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rmbbrave
17-04-2005, 12:37 PM
Skellmax Industries is dropping out of the sharemarket's top 50.

The New Zealand Exchange said the rubber products company would be deleted from the NZSX 50 Index on May 2. Its place would be taken by Macquarie Goodman Property Trust which would also be added to the NZSX 50 Portfolio Index and the NZSX MidCap Index at Skellmax's expense. Skellmax will join the NZX SCI Index for smaller companies and Macquarie Goodman will be removed.

Fundamentals : Macquarie Goodman Property Trust Ordinary Units

Total Issue 341,691,679

Market Capitalisation $392,945,431 (@ 115)

Full Year Profit 16,569,000 (NZD)

Earnings/Share 10.7900 cents

Price/Earnings Ratio 10.6580

NTA/Share 97.5800 (NZD) cents

Dividend/Share 9.8000 (NZD) cents

Dividend Yield 8.5%



Funds that purport follow the NZ50 will have to buy some MGP so I predict a rise in the SP. In the last year the shares have gone from 1.02 to 1.15 which is hardly spectacular. However, if they have paid 8.5% dividend over that time then that's 20%.

Does anyone think this trust might be worth investing in?

Lawso
18-04-2005, 09:32 AM
to rmbbrave:
There's plenty of discussion about MGP on the existing thread - 'MGP - is it a good stock?', as recently as last Friday.
I'm a happy holder and have just acquired a further 8000 units.

rmbbrave
06-04-2006, 11:52 PM
Safe as houses but bargains hard to find

05.04.06
By Anne Gibson


Rental growth will slow and capitalisation rates and asset values become more stable in the listed property sector, an analyst forecasts.

Mark Lister, of ABN Amro Craigs, said he was generally optimistic about the property market's underlying fundamentals in the coming year but was predicting a slight change.

"We expect growth in asset values to slow down, although the weight of capital globally that is destined for low-risk assets is likely to keep prices supported at current levels," he said.

"We do not expect to see steep increases in net tangible assets and revaluations that we have over the last few reporting periods, although in particular Kiwi Income Property Trust and ING Property Trust are likely to report strong gains, with their valuations looking particularly dated."

He is picking a 10 per cent total return from the sector, with the majority coming from dividends, not unit or share price rises.

The sector could take further heart from a Treasury forecast which said that by 2010, the NZ Super Fund would have invested $2.4 billion in property - a significant portion of it domestically.

Lister ranked the sector by total returns and found Calan Healthcare Properties Trust the standout performer.

"Arguably it came off the lowest base, with a significant number of non-yielding asset sales which led to the market re-rating Calan," he said of the trust, whose management has been sold to ING.

He also predicted that ING would eventually merge Calan into its existing property trust.

Second-best performer was Property For Industry which Lister said reflected the excellent fortunes of the industrial sector in which it specialised.

The company had a "brilliant" track record, organic growth opportunities and a low risk profile.

"However as with most quality companies, PFI is expensive. Its current yield is below the sector average at 6.4 per cent and it trades at a 13.9 per cent premium to NTA, although it has historically always traded at a premium of around 10 per cent. At $1.31, PFI is well above our valuation of $1.16 and as much as we like the stock, it is difficult to justify at these levels."

Lister said Macquarie Goodman Property Trust provided a cheaper exposure to the industrial market but its portfolio was still dominated by office assets, in spite of its industrial tag.

Ground leases and rental guarantees attracted a higher-risk profile too.

ING appeared to be one of the only value opportunities in the sector.

"We regard ING's office and retail portfolio as lower quality than other listed property trusts such as Kiwi and AMP Property Trust, so in a slowing economy, ING's tenants will run into trouble first and with demand likely to fall away earlier it does deserve a slightly higher risk profile," Lister said.

AMP was an attractive stock for investors who are non-taxpayers because of its low imputation of dividends. It had an element of under-renting in its portfolio so there was potential for some upside for rental growth over the coming years.

National Property Trust is the only stock Lister recommends selling, citing asset value writedowns, high gearing, dividend cuts and badly managed developments which had all plagued the trust.

rmbbrave
11-05-2006, 10:50 PM
Macquarie Goodman Property profit lifts 98 per cent

11.05.06 4.00pm


The country's second biggest listed property investor, Macquarie Goodman Property Trust (MGP), today reported a 98 per cent rise in full year profit, driven by major acquisitions.

The trust reported a net profit after tax of $35.1 million for the year to March 31 compared with a $17.7 million profit the previous year.

A further gain of $27.8m was made after a revaluation of the company's portfolio of office and commercial buildings.

MGP's assets jumped from about $500m to just under $1 billion during the year after it acquired a portfolio of industrial and business properties from its cornerstone unit holder, Australia's Macquarie Goodman Group.

That made it the second-biggest listed property investor on the NZX, after Kiwi Income Property Trust, with a market capitalisation of $623m.

Total operating revenue jumped 145 per cent to $53.2m, due largely to the $300m purchase of Macquarie Goodman's assets in March this year.

MGP chief executive John Dakin said the trust would continue to invest in high-quality investment properties.

"While business growth is expected to slow over the short term, the industrial and business space sectors continue to experience strong occupier demand," he said.

MGP units last traded down 2c at $1.25 against a year high of $1.28 and a low of $1.15.

Since balance date, MGP has bought two warehouse and manufacturing properties from media group APN for $21m in a sale and leaseback deal.

- NZPA

rmbbrave
11-05-2006, 10:55 PM
quote:Originally posted by Lawso

to rmbbrave:
There's plenty of discussion about MGP on the existing thread - 'MGP - is it a good stock?', as recently as last Friday.
I'm a happy holder and have just acquired a further 8000 units.


Comrade Lawso,

I like these property trusts.

I have a few MGP, a few ING and a few PFI.

I used to have CHP too but not now.

They are fun to buy on dips and sell on peaks. Even if you fu(k up and buy too high in a few months every thing works out anyway.

They seem to be much of a muchness so I'd like to keep 'em together if you don't mind.

rmbbrave
04-06-2006, 10:19 AM
Commercial property on roll
04 June 2006
By GREG NINNESS

Spectacular capital gains booked by many listed property vehicles have been a notable feature of the recent commercial property market.


In many cases the revaluation gains of the past 12 months have been at record levels. Many property-based trusts and companies made a bigger profit from the increasing value of their assets than they did from the rental income those assets produced.

But can the good times last?

Commonsense suggests that such high capital gain rates must inevitably slow. And if they do, what effect could that have on share and unit prices.

Because capital gains are a paper profit they do not directly affect the dividends paid by most listed property vehicles. However they do underpin their share or unit prices.

One effect of a substantial gain in the value of a company or unit trust's assets is to lift its net tangible asset (NTA) backing per share.

Share or unit prices for property-based investment vehicles tend to follow movements in NTA. If they don't, the vehicle can become a target for corporate raiders with an eye on buying it cheaply and flogging off its assets for a quick profit.

Rising asset values also strengthen the balance sheet and can reduce debt ratios or increase the capacity of a business to make further acquisitions.

Provided the company or trust's managers get their sums right, this can lead to growth in future earnings, which also encourages a higher share price.

So it is not surprising that the share and unit prices of the investment vehicles in the accompanying table have grown at a far greater rate over the past two years than their dividends. They have been substantially fuelled by exceptional increases in underlying property values.

The large listed property vehicles generally own buildings occupied by blue chip tenants on long-term leases. This means that changes to their rental income and the effect this could have on their ability to pay a dividend can usually be forecast with a fair degree of reliability.

Not so changes in asset values and the flow-on effects this can have on share and unit prices. Fund managers and analysts are usually reluctant to make predictions on this.

"I think the size of the (revaluation) increases will slow, nevertheless we'll still get growth," was as specific as Kiwi Income Property Trust's chief executive, Angus McNaughton, was prepared to be. His counterpart at Macquarie Goodman Property Trust, John Dakin, was even more circumspect.

"We're not in the business of making forecasts," he said.

One person prepared to make a forecast was Zoltan Moricz, the research director at CB Richard Ellis.

Moricz is revising his outlook for the property market downwards as a result of falling business investment.

"Falling business investment will directly impact on the occupier side of the property market through lower net (space) absorption as businesses become reluctant to invest in extra capacity. As a result, our underlying occupier demand forecasts over 2006 and 2007 have softened," he wrote in a market report.

The report is not all doom and gloom. Moricz still sees growth occurring but at a lower rate. And there will be sharp differences in how different types of properties perform.

In the CBD, Moricz said capital growth was likely to average 5% a year over the next five years for prime office buildings at the top of the market.

At the bottom of the market, C-grade office buildings were likely to show almost no capital gain over the next five years, with Moricz predicating average annual price increases of just 0.2%.

He believes the industrial market, one of the hottest sectors of the past few years, will also cool.

He is picking prime industrial buildings to provide average annual capital growth of 3.2% over the next five years while secondary industrial buildings will average 2%.

The high performing retail sector will also slow, with capital gains likely to range between 1.3% to 3.4% a year.

If Moricz

Flying Goat
05-06-2006, 09:02 PM
Caveat Re ING Property Trust (don't know if the same things need to be looked out for on others or not as I haven't held any others...)

READ THE FINE PRINT

They are quick to point out the increases in holdings, massive earnings growth, record revaluation gains etc... but if you look more closely the real drivers behind this are additional units issued, and as a result (of dilution) the earnings per unit are strongly diminishing. The earnings per unit you will only find it buried in the depth of the notes appended to the financial statements. ING had been issuing additional units (at a discount no less) to institutional buyers including their parent company. They are now also issuing units to all shareholders, also at a slight discount. Moral of the story: it is easy to issue new units, buy more buildigs, management rights etc. and proclaim to be growing but the truth is if the eps is declining as a result, they are buying growth at too high a price....! However, in their defence they have had reasonable returns over the last few years and have a strong yield so will be popular for some...

Disc

NZX: PPL / RYM
ASX BPC / RPC / FXJ

Snow Leopard
06-06-2006, 06:56 AM
Have a look at this National Property Trust (http://www.sharetrader.co.nz/topic.asp?TOPIC_ID=23300) discussion.

Caesius
13-06-2006, 11:05 AM
What is the general opinion of CHP as an investment and, of more interest to me, a trading stock? It seems to have followed a trendline quite nicely for the past year, hitting it bang on 5 times and almost touching it multiple other times. It also seems relatively volatile.

What can be made from this chart? I'm curious to know what the big "spike" back in Feb->Mar->Apr this year was?

http://www4.upload2.net/download/CbDCLpsridu9JxR/chp12.png

rmbbrave
18-06-2006, 10:54 AM
Bureaucrats boost building boom
18 June 2006

Commercial property is getting a lift as state departments move into state-of-the-art buildings in the heart of the capital. Greg Ninness reports.


Wellington property investors have the government to thank for surging profits as a ballooning bureaucracy pushes demand for floor space to new heights.

In the past year, the public sector has occupied an additional 28,000sq m of floor space in Wellington. Since 2001, the extra space occupied is 100,000sq m, a report by valuer TelferYoung has found.

That has underpinned a boom in Wellington's commercial property market and generated extraordinary profits for investors.

The Property Council says total returns (income plus capital gains) from Wellington CBD office buildings were 21.6% last year and 20.5% in 2004.

There was no debate about the reason, said Rohan Hill, a commercial leasing specialist with Bayleys in Wellington.

"It's been underpinned by growth in the government sector, there's no question about that."

AdvertisementAdvertisementThe government sector now occupies nearly 40% of the office space in Wellington's CBD and the ongoing expansion of the public service is creating continuing demand from government departments looking for more space.

The bureaucracy factor is expected to keep Wellington's commercial property market booming for at least the next two years.

The State Services Commission says the number of bureaucrats employed in the core public service, the 37 ministries and departments under direct ministerial control, grew by 29% between 1999 and last year.

The commission figures relate to the true administrative heart of government activity because they exclude people working for state-owned enterprises such as NZ Post and those working in semi-autonomous arms of government such as the police and armed services.

They would include staff working for the Ministry of Health, but exclude employees of public hospitals. Similarly, they would include staff employed by the Ministry of Education, but exclude those working in schools. As well as having to accommodate the extra staff, government departments have been significantly improving the standard of their premises over the past few years and many now occupy some of the most valuable office buildings in the country.

Hill has observed the march of the mandarins into the CBD over the past two decades.

"Twenty years ago when I first started working in commercial property, you would go into the oldest and hardest-to-lease buildings and you would find a government agency there," said Hill.

"Today you go into the better grade, newer buildings in town and you find a government agency. There's been a total change in the environment that the government provides for its staff."

Last month, Wellington's largest government sector landlord, Capital Properties, which was the subject of a hostile takeover by AMP Property Portfolio last year, posted a net profit of $101.9 million - including an increase of which $84.7m came from a 13.6% rise in the value of its property portfolio. This followed a $79.1m revaluation gain last year.

Last week, AMP NZ Office Trust, which owns some of Wellington's largest government buildings, announced a revaluation gain of $126m on its portfolio.

In a statement to the stock exchange the company said: "ANZO's investment in the Wellington market in recent years had resulted in very strong returns for unitholders. Mayfair House, acquired in September last year for $29.3m, was now valued at $35.3m, representing a total return of 26% for the nine-month period."

As well as the need to accommodate more staff, several other factors are driving government agencies to upgrade their premises.

TelferYoung's research manager Philip Tomlinson said government departments had to compete with the private sector to attract and retain qualified staff. This meant they had to provide high-quality work environments in good locations.

"So there's been a been a significant improvement in th

rmbbrave
18-06-2006, 10:57 AM
13 Jun 2006 09:10
FORECAST: APT: Strong rental growth drives $126m revaluation gain for ANZO

Strong rental growth drives $126 million revaluation gain for AMP NZ Office
Trust

Growth in office rentals has been the major driver for a $126 million
portfolio revaluation gain announced today by New Zealand''s largest listed
investor in prime commercial office property, AMP NZ Office Trust (ANZO).

777
27-06-2006, 04:04 PM
So what is going on at KIP?
They are steadily moving up. Closed at 139 today.
Have we another CNZ in the making?

nelehdine
29-06-2006, 09:26 AM
Asset backing per share in annual report was $1.44 including the recent 5c dividend. That divi has now been paid so n.a.v. falls to $1.39. Stock is pretty fairly valued at these levels, the big question is will rents keep rising and yields keep falling to boost the shareprice even further ??

rmbbrave
12-07-2006, 08:29 AM
Property trust snaps up half of industrial park
12 July 2006

Listed property vehicle ING Property Trust is to unconditionally buy a 50 per cent stake in property company North East Industrial Ltd (Neil).


Neil owns 70 ha of industrial and commercial-zoned land in Palmerston North, known as the North East Industrial Park.

ING says it expects to receive an 8 per cent return on the 44.5ha of undeveloped land from the vendors until new buildings are completed and producing an income.

http://www.stuff.co.nz/stuff/0,2106,3728688a13,00.html

rmbbrave
12-07-2006, 08:32 AM
Ezibuy opens $10m centre
12 July 2006
By SUE ALLEN

Mail order company Ezibuy has opened a $10 million distribution centre in Palmerston North, the biggest in the Southern Hemisphere.

http://www.stuff.co.nz/stuff/0,2106,3728700a13,00.html

rmbbrave
12-07-2006, 08:34 AM
Caesius,

I'm curious to know what the big "spike" back in Feb->Mar->Apr this year was?

It was an aborted takeover (by ING I think)

rmbbrave
16-07-2006, 11:03 AM
In Palmy ING Property trusts
16 July 2006
By GREG NINNESS

ING Property Trust expects its newly acquired industrial estate in Palmerston North to be worth $300 million when it is finished in about seven years.


The trust has taken a 50% stake in North East Industrial Ltd, which owns the partially developed 70ha estate.

ING Property Trust managing director Andrew Evans said the trust would pay $20m for its share of North East Industrial, which would be run as a joint venture with North East Industrial's founders, Uruguay-based brothers Frederico and Jose Chamyan.

The Chamyan family is one of Uruguay's wealthiest, with extensive pastoral land holdings and a tannery business that employs more than 500 staff.

The brothers bought the land on the outskirts of Palmerston North several years ago and began developing it into an industrial estate. Their interests in this country have been managed by Palmerston North businessman Paul Barris, who will continue to represent them in the North East Industrial joint venture.

The project will be the first time the trust has entered into a joint venture arrangement and this has netted it a considerable prize.

A scarcity of industrial land in Wellington has made Palmerston North an increasingly attractive base for companies requiring large format premises from which to distribute goods around the lower North Island.

AdvertisementAdvertisementThe city's central location on the main trunk rail line is also attractive to major logistics companies looking to build large and efficient warehousing operations.

Grocery giant Foodstuffs has acquired a 10ha site adjacent to North East Industrial's Palmerston North estate on which it intends to build a new distribution centre to replace its existing facility in Wellington.

Currently, there are two fully developed properties on the estate. An enormous 27,000sqm distribution and administration centre for mail order retailer Ezibuy, which opened last week, and a recreation centre that includes a golf driving range and bowling alley. These are currently providing average yields of around 9.5%.

A new head office and distribution centre for livestock management systems supplier Allflex is also under construction.

This leaves about 44.5ha yet to be developed.

Evans said new developments within the estate would only be undertaken on a design and build basis once tenants had committed to them.

In the meantime, as part of the deal, the Chamyans have agreed to pay the trust holding income equivalent to a gross yield of 8% on its half share of the value of any undeveloped land, until it is developed and tenanted.

This arrangement would continue indefinitely and Evans said no deadline had been set on completing the estate, but he hoped it would be finished within seven years.

All development costs would be capitalised for each property within the estate.

rmbbrave
17-07-2006, 10:24 AM
quote:Originally posted by rmbbrave

Caesius,

I'm curious to know what the big "spike" back in Feb->Mar->Apr this year was?

