0.30 in October and will want to take profits on at least some of them. I unloaded quite a few at $0.36 and $0.375 last month to cover, and expect many others will be doing the same.

As that offer-induced selling pressure dies back, I expect the SP will slowly but surely creep back to the $0.40 level later this year. Hopefully higher?

[Discl: I still retain a sizable holding.]

[Grimy]

I'd be more than happy with a creep up to $1...........

[Nigel]

Let's start with reaching net tangible asset level, 51 cents.

[Getty]

And following sale of Eastgate, NTA will be 44c.

[HKG2301]

I'd be more than happy with a creep up to $1...........

Thanks, decimal points added. Doh!

:blush:

[dibble]

6.5% gross at current price and a substantial discount to NTA. Trades at a discount due to it's smaller size (less diversification) and development risk. With the way property prices are going I expect to see this discount shrink.

Beware divs are part funded from capital (and by inference, the recent capital raise, a strange way to run a growth business). They own lower grade assets, not all of which currently produce rent and a lot of hope is being pinned on a couple of developments and the Auckland Council as a tenant. So decent chance the NTA will reduce, tho I guess you still get your discount shrinkage.

Also just note Augusta, who hold the management contract, are probably making a pretty penny out of everything APL touches, I cant be bothered checking the accounts but that's typically how they roll.
That said there is hope with the change of focus.

[HKG2301]

$5,000 divi' received - Nice! :t_up:

[bung5]

Beware divs are part funded from capital (and by inference, the recent capital raise, a strange way to run a growth business). They own lower grade assets, not all of which currently produce rent and a lot of hope is being pinned on a couple of developments and the Auckland Council as a tenant. So decent chance the NTA will reduce, tho I guess you still get your discount shrinkage.



The only reason that is the case is due to the 120mil development cost of the Auckland CC office over the next 18 months. Cashflow from operations well exceeds the dividends paid.
Once Auckland office completes dividends will likely increase significantly

[dibble]

Cashflow from operations well exceeds the dividends paid.
Once Auckland office completes dividends will likely increase significantly

Guess that depends where you go for your DYOR.
Your info is more fun so stick with it. If yours is more up to date and/or correct Im as happy as you as I have a few which I foolishly didnt flog at 60c.

[bung5]

Duplicate message

[bung5]

Duplicate message

[bung5]

Duplicate message

[bung5]

Guess that depends where you go for your DYOR.
Your info is more fun so stick with it. If yours is more up to date and/or correct Im as happy as you as I have a few which I foolishly didnt flog at 60c.

What part do you disagree with exactly? I'm saying cashflows from operations ( excluding the development cost of new buildings ) exceed dividend payout . This can be extracted from the latest financial report

[dibble]

What part do you disagree with exactly? I'm saying cashflows from operations ( excluding the development cost of new buildings ) exceed dividend payout . This can be extracted from the latest financial report

They have a 31mar FY so best you'll get is interim Sep which is before the capital raise was ironed out. There was an online presentation around then, useful investor question or two.

[JohnnyTheHorse]

Pretty odd opening trade of 600,000 shares at 34c when it hasn't been recently trading at that level and there's no bid depth until 32c.

[bottomfeeder]

Pretty odd opening trade of 600,000 shares at 34c when it hasn't been recently trading at that level and there's no bid depth until 32c.

Don't know what it means, for every buyer there is a seller and vica versa.

[HITMAN]

So I wasn't expecting that closing price... what's going on?

[Getty]

So I wasn't expecting that closing price... what's going on?

Good question, its got a smell of a dividend cancellation/suspension about it.

[na2m1]

Probably the interest rate increase is driving the price down. I see this as an opportunity

[bottomfeeder]

Asset plus is a puppet of Augusta. I sold down half of my holding a month ago. Graham Street redevelopment, which is a major part of their portfolio is a money pit with nothing to show for it till 2023. Leasing may be difficult as well. Cost overruns will no doubt be incurred.