It was an aborted takeover (by ING I think)


The zing has totally gone for shareholders in Calan Healthcare Property Trust, which was set up to own hospitals and related facilities and lease them to medical people. Calan's share price has gone nowhere after hopes of a takeover at up to $1.55 according to an independent valuation were dashed by some slick footwork. To almost universal surprise, property group ING, which had offered $1.21 a share, suddenly withdrew the offer. They instead paid between $7 million and $20 million for its lucrative management contract. This gave them effective control, largely removing any takeover premium.

http://www.stuff.co.nz/stuff/0,2106,3734392a1865,00.html

rmbbrave
04-08-2006, 11:41 AM
ANZO rides high on property demand
04 August 2006
By ADRIAN BATHGATE

AMP New Zealand Office Trust has clocked up the best result in its nine-year history as it reaps the rewards of massive demand for prime commercial property.


Executive manager Robert Lang said the $36 million net profit for the year to June and $126 million in portfolio growth represented its best all-round performance since listing in 1997.

"We've had strong performances everywhere, from valuation, investment projects, acquisitions, leasing and rent reviews."

He is now looking for that profit growth to be maintained as just over half of ANZO's assets will be up for rent review in the next two years.

Mr Lang said the net profit growth of 4.4 per cent and dividend growth of 2.25 per cent is "a good minimum return profile that we think is capable of being delivered in the future".

ABN Amro analyst Mark Lister said the under-renting in the portfolio was a "key positive". "It will underpin dividend growth over the next couple of years as they go through the rent review process."

Mr Lang said it was "critical" that future returns had been "de-risked" thanks to a low number of leases expiring, a lot of rent reviews, and well-hedged interest rates.

ANZO's portfolio of a dozen properties concentrates on prime office space in Wellington and Auckland, and its last revaluation pushed it over the $1 billion mark in assets. Net assets per share grew 21 per cent to $1.21.

It has just completed the $33 million development on No 1 The Terrace and is now looking for its next project. It has at least $150 million it could spend on either buying or developing property.

The growth in its portfolio value has seen the debt to asset ratio drop to 30 per cent

rmbbrave
04-08-2006, 11:46 AM
In the last 3 years the SP has gone from 0.80 to 1.14 - about 10% a year.

rmbbrave
12-08-2006, 09:35 AM
ING eyes Calan for possible takeover

Saturday August 12, 2006


NZX-Listed real estate investor ING Property Trust is considering taking over listed medical landlord Calan Healthcare Properties Trust, after buying its management.

Calan's board has formed a sub-committee of independent directors to investigate "a merger" and Macquarie NZ is acting as adviser.

ING has retained First NZ Capital as its advisers. If the takeover is successful, it will result in a company with a $1 billion portfolio.

rmbbrave
12-08-2006, 09:38 AM
Property trusts look at merger
12 August 2006

Property investment trusts Calan Healthcare and ING Property are looking at a possible merger.


In March ING walked away from a takeover offer for Calan, after offering $1.25 per unit.

But ING has ended up running Calan after its management company bought Calan's management arm, Calan Healthcare Properties Ltd, for an undisclosed sum.

Brokers said Calan would give ING diversification, blue-chip tenants and a longer term rental profile.

Calan, which owns Ascot Hospital and other health-related property, had to take a longer head lease to justify the construction of its purpose-built buildings.

"Because they're medical centres and such, they're specifically designed so you can't turn them into office blocks reasonably quickly," Direct Broking's Peter Lynds noted.

Calan said it had retained Macquarie New Zealand as an adviser and ING is using First NZ Capital.

Units in Calan Healthcare Properties Trust last traded near the top of its year range at $1.28, while ING last traded at $1.21, near its year high of $1.24.

cobbler
12-08-2006, 11:56 AM
Totally expecte and makes a lot of sense, yet something feels weird about the process.
ING drops takeover, instead buys management and hold around 20% shareholding.
So a few months later, launches another takeover. Difference being:
1) They don't have to worry about a competing bid since their management contract is enough to deter almost anyone (can only be terminated by a 75% majority and even then probably get paid a fee of 700 yrs their annual fee).
2) They know everything about the target, by virtual of controlling their books.
3) If CHP shareholders don't accept, ING will still get the management fees, hence no great hurry in timng hence no incentive in offering a reasonable premium.

So we have a non-competitive takeover with the bidder also holding the keys to the target's bedroom. Great job Macquarie!

rmbbrave
21-08-2006, 10:37 AM
Property trust confident

Monday August 21, 2006


Property sector fundamentals should remain resilient, says Kiwi Income Property Trust chairman Sean Wareing.

That would underpin solid rental growth in the trust's portfolios, he told the annual meeting of the country's largest listed property investor on Friday.

For the year to the end of March the trust reported a record full-year profit of $72.1 million, up 36.9 per cent.

- NZPA

rmbbrave
22-08-2006, 08:55 AM
Calan Healthcare profit steady but says better is on the way

Tuesday August 22, 2006
By Anne Gibson


Medical landlord and potential takeover target Calan Healthcare Properties Trust has increased net profit by just 1 per cent but is predicting a better result next year.

It did note, however, its distribution was up 8.2 per cent, from 8.5c last year to 9.2c.

"Barring unforseen circumstances, the board is projecting a slightly enhanced performance and distribution for the 2006-07 year," Calan's manager said.

Operating revenue rose 16.5 per cent from $16.3 million to $19 million and rental income rose 29 per cent to $18 million.

Net profit rose 1 per cent to $10.6 million.

Fund manager ING bought Calan's management this year and said this month it was investigating launching a full takeover but has not yet decided to proceed.

Last week, Calan's independent directors formed a subcommittee to consider the idea and said the deal had to be beneficial to Calan's unit holders if it were to proceed.

The value of Calan's real estate portfolio rose 9.8 per cent from $204.3 million last year to $224.3 million this year, although it said about half this gain was because of exchange rate movements.

Calan owns a large healthcare asset in Melbourne so fluctuations in the value of the New Zealand dollar against the Australian currency affects its portfolio value.

Calan's Epworth Rehabilitation Brighton asset in Melbourne rose in value by almost $1 million or 7 per cent.

Calan's founders Martin Lyttelton and Brian Freestone have resigned as directors while chief executive Miles Wentworth will stay with the trust until September 30 "to facilitate a smooth transition across to ING's management".

The board paid tribute to all three, saying it appreciated their contribution.

This year's annual meeting will be held in Auckland but the board is yet to set a date.

nelehdine
03-10-2006, 08:55 AM
From where I sit the AMP Office convertible notes look undervalued at 119. From my reckoning the dividend yield is 8.50c per $1 of face value which at $1.19 equals a yield of 7.14% , about the same as the ordinary shares. The bonus is that next June when the convertibles "convert" to ordinary shares you get the ords issued at 92c for every $1 face value you have in the converts. So the calc is something like:

Buy 10,000 converts at 1.19 = cost $11,900
Then in June converts > ords 10000/.92 = 10,869 ords
Current cost of buying 10,869 ords at $1.14 = $12,390

Therefore $490 cheaper to currently buy 10,869 ords via converts rather than ords themselves. With Asset backing of $1.21 per share and the opportunity to effectively buy the ords via the converts at $1.10 a nice 10% discount to NAV.

Am I missing something here ? or are the converts excellent value.


Disc: Bgt 30,000 APTGB yesterday at 119

Snow Leopard
03-10-2006, 09:45 AM
Looks right to me.

NAP and NAPGA are another pair that you can play this game with, but the timescale is 3 years.

NAPGA have a yield of 7.75% on the issue price of a $1, so at $1.06 you get 7.31%. In July 2009 each NAPGA converts to 1.69 NAP, currently trading at 70c ($1.18 of NAPs ), when the diluted NAV will be about 0.78c (on current valuations).

nelehdine
03-10-2006, 10:53 AM
Cheers PT , de-risking the portfolio at present after stellar run in mining stocks in Oz ... the Kiwi $ back down to 80-82c would be handy !!

APT look good value whichever way you look at it.

rmbbrave
18-10-2006, 10:51 PM
ANZO Trust (APT) hamstrung by lack of properties
18 October 2006
By ADRIAN BATHGATE

AMP New Zealand Office Trust has a dilemma Ethe wallet is full and it wants to go shopping, but the shelves are bare.


Executive manager Robert Lang said a lack of opportunities to buy new properties was the main problem facing the investor in A-grade office buildings.

He told the annual meeting in Wellington yesterday that, with a strong balance sheet, ANZO was disappointed to have had only two substantial projects in the past year.

Strong growth in commercial property values has left building owners reluctant to sell "in the expectation that it will be worth more next year".

"As a result the market is pretty tightly held and the market is not as forthcoming as it was a couple of years ago."

Mr Lang said there were opportunities out there, "but we haven't found any that meet our investment criteria".

In response to a shareholder's question, Mr Lang said ANZO had looked outside its current markets of Wellington and Auckland, but one potential Christchurch building had been flagged as not suitable.

During the year ANZO bought Mayfair House and redeveloped No 1 The Terrace, both in Wellington.

"I'm confident there are opportunities out there. Our opportunity set is both investment and development," Mr Lang said.

He also would not rule out buying another property owner as a way to expand its portfolio.

The year to June was a blue-chip one for ANZO, with the portfolio increasing in value by 20 per cent to just over $1 billion. Net profit was up 4.4 per cent to $36 million.

ANZO has moved to adopt international accounting standards during the year. This means the asset value per share has fallen from $1.21 to $1.13.

nelehdine
19-10-2006, 10:17 AM
Nice move for PFI this a.m , all be it on small volume. Can't complain ... at $1.40 again.

Disc: hold APT,APTGB,KIP & PFI

rmbbrave
20-10-2006, 11:05 AM
Sylvia Park almost full as retailers rush for shops

Friday October 20, 2006
By Anne Gibson


Sylvia Park will not be finished until next winter but its owners say it is already 91 per cent leased.

A group of middle-sized stores have signed up for 7880 sq m of the $388 million Mt Wellington shopping centre and negotiations are well advanced for the last part of the park.

Angus McNaughton of Kiwi Income Property Trust said yesterday lease agreements had been signed for more than 84 per cent of the shops.

The 21,300 sq m stage three was 79 per cent leased by projected net rental income and the 9700 sq m stage four was 61 per cent leased on the same basis, he said.

Sylvia Park has not been without problems and detractors. Design issues with disabled access, criticism from influential financial investors about the amount of risk being taken on by such a large project and questions surrounding how well some stores were trading have dogged the centre since its winter opening.

At its opening, Transit NZ threatened to shut some access routes if shoppers caused more traffic jams.

Stage one with 22,700 sq m and two with 14,200 sq m were fully leased when they opened earlier this year. Stage one opened on June 8 but threw Auckland traffic into chaos as shoppers stormed the Mt Wellington site.

The Warehouse Extra had offered cheap television sets and curiosity about the new centre drew thousands and clogged the Southern Motorway and other roads.

The centre will have 201 shops when it is finished spread over 6.7ha of indoor space or 67,000 sq m. Stage four will have 2700 sq m of office space.

The park will have 30,300 sq m of major tenants like The Warehouse Extra, 10,200 sq m of "mini-majors" and 24,700 sq m of specialist stores.

Stage two opened without major traffic issues, causing the rival Newmarket Business Association to crow about a lack of interest in the park.

If the trust expands the park with more offices, it could spend up to $538 million on its site.

Units in Kiwi Income yesterday closed up 1c at $1.35.

COMING SOON

Sylvia Park's stage three

Opening second quarter next year:

Bookseller Borders, 2200 sq m.

Dick Smith Electronics Powerhouse 1990 sq m.

Clothing and sports good store Kathmandu 890 sq m.

Gastro-pub Garrison 540 sq m.

Stage four

Opening mid-next year:

EziBuy 1290 sq m.

Noel Leeming 900 sq m.

The Baby Factory 610 sq m. Sylvia Park almost full as retailers rush for shops

http://www.nzherald.co.nz/section/story.cfm?c_id=3&objectid=10406745

nelehdine
24-10-2006, 04:09 PM
I see 5.5m shares in APT changed hands at $1.11 today, one institution bailing to another. Great buying at a discount to NAV and portfolio 6-7% under-rented in a very tight office market.

Disc: Added 23,304 APTGB and 8500 APT ords today.
( Now hold 71,304 APTGB's and 30,071 APT ords )

Lawso
26-10-2006, 08:17 AM
Very impressive, neleh. Hope you're reinveting the distributions. If so, you'll be creaming it as the years go by.

nelehdine
26-10-2006, 09:13 AM
Hi lawso ... yep all up in my property stocks I receive about $15k a year in dividends. Nice to be able to add 10,000 PFI or KIP or APT a year just thru putting those divs back into the market.

I see Bollard left rates alone this morning, good news for property companies. Good value here as APT and KIP are trading at discounts to NAV and the PFI premium is at a historically quite small level around 12c.

Be nice to have 100,000 of each of the three stocks ....

Lawso
27-10-2006, 08:34 AM
How about MGP, neleh? I first bought them two years ago @ 101c, now 130, and a good yield. I have about 25,000, to go with my bigger holdings of PFI and the parcel of Ozzie LPTs through an Australian Unity property growth fund. I've referred to these in my recent posting on Investment Strategies, "Painless and Profitable".

nelehdine
02-11-2006, 09:29 AM
Any APT holders out there able to confirm that the shares are trading ex-div today ... I see from the recent qrtly that the record date is 02/11 ... nice to see the shares at 115 xd ... VERY nice !! ..... still great value !!

nelehdine
02-11-2006, 09:38 AM
Just noticed that KIP have acquired the 50% of the National Bank Centre on Queen St that they didn't own. 8% yield is pretty attractive in this market. Might have to buy a few more ...

nelehdine
02-11-2006, 09:11 PM
APT,PFI and KIP all very firm , might all 3 be about to hit new higs simultaneously ...

rmbbrave
18-11-2006, 11:15 AM
Property trust rolling in Sylvia Park rents

Saturday November 18, 2006
By Anne Gibson


Property investor and developer Kiwi Income Property Trust cited rent from its Sylvia Park shopping centre in Auckland as one of the factors which helped it to push up half-year net earnings almost 9 per cent.

The trust yesterday declared a $29.7 million after-tax profit in the six months to September, up from $29 million the year before.

Excluding realised gains, this was an increase of 8.7 per cent over the period last year, the company said. Its rental income rose by 7 per cent to $47.5 million after strong rent reviews, an active leasing period and Sylvia Park's contribution.

Kiwi's accounts showed it spent $337 million on Sylvia Park, buying the land and developing it. Costs in September last year stood at $149.3 million.

Angus McNaughton, chief executive of the trust's manager, said the first two stages of the Mt Wellington shopping centre traded well. The centre is projected to bring in $6.2 million rent between next June and March. McNaughton said when the third and fourth stages were finished next year, the centre would meet its full potential.

Sean Waring, chairman of the trust's manager, said the trust's outlook was positive and property sector fundamentals were expected to remain resilient, underpinned by solid rental and leasing deals across the trust's retail and office portfolios.

"The office portfolio will continue to benefit from low vacancy levels and solid demand for office space. Any softening of retail sales will be buffered by the high occupancy levels at the trust's retail centres and the rental increases built into the majority of the trust's retail specialty leases," Waring said.

The manager's fees rose considerably, from $3.4 million total fees in the September 2005 half-year to $5.1 million in the latest half-year. McNaughton said the increase was partly because the value of Kiwi's total portfolio had increased and partly due to a $1.1 million performance fee for the half-year.

Kiwi unitholders will get a gross interim dividend of 4.75c on December 15.

http://www.nzherald.co.nz/section/story.cfm?c_id=3&objectid=10411351

Happy Camper
19-11-2006, 10:05 AM
This Happy Camper is pondering Kermadec Property Fund at the moment.

Judging by the comment re: KPF on this forum it would seem that they are struggling to register a blip on the radar screen.

Cheers

nelehdine
21-11-2006, 08:04 AM
HC, ... I doubt their portfolio would be of the quality of APT and KIP ( both currently trading at discount to NAV )... unless they are selling you the properties at say a 7-8% discount to registered valuation why would you bother ?

Before you subscribe check the following;

Registered vals and NAV
Under or over rented portfolio
WALT
Mgmt fees
Int Rate hedging / risk profile

Caesius
12-12-2006, 06:40 AM
[quote]quote:AMP NZ Office Trust announces Wellington acquisition and higher investor returns

New Zealand's largest listed investor in prime commercial office property, AMP NZ Office Trust (ANZO), has announced the $39.5 million acquisition of Wellington's AXA Centre, in combination with a private placement of new units, a unit purchase plan and an increase in future investor returns on the back of continued strong portfolio performance and outlook.
ANZO executive manager Rob Lang, said the AXA Centre was acquired in a keenly-contested international tender process involving nine bidders. "This high level of interest is indicative of the demand for investment-grade assets and should underpin strong valuation growth leading into ANZO's annual portfolio revaluation in June 2007."
Mr Lang said the A-grade AXA Centre, located on The Terrace, is 100 percent occupied by institutional and quasi government organisations, increasing ANZO's exposure to government tenants and to the top-performing Wellington market. Following the acquisition, Wellington properties will make up 48.8 percent of ANZO's portfolio value, with government sector tenant exposure rising to 24 percent of the portfolio.
ANZO estimates the AXA Centre is 19.4 percent under-rented, providing strong rental growth prospects, as well as synergies with ANZO's existing portfolio. "We're very confident of achieving substantial savings in operating costs, as we have done with other Wellington acquisitions in recent years," said Mr Lang.
The weighted average lease term of 3.7 years is an advantage, improving ANZO's ability to quickly capitalise on these opportunities, and Mr Lang said the AXA Centre's initial twelve month rolling yield of 7.14 percent is expected to rise to 9 percent over the next three years.
"Market rents for premium and A-grade office space continue to increase, and ANZO's portfolio is now approximately 7.1 percent under-rented, positioning ANZO strongly for rental growth across the portfolio," said Mr Lang. "This is already delivering encouraging results ?- in the first five months of the current financial year, ANZO has completed 19 rent reviews over 15,700 sqm of net lettable area, recording an average increase in contract rents of 22.5 percent over the three-year review periods.
"A further 45 rent reviews over an area of 39,600sqm are scheduled during the balance of the 2007 financial year [to 30 June 2007], and in the following year, ANZO has 49 rent reviews over 63,300 sqm scheduled."
Mr Lang said ANZO's continued growth momentum from within the portfolio and growth expectations arising from the AXA Centre acquisition have allowed a lift in projected investor distributions, for both the current financial year and the future. The projected distribution for the financial year to June 30, 2007 is now 7.76 cents per unit, up from the previously-indicated 7.63 cents per unit, representing a 4 percent increase over the 2006 financial year. This increase is intended to be spread over the third- and fourth-quarter distribution payments.
"In addition, our expected minimum year-on-year growth in ANZO's distributions beyond FY2007 has increased to 2.5 percent from 2.25 percent," Mr Lang said.
"The board continues to monitor ANZO's performance and a similar upward review of distributions is certainly possible."
Mr Lang noted that the office premises of ANZO's seven existing Wellington properties are fully occupied and continue to enjoy strong tenant enquiry and demand. Overall, ANZO's portfolio occupancy stands at 99.3 percent.
ANZO has today launched an institutional unit placement of $40 million - the proceeds will be used to fund the acquisition of the AXA Centre. A trading halt has been requested while an institutional book-build takes place. The placement is being managed by First NZ Capital.
Following the placement, ANZO's balance sheet will be in a stronger position from which to grow the portfolio and further enhance unit-holde

Flying Goat
12-12-2006, 05:08 PM
Does anyone know why ING Property Trust is getting dumped right now? Two undisclosed sells and as of today trading below NTA. Hmmm, might be time to look at buying a few. Not too sure about the management team though. Any thoughts?

FG

Lawso
13-12-2006, 10:01 AM
Huge volumes going through in this sector. Yesterday: 6.9m KIP, 5.5m MGP, 1.1m PFI.
Today so far: 2.9m MGP, 857k KIP.

What's going on? Some big buyers obviously. Cullen Fund? ACC? Instos? Anybody know who's buying/selling and why?

nelehdine
13-12-2006, 12:55 PM
Some pretty bullish figures in amongst the APT announcement of their latest purchase. It appears these companies are having no trouble pushing thru some pretty healthy rent rises. A-grade Office space in particular seems in very strong demand ... look at the rent rises APT have just received ... extrapolate that over the whole portfolio and you soon realise that the NAV has lots of potential to increase over the next few years. These companies also have plenty of well priced interest rate hedging on their books at rates which are substantially lower than current rates, there asset quality in absolutely top notch ... APT in particular and KIP and PFI have awesome portfolios of properties ... irreplacable really in NZ's tight market. So in summary

Awesome portfolio's of the best in NZ commercial property
Rent reviews to deliver large revenue increases
Under-renting throughout portfolios
Cap rates at attractive levels vs overseas markets
Interest rate cycle at or near peak
Lots of hidden value in their interest hedging positions
Most trading at or even below NAV

Disc: I am heavily invested in the LPT sector ... largest holding 106,656 AMP Office Trust

Lawso
13-12-2006, 02:26 PM
Awesome, neleh. I only have a lousy $160k in the sector - mainly MGP, PFI, St Laurence notes.

Lawso
13-12-2006, 02:30 PM
Latest volume: MGP 3.6 million, KIP 2.8 million. Good analysis, neleh, but I'd still love to know who's doing all the trading.

Caesius
13-12-2006, 02:36 PM
APT 4.9m

Flying Goat
13-12-2006, 07:00 PM
quote:Originally posted by Caesius

APT 4.9m


"Listed property companies strengthened on the back of tax changes which would create a "level playing field" for all types of investment."

In answer to my own question above (which clearly noone else knows the answer to) i assume there was some uncertainty around the tax changes as they were only announced today. Seems that yesterday's undisclosed sellers of ING turned into undisclosed buyers today. Go figure!?

Just bummed that I missed getting into ING at 1.14 by my calcs it was the only one trading at below book value.

FG

rmbbrave
14-12-2006, 11:18 AM
13 Dec 2006 02:39
GENERAL: KIP: Taxation Bill Positive for KIP Investors

The Government has passed the Taxation (Annual Rate, Savings Investment, and
Miscellaneous Provisions) Bill which will change the taxation of investment
income for collective investment vehicles in New Zealand.

The Bill introduces new tax rules for collective investment vehicles that
meet the definition of a portfolio investment entity (PIE). The new rules
treat investment through PIEs in a similar way as direct investment by
individuals, removing taxation disadvantages to saving through
intermediaries, such as Kiwi Income Property Trust. The changes will also
prevent over-taxation of lower-income savers.

The new regime will result in most investors being taxed at their marginal
tax rate on the taxable income derived by the Trust. This means that any
capital gains derived by the Trust and the benefit of tax allowances will
effectively pass through to most investors. This compares to the current
regime whereby investors are taxed on all income distributed by the Trust.

Our understanding is that Kiwi Income Property Trust will qualify as a PIE,
with the new regime taking effect from 1 October 2007. That being the case,
the change will have a beneficial impact on domestic investors'' after-tax
returns, with the scale of the benefit determined by individual
circumstances.

The Trust acknowledges the collaborative approach of the Property Council of
New Zealand, listed property entities, Government Officials and the Finance
and Expenditure Select Committee.

rmbbrave
14-12-2006, 11:20 AM
Tax changes are driving the rise in todays SP

APT up 3
CHP up 4
ING up 5
MGP up 6
KIP up 7
PFI up 3

Any other opinions?

Lawso
14-12-2006, 01:42 PM
There doesn't seem to be any other explanation, rmb. Traditionally these stocks have generally traded at prices below NAV. Suddenly they've become growth stocks as well as yield plays. :)

The rises continue. Currently APT is up 4c for the day, ING +5. KIP +7, MGP +5, PFI +7.

Since Friday's close the rises to date are APT 7.07%, ING 5.17%, KIP 2.18%, MGP 7.81%, PFI 6.67%.

Caesius
14-12-2006, 01:47 PM
quote:There doesn't seem to be any other explanation, rmb.

What about APT's acquisition of the AXA tower?

nelehdine
14-12-2006, 05:24 PM
Don't you just luv it when a plan comes together !!

Lawso
14-12-2006, 07:33 PM
quote:What about APT's acquisition of the AXA tower?
That's obviously boosted APT but it doesn't explain the strength in the entire sector. It's mainly the tax changes plus all-round strength in the commercial/industrial property market.
Re-read nelehdine's analysis above.

But how about FBU? Closed today at 1080 [^] Now my biggest holding[8D] even after taking some profit @ 1005. Mainly due to takeover speculation, I imagine. I'm not asking why; just enjoying the ride.

nelehdine
18-12-2006, 05:28 PM
Another record close on PFI Lawso ... $1.48 !! Awesome !!. APT not doing badly either at $1.23. With my heavy exposure in Australia to the U boom ( specifically via CMR and AGS ) I am like a pig in you know what at present !!

Lizard
18-12-2006, 05:37 PM
Haha Nelehdine - that is going to be one Happy Christmas for you then!

Always enjoy your posts btw. (Being one of those odd people who diversify into property trusts and blue chips as well as the speccy growth stocks)

Liz

nelehdine
18-12-2006, 07:56 PM
Cheers Lizard ... yep 2006 is going to go down as easily my best ever year. Have made 1/2 doz really awesome trades this year and only 1 real clanger ... with that sort of hit ratio and $350,000 in the market at 01.01.06 I can safely say I have a big smile on my face !!

PS ; Buy yourself some U stocks if you aren't already exposed. U boom next year in gonna make Nasdaq 1997-2000 seem REALLY tame !!!

Caesius
19-12-2006, 05:13 PM
http://www.nzx.com/market/market_announcements/by_company?id=141554

So this means ING has a blocking stake in APT???

nelehdine
19-12-2006, 09:22 PM
I think the ING stake will be reasonably passive. These property stocks provide excellent balance to a diversified portfolio and ING manage some serious $$$$ ... maybe they are just using APT to achieve a higher weighting. If you want to invest in NZ office space APT's portfolio is second to none and pretty irreplacable.

Disc: hold 116,656 APT's

nelehdine
20-12-2006, 04:01 PM
APT trading at 126 !! APTGB's at 133 ...

nelehdine
21-12-2006, 12:25 PM
Just sold some APT's at 129 ... the same price as I hoovered up 10k APTBG's this morning. Considering the conversion price is 92c I can't quite believe my luck !! Sometimes it feels like taking candy off a baby !!

nelehdine
21-12-2006, 12:26 PM
PS : should read 10k APTGB's .... not BG's !!

nelehdine
21-12-2006, 12:38 PM
Huge buying going on in KIP and APT ( esp KIP ) ... looks like overseas investors or institutions trying to get more exposure to NZ Office space ... we are still cheap compared to Aust,UK or US ...

777
21-12-2006, 03:45 PM
I see one of the KIP directors sold over 50,000 units today at 1.47. He should have waited until this afternoon when he could have got 1.54. One would assume he is not aware of anything that would push the price up today.

nelehdine
21-12-2006, 04:47 PM
130 close on APT's ... those institutions that bgt 40m between them at 111 last week won't quite believe their luck !! Got to do my buy the APTGB's at 129 and sell the Ords at 129 again this arvo ... x 5000 ... easiest money I'll ever make !!!

nelehdine
08-01-2007, 08:17 PM
136 close for APT's , 154 fpr PFI ... new closing highs for both. APT up almost 25% since early December ... who needs Uranium stocks !! ( me !!! )

Romer
08-01-2007, 08:45 PM
Nelehdine said:

Got to do my buy the APTGB's at 129 and sell the Ords at 129 again this arvo ... x 5000 ... easiest money I'll ever make !!!

Would you like to elaborate for us slow pokes???

[8)]

nelehdine
08-01-2007, 09:26 PM
The APTGB's convert to Ords on the 30/06/07 ... compulsory conversion to Ords.

The conversion price is 92c ... so for every APTGB you own ( remember the APTGB's are effectively a bond with a $1 face value and 8.50% coupon on that face value ) you get to swap it to APT ords at 92c. So another way of putting it is that for my $1 APTGB I get the following equation.

1 / 0.92 = 1.087

So, I bought 5000 APTGB's at $1.29 , I then sold 5000 APT's which I own at the same $1.29 price.

On the 30th June my 5000 APTGB's will convert to 5,434 Ords and for the cost of the brokerage hey presto I have 434 "free" APT's. At today's price of $1.36 that is $590.

I have done this on a total of 25,000 APTGB's so far so will receive 2,170 free APT's in June ... all risk free !!!! )

Romer
09-01-2007, 08:24 AM
Gotcha N, thanks for that. It's along the same lines as my taking up MGP rights recently, but in hindsight I should have kept my original shares as well.

COLIN
21-01-2007, 03:14 PM
quote:Originally posted by nelehdine

The APTGB's convert to Ords on the 30/06/07 ... compulsory conversion to Ords.

The conversion price is 92c ... so for every APTGB you own ( remember the APTGB's are effectively a bond with a $1 face value and 8.50% coupon on that face value ) you get to swap it to APT ords at 92c. So another way of putting it is that for my $1 APTGB I get the following equation.

1 / 0.92 = 1.087

So, I bought 5000 APTGB's at $1.29 , I then sold 5000 APT's which I own at the same $1.29 price.

On the 30th June my 5000 APTGB's will convert to 5,434 Ords and for the cost of the brokerage hey presto I have 434 "free" APT's. At today's price of $1.36 that is $590.

I have done this on a total of 25,000 APTGB's so far so will receive 2,170 free APT's in June ... all risk free !!!! )

Thanks for pointing out this arbitrage opportunity, Enid. I managed a series of similar deals, over the past week or so, i.e. swapped 25,000 APT for 25,000 APTGB, all at 130. It took quite a bit of patience but we got there in the end.
I owe you one!

nelehdine
22-01-2007, 09:02 PM
Well done Colin, sometimes the market just offers opportunities that are so good you have to wonder if you " have missed something " ... nobody has yet pointed out any flaws in the APT vs APTGB strategy so I'm sure you have done well.

Bit of a pullback in APT,KIP and PFI the last ten days ... PFI esp looking good value.

COLIN
24-01-2007, 01:41 PM
quote:Originally posted by nelehdine

Well done Colin, sometimes the market just offers opportunities that are so good you have to wonder if you " have missed something " ... nobody has yet pointed out any flaws in the APT vs APTGB strategy so I'm sure you have done well.

Bit of a pullback in APT,KIP and PFI the last ten days ... PFI esp looking good value.

To put your mind at ease: I specifically checked with the Trust who advised that our understanding is correct, i.e. based on current prices we will receive 1,087 APT for every 1,000 APTGB. (I found the wording in the Note to their Accounts a little confusing when it talks of conversion on a "dollar-for-dollar" basis).
When the MCN's were issued (at $1) the share price was closer to 90 cents, so the conversion rate was understandable. I guess the market in general hasn't caught up with the fact that once the share price climbed above 92 cents the "premium" kicked in.

nelehdine
24-01-2007, 07:52 PM
Well done, can't beat "the horses mouth" for your info.

COLIN
26-01-2007, 09:33 AM
And I see that the opportunity is still there today, but I have run out of APT to swap into the notes, unfortunately.

zyreon
26-01-2007, 09:56 AM
this (among other situations) is where short selling would be useful

nelehdine
01-03-2007, 08:16 PM
Stock market crash ... what stock market crash

28.02.07 APT +1 138
01.03.07 APT +1 139

Disc: Will hold 101,625 APT's ( after converting from APTGB's )

Keitaro
02-03-2007, 12:34 PM
I'm just reading through this thread and in particular
the strategy around selling out of APT and buying into
APTGA. Is there anything to stop APT from issuing new
units to existing unitholders or the market in general
at a significant discount to market price?

Just thinking that if that happens, the market price of
the unit will thereotically fall and make this strategy
less attractive?

Major von Tempsky
02-03-2007, 01:05 PM
So, when is NAP getting added to the list?
Its had its compulsory bath under St Laurence which was a neat trick by St L to maximise its holding and control and - surprise! surprise! its now bouncing back after St L has found things are not nearly as bad as they said they were before they maximised their holding.
In prospect maybe NAP is the cheapest on the market particularly given that St L is a NZer and therefore easy game for the big Aussie unit trusts....just a matter of time before it gets noticed and the Aussie predators move in...

Tim
03-03-2007, 04:24 AM
Are property trusts now fully valued? Are these an alternative to fixed interest??

nelehdine
03-03-2007, 09:31 AM
Not many property trusts pay dividends at present that match your local Westpac or BNZ. The dividends are however growing and in my view will continue to grow for the near and medium term future. The big problem for investors in term deposits is that inflation eats at your returns, however inflation is every property investors friend as it forces rents up, pushes land prices up, pushes building costs up and generally makes existing commercial property more valuable. APT and KIP have long term interest rate hedging on their books at very favourable rates ( read the latest annual report for details )so short term rate rises to combat inflation are not a major cost. Rent growth is still strong and tenant demand for good office space ( and to a lesser extent retail space ) is very healthy. Vacancy rates for prime office space in Auckland and Wellington is virtually zero ... and not many new office towers are planned to meet the growing demand ... rents can only keep going up for the foreseeable future. In terms of NAV, APT and KIP are probably trading at small premiums, given the quality of their portfolios I think that premium is justifiable. I hold a decent number of both and will do for the foreseeable future.

nelehdine
07-03-2007, 04:39 PM
Record close for KIP at 166 today. Saw on CNBC that yields on prime New York office properties down as low as 3% ... record low levels. NZ property while not exactly midtown Manhattan is certainly cheap with yields still in the 6.5%-7.5% ... buying now via APT or KIP at 138/166 and holding until the interest rate cycle starts its next downward leg ( granted could be another 18 months ) looks like great buying to me. Not too many quality assets on the block at present but via the stockmarket you can buy a share of the best commercial property in NZ every day ... magic opportunity.

Bgt another 28,000 APT's today , now hold 131,809

nelehdine
08-03-2007, 10:27 AM
400,000 crossed at 138 in APT ... great value here for the long term, get set, and forget !

nelehdine
08-03-2007, 01:00 PM
Another 500k at 138 ...

Tim
08-03-2007, 04:44 PM
Nelehdine
Are these the best property trusts? would you add any aussie ones into the mix?

Tim
08-03-2007, 04:50 PM
Nel, APT shares NTA around $1.06 why so much premium

nelehdine
08-03-2007, 07:53 PM
NTA of $1.06 is a VERY historical number ... I would estimate something around $1.25 at current no's so perhaps a 10% premium. In Australia I really like Tishman Speyer ( TSO ) ... anything under $2.70 is great buying. I think APT will be over $1.50 by the end of 2007. At 1.38 currently that is a 9% capital appreciation plus about 6c in after tax divies for another 4% so total return of 13% over the next 10 months ... annualised return on the high side of 14% is pretty good ... double what the bank will give you.

Tim
09-03-2007, 06:10 AM
Nel
You always offer good points. Is property for industry and westfield in the same category as KIP and APT

Farouk
09-03-2007, 07:53 AM
You can buy Kermadec Property fund for $1.05 (KPF), I reckon that this is a bargain - should be up around $1.20 once people start to realise the potential

The fledgling Kermadec Property Fund has been recommended by a broker after a tax overhaul which will make listed real estate vehicles more attractive.

Jeremy Simpson, of Forsyth Barr Research, gives a buy recommendation for the new company, saying its unit price is expected to rise.

Kermadec would benefit from the new portfolio investment entity (PIE) regime, he said.

Listed property vehicles are expected to qualify for PIE status by October this year, following the introduction of a new law in December which will see investors keep more dividends and pay less tax.

Simpson said Kermadec had good prospects.

"Kermadec is trading at a larger-than-expected discount to the listed property vehicle sector, and we see upside as it develops a listed track record. We also expect further upside for the sector once the positive aspects of the PIE regime are fully understood."

While other property entities had been re-rated with unit price rises, Kermadec was yet to benefit.