[bung5]

They already confirmed nearly all costs are fixed for graham street development. The upside is NTA is only calculated on money spent to date and once complete will be valuated significantly to the upside. Also they have already secured Auckland City Council as anchor tenant on long term lease.
18 months time I will expect a NTA close to double current share piece and ability to pay fat dividends

[bottomfeeder]

Current developments, Munroe and Graham, will stifle the SP for another 18 months. If you want to hold and can afford to hold till then you will be rewarded. Unless Augusta launches a takeover at a cheap price leading up to the developments being completed.

[Getty]

Good question, its got a smell of a dividend cancellation/suspension about it.

Confirmation of normal div payment on 14th Dec in today's ann.

[Nigel]

Was the drop in price from 60c to 35c a couple of years back caused by Covid? Interesting that there has been no recovery since then.

[ralph]

Was the drop in price from 60c to 35c a couple of years back caused by Covid? Interesting that there has been no recovery since then.
My opinion is that when the share placement was rolled out at 30 cps that set a benchmark and it has never really gone back up even though that money was well used on developments .

[Jantar]

The P/E is very low at only 5.16, and the NTA is $0.45. The dividends are also paying over 5% after tax.

All those together suggest that this stock is way undervalued, but the Divis alone make this one better than money in the bank. I am, happy to keep holding.

[ralph]

The P/E is very low at only 5.16, and the NTA is $0.45. The dividends are also paying over 5% after tax.

All those together suggest that this stock is way undervalued, but the Divis alone make this one better than money in the bank. I am, happy to keep holding.
Totally me to the divis constant ,cant work out why its being kept down but I to am happy to hold

[Jamie]

liquidate the company assets and return the $0.45 (shareholder funds) to shareholders........

[Scrunch]

Totally me to the divis constant ,cant work out why its being kept down but I to am happy to hold

There's a few key reasons:
1. Its small and therefore has less analyst coverage/less in-depth analysis.
2. Being outside key indicies like NZX50, there will be limited to no passive institutional buying
3. There isn't that much liquidity - which keeps the traders and big boys away
4. They have/are developing space which is not fully tenanted. A good tenant signing could be a re-rating event
5. Its unclear what exposure they have to rising construction costs on current developments. Fixed price contracts aren't always as fixed as they are presented to be.
6. Interest rates are rising, so the cap-rate used in valuations is also likely to rise. This will lower NTA's in the future so discounts rather than premiums to NTA's may become the norm in the sector for a while until valuations are done on current interest rate models.

That noted, you are correct that buying at a discount to NTA means a higher dividend yield.
Disc holding

[Grimy]

They did also recently indicate that a lot of their properties are not going to be producing income for a fair while due to ongoing development/redevelopment, so no paying tenants. I would not be surprised to see the div reduce before long for a year or more. Having said that (and as I am retired I look for dividends) a lower dividend may bring the share price down further, which would be a top-up point for me.

[bottomfeeder]

Yep have to agree Grimy. Unless the economy collapses totally, in another year and a half will be at .40 or .45, But I suspect Augusta will pick a time for a takeover at .35.

[ralph]

They did also recently indicate that a lot of their properties are not going to be producing income for a fair while due to ongoing development/redevelopment, so no paying tenants. I would not be surprised to see the div reduce before long for a year or more. Having said that (and as I am retired I look for dividends) a lower dividend may bring the share price down further, which would be a top-up point for me.

Good top up point for you now Grimy .

[Grimy]

Keeping my eye on it!
Almost bought some more yesterday, but not convinced it won't go lower.....
Already have a reasonable number too.

[ralph]

Keeping my eye on it!
Almost bought some more yesterday, but not convinced it won't go lower.....
Already have a reasonable number too.
Me to Grimy ,Time to reinvest some of those dividends 30 cps or less a good buy ,and just about everything is going lower!!

[Getty]

Yep have to agree Grimy. Unless the economy collapses totally, in another year and a half will be at .40 or .45, But I suspect Augusta will pick a time for a takeover at .35.

And if only 35c is offered, then existing holders should have the fortitude to say "go away, and annoy somebody else..."

[Grimy]

Was hoping for a dividend announcement by now (or an announcement of no div). Eastgate settlement was announced some time back to be completed in April. Perhaps waiting to finalise this before deciding on dividend amount/timing?

[Nigel]

Do they still borrow to pay the dividend?