"Kermadec has significantly and unjustifiably lagged its listed peers in terms of the PIE market re-rating to date," Simpson said. Its share price was trading at around net tangible asset value, which he said was unusual in a sector that was now largely trading at solid premiums to asset backing.

Kermadec listed in December

nelehdine
09-03-2007, 09:39 AM
Tim, PFI and Westfield are excellent long term choices, certainly wouldn't argue with those two.

Lawso
09-03-2007, 02:57 PM
Hi Neleh

You're doing a great job keeping the LPTs flag flying. The sector continues to power ahead with KIP and PFI in particular setting new highs.

After the price surge that followed the recent tax change, the leaders are mostly showing yields of around 5-6%, tho' ING is at 7.51. There are extraordinary differences in the P/Es, however, ranging from APT at 4.34 to MGP at 18.5 and PFI at nearly 23. It looks like APT is your favourite and no wonder.

I'm holding only PFI and MGP in NZ, plus a fund that invests in Westfield and other LPTs in Oz. A dollop of cash will land in my lap at the end of the month and some of it will go into this sector - probably APT and possibly KIP. But I'm also considering under-performing NAP, which could make a comeback under St Laurence management. And as Farouk has pointed out, newcomer Kermadec could be worth watching.

So how do you think I should spend my next ill-gotten gains? Punt on the small ones or get more heavily into the leaders. I've done well with MGP and PFI but surely they are now fully priced.

Woddyuhreckon?

kura
09-03-2007, 08:46 PM
I've thought about taking profits on my KIP shares ever since they hit $1.30 with the hope of buying back in at a cheaper price (sure glad I didn't)

Just a question about KIP wrt Sylvia Park, yes my understanding that this this development seemed to have some of "experts" worried several years back (development risk rather than a pure property owner) I'm wondering if this percieved risk has now been "derisked" ??

Also when it comes to the annual accounts, will KIP book through some sort of development margin, or will this get taken care of when their properties are revalued anyway ??

Tim
10-03-2007, 08:14 AM
Do you look at LPt as shares and if so should they be compared with blue chips like contact that also produces a reasonable dividend which is very likely to continue to grow. I wish to borrow some money and invest in stock with good dividends that are likely to grow in the future?

Happy Camper
10-03-2007, 10:50 AM
This Happy Camper bought some KPF in the IPO, and booked a tidy short-term gain by exiting for $1.07 earlier this year.

Please to report that I am back into KPF at $1.05, and plan on being there for the long-haul.

Cheers

troyvdh
13-03-2007, 06:01 PM
....spooky park....sounds about right....

I reckon I would not be able to sleep if I had any shares in this sorry place....

troyvdh
14-03-2007, 04:49 PM
Not wanting to start an argument between the benefits or advantages between listed property companies but it is interesting to look at the buyer/seller depth....of PFI KIP APT.

nelehdine
16-03-2007, 05:57 PM
I see APT closed at a record high this evening of $1.40 and also nabbed on of Wellington's prime waterfront tower blocks. Deloitte House on Customhouse Quay ( also Featherston St ) ... $58m worth , 90% leased with lots of upcoming rent reviews so plenty of growth in rental income. Naming rights and 6 of the floors leased to one of THE truly global brands in the finance industry in Deloittes ... another great addition to the portfolio and another quality investment of the type that can only be accessed by "Mum and Dads" via a company like this.

Disc: hold 131,809 APT's ( via ords and MCN's )

nelehdine
16-03-2007, 10:18 PM
Wonder where Capital properties share price would be right now considering the quality of their Wellington portfolio ... $1.80 ... $2 , shrewd buying by AMP !!

kura
28-03-2007, 03:47 PM
Tidy $200m revaluation by KIP announced today, price up to $1.70

Farouk
04-04-2007, 09:54 AM
Kermadec starting to creep up now, what did I tell ya??

nelehdine
12-04-2007, 01:03 PM
AMP NZ Office trust revaluation gain of ........ $253M !!!!! ... portfolio 12.5% under-rented, portfolio virtually 100% let ... cap rates now below 7% and still buyers falling over themselves to add to portfolio ... little new supply on the horizon. DO NOT SELL !!!!

Disc: happy holder of 131,809 APT's

COLIN
12-04-2007, 01:33 PM
Yes, this justifies the premium that APT has attracted for a while.

nelehdine
12-04-2007, 01:52 PM
Gain is bigger than I was expecting Colin ... add back in the accounting liability of the depreciation taken on the portfolio and the portfolio is now worth a cool $1.48/ share. Considering the under-renting present in the current rental income of 12.5% you could do a crude extrapolation and say the portfolio is "under-valued" by 12.5% so the "REAL" net asset backing might be closer to $1.65. APT is certainly NOT expensive at $1.39 and it could be argued the shares are extremely good value at present. My average cost on my 131,000 shares is $1.09 so valuing the portfolio at $1.65 I am up over 50% and I've only held the shares for about 8 months. I view this stock as a core portfolio holding and the NAV is more important to me than the current shareprice as I intend to hold these for the next 10-15 years. They sit very nicely besides my residential investments and also other property based investments I have in dairy farms and vineyards.

I LOVE this stock !!

COLIN
12-04-2007, 07:53 PM
Enid/Helen: I also am a happy holder of APT, and of a number of the other LPT's. However, I am starting to have a few niggling doubts about the ever-lowering of "cap" rates on major investment properties - they are getting too close to where they were in '87, and we know what happened after that. What do you think?

nelehdine
12-04-2007, 08:17 PM
Good question Colin, I wasn't really a follower of commercial property 20yrs ago ... more into punting on stocks like Omnicorp and Rainbow !!. APT's average cap rate across the whole portfolio is now 6.90% ... only 5 years ago you could have bgt the creme-de-la-creme of NZ commercial office blocks at around a 10% yield so yes it is a big move. As APT point out though this is a global phenomina and its not just in office blocks ... look at the yield on residential property compared to a few years ago. At 6.90% I'm still very comfortable holding , rents are rising fast and unlike 1987 the Auckland skyline isn't currently littered with cranes putting up 40 story office blocks with few tennants available to fill the space. Wellington will always be a tight market , just the topography of the place along with the ever increasing demand from Govt agencies makes you think rents are likely to keep rising for a while yet. Compared to overseas office space NZ still looks like great value. The major clouds on the horizon I think are if Bollard really gets stuck in and we see iinterest rates into double figures ... I can't see that happening so have discounted that risk. I can see APT trading into the mid 150's by the end of the year for a 10% return in 9 months ... add in 5 or 6c in dividends and your looking at an annualised return in the high teens. Pretty good for a low risk investment ... and every time you fly into Wellington you can admire your premium quality office portfolio !! ... I will be tomorrow !!

Tim
18-04-2007, 02:00 PM
What does the news of the share placement have on APT, is this a time to buy or not?

nelehdine
19-04-2007, 09:00 AM
Fundamentals still look excellent ... equity is certainly cheaper than debt at the present time so this is no doubt a good deal for shareholders. Stock won't set the world on fire over winter if Bollard hikes another couple of times but I have no qualms about quality of APT's portfolio over the long term so am happy to hold.

Lawso
19-04-2007, 09:39 AM
Hi neleh.
You may be interested to hear that I've just bought into APT. A bit late in the day, perhaps, and not on your scale - only 15,000, which is considerably less than my other LPT holdings - PFI & MGP. But I share your confidence in this sector over the long haul.

COLIN
19-04-2007, 09:50 AM
Happy to continue holding my APT but have dumped my MGP and switched into FKP on the ASX. MGP is a solid outfit with a lot of potential but price seemed to be getting out of kilter with NTA, even allowing for near-term revaluations, and dividend yield is relatively low compared with its peers. And what better time to be switching more of one's portfolio offshore, with the Kiwi at a record high. Bought FKP yesterday, on the dip following a large and successful placement. I like their field of operations, with ever-increasing numbers in the retirement stage and living ever-longer.

lakeside
07-05-2007, 09:22 AM
quote:Originally posted by Tim

What does the news of the share placement have on APT, is this a time to buy or not?


Seems to have knocked 7 cents off APT. Dilution I guess. The APTGBs would be even better if it wasn't for all the cheaper placements.

I have been watching & buying SLPF on the unlisted market (links off recommended sites for direct broking.)

I like them as they are selling for $1.14 with a net asset backing from Sept 06 of $1.39.

They are due an annual report and were $1.20 a year ago so really should be worth $1.40.

They are property and finance but should have gone well to March 2007. They are not shares until Dec 2008 but look valuable and depending on structure could get some of the gains of PIEs, tax changes etc etc. They seem to have offices, retail, industrial property - often through 20% or so in other trusts eg rural properties trust, NPT.

Why are they so cheap? Well liquidity I guess being on the unlisted market. Possibly the Bridgecorp / Dorchester dealings have scared people but seems like St L have been just doing good margin deals.Also the company structure is hard to follow.

The notes sold for $1.08 at one stage in the last couple of weeks, and someone picked up 600 000 rights on the last day they traded for 2c (so paid $1.07 for that stake). Unlisted gives the proportions of shares sold by different broking firms and it seems to me Maquaries have a bigger proportion eg 40% of all unlisted trades on big SLPF days so maybe there is an Aussie interest?

Anyway I like them - they feel safer than other shares & options - like APT but with good capital gain even if liquidity is limited sometimes. And mean while they pay out 8% interest - 2 % quarterly due at the end of May.

lakeside
08-05-2007, 09:07 PM
Well still no news on SLPF. I found this from Chris Lee last year so something should be due soon. They had a bit of a wind fall with Elrond Holdings last year.

One thing about SLPF is they cop a high brokerage - like buying fixed interest. Has anyone found a cheaper way to buy/sell unlisted stocks - I don't know why the brokers take so much, I guess its all a bit old fashioned & manual.

At least SLPF haven't been getting fund manager money at the cost of shareholders like APT does - I somehow aren't confident that small shareholders are APTs no one priority.

any way here tis.

Taking Stock 13-4-2006

When St Laurence advised the market this week that its subsidiary St Laurence Property & Finance would soon be announcing a windfall profit of around $30 millions after tax, there should have been three sets of people cheering.

Obviously those who recently bought SLPF bonds will be cheered that the company's balance sheet is to be further strengthened.

Cheering even louder will be those who own the 12'08, 9 per cent convertible notes, which St Laurence issued in what may have been the most extraordinary demonstration of corporate generosity in recent history.

This came about just three years ago when some of St Laurence's roughly 12 property syndicates were struggling to maintain their values, and faced possible interest payment reductions.

All such syndicates had these problems, those run by Waltus and Money Mangers generally having bigger problems.

Waltus and Money Managers both addressed the problem by offering an amalgamation at current values into new funds, arguing that the combined fund would have economies of scale that would over time solve some of the problems. These offers were no doubt fair but did nothing to ease the pain.

St Laurence offered to buy out, at a 10 per cent premium over market value, and offered investors notes in St Laurence Property & Finance that would convert at one share per note, in December 2008.

SLPF was a company that St Laurence owned and was generating growing profits, meaning that by 2008 each share would likely be worth much more than one dollar.

Effectively, St Laurence gave away most of SLPF to their syndicate investors, almost as an apology for the moderate or poor performance of a small number of the syndicates. (Some had done very well).

Well today SLPF's asset backing per share will be close to $1.50 and it is quite conceivable that by 2008 that figure could be still higher, perhaps significantly higher.

What that means is that even the investors in the worst syndicates, Capital Office, Wakefield and Thorndon, will own shares with an asset backing worth more than the investor's original stake.

The notes, currently trade at $1.05, an absurd discount to asset backing.

If SLPF chose to list this year, and convert the notes to shares early, I would expect its share price to be much nearer $1.50 than $1.05.

The controlling shareholder of St Laurence is Kevin Podmore whose reputation means more to him than more money, an attitude that differentiates him from so many whose activities focus on property. He has my respect and admiration.

And who will be the third group cheering the St Laurence result?

It might be those who are offered units in a new fund St Laurence is to issue soon, the St Laurence Property Development Growth Fund. This fund will offer $9,000 of bonds and $1,000 of shares, with a cash return of 13.5 per cent, to be invested in the sort of developments that SLPF has managed well in recent years. Of course there are no guarantees of future profits.

St Laurence itself will invest $1 Million of its own capital for every $1 million of share capital put in by investors.

The fund will operate for a fixed term and can only be rolled over that term if a majority of bond holders vote to roll it over.

COLIN
08-05-2007, 09:21 PM
Am also a holder of the SLPF mandatory convertible notes, and I am sure that the discount to NAV will diminish soon, particularly as they become wider known with their links to NAP, DPC, etc., and the repositioning that is going on there.
However, just one point, Lakeside, re your calculation of the asset backing: don't overlook that there has been a bit of dilution following the recent 1:5 rights issue.

lakeside
09-05-2007, 07:26 AM
quote:Originally posted by COLIN

Am also a holder of the SLPF mandatory convertible notes, and I am sure that the discount to NAV will diminish soon, particularly as they become wider known with their links to NAP, DPC, etc., and the repositioning that is going on there.
However, just one point, Lakeside, re your calculation of the asset backing: don't overlook that there has been a bit of dilution following the recent 1:5 rights issue.


Hi Colin

Good point.

The dilution was more of an opportunity as it was offered to all investors fairly but APTs are offered to institutions.

I figure that the loss is about 3c (or 3%) to the value as $1.05 paid for 20% new shares and the price was $1.20 so all things being equal they should be $1.17 now (15c discount on 20%).

Certainly the buy vs sell depth looking better now, but a very low profile company. I think Chris Lee is about the only place i have seen them discussed.

lakeside
10-05-2007, 03:38 PM
Should have SLPF news in the next couple of weeks. This is the latest I found. I guess the fixed interest notes are a sort of gearing for SLPF investors, like capital properties used to do.

I wonder how Lunn Ave is progressing? 50% with Greenstone. That land was a good buy. I know NZRPT on unlisted has a dairy farm on the Longburn side of Palmy but that is floodable so I don't think it will be developed.

Does anyone know a listed company that has bought land in the 80's on the outskirts of a city that could be developed. A barren hillside in Wellington or something like that.


Published 30 November 2006

St Laurence Property & Finance Ltd made an $8.6 million consolidated after-tax net surplus for the September half on revenue up from $20.1 million to $28.2 million.


The active property investor, managed by Australasian property & finance group St Laurence Ltd, increased rental income and realised $2.2 million of property sale gains. It also recognised $7.7 million of earnings on its investment in the Lunn Avenue & College Rd joint ventures in Mt Wellington, in which it has a 50% interest. Opex was maintained in line with expectations.

Total group assets fell by 3%, from $381 million in March to $370.4 million after $16.9 million of debenture stock was repaid.

The net surplus doesnt include any gains in the book values of the groups property portfolio, which will be revalued in March. The portfolio comprises 22 office, industrial & retail properties worth $236.3 million. Net asset backing on a diluted basis increased from $1.39 to $1.45/share from March.

St Laurence Property & Finance has also received notice from St Laurence Ltd of the exercise of its options to subscribe for 19 million ordinary shares at the pre-set issue price of $1.15/share. The options were issued in November 2003 and are exercisable on or before December 2009. The issue of new ordinary shares was expected to be completed today.

St Laurence Property & Finance has 83 million of mandatory convertible notes traded on the Unlisted facility and $80 million of bonds listed on the NZDX.

lakeside
11-05-2007, 02:48 PM
Nickel may be the rage but Property is the long term wealth maker - theres no more being made. The Chinese know that.

Note St L buying NAP. The price is dropping. As managers they could do a buyback too though I've never seen that in a property company.

They must see value. $7 million from the Dunedin cinema sale last week.

NAP
11/05/2007
SSH

REL: 1421 HRS The National Property Trust

SSH: NAP: SSH Notice From St Laurence Limited

NOTICE 28652 DETAILS

Submitted Date : 11-May-2007 14:02
Status : Accepted

Substantial : Y Director : N
Add Holder : N Change Holder : Y
Ceased Holder : N Change Nature : N

Issuer Code : NAP The National Property Trust
Holder : St Laurence Limited

Address : 259 Wakefield Street
: Wellington
Country : New Zealand

Contact Name : Jennifer Watt
Phone : 04 903 4828

Total of Interest : 25544718
Total Issued : 128631699
Total % : 19.86

Class : NAP
Votes Attached : 1

Beneficial
Total of Interest :

Non Beneficial
Total of Interest : 9900000
Current % held : 7.22
Names : Clients of Northplan Financial Services
Provisions : 5(1)(f)
Transaction dates : 11 May 2007
Total Votes : 990000
Considerations : $0.8400 per unit

Description :
NAP has on issue 123,812,422 Units listed on NZX. On 30 March 2007 NAP
issued 4,819,277 new units These new units are not listed, but are voting
securities. Accordingly, the total number of voting securities of NAP is
128,631,699.

On 10 May 2007, St Laurence Limited (and its related entities) agreed to
purchase 9,900,000 Units and 2,578,085 CPUs from clients of Northplan
Financial Services. As a result of that transaction, the respective holdings
of St Laurence Limited and its wholly owned subsidiary, St Laurence Property
& Finance Limited, can be broken down as follows:

Non-beneficial holdings (Units)
St Laurence Limited 11,344,718
St Laurence Property and Finance Limited 14,200,000
Total 25,544,718

Non beneficial holdings (CPUs)
St Laurence Limited 2,578,118
St Laurence Property & Finance Limited 7,406,135
Total 9,984,253
Documentation
With Notice : No
Not Filed : Yes
Been Filed : No
Number of pages : 1

Date of Last Notice : 12-Mar-2007

Submitted By : Jennifer Watt

lakeside
14-05-2007, 09:52 AM
Rural Properties - Where theres muck there's brass ?
Cushings handing out cash to small share holders? NOT!
Note REL is trading on unlisted. Price has come up from $1.65 in Sept 2006. They manage and own lots (over 50%) of NZRPT also on unlisted.
REL tried to take that over a year or two ago also. They seem to buy farms off families and give them these shares which are illiquid and don't pay much divident but awesome capital gain.