[Grimy]

0.225cents + imputation credit (half the recent payment amounts) to be paid on the 25/3 (3rd quarter).
No 4th quarter dividend to be paid. Capital to be retained while sorting out Graham Street and finishing Munroe Lane (sounds sensible to me).
Drop in dividend has been well communicated, so not a surprise. Not so the suspension of the next one.
Ex div on the 17th.
Eastgate sale could be a little delayed.

[na2m1]

This share seems to have been hammered. Is it a good entry point?

[Grimy]

Probably not until there is some clarity regarding resumption of the dividend, and at what level, but more importantly, updates on the progress with both Graham Street and Munroe Lane as far as building/renovation/leasing are going.
If there are any surprises to the downside the entry price could get better!

[Southern Lad]

Sale of 35 Graham Street, Auckland - NZX, New Zealand’s Exchange (https://www.nzx.com/announcements/390518)

Despite APL's best efforts to spin this as a good outcome for shareholders, the waiving of the white flag on Graham Street is a massive failure of APL's strategy. The drawn out nature of the sale (potentially as late as December 2024) ties up APL's flexibility to move on. Where to from here for APL?

[Grimy]

Has certainly moved the share price so far this morning.
But the settlement date(s) are out there. You'd think they would have pushed for something like this December, with an optional extension to sometime 2023.
I did think Graham Street would either hold them back, or be the jewel of the portfolio after refurbishment. So not really too sure if I'm pleased or not.
But certainly not with the settlement dates.
Perhaps this will give them confidence to reinstate the dividend. But you'd think they knew this was coming up/possible when they cut the recent dividend in half and shelved the next one.
So on balance I'm not that impressed....

[bottomfeeder]

Has certainly moved the share price so far this morning.
But the settlement date(s) are out there. You'd think they would have pushed for something like this December, with an optional extension to sometime 2023.
I did think Graham Street would either hold them back, or be the jewel of the portfolio after refurbishment. So not really too sure if I'm pleased or not.
But certainly not with the settlement dates.
Perhaps this will give them confidence to reinstate the dividend. But you'd think they knew this was coming up/possible when they cut the recent dividend in half and shelved the next one.
So on balance I'm not that impressed....
It's a bit of skulduggery if you ask me, similar to Russian oligarchs stripping their companies assets at less than market value. APL has done all the groundwork on Graham Street fir so long, funded it, took substantial risks, and for what a piddly few million. On top of that we can be holding the baby for a few years yet. Who completes and maintains the property in the meantime. I thought that there would be a takeover by Augusta at a low 35 cents. It is a bit of a back door takeover. I wonder who the purchaser is, probably Augusta. I wonder why they won't say.
It stinks to high heaven. Minority shareholders are being shafted well and truly.

[ralph]

It's a bit of skulduggery if you ask me, similar to Russian oligarchs stripping their companies assets at less than market value. APL has done all the groundwork on Graham Street fir so long, funded it, took substantial risks, and for what a piddly few million. On top of that we can be holding the baby for a few years yet. Who completes and maintains the property in the meantime. I thought that there would be a takeover by Augusta at a low 35 cents. It is a bit of a back door takeover. I wonder who the purchaser is, probably Augusta. I wonder why they won't say.
It stinks to high heaven. Minority shareholders are being shafted well and truly.
I am quite happy as I added a few more at.26 & 28 and we are back in profit ,they probably responded to the sp with this sale looking after their shareholders :t_up: sorry for anyone whom missed out on the temporary sale prices

[Jamie]

indications from the professionals that worth 0.34

[Sideshow Bob]

Annual Financial Result - NZX, New Zealand’s Exchange (https://www.nzx.com/announcements/392365)

• Total profit after tax of $2.93 million, down from $15.95 million in the previous year mostly due to relatively flat year-on-year valuations
• Sale of 35 Graham Street for $65 million on a deferred settlement basis, subject to shareholder approval
• Munroe Lane development further delayed due to COVID-19 disruptions, completion now expected in quarter ending 30 June 2023 – no material financial impact from delays
• No Q4 dividend paid - dividend pay out for the year represents 97% of AFFO

Asset Plus Limited (NZX: APL) announces its financial result for the year ended 31 March 2022, reporting a total profit of $2.93 million, down from $15.95 million in the previous year. The result was impacted by relatively flat valuations, as well as the loss of rental income at the 35 Graham Street property.