H&G LIMITED MAKES PARTIAL OFFER FOR 10 % OF RURAL EQUITIES LIMITED (REL)
H&G Limited, an investment company of Sir Selwyn and David Cushing, today advised of its intention to make a partial offer for 10% of the shares in REL (2,223,792 shares).

Currently H&G owns 40.83% of REL and other Cushing family entities own 9.27% (50.1 % combined). The partial offer is for 16.89% of the REL shares which are not already held or controlled by H&G (which equates to 10% of the shares in REL).

The consideration offered is $2.75 in cash and the offer is conditional on acceptances being received for at least 2,223,792 shares (together with various other conditions relating to, in summary, no material changes occurring in respect of REL and its subsidiaries).

The price represents a premium of 31% to the last traded price on the unlisted market prior to H&G advising its intention to make the partial offer.

This partial offer gives shareholders an opportunity to sell shares in this thinly traded company at a substantial premium to market price said David Cushing.


From the last report

SHAREHOLDER INFORMATION
Top Twenty Shareholders
Holder Number %
H&G Limited 9,079,277 40.82
St Laurence Property & Finance Limited 3,958,943 17.80
RECT Funds Management Limited 816,446 3.67
David Cushing 536,922 2.41
New Zealand Central Securities Depository Limited 451,852 2.03
Brian Martin 312,870 1.40
Sir Selwyn Cushing 305,814 1.37
Jan Snijders, Joan Snijders & Brian Martin (Snijders' Family A/c) 292,500 1.31
Seajay Securities Limited 261,354 1.17
W&K Staff Pension Fund Limited 252,680 1.13
Selba Holdings Limited - A/c 50 219,300 0.98
Makowai Farm Limited 174,138 0.78
Sir Ronald Carter 149,001 0.67
Ashfield Properties Limited 148,800 0.66
Sir Selwyn Cushing and Brian Martin (G Cushing Settlement Account) 138,960 0.62
Craig Hickson, Penelope Hickson and Maurice Lloyd (Clive Grange A/c) 136,941 0.61
MGS Fund Limited 103,528 0.46
Rodney Goodrick 100,000 0.44
Maurice Herrick 97,000 0.43
Ben Cushing 84,852 0.38

COLIN
14-05-2007, 10:14 AM
Interesting to see St. Laurence in there as the second largest holder, with nearly 18%. I'm sure we are going to hear a lot more from Kevin Podmore and his team over the coming years - NAP, DPC, SLPF, and...............?

lakeside
14-05-2007, 10:16 AM
APT quite a lot of selling after the 2c paid today. APTGBs holding though. Could be the earthquakes? Pre budjet jitters? Maybe selling so can buy SLPF and get 2c next week too!

If APT gets into the lower 120s and APTGBs hold it will be worth selling APTGBs and buying APTs. I don't think they will. Surely a Wellington office block or two retains it's value.

Returns haven't been the same since Wellington was bought from the Maoris for 700 pounds and not much later that was the cost of an acre! Now the Aussies own it/ control it (APT)

lakeside
14-05-2007, 02:12 PM
I found this article. It's old and is really about St Laurance bonds but amazing how much is still relevant. Even more amazing the SLPF are still selling for less than the $1.15 St Laurance paid cashing options in SLPF for a month or two ago. Maybe Cushings should buy some.


Jenny Ruth: Taming the beast
Email this storyPrint this story 12:00AM Friday April 22, 2005



St Laurence Property & Finance (SLPF) is a rather ugly and complicated beast but that reflects its origins and its management intends to simplify it over time.

The company was used last year as a vehicle to improve the lot of investors in 12 St Laurence syndicates.

While money from "mum-and-dad" type investors poured into property syndicates through the 1990s, by the end of the decade a downturn in the commercial property market showed just how flawed and inappropriate to its risk-averse investors the syndication structure was.

Typically, the unlisted syndicates owned only a few buildings, often just one. When the downturn hit, capital values started dropping dramatically and many syndicated buildings proved to be "over-rented", tenants were paying rents above market levels, inevitably leading to tumbling values as the leases neared expiry, not to mention falling rentals when leases were renewed.

The outcome was inevitable: instead of the steady, reliable income streams the mums and dads thought they had bought, payouts were slashed or cut altogether and redemptions suspended.

Former syndicator Waltus was the first to come up with a solution: tip all its syndicates into a single publicly traded company, Urbus, which is now in the process of being taken over by ING Property Trust Holdings.

While that at least provided investors with liquidity, the trouble with its solution was that the fortunes of its syndicates varied dramatically. While the value of some buildings collapsed to less than half their original value, others, notably the Albany Power Centre, improved in value. Naturally, the investors in the better-performing syndicates didn't want exposure to the poorer properties.

A number of investors had wanted to stay with their original investment but after most of the syndicates gained 75 per cent votes in favour and, despite a messy court battle, the merger was forced through.

St Laurence avoided the acrimony the Waltus scheme generated by making its scheme voluntary. If its investors wanted to stay put, they could. In the event, an average of 86 per cent of its investors across the 12 syndicates accepted the merger proposal.

SLPF was an existing vehicle set up in 2000 as an active property investor, developer and financier.

A major incentive for the syndicate investors included that St Laurence had $5.25 million of its own funds already invested in SLPF, which would rank behind the mandatory convertible notes in SLPF they were offered. They were also offered the notes at a 10 per cent premium to net-asset backing.

The notes convert to ordinary shares in December 2008 when they will account for 94 per cent of the company's equity but, in the meantime, carry a 9 per cent annual interest payment. And St Laurence can't pay itself dividends greater than that 9 per cent level in the meantime so the syndicate investors will share in any equity gains.

St Laurence is also committed to listing SLPF once the notes convert - the present bond issue will be listed on the NZDX, St Laurence's first involvement with the exchange. The former syndicate investors stake could be diluted if St Laurence decides to exercise 20 million options at $1.15 each - the notes were issued at $1.

As the prospectus for its up-to-$70-million bond offer shows, this has left the company with 12 subsidiaries which aren't fully owned. SLPF's stakes range from 74.4 per cent of Strategic Omega to as much as 93.6 per cent of Aorangi Property Fund.

St Laurence chairman Kevin Podmore said that with hindsight, quite a few of those who didn't accept the merger proposal now wish they had. "One of the things we will be looking to do

lakeside
14-05-2007, 02:16 PM
ACPI_BONDS is also on unlisted - they are a new Kevin Podmore company developing in Albany. Interesting to see Valad have put money in there.

VPG.ASX - Valad Property Group - Ordinary/Unit Fully Paid Stapled Securities

Total Issue: 828,205,647
Market Capitalisation: $1,904,872,988 (@230)

Also see Valad bought an office tower in Auckland last month (Their 3rd) and they see NZ as having upside in offices.

West Plaza in Auckland for $27 Million.

lakeside
15-05-2007, 02:54 PM
Macquarie Goodman Property Trust ("MGP" or "Trust") is pleased to announce a record financial result together with the commencement of a new office development in Greenlane.

The Trust recorded an after tax profit of $51.8 million for the year ended 31 March 2007. The result represents a 47.7% increase on the previous year's profit of $35.1 million and is before revaluations which added a further $65.9 million to the value of the portfolio, bringing total net profit after tax to $117.8 million.

Weighted earnings before tax, on a normalised basis, are 10.22 cents per unit, up from 9.93 cents per unit the previous year.

Other highlights include:
- Strategic property acquisitions of $190.0 million and disposals of $82.0 million
- Increased development capability with development land now 7.6% of total assets
- Increase in total assets from $927.4 million to $1.2 billion
- Increase in NTA from $1.13 to $1.26 cents per unit
- 34.5% increase in unit price, from $1.19 cents per unit to $1.60 cents per unit
- Increase in market capitalisation from $623.0 million to $1.0 billion
- Recognition as one of New Zealand's leading stocks with entry into the NZX15 Index

Jim McLay, Chairman of MGP's manager Macquarie Goodman (NZ) Limited ("MGNZ") said, "Under the management of MGNZ, the last 12 months has seen the Trust grow its business and deliver an impressive operating performance, consistent with expectations. With a total return of 40.9% the Trust has delivered an outstanding investment performance."

Unitholders will receive a fourth quarter distribution of 2.55 cents per unit, comprising 2.50 cents per unit in cash and 0.05 cents per unit in imputation credits. As a result of the transition into the PIE regime Unitholders will also receive a one off imputation credit of 0.70 cents per unit. This additional imputation credit increases the gross distribution for the quarter to 3.25 cents per unit and the annual gross distribution to 10.90 cents per unit.

On a normalised basis the annual gross distribution is 10.20 cents per unit.

The record date for the distribution is 1 June 2007 with payment to be made on 15 June 2007. The distribution reinvestment plan ("DRP") continues to operate with a 2% discount with election into, or withdrawal from, the plan required by 5:00pm on the record date.


Portfolio Overview
With 26 assets and over 768,100 sqm of net lettable area, MGP is the largest industrial and business space provider in New Zealand.

In the past financial year:
- over 125,600 sqm of rentable area with net rental income in excess of $16.5 million per annum was leased or renewed;
- 82.6% of space leased was secured by new customers, including Pernod Ricard New Zealand at 4 Viaduct Harbour Avenue, Restaurant Brands at Central Park Corporate Centre and Supercheap Auto at Westney Industry Park;
- 21,185 sqm of development pre-commitments were secured at Savill Link and Westney Industry Park;
- Development completions totaled 83,638 sqm in new purpose-built office and industrial facilities;
- 85% of customers whose leases were expiring renewed their leases, including Simpl, Fonterra and NZL Transport; and
- 39 rent reviews totaling $1.7 million, with a weighted average annual increase of 2.8%, were completed.

The portfolio now has 190 customers with a weighted average lease expiry of 5.7 years and an occupancy rate of 98%.

Subsequent leasing success at Millennium Centre Phase 2 has reduced the vacancy in this asset to minimal levels just 14 months after it was acquired on a partially leased basis with a two year vendor underwrite.

Acquisitions & Disposals
Strategic acquisitions totaling $190.0 million have enhanced the portfolio increasing the asset and geographic diversity, improving the weighted average lease expiry profile and also extending the Trust's development capability.

Notable acquisitions included:
- Investment properties - The APN News and Media facility in Auckland, Gateside Industry Park in Penrose, 120 Pavilion Drive in Airport Oaks and

lakeside
15-05-2007, 07:02 PM
I have put the share, recent price, and latest NTA
MGP $1.60 $1.13 to $1.26 5/07
ING $1.20 $1.15 to $1.30 4/07
CHP $1.40 $1.30 to $1.28 (due to exchange rate)2/07
PFI $1.50 $1.20 to $1.32 3/07
KIP $1.65 $1.43 to $1.73 3/07
APT $1.30 $1.18 to $1.48 4/07 Diluted since
NAP $.80 $1.13 last year
SLPF $1.14 $1.39 9.06

COLIN
15-05-2007, 09:09 PM
Lakeside, don't overlook the dilutionary effect of the convertibles in the case of NAPGA as well as APTGB.

lakeside
16-05-2007, 07:00 AM
Yes there will be plenty of reasons for variation, hopefully generate discussion. Even Americas cup will have an effect but probably commodity prices and fund investment more so. Commercial property is a great investment but not really one for the traders - more for the patient.

I can't see why MGP is so strongly supported. Might be institutional support, perhaps because so much industrial parks and bare land is good for growth or down turn resistant.

I wonder if any are holding back valuations till October when the gains are not taxable? CHP have reported no capital gains so looking good for future moves as well as exchange rate benefits.

Office valuations have really shot up but could they shoot down / freeze in a high interest recession environment.

lakeside
17-05-2007, 08:33 AM
Good result for KIP.

Looks like no tax on dividend is the result of PIE. Will the budget have an effect/ change anything.

Will all the trusts benefit - I didn't see mention in the MGP result on PIE. CHP might not benefit because of Aussie assets?

Bit at the end says :

Portfolio Investment Entity Regime & Dividend Projection
As previously advised, the Government has introduced a new tax regime for
Portfolio Investment Entities (PIE), such as the Trust. The new PIE regime
dramatically alters the way in which the Trust's dividends will be taxed.
For New Zealand resident investors, no further tax will be payable on the
cash dividend paid. For off-shore investors, the amount of tax paid in New
Zealand will decrease, but depending on personal tax circumstances, further
tax will generally be payable in the country of residence. The new regime
takes effect from 1 October 2007 and applies to dividends paid after that
date. As the Trust's first dividend for the year ending 31 March 2008 is
paid after 1 October 2007, the new regime will effectively apply for the full
year.

Based on the outlook for the Trust, and as a consequence of the new PIE
regime, the Trust is projecting a cash dividend for the year ending 31 March
2008 of approximately 8.8 cents per unit. This projection is based on
current tax legislation and a continuation of reasonable economic conditions.
Unlike previous dividends, no further withholding taxes will be deducted
from this amount. The result is a significant uplift to the after tax
dividends received by most New Zealand resident investors. For example, in
the case of a tax-payer on a 33% marginal tax rate, the increase is
approximately 37% greater than last years' cash dividend.

kura
19-05-2007, 03:04 PM
I have a reasonable holding in KIP, and looked through the presentation on their website, what concerned me was looking at the effective capitalisation rate on their properties, at approx 6% this seemed low by historical standards, and I'm wondering if we are approaching the top of the cycle for commercial property ?

I don't want to knock KIP in particular, as I simply don't know figures for other property companies

lakeside
19-05-2007, 10:11 PM
I'm not sure, but PFI certainly make a big thing of the capital return they get being ahead of anyone else. Esp in their 2005 annual report but a bit in the 2006.

http://unlisted.smallcaps.co.nz/SLPFv1.htm

Has these figures for SLPF but I don't know how the 2006 could be there as its not out. I'll paste them. Remarkable that they are now selling for 2006 prices with another 20-30% gain about to be announced I reckon, maybe news of next years share float. Turn over is only 10's of thousands not millions unlike some of the other property listeds.

Financials
Year 2002 2003 2004 2005 2006 Average GR Compounding GR
Gross growth rates
Revenue 41% 114% 130% 36% 80% 75%
NPAT -21% 292% 373% 72% 179% 124%
Total Assets 97% 298% 18% 38% 113% 89%
Net Assets 28% 1167% 32% 42% 317% 134%
Per Share figures and growth
Earnings

Net Assets

Dividends

Profitability
Return on Assets 4.17% 1.67% 1.64% 6.55% 8.16%
Equity Multiplier 8.50 13.10 4.12 3.70 3.61
Return on Equity (ROE) 35% 22% 7% 24% 29%
ROE (avg E) 24% 13% 28% 35%
Net Profit Margin 24% 13% 25% 51% 64%

Liquidity
Net working capital $(11,691,000) $20,700,000
Current ratio 0.87 1.28
Acid test ratio 0.87 1.28
Other
Times interest earned 1.25 1.24
Operating exp/income 77% 84% 76% 42% 45%

Summary Financials
Income 5320000 7568000 15667000 49275000 74114000
Expenses 3948000 6108000 11713000 31524000 43270000
Tax 133000 485000 135000 -311000 -242000
NPAT 1239000 975000 3819000 18062000 31086000

Assets 29690000 58540000 233136000 275654000 381004000
Liabilities 26196000 54071000 176534000 201138000 275469000
Net Assets 3494000 4469000 56602000 74516000 105535000

lakeside
23-05-2007, 10:45 AM
I think Napier is a good place to invest with demographics of aging babyboomers looking for the lifestyle.

NAP
23/05/2007
GENERAL

REL: 1046 HRS The National Property Trust

GENERAL: NAP: NPT upgrades Ocean Boulevard and secures Living & Giving

National retail brand Living & Giving has selected Napier and a site in the
upgraded Ocean Boulevard, for its latest store location and cited the city's
strength as a "retail hot spot" as the key reason.

Living & Giving, which is due to open on 25 June, is the first national large
format retail brand to take advantage of the current refurbishment being
undertaken by the mall's new owners, The National Property Trust (NPT). The
mall is currently being refurbished under the directorship of the Trust's
managers owned by St Laurence Limited, a property-based funds management and
finance group.

NPT expects to spend more than $400,000 on interior construction work to
convert the former small retail spaces into larger stores with a major new
fishtail entrance off Dickens Street. A substantial upgrade of the exterior
and signage will soon be underway.

NPT Leasing Manager John Kitto says there was a shortage of large format
retail space in Napier's central business district and the refurbishment has
helped meet the need for 200 to 500 square metre stores. "We know that
Napier is a highly desirable retail opportunity and that the Hawke's Bay
community in general is receptive to high quality retailers such as Living &
Giving."

There are a limited number of stores remaining for lease and Mr Kitto
believes local and national retailers keen to improve their positions within
this high-foot traffic area of the CBD will quickly snap these up. The fact
that Briscoe Group, who owns the Living & Giving brand, had just recently
made a significant investment in its new

Napier store was evidence of the confidence national businesses have in the
Napier and Hawke's Bay economies, Mr Kitto says.

"We are committed to further improving what we see as a key retail asset in
Napier," Mr Kitto says.

Living & Giving Chief Operating Officer Pete Burilin says the move into
Napier was particularly exciting, as this store, the 10th in New Zealand,
would feature a new store layout and design look.

"As a national brand always looking for expansion options, this site provides
us with an excellent opportunity to launch a new look to better reflect the
Living & Giving values."

The store will stock a comprehensive range of quality stylish home and
lifestyle products sourced from around the world.

lakeside
23-05-2007, 07:48 PM
NTA $1.47 and you can buy them tommorrow for $1.15 and get 2% interest at the end of May.

Good result as no sale of Elrond in there but not much indication of where to with Dorchester holding 25%

Lead Story - St Laurence Property & Finance Announces $32.9M Net Surplus after Tax

Active property investor St Laurence Property & Finance (SLPF) today announced a net surplus after tax of $32.9 million for the year to 31 March 2007.

The result includes unrealised revaluation gains of $26.7 million, which is an average of 9.5% across the investment property portfolio. Over the year, SLPFs investment property portfolio increased from $244.5 million to $306.0 million through a combination of acquisition and valuation growth.

Total assets increased from $381.0 million to $432.8 million in the 2007 financial year. Approximately $47.9 million of that increase was derived from SLPFs recent successful takeover offer for parcels in the St John Balanced Property Fund, of which SLPF now holds a 58.6% stake.

SLPFs net surplus after tax of $32.9 million compares to the $31.1 million net surplus after tax recorded for the year ended 31 March 2006. SLPF chairman Kevin Podmore says last years result included several one-off items which boosted revenue and profit. St Laurence Property & Finance has performed exceptionally well with 2007 earnings more evenly spread across its property investment, property development and other investment activities.

In addition to the gains on the companys investment property portfolio, SLPF enjoyed a $7.4 million uplift in the value of its property development joint ventures. It also sold a number of investment properties throughout the year for a total consideration of $32.5 million.

The commercial property sector is very healthy and there is strong investment demand, both locally and internationally. Increased valuations have allowed SLPF to book significant unrealised gains on its investment properties as well as realise some gains through property sales, Mr. Podmore says.

Our core focus for the year ahead is to continue to develop and add value to our existing inventory of properties. We have several development projects underway in Auckland including a significant joint venture development adjacent to the former quarry in Mt Wellington. In Wellington we continue to progress projects such as the development of the Central Park site in Porirua and the redevelopment of the former Deloitte House in Thorndon, Wellington.

Holding a strong mix of office, industrial and other commercial property, SLPFs investment property portfolios weighted average lease term increased from 3.47 years to 3.58 years at 31 March 2007. Tenancy demand for quality commercial and industrial property space continues to increase, Mr. Podmore says; We expect this to continue into 2008.

In April 2007, SLPF also successfully raised $21.9 million (net of issue costs) via a 1 for 5 rights issue, with 89% or 19.3 million of the 21.7 million new Mandatory Convertible Property Notes (MCNs) taken up by the existing shareholder and note holders. This is a positive result and further consolidates our view that our investors are confident in our strategy and direction, Mr. Podmore says.

Post rights issue, SLPFs Net Tangible Asset backing for its MCNs sits at $1.47. We are pleased with the new underlying NTA backing and anticipate that the underlying discount to current market price will decrease as the date approaches when the MCNs convert to ordinary shares on a 1 for 1 basis in December 2008.

Mr. Podmore adds, The 2008 period is expected to be year of further value growth for SLPF, as we continue to develop and add value to our existing property investments. We look forward to keeping our shareholders updated as we continue to build a solid platform for future growth.

St Laurence Property & Finance Limited - Financial Highlights
2007 Consolidated 2006 Consolidated
$'000s $'000s
Operating Revenue 48,383 48,397
Operating surplus after tax 6,215 5,369
Unrealised change in value of investm

COLIN
23-05-2007, 09:29 PM
Noted, Lakeside, and I can't understand why there isn't more buying interest in SLPF, at such a significant discount to NTA compared with other LPC's. I'm sure the price would improve if they were on NZX rather than Unlisted.

DISC: Hold SLPF MCN's.

lakeside
24-05-2007, 06:18 AM
Yes Colin I think they are just under the radar.

YOU HEARD IT FIRST ON SHARE TRADER!... well I have't heard it anywhere else!

They do report on the NZX site as STL because of their capital notes.

They remind me of Capital Properties or Infratil having stock at a low price building up heaps of value leveraging off fixed interest notes which return more cash short term. Also KFL. All NZ investor focused. Nice mix of all sorts of commercial and subdivision property, rural property and finance with lots of freedom to move - in fact they keep cards close to their chest. I wouldn't be surprised to see more marketing from STL.

Maybe as they are not strictly stock SLPF capital gain is taxable? They didn't seem to get a boost off PIE / Budget.

There will be heaps of Capital Gain anyway - last year they were $1.20 so after another 30% gain $1.35 is not unreasonable and still 8% dividends.

lakeside
25-05-2007, 11:06 AM
Hooray - some coverage for STL.

Has any one else seen Bob Deys website or get his e mails? They seem to give a thorough coverage esp of Auckland Property.

http://www.bdcentral.co.nz

Published 25 May 2007
St Laurence Ltd increased its net after-tax surplus by 181% to $15.2 million in the March year. Subsidiary company St Laurence Property & Finance Ltd increased its surplus by 15.8% to $6.2 million, and by 5.8% to $32.9 million after revaluations.

Group parent St Laurence Ltd, a property-based funds management & finance company, increased total consolidated revenue by 79% to $49.1 million and assets by 44.6% to $327.6 million. The company now has more than $1.1 billion of assets under management.

Equity increased by 162% ($33.3 million) to $53.8 million, resulting in a new equity ratio of 16.4%.

The result includes revenue derived from the companies acquired in September as part of the groups re-organisation. This re-organisation transformed St Laurence Ltd into a diversified property-based lending & funds management, asset management & fund investment business.

Managing director Kevin Podmore said: This years result is largely attributable to the overall strengthening of our business in late 2006, when we acquired substantial fund & asset management entities from within the St Laurence group of companies for about $64 million. 2 of the companies it acquired were entities that held the management contracts for NZX-listed The National Property Trust & NZDX-listed St Laurence Property & Finance. These 2 entities now hold combined assets worth more than $700 million.

The 2007 St Laurence Ltd results include revenue from the core property lending operations of $27.4 million, up 17.2%. In addition, $21.7 million of revenue was generated from the fund management, asset management & fund investment activities.

Mr Podmore said: The 2007 result reflects our expanded business activities and the increased income associated with our fund management, asset management & fund investment activities. St Laurence Ltd now has significantly more assets under management and greater certainty of income with the introduction of new revenue streams.

Credit rating agency Risk Analysis raised its rating of St Laurence late last year from B3 to B2 investment grade. Mr Podmore said the groups diversified lending & funds management business and strengthened key financial measures, including the introduction of more than $23 million in capital at the time of the business re-organisation, had been a significant contributor to improved credit rating and gave the company a very solid platform for growth.

The Risk Analysis rating system is a robust test of both qualitative & quantitative measures and, over the 3 years we have been rated, it has greatly assisted us to enhance & strengthen our business. We support the Governments move for mandatory credit ratings and would encourage all finance companies to go through this process, Mr Podmore said.

He said the changing environment in which finance companies operated in was clearly separating the quality businesses from the rest: In the near future, finance companies will be largely split between larger lower-risk finance companies that offer quality investments at risk-adjusted returns and smaller, often higher-risk companies which will struggle to achieve steady funding even despite offering high interest rates.

Mr Podmore said St Laurence was benefiting from a trend of more investors placing money with just the financially stronger finance companies, partially a result of recent industry consolidation. St Laurence investor deposits increased by 30% to $262 million during the year: Our growth in investor deposits demonstrates the confidence the financial advisor base & the investing public have shown in St Laurence, and reinforces acceptance of our strategy to manage a diversified finance & funds management business.

Most investments continued to be for terms of 2 years or more, reinvestment rates remained high and liquidity remained stro

lakeside
25-05-2007, 12:41 PM
Updated share, recent price, and latest NTA Also dividend %
MGP $1.52 $1.13 to $1.26 5/07 3%
ING $1.24 $1.15 to $1.30 4/07 7%
CHP $1.40 $1.30 to $1.28 (due to exchange rate)2/07 3%
PFI $1.50 $1.20 to $1.32 3/07 4.5%
KIP $1.65 $1.43 to $1.73 3/07 5%
APT $1.28 $1.18 to $1.48 4/07 Diluted since & to be diluted by convertables 6%
NAP $.77 $1.13 last year to be diluted by convertables 4% (to miss a payment)
SLPF $1.14 $1.47 3.07 8%

Not much change MGP and APT down a bit, ING up a bit. Quite a variation in dividend as given on the DB site details.Turn over is interesting with several million going through these shares some days.

OldRider
25-05-2007, 03:13 PM
Those dividend % return figures seem suspect to me, my spreadsheet shows for example CHP presently on a 6.33% return, the lowest it has been for 6 years. Others similarly different.

lakeside
25-05-2007, 03:36 PM
quote:Originally posted by OldRider

Those dividend % return figures seem suspect to me, my spreadsheet shows for example CHP presently on a 6.33% return, the lowest it has been for 6 years. Others similarly different.


Yes you're right OR as they go up and down and unless you keep up it is hard to be accurate.

With the value gains in all the property stocks the yields are hard pressed to keep up - but many have gone up recently.

I guess that is where the high interest rates will kick in first if they have a lot of short term debt.

I am bullish about property though, more so after the Fontera payout news.

lakeside
28-05-2007, 11:29 AM
Whoah now we are talking. The penny has dropped with someone. SLPF up in price & volume.

That last report was a cracker with assets, profit after tax and cash reserves all well up.

Of course they could be opening a corner dairy or shopping centre near Pike river coals smoko room.

SLPF]


Quote Line at Mon 12:23:13
Code Bid ($) Offer ($) Last ($) At High ($) Low ($) Volume Value ($)
SLPF 1.170 1.190 1.170 28/05/2007 11:50:26 1.170 1.160 28,883 33,674.630


Market Depth
BIDS
Orders Quantity Price ($)
2 110,087 1.170
2 42,088 1.140
1 7,748 1.130
1 50,000 1.120
OFFERS
Price ($) Quantity Orders
1.190 11,608 1
1.200 8,706 3
1.210 610,575 12

lakeside
31-05-2007, 03:18 PM
St Laurence Property & Finance, boosted by the growing value of its property portfolio, made $32 million, taking its convertible notes to an asset backing of $1.47, its revaluation (around 15%.


Effectively those who took up their convertible notes at $1.05 bought at a 40% discount, a rare bargain. (still a 20% discount at $1.19)

When the notes convert to shares in December 2008, and are listed, you might expect high demand if there are sellers at anywhere around the price today, of around $1.15, especially if SLPF becomes a Portfolio Investment Entity, and deliver its dividends tax-efficiently. (What if they issue warrents or something - worked for IFT?)

(ex Chris Lee with bits amended by me)

lakeside
06-06-2007, 09:34 AM
The old mitsubishi factory. I remember as a kid they said you could see it from the moon - was it NZ's biggest building for area at one stage ... I am just an old Porirua Boy - did you know the first McDonalds was in Porirua...

Great growth prospects in developing that site!

St Laurence Property & Finance leases 100% of Central Park
Active property investor St Laurence Property & Finance (SLPF) is pleased to announce that its Central Park industrial shed facility in Porirua, Wellington is now 100% leased.

This is the first time the Central Park has been declared fully tenanted since Mitsubishi Motors exited a significant portion of its business from the industrial park in 1998. The industrial complex comprises more than 12.3 hectares of land in total, including a 50,000 square metre shed plus 4 hectares of development land.

St Laurence Property & Finance general manager Paul Chapman says the result is a reflection of the high demand for industrial space in the area. Demand for commercial space is pushing land prices up and this is one of the key reasons businesses are getting in quick and securing space. In saying that, there are still some excellent leasing opportunities available in the land surrounding the wider Central Park shed facility, and it is still a relatively cost effective alternative for businesses looking for a convenient location for their distribution or warehouse facilities.

Central Park has attracted a range of distribution and warehouse businesses with many tenants looking for a landlord to design-build their new premises. We are fortunate at SLPF to be fully integrated. This means we are both landowners and value-add developers, and can provide an end-to-end service for our tenants. This creates long-term growth partnerships, and means we are able to grow as our clients businesses grow.

Central Park has been earmarked by St Laurence for development ever since it was purchased in 2005 when SLPF exercised an option to purchase the site.

While the existing building is now fully leased, there is still an opportunity to develop the further 4 hectares of land at the park. SLPF has been in discussions with number of interested parties looking to expand their operations. We will be looking to attract a similar range of industrial, warehouse and logistics companies that want design-build options that are in keeping with the zoning of the site, Mr Chapman says.

Central Park comprises a number of tenants including AF Logistics, Online Security Services and Mitsubishi Motors. Mitsubishi Motors operates its new and used parts division out of Central Park.

Online Security Services offers a range of secure paper-based and electronic business information management solutions to its customers and recently signed a three-year lease at Central Park.

Meanwhile, AF Logistics recently increased the space it leases at Central Park to meet demand for its transport and logistics business. AF Logistics stores and distributes products for a huge range of companies around the lower North Island. It also has bases in Tawa, Gracefield, Palmerston North and Hastings. The company has almost doubled its leasing area to 11,800 square metres.
Logistics Manager Jeff Hazlewood says Porirua City has proven to be a great base for the companys warehouse and distribution centre, particularly given its proximity to the Port of Wellington where it is working to create a central hub for imported products.

lakeside
06-06-2007, 09:38 AM
NEWS RELEASE
I N G P R O P E R T Y T R U S T
Auckland o 5 June 2007

Merger discussions ended and buyback launched
The Board of directors of ING Property Trust Management Limited (the "ING
Board") has advised that merger discussions with the Board of directors of
the manager of Calan Healthcare Properties Trust ("Calan") have ended.

The independent directors on the Boards of both trusts jointly appointed an
independent appraiser to opine on whether a particular scrip for scrip
exchange ratio was fair to both sets of unitholders. The appraiser presented
a draft report to both Boards, which indicated that the particular exchange
ratio was fair. While the independent directors on the ING Board wished to
proceed with the proposal on the terms contemplated, the Calan Board was not
satisfied the proposal was one that justified progressing it further with a
view to presenting it to Calan unitholders.

The ING Board is disappointed that this current opportunity has been lost
for the unitholders of both trusts. ING Property Trust (the "Trust") also
announced its intention to undertake an on-market buyback of its units on the
following terms:
- Unit purchases may occur during the period commencing 8 June 2007 and, if
the unit buyback
programme has not been completed or suspended earlier, concluding on 6 June
2008;
- The Trust may acquire up to a maximum of 54,173,747 units (being 10% of the
current number of units
in the Trust on issue); and
- The units purchased shall be deemed cancelled upon repurchase.
The decision to undertake this on-market buyback was taken following the
termination of the Calan merger discussions and the recent fall in the
Trust's unit price, which has traditionally traded at a premium to its net
asset backing, but is now trading at a discount. The net asset backing of the
units of the Trust is
$1.30 per unit as at 31 March 2007.

The ING Board believes a prudent capital management approach at this point is
to invest back into the
Trust. It would evaluate the buyback situation on a day-by-day basis. Mr
Michael Smith, Chairman of the ING Board, said: "The focus of the Board and
management is to consistently provide attractive total returns to the Trust's
unitholders within acceptable risk parameters. We believe that our units, at
current levels, represent demonstrably good value and, while they remain so,
the Trust will be actively seeking to purchase them through an on-market
buyback".

Mr Smith noted that the buyback would not affect the Trust's intention to
elect into the PIE regime or its ongoing acquisition of properties that
provides unitholders with attractive total returns.

lakeside
12-06-2007, 07:32 PM
http://www.stlaurence.co.nz/webcasts/

Has a PDF and MP3 to listen to regarding St Laurence & SLPF.

They are very positive about the 2007 result - more diversified and more equity and predict a big increase in dividends and dishing out of retained earnings in late 2008 when SLPF is listed. The NTA of $1.47 is post the dilution so pretty good result and if they maintain 15% return each year they should be $2.00 by then.
It's an interesting listen - wish I could have heard the questions. StL increased their fixed interest loans by 25% last year so money pouring in from the punters and they are using it well. Amazing that there are no related party deals so Kevin Podmore isn't using them for his own investments - a good thing.
Risks - only one mentioned was StL quite exposed to Auckland residential subdivisions when the down turn comes but SLPF is more offices and commercial.

lakeside
13-06-2007, 12:23 PM
St Laurence experiences solid revaluation growth across portfolio

Active property investment vehicle St Laurence Property & Finance (SLPF) recorded a significant uplift in property valuations of more than 9.5% in the year to 31 March 2007.

Valuation increases resulted in unrealised revaluation gains of $26.7 million in the year to 31 March 2007. SLPFs investment property portfolio increased from $244.5 million to $306.0 million during the period through a combination of acquisition and valuation growth.

SLPF chairman Kevin Podmore says the continued increase in asset values is a reflection of strong demand for property assets in the commercial and industrial space. Prices have been driven higher by further local and international demand for New Zealand property overall, combined with robust underlying economic conditions.

Of the 26 properties in SLPFs portfolio, 12 properties showed valuation gains of more than 10%. Six of these properties demonstrated gains of more than 15%. SLPFs North Harbour property at 13 William Pickering Drive rose in value by 23.5%, from $6.7 million to $8.3 million, with several other Auckland properties recording increases of more than 10%.

Other significant performers included:
_ SLPFs Repco property in Mt Wellington, Auckland which rose 15.5% to $22.4 million during the period;
_ Cain Park in Penrose, Auckland which experienced a 14.1% lift in value from $9.1 million to $10.3 million;
_ Eagle Technology House in Victoria Street, Wellington which rose in value by 11.5% from $19.2 million to $21.4 million; and
_ The former Deloittes building in Molesworth Street, Thorndon, which experienced a 11.7% rise in value to $15.4 million.

Mr Podmore says increasing demand for industrial space is creating a number of development opportunities for SLPF in its existing property portfolio. We are actively pursuing these development opportunities and expect demand for future developments to continue as space in prominent locations becomes increasingly scarce.

Plans are currently underway for SLPF to design-build more than half the vacant development land to the rear of the Repco distribution centre in Mt Wellington, Auckland. This is expected to further increase the value of the property in the future. Other design-build opportunities within the portfolio include the Central Park industrial complex in Porirua, Wellington where a commitment has been recently secured to design and build a new warehouse and distribution centre for national furniture retailer Harvey Norman.

This is the first in what we hope to be a number of design-build developments on a site which is ideally located for companies looking to centralise their distribution and warehousing operations

St Laurence Property & Finances primary focus in 2008 is to continue to progress with the value-add opportunities already identified within the investment property portfolio. As well as this, we will continue to focus on our strategic property development assets, including our joint venture developments, Mr Podmore says.

rmbbrave
18-06-2007, 12:43 PM
'Own-your-own' gets property survey tick
5:00AM Monday June 18, 2007
By Anne Gibson


Listed property companies that own real estate they can develop are highly attractive and have the most potential in the sector, says broker Goldman Sachs JBWere.

And commercial real estate is favoured over retail or industrial property.

Analysts at Goldman Sachs JBWere have produced an in-depth analysis of the $6 billion listed property sector, and gave the highest ratings to companies or trusts that own land they can develop.

"We believe internal development opportunities should command a premium in the listed property vehicle sector," wrote analysts Shamubeel Eaqub and Matt Henry.

Kiwi Income Property Trust's ability to build offices at Sylvia Park made it an extremely attractive stock, they said.

Macquarie Goodman Property Trust's strong development pipeline gave it potential. And Property For Industry's significant number of development chances made it a drawcard.

Another criterion for potential winners is their mix of real estate. The analysts are picking stocks with large holdings of commercial real estate will do better than those with industrial or retail property.


"Industrial and retail properties tend to require redevelopment with higher frequency, shorter development lead times and greater ease of securing leasing commitments," they wrote.

They favour the office or commercial real estate for which demand is high, leases are long and redevelopment is needed less often.

AMP NZ Office Trust's focus on the commercial sector was attractive, they said, and they ranked it as one of their most preferred because of its pure exposure to the prime office sector.

"We expect the strong sector dynamics to deliver solid near-term rental growth in the coming period, supported by the trust's 12.5 per cent under-rented portfolio. We view the high quality portfolio as offering a below-sector risk profile - higher quality assets tend to be more resilient in less supportive macro environments."


AMP says its trust is New Zealand's largest in the office sector, owning and managing $1.4 billion of real estate.

Macquarie was the analysts' most preferred stock in the sector with "a compelling above-sector average net yield of 6.6 per cent" and big upside through its development portfolio.

Expansion had been Macquarie's major theme since the trust's inception, they said. Its Australian associate, Macquarie Goodman Group, had relationships with quality tenants in Australia and this would help the New Zealand trust to deliver good returns.

But the analysts downgraded their recommendation on Kiwi from buy to hold, saying its unit price had risen more than any other listed property entity in their coverage.

Kiwi should trade at a premium to the sector because of the quality of its assets and its inherent development opportunities at Sylvia Park.

"However we believe the share price fully reflects the value of the trust's portfolio encompassing these factors," they said.

ING received far less praise.

"In general, we view ING's portfolio as being at the lowest quality of the listed property vehicle sector under our coverage," they wrote. "Since inception, the trust has pursued a growth-in-assets-under-management strategy, the pace and volume of which has meant the quality of stock entering the portfolio has been mixed.

"We see the lower quality as being accompanied by greater vacancy and cap rate risk in a slowing economy, and therefore relative to its peers, we maintain a lower confidence in the trust delivering against our forecasts."

ING this month ditched its takeover plans for Calan Healthcare Properties Trust and started a unit buyback plan. It claims its $1 billion portfolio is one of New Zealand's largest and best.

The two analysts said Property For Industry's shares had traded at a premium because shareholders had given it credit for its strong value creation through portfolio expansion.

Its shares would hold that premium and the analysts were confident it would continue to

lakeside
18-06-2007, 02:08 PM
Interesting. They don't mention debt or equity as being important

NAP slipped below the radar. They are 55%retail 41% commercial and 4% industrial.

SLPF 46% commercial, 33% industrial and 20% retail. The last two up a bit in 2006 but it is probably development of bareland / central park to industrial and retail that has increased these rather than quiting offices. I wonder what farms comes under - industrial I suppose and retirement villages - industrial?

6 billion for the whole industry and ING 1 billion is big - STL has over 1 billion $400 billion SLPF and $300 NAP.

lakeside
18-06-2007, 03:35 PM
$800 000 SLPF through off market today at $1.21 but still the odd bargain at $1.14 popping up.

lakeside
18-06-2007, 08:46 PM
MGP is about 50% office and 50% industrial nearly all in Auckland. It has done well in the last year - 40% or so and has the name., and about $1 billion in assets... but I do miss capital properties!

a bowden
19-06-2007, 04:49 PM
What is everyones thoughts on CHP, i brought them early this year, they just have a steady momentum backwards, they need to improve quick before i bail.

lakeside
20-06-2007, 12:48 PM
Well I think they just didn't get the numbers in their Feb report - "However, these gains were more than offset by the conversion of the
Australian properties' values into New Zealand dollars. The 9% appreciation
in the NZD/AUD exchange rate between 30 June 2006 and 31 December 2006
resulted in a decline in carrying value of Australian properties of $7.2
million when expressed in New Zealand dollars. The carrying value in
Australian dollars of the Australian properties remained unchanged at
AUD$72.8 million."

So maybe like FPH a good company, held back by the dollar and long term a good investment.

troyvdh
25-10-2007, 06:53 PM
...boring and dull stuff I know but I really like this company....every ...like I mean every...1/4 it just gets better.....if and when the next burp comes along tbhis outfit will continue to deliver.....boring i know....

hold a few and always have......zzzzzzzzzzz

Lawso
28-10-2007, 03:53 PM
I quite agree, troy. I've been in PFI since 1999 and my purchases over the years - around $30k - have grown to my current holding of nearly $65k, thanks largely to the DRP and the compound interest miracle. And the price appreciation of course - first purchase was @ 78c, current price 144. Boring as hell, eh?

Lizard
30-11-2007, 04:27 PM
Wonder what's up with KIP? Big volume through on the close.

I only notice, as I decided to start re-building my property trust holdings again yesterday - and bought a few KIP for starters.

p2r
01-12-2007, 01:14 AM
Maybe it is people getting their first PIE divies.
I heard someone say you get paid tax paid divies and don't need to declare if the non PIE part is imputed. Any one got a piece of PIE yet?

kura
01-12-2007, 12:50 PM
Maybe it is people getting their first PIE divies.
I heard someone say you get paid tax paid divies and don't need to declare if the non PIE part is imputed. Any one got a piece of PIE yet?

Yep, I got a piece of PIE from my AMP NZ Office Trust units (APT) last week, the dividend advice clearly split the dividend between the imputed taxable part (approx 1/3rd) and the non taxable part that shouldn't be put in your tax return at all (approx 2/3rds)

Under the "pre PIE" scenario, the non imputed portion would have been subject to withholding tax, and the entire dividend would have been taxable.

My interpretation, is that govt wanted to even up things between investing in property directly, and investing through a PIE, in a direct investment the owners would claim tax depreciation, so that some of their cash income was effectively "tax free", (same logic applies to capital gains on sale) it may seem strange to get a tax free dividend, but credit where credit is due, at least we have a level playing field in this respect now.

Lizard
01-12-2007, 04:37 PM
Some useful stats (not guaranteed!) that might explain why the sector has taken on more interest for me at current prices:

http://img.villagephotos.com/p/2006-8/1204598/Picture_clipping2.gif

(Apologies for image quality - I'm sure there is a simple way to put excel data in here, but I'm still working it out :) )

troyvdh
01-01-2008, 02:23 PM
Reasonably good volumn and a healthy lift in some of these the other day....perhaps some folk thought that they had fallen enough.KIP and PFI in particular have definitely ceased there previous long term up trend....sure as "Helen,s gonna be gone" land and buildings will over time assume there upward trajectory me thinks.

kura
02-01-2008, 10:20 AM
With the Centro problems in Oz, I was thinking that all property companies could be "tarred with the same brush" and this sector is going to be in for some market gloom.

Billy Boy
02-01-2008, 01:52 PM
I agree Kura
I have been watching Unit Trusts for some time, maily as divvy stocks.
As the economic bubble swelled, so did the Unit Trust's S/prices. And now
the bubble is deflating, likewise the S/prices.
I also think S/prices have a ways to got yet and as 2008 rolls on we might
well see a few more vacancies appearing in the portfolio's.
Interest rates will remain high through 2008 and this will keep the property
sector (in general) in check.
ING is a very interesting one.
They have been on a rather large buy back program for a few months now.
It makes we wonder. Is it to increase the value to Unit Holders, or to "Prop Up"
the share price ??. If they have a lot of surplus cash then why not expand.
I wonder what the SP would be now without the buy back program. ??
Cheers BB

p2r
03-01-2008, 09:43 AM
What is the debt or leverage of each I wonder and where is that debt from eg banks or debentures?
Which sectors - Commercial, retail, industrial where - Auckland/ Wellington? I reckon Retail and Auckland are the best.
What sort of income streams?
How will inflation affect them?

I think that easy gains by revaluing are a thing of the past but actively managed funds could do OK with some growth, good income. tax advantages, NZ dollar, aging population (with heaps of money to invest & spend).

They are always going to be turtles not hares but look pretty good value to me.

Billy Boy
03-01-2008, 11:35 AM
What is the debt or leverage of each I wonder and where is that debt from eg banks or debentures?
Which sectors - Commercial, retail, industrial where - Auckland/ Wellington? I reckon Retail and Auckland are the best.
What sort of income streams?
How will inflation affect them?


It's a while ago since I did research on leverage, income streams, etc...
Some Unit trusts have a spread over the different sectors, Others are
selective. ( Like PFI CHP APT). APT is mainly govt. departments.
Go too the websites as most of the info you require will be there, if
not E-Mail them with your questions.
The inflation Q.
Property valuations and rents keep pace with inflation in general and most
rent reviews are on a three yearly basis. Divvys are paid quarterly except
APT who pay h/yearly.
The Area's Q.
That is not one I would like to get into as circumstances can change
very quickly from a unit trusts point of view. Auckland...yes coz 1 third
of NZ population lives there.
Retail shops in the suburbs ?? Not CHCH, re: NAP and the Redwood complexe.
Else... I leave it too the experts.
As a medium to long hold, I go for Growth, Management and Percentage
return on money's invested.
IMO.......
Year 2008 is going to be a rocky ride for Units Trusts as we could start to see
some bizz retrenchment due too our economic climate. Office space & Retail
could face an over supply in the suburbs of the main centres, and other cities.
I think S/Prices may fall a bit yet, second quarter will be a good indicator. Third
quarter could be (repeat "could be") the time to buy.
Cheers BB

OldRider
19-02-2008, 06:18 PM
OK,
Which "Sharetrader" sold out a holding in APT today?, sure boosted NZX turnover,
presume this was the sale to the overseas outfit was to take a sizeable postion.

troyvdh
19-02-2008, 08:02 PM
And I would like to thank the person who sold me PFI at 118 (yesterday).....some else was even luckier and picked some up at 115......now 129.

Ill go back to sleep now.

COLIN
19-02-2008, 10:40 PM
So just how much of APT do the Arabs end up with? I find it hard to tell from all the SSH notices. Is it the whole 50%? APT own some of the country's premium major commercial office towers. Sovereign Wealth Funds are going to be an increasing feature of the global investment climate, and I guess we should be thankful that they will help to sustain asset values. They might make me an offer for my house that is too good to refuse? But seriously, this type of source of funding is going to spark a lot of debate - look at the hysterical outbursts surrounding the Dubai approach to AIA, and the Hong Kong proposals for LPC.

The Great Gold Guru
23-06-2008, 04:36 PM
Boy these are cheap ....

The Great Gold Guru
17-07-2008, 11:03 AM
I can't quite understand why these stocks a getting absolutely trashed. They are all trading enormously below NTA , have dividend yields in the 8-10% region depending on which one you choose. I just don't get it.

I rang my favourite commercial agent a few days ago about a commercial property in St Heliers ... long term bank tenant, decent quality offering. Vendor's expectation were a yield of around 7%. WHY ON EARTH would you buy something like this when you can buy a stock like ING Property Trust ( yield at 84c is 10.4% ) or Kiwi Income on a yield of over 8% that are both trading at about 70c in the $1 in term of NAV. Both are geared at around 30% , have long term interest rate hedges for 3-5 years at rates 2-3% below current borrowing costs. Their occupancy rates are between 97 and 100% and they both claim the portfolio's are around 5% under-rented.

They appear to me like the market is pricing in a dooms-day scenario where rents collapse by 20% , tenants start leaving in droves or going belly up and generally the NZ economy starts going backwards at an alarming rate. For anyone with anything more than a short term view they look great buying.

Disc: have purchased in recent days

30,000 AMP Office
18,500 Kiwi Income
20,000 ING Property
27,500 Goodman Property Trust
30,000 Kermadec Property Trust
9,800 Property for Industry

Yield over whole portfolio if divi's maintained at 2007 payout ..... 9.11% !!!

Lizard
19-07-2008, 08:40 AM
I'd be careful about choosing one investment type (e.g. property trusts) over another, simply because they are a PIE. Very soon there are likely to be PIE's for every sort of investment, so wait a bit and pick up a PIE in the asset class you want.

As I understand it, one major benefit of PIE's would be for those eligible for income-tested benefits such as working for families tax-credits, DPB etc, as (at least to a limited extent), the income from PIE's appears to be excluded from the calculation of entitlement. Since the effective marginal tax rate for people under these circumstances are much normally much higher (50 - 80%?), they can achieve a significant improvement in net income by moving to PIE status investments.

Still, I'm a fan of property trusts at these prices too. APT would be my pick for now. PFI is always a good stalwart though and NAP a speculative pick as heavily discounted and now better structured to survive a downturn.

Billy Boy
19-07-2008, 10:01 AM
I too am a fan of property trusts.
I feel the right time to buy is about now because of the yeild's.
I have just sold a comercial building and am looking to invest into
Prop Trusts because No Hassels. No worries about tennants, GST,
rates, matainance, Insurances, etc.. and at the present unit price
the return is better. And will still have a hedge against inflation.
Lizard
Whats you view on ING.
The only real criticism I can drup up is the some of their
buildingsare outdated. But of late they have spent some millions updating.
NAP...
too much leveraging in todays inviroment and that could be holding the
SP down. No imputations !!
KPF...
small but an up and comer
APT...
Solid as they ar mostly Gvt Departments. But not a good spread
across the prop sectors. Yeild lowest of all.
KIP...
Been volitile as of late. Insto's getting out. Not such a good yeild.

Other thoughts would be interesting
BB:)

Lizard
19-07-2008, 10:30 AM
BB - I don't like ING, but it's hard to put my finger on exactly why. More just an overall impression over the years that their property trusts have been managed more to benefit the shareholders in ING themselves rather than for the benefit of unit holders in the underlying trusts. I was rather disappointed when they got their mitts on my old favourite, CHP (now IMP). Still hold some IMP though.

Agree with you that it is still the leverage (and quality of properties) not helping NAP, but the 50% discount to NTA is probably enough and the decline in share price seems to have stopped here. Also, proposed restructure of management fees is a big improvement and should improve cashflow. However, the discount on APT is now making them look comparatively more attractive - I guess it is factoring in a National govt and a decline in Wgtn CBD rentals.

The Great Gold Guru
19-07-2008, 09:43 PM
Great to see some good discussion on these. I have spent this evening analysing APT and ING ... written quite a good spreadsheet which is good for valuing the Net Asset Backing per share under various "what if" scenario's .... for your interest at the current share price of 84c for ING you are buying the whole portfolio on a blended yield of 10.29% !!!! APT at $1.07 ..... 8.28%. Just to stress , that's the cap rate of the buildings , not the dividend yield. Look at quality of AMP Office's portfolio and tell me that a cap rate of 8.28% is not great buying ... ING's is just plain cheap !!!

The Great Gold Guru
19-07-2008, 09:52 PM
Sorry ... APT at $1.07 is actually an implied cap rate 8.73% ... the 8.23% equates to paying $1.17 for the shares.

Lizard
20-07-2008, 02:59 PM
Interesting calcs Gold Guru. Happy to wait a few days for you to finish off the rest of the trusts. ;)

I have been reading with interest the comparison of fee structures between the various trusts provided in the current Grant Samuels report provided to NAP holders. Superficially, APT has the lowest fees by a considerable margin, while IMP appears to have the highest. However, this is based on most recent year data and will vary considerably due to differences in performance fee structure - APT doesn't appear to have a performance fee component.

PFI probably has the lowest fee structure once performance fees are taken out. ING has only slightly higher base fees than APT (relative to gross rent) but also takes a performance fee. IMP seems to have nearly twice the base fees (as a % of gross rental) that PFI operates with and still includes a hefty performance fee. KIP also looks to be at the high end. GMT and the revised NAP holding the middle ground.

The Great Gold Guru
23-07-2008, 01:04 PM
Just done my calcs on Kermadec ( KPF ) and at 65c I calculate you are effectively buying the portfolio on a 10.65% cap rate. That is some 2.40% higher than the current valuations on their portfolio.

I see their is still very determined selling of ING , down to 81c now. With the AGM a few weeks away some pretty hard questions will be raised. The recent buy in Albany off PFI is questionable ... would have prefered they extended the buy-back at these prices, would have added more value IMHO.

Billy Boy
23-07-2008, 01:31 PM
Just done my calcs on Kermadec ( KPF ) and at 65c I calculate you are effectively buying the portfolio on a 10.65% cap rate. That is some 2.40% higher than the current valuations on their portfolio.

I see their is still very determined selling of ING , down to 81c now. With the AGM a few weeks away some pretty hard questions will be raised. The recent buy in Albany off PFI is questionable ... would have prefered they extended the buy-back at these prices, would have added more value IMHO.
I re did my Spreadsheet coz of mistakes.
KPF shows up the best for $$$ spent. Then ING Must be some bad news comming out of ING as I cant see why the sell down. Lots of sellers, few buyers !!
BB

Bilo
23-07-2008, 02:02 PM
I re did my Spreadsheet coz of mistakes.
KPF shows up the best for $$$ spent. Then ING Must be some bad news comming out of ING as I cant see why the sell down. Lots of sellers, few buyers !!
BB
NZ and OZ ops being sold to CBA?

POSSUM THE CAT
23-07-2008, 02:43 PM
Bilo please share your source of imformation

The Great Gold Guru
24-07-2008, 10:00 AM
I see Bollard's rate cut has finally come ... and don't the property stocks know it ... good gains for GMT,KIP,PFI

Just bgt some more ING at 83c. Div yield 10.5% .... beats Hanover !!!

Billy Boy
24-07-2008, 11:16 AM
NZ and OZ ops being sold to CBA?

Yo BILO
You talking porkies ??? ;)
BB

Lizard
24-07-2008, 03:01 PM
I see Bollard's rate cut has finally come ... and don't the property stocks know it ... good gains for GMT,KIP,PFI

Just bgt some more ING at 83c. Div yield 10.5% .... beats Hanover !!!

Great timing for that call on property trusts, GGG. Looks like most are up 2-4% so far today.

Slightly off topic here, but have you looked at ASX:BJT? Debt levels are a bit high, but I like Japan as a market - all those unwinding loans and forex will have to go somewhere when the Japanese bring their savings back home. It's jumped about 11% today.

beacon
24-07-2008, 06:15 PM
Bjt's BnB connection is not helping - turbulent times ...

777
24-07-2008, 09:59 PM
I see Bollard's rate cut has finally come ... and don't the property stocks know it ... good gains for GMT,KIP,PFI

Just bgt some more ING at 83c. Div yield 10.5% .... beats Hanover !!!

Remember that KIP issued the dividend shares in mid June at 1.23.

Lawso
26-07-2008, 01:42 PM
There was a very positive air about the annual meeting of GoodmanPT unitholders in Auckland yesterday. Chief executive John Dakin was particularly impressive - good speaker, no bullsh, and answered honestly when one holder asked from the floor about clouds on the horizon in today's climate. He conceded that there could be some rent defaults and possibly reduced demand as "it appears we are in a recession".

But he also emphasised the strength of GMT's major tenants - NZ Post, Air NZ, Vodafone etc, etc - and also that they would be sticking to their policy of getting substantial pre-lease commitments before starting any new projects. And they would be watching the market closely for possible opportunities to buy development land at greatly reduced prices.

I hold PFI, APT and GMT and reckon Goodman is the best managed and the best performer, not only of these three but of the whole LPT sector. Most importantly, they are forecasting a net distribution of 10.25% for FY2008-9 - 9.9% for the y/e June '08. According to the Herald table the p/e is only 8.25.

The Great Gold Guru
27-07-2008, 08:11 AM
Forcast dividend is 10.25 cents for 2009 ... paid qrtly and with a discounted DRIP. Goodman is my second biggest LPT holding, I also think the company has top quality management. I went for a drive out to Highbrook a few days ago , the quality and sheer scale of the development is very impressive. Also made a litte detour up Gt South Road on the way back home and again more little green squares ( Goodman's logo ) outside some very impressive existing buildings and new developments. At 117 the discount to NAV of 130 is the smallest of any of the LPT's ... probably a good indication of the quality of their portfolio, quality of management , and their growth prospects over the next few years via their development portfolio.

I think GMT,KIP,APT and PFI are the quality offerings in the LPT space. The one reservation I would have is that PFI's dividend is really stingy and I can't quite work out why , any thoughts Lawso

ING has some real issues, huge discount to NAV says it all ... the market just doesn't like the management ( the attempted move into the Japanese market was just plain stupid ) and the portfolio has no real focus. I am standing for a seat on the board of directors at the upcoming meeting, hopefully get the chance to make a difference if elected.

KPF again is at such a huge discount that I think its safe to have a few in the mix , the div yield is just spectacular if the paout can be maintained.

I have never bothered with NAP ... just too many issues , and a very rag-bag of a portfolio.

Anybody looked at the National Bank portfolio up for sale .... 16 branches throughout the country ... my picks as best buys are New Plymouth, Nelson and Ashburton. Would love to be part of a syndicate owning those three properties.

The Great Gold Guru
28-07-2008, 02:01 PM
Macquarie Countrywide have come out today with their up to date ( 30/6 ) revals on their global portfolio. Dig down into the detail and you see that they have bumped the cap rate on their 20 or so Countdown supermarkets they own a share of to 7.00% from 6.80% at 31/12/07. Interesting to look at the cap rates used by ING's valuers in the 2008 Annual Report

Countdown, Napier 7.49%
Countdown, Hastings 7.28%
Woolworths , Hamilton 7.89%
Woolworths , Palm Nth 7.73%
Woolworths, Masterton 6.89%
Woolworths, Taupo 9.84% ( this one looks very over-rented hence the high cap rate I think although the lease is until 2016 !! ... nice !! )

So it looks like these properties are very conservatively valued. Good news.

Lawso
30-07-2008, 04:39 PM
posted by The GGG:
I think GMT,KIP,APT and PFI are the quality offerings in the LPT space. The one reservation I would have is that PFI's dividend is really stingy and I can't quite work out why , any thoughts Lawso

I asked that very question at the AGM a couple of months ago, pointing out that the divvy was lower than the other major players in this sector. The reply was to the effect that they preferred to retain capital for further investment/development, rather than paying out a higher percentage of earnings. Fair enough, I s'pose, but GMT is more generous towards unitholders.

POSSUM THE CAT
30-07-2008, 05:47 PM
Lawso GMT's parent company and Major shareholder needs the largess of dividend. Share price down from $7.15 52week high $2.59 is an awfull big fall even in this market

Lizard
30-07-2008, 05:59 PM
Dig out your reports, Lawso and look at the rental income vs dividend and operating cashflow vs dividend. I think, from memory, that PFI stacks up well in that they generally only pay out rental income after costs as dividends, so are not paying out capital gains. This means they can leverage any increase in values to grow the portfolio and gradually lock in additional rentals as the portfolio grows.

Maybe someone else can explain the "distributable income" definition - I haven't yet worked out whether this is determined by legislation or trust deed, but most NZ property trusts are now quite conservative in terms of what they can distribute. A legacy from the 1990's I think.

The Great Gold Guru
31-07-2008, 09:47 AM
Good reassuring news from Kermadec this morning ... quarterly dividend of 2.17c to be paid in a few weeks time. The yield on this stock if this can be maintained for a full 12 months is ...... JUST RIDICULOUS.

PS. Spent an hour with ING senior management yesterday , pretty off-the-cuff sort of stuff over a coffee .... good guys, well versed in the issues facing the whole industry and ING in particular at present. Certainly made me think I should be adding a few more shares at 82c ...

Billy Boy
31-07-2008, 10:53 AM
PS. Spent an hour with ING senior management yesterday , pretty off-the-cuff sort of stuff over a coffee .... good guys, well versed in the issues facing the whole industry and ING in particular at present. Certainly made me think I should be adding a few more shares at 82c ...
GGG
Some have expressed a bias against ING in particulay and the management in gerneral. One or two cant really say why, others say management cream it for them selves.
I have just bought 60K @ 83c and am looking to extend out a lot further.
You thoughts on ING would be appreciated. I can understand if you choose not to reply.
Cheers BB:)

The Great Gold Guru
31-07-2008, 10:58 AM
I will get back to you BB ... I am just poppoing out for a walk on the beach .... SUNSHINE !!!!! It's a miracle !!!!

Billy Boy
31-07-2008, 11:04 AM
I will get back to you BB ... I am just poppoing out for a walk on the beach .... SUNSHINE !!!!! It's a miracle !!!!
cheers
It's getting colder here in qtown. Its them N/islders sending us there
storm.:eek:
BB

The Great Gold Guru
31-07-2008, 01:09 PM
Hi BillyBoy, back from beach , nice walk but it is now raining again !!

First of all I will disclose that I have 28750 ING ... purchased in 3 parcels over recent weeks at an average cost of 84.4c. It is my third largest LPT position as I hold more APT's and GMT's ( again bgt over recent weeks and showing minor losses )

I met with Peter Mence and Jeremy Nicholl at their request as I am standing for the independent director position at the upcoming ( 25/08 ) AGM. Overall I think these two guys are pretty "on to it". They stressed that the ING strategy of wide diversification was one that they are determined to develop , they agreed with my point that while diversification may lead to lower risk it was also likely to lead to average performace when things turn positive in the sector, a more focused trust like AMP Office or PFI was likely to outperform if there particular sector was the one to lead us out of the doldrums ... PFI was mentioned as they probably have more export orientated tenants than others and a fall in the NZD would benefit lots of them. So the diversification strategy is set in stone for now and if investors want a more focussed property investment then ING is probably not for them.

I get the feeling that the dividend yield is the big selling point and all efforts are going into maintaining the payout and slowly growing it over time. The portfolio is very solidly rented , little vacancy and no huge exposure to one single tenant. The two largest tenants are the IRD and Progressive Enterprises ( Woolworths/Countdown ) and they are both around 3.2% of the total rent roll. They are keen on property development are seem very comfortable with the Albany and Palmerston Nth developments they have on the go. Citibank House on the Auckland waterfront was mentioned several times as being a great investment, probably under appreciated by the market.

Overall I am comfortable owning the shares, I hope to be elected a director but realistically the current incumbent who is up for re-election ( Peter Brook ) will be re-elected in a landslide ... although with the shareprice performance over the last 12 months maybe a few shareholders will decide that a change of personnel in the boardroom is needed. We shall see.

Hope this helps.

Billy Boy
31-07-2008, 01:20 PM
GGG & F/pud
Thanks for your info.
Yes I probably will go ahead as I am buy on behalf of my family trust
so the long term is what I am looking at. The yeild is very attractive.
Once again thanks again
BB:)

The Great Gold Guru
31-07-2008, 01:40 PM
Your more than welcome BB ... nice to discuss commercial property , it doesn't get many people excited but I really enjoy it.

I have invested approx $160k since the begining of June in the listed trusts. I have preference for AMP Office ( Peter yesterday mentioned that he thought the PWC Tower in Auckland was probably NZ's best commercial property ) and also Goodman , for exposure to the industrial sector ( their new developments at Highbrook and Great South Rd are stunning ). If ING wasn't trading at such a discount to NAV and didn't have a 10%+ dividend yield I probably wouldn't have bought them as the portfolio is pretty A and B grade stuff ... not like AMP and GMT's prime stuff. Still ING provides the income and the discount at 82c certainly reduces the downside risk. Kermadec is in the same boat!

Billy Boy
03-08-2008, 12:50 PM
GGG/FPud
I see where KPF will Have to renew their bank facility Dec 2008.
They are paying about 7.8% now and are in for 12.5 odd Million.
Do you think they will get a rollover at the same int rate.
BB

The Great Gold Guru
05-08-2008, 10:38 AM
I see they are on sale at 80c this morning ... never wanting to look a gift horse in the mouth I have just bgt a few more.

This mortgage trust thing shows the benefit of buying the stocks at these prices. Huge discount to NAV and great liquidity. If you MUST sell unless they close the NZX you can sell ... ING trades at a 1c spread virtually all the time so that's good too. Why you would sell $1.40's worth of assets yielding a post tax return of almost 11% for 80c is beyond me. Imagine if the bank started selling $20 notes for $11.50 in coins ... the queue would be the length of Queen Street, K Rd , and then Great North Road !!!

Billy Boy
05-08-2008, 10:56 AM
GGG
Have top up to 100K. But thinking ???? why the hell is the arse
falling out of the SP. What is the motive or thinking, by the sellers,
behind this. :confused: :confused:
At this price (80c) I will have to lift my holding 100% or more !!
BB

The Great Gold Guru
05-08-2008, 12:15 PM
Hi BB,

Yep these are pretty scary times ... I have been in the stockmarket for about 20 years and I would say that current conditions are about as gloomy as I can ever recall. The losses in NZ property stocks are relatively contained compared to the rest of the world. Even the Aussie resources stocks are now taking it on the chin ... shares in good profitable companies down 60, 70 or even 80% in some cases. Amazing stuff. Thankfully having been almost 100% in these stocks up until late last year I decided to sell into the huge rally in Sept / Oct 07 post the first Aug07 sub-prime scare. I though most people would brush that off as a short term blip rather than thinking long and hard about any possible serious consequences. So it has come to pass that the economic ill-winds are blowing harder and harder. I sold almost $600k in resources stocks over about 6 weeks last spring ... the exact same holdings now would reap me $267,000 .... whew, dodged a big one there. I also persuaded my wife to sell our house and go renting for a while, no regrets their either. Hopefully the recent move into the listed commercial property sector will pay off as well !!

Keep your powder dry, keep nibbling at bargains like ING,KIP,APT and hold for better times is my advise. And enjoy the bank beating dividend yields in the meantime.

The Great Gold Guru
06-08-2008, 02:45 PM
Nice bounce in a few of the stocks today ( APT,GMT ) ... some big moves in the Aussie property stocks after that huge rally on Wall Street. Sentiment is very fragile though , the next rate cut in September will hopefully send a good signal that it is safe to get back into the water !!

Billy Boy
06-08-2008, 03:20 PM
Might be some profit taking on Friday. If not this week then next week.
ING Holding on 80 - 81 quite well.
APT MGP going well. The next few weeks will give a better indication
Still some of the best buying for a long term hold, with divvy's.
Interest rates forcast to drop !!! whoi knows
BB

The Great Gold Guru
06-08-2008, 04:23 PM
Even today ING couldn't muster a rise ... desperate need of a double viagara dose here !! I get the feeling that there is still some forced selling of ING going on, big lines of 500,000 and 200,000 parcels being traded. MFL Mutual Fund are by far the biggest holder ( 34% )and ING makes up a large proportion of their fund. Most of the other assets in the fund appear to be fairly illiquid, so if they get a few investors wanting their money out ( and there will be more than a few at present no doubt ) then the easiest way to fund those redemption calls is to just keep selling down their holding in the liquid ING Property Trust. Bizzare as it sounds but probably the single biggest reason why ING is down at 80c and trading at a truly massive discount to NAV is the fact that the ING Fund management business as the manager of the MFL Fund is being forced to sell the stock !!

My two biggest holdings APT and GMT were the definite stars today ... 44.7% of my LPT portfolio tied up in those two.

Patience is the key with ING ... as soon as the redemption pressure eases the stock should trade higher, the discount to NAV and the dividend yield make the stock an easy hold at these prices.

Billy Boy
07-08-2008, 08:59 AM
I agree
MFL 33.74% Holding
Premier Nominees Ltd 5.53% Holding
everything else is under 5% so no nzx disclosure needed.
Somebody is selling down !!! Who... well I dont really care
at this stage if I keep getting cheap units with a 11% +
return.
Have doubled my target holding @ 81c and am quite happy.
:)
BB:)

beacon
07-08-2008, 10:13 AM
Somebody is selling down !!! Who... well I dont really care
at this stage if I keep getting cheap units with a 11% +
return.
BB:)

I hope you have deep pockets or are very lucky or have some inside information, you are way out in the storm, and from where I sit, I can't see the storm abating ... yet ...

ING has been selling down for over a year now. Take care ...

AMR
07-08-2008, 10:58 AM
Are there no genuine investors left in the world? Who cares what the resale value is in the short term (ten years). The income is wonderful. Would you walk away from a property at a 40% discount just because the rent review (read increase in value) is four or five years away?

Maybe because if you wait, you can get it at a cheaper price and more shares for the same price, with even more income?

Billy Boy
07-08-2008, 11:44 AM
I hope you have deep pockets or are very lucky or have some inside information, you are way out in the storm, and from where I sit, I can't see the storm abating ... yet ...

ING has been selling down for over a year now. Take care ...
Beacon
Thanks for you input, much valued.
I think like some others. Managed funds etc pulling ING down (MFL)
I am going for long term holds in the Property unit trust sector, as I am
investing Family trust money. Therefore time is of little importance.
With the latest developments (NZ$, oil prices, US$, etc...) I have picked
this time to move, as I feel interest rates will begin to decline in the fourth
quarter.
I am also of the opinion that volitility will reappear after the Olympic's,
(oil etc)... October 2008 will give us the lead;) ....will see ??

Cheers BB:)

Billy Boy
07-08-2008, 11:45 AM
Maybe because if you wait, you can get it at a cheaper price and more shares for the same price, with even more income?
Invest now and use the income to average down (or up ??)
BB

Billy Boy
07-08-2008, 11:56 AM
The other factor I 4got to mention
INFLATION !!
BB

POSSUM THE CAT
07-08-2008, 12:22 PM
BB what about reccession or deflation

Billy Boy
09-08-2008, 01:46 PM
BB what about reccession or deflation
And whatta about... and.....
Maybe the sky will fall on our heads !!!:D
Ya pays ya money etc....
At the end of the day. One must make a call. Investing on the share
market is a very lonely occupation.
I like this forum because is gives info on angles I dont know about or
did'nt think about.
So beacon, Possum, etc thanks for your input
Cheers BB:)

Excelsior
24-08-2008, 06:55 PM
Anyone got any theories as to why APT and KIP SPs are continuing to be soft. With impending rate cuts the yields on these look very appealing. APT look pretty immune to recession with government tenants and National can't dismantle the public service overnight. Have they got loans maturing which need to be refinanced at higher rates, or are punters moving out of these to raise liquidity. Will downwards property revaluations impact that much on div yields? SP looks like a gift horse to me and want to get out of some term deposits into good yielding stocks that will be a longterm hedge against inflation and have limited shortterm SP downside. I can see KIP might be more risky with its exposure to retail space. Most brokers are rating both a buy. Brokers seem more cautious with ING. What am I missing? When things look to good to be true they usually are. Also a basic question - what is meant by the cap rate that you talk about.

voltage
24-08-2008, 07:49 PM
Agree APT top quality with high yield? I think this reflects anti-property sentiment at the moment. Who would buy a residential or commercial with yields near 10% FOR APT and GPT?

777
25-08-2008, 09:33 AM
If KIP pay the same dividend as they did last time then at $1.10 the gross yield for a 39c tax payer is 13.41% and a 33c tax payer is 12.21%.

Dr_Who
25-08-2008, 01:47 PM
And ING at current 78c is 17.5% to a 39% taxpayer; Kermadec is 19.5%. Aint all bad for a poor fella just trying to make an honest living. Beats owning a couple of flats!

Whats the NTA or current valuation for ING and KIP?

777
25-08-2008, 01:58 PM