[Grimy]

Eastgate settlement due July. Still not too happy on the long settlement date for Graham st.
The NTA up slightly, but was a little surprised to see the share price increase.

[bottomfeeder]

Eastgate settlement due July. Still not too happy on the long settlement date for Graham st.
The NTA up slightly, but was a little surprised to see the share price increase.

Me too, so I got out totally at 32. Why would the SP go up, when the company was in the throes of completing the Graham St development, and then gets rid of it at a (hardly worth mentioning) profit. Its like we are the idiots that do the hard yards and have the rug pulled out from underneath us. Why wont they tell us who the purchaser is.

[Grimy]

Selling Eastgate/Graham St/Kamo, basically leaving Munro Lane and Stoddard Road.
I don't go past either often, but Stoddard Road shops usually look quite busy and Munro is in a great location and should be a high class building.
Feel like the business is shrinking into an old-style syndicate, rather than a listed property company. Just not sure what the long-term vision is.

[bottomfeeder]

Selling Eastgate/Graham St/Kamo, basically leaving Munro Lane and Stoddard Road.
I don't go past either often, but Stoddard Road shops usually look quite busy and Munro is in a great location and should be a high class building.
Feel like the business is shrinking into an old-style syndicate, rather than a listed property company. Just not sure what the long-term vision is.

Can see the new announcement soon, Munro Lane sold at cost to the same buyer.

[Grimy]

'NZX notice, yesterday. - 'Asset Plus is pleased to confirm that the sale of Eastgate Shopping Centre has successfully settled this afternoon.
From the sale proceeds, $40 million has been applied towards repaying the Company’s BNZ facility with the balance retained as working capital.'

They were cutting it a bit fine (had until tomorrow to sort out the last minute problem that cropped up). They said at the presentation a week or so back that they were sure it would be sorted before the 31st.
So that's Eastgate gone, some funding for Munro Lane and no doubt a happy BNZ.

[na2m1]

Been following this company for awhile. I dont know what is their long term vision. Seems like they are flipping real estate at this point.

[Grimy]

ACC buying up big. Holding almost 13% after their last announcement.

[Aaron]

The council offices will be finished shortly. I wonder if Wayne Brown would look at trying to wriggle out of the lease as part of his cost cutting exercises.

Does anyone get into the minutiae of things such as the lease agreement. Would building delays give the ARC an out if they decided they could manage with what they have or if they could use spare offices from the harbour bridge cycleway team or the three waters team.

[Aaron]

The council offices will be finished shortly. I wonder if Wayne Brown would look at trying to wriggle out of the lease as part of his cost cutting exercises.

Does anyone get into the minutiae of things such as the lease agreement. Would building delays give the ARC an out if they decided they could manage with what they have or if they could use spare offices from the harbour bridge cycleway team or the three waters team.

Looks like ARC can't wriggle out of the lease but is subletting a floor if it can.

https://www.nzherald.co.nz/business/auckland-council-five-building-retreat-big-cost-cutting-exercise-tenants-sought/K6GJM6I4Y5FVNDBMOI7PTNCA3A/

[Sideshow Bob]

FY Result

https://www.nzx.com/announcements/412156

[kiwikeith]

Has looked for a long time that this company is in the process of winding up. Trades at a sizeable discount to net asset value. Things should improve if they can lease the vacant space in their council building before selling it.

[dibble]

Has looked for a long time that this company is in the process of winding up. Trades at a sizeable discount to net asset value. Things should improve if they can lease the vacant space in their council building before selling it.

Must say, the wind up paragraph came as a bit of a surprise. I'd sort of been expecting a takeover. Centuria, as managers, hold a small stake (from memory... so they can spout that "our objectives are aligned" jibberish) but the real value for them is cheeky fee extraction along the way whilst the shareholders carry the development risk. Then as that risk is nears nil, something they would know better than anyone, make a 28c offer for a 35-45c asset.

But now its finished, lease commenced, my theory debunked. Probably.

Wind up seems best solution, listed company for one asset not overly efficient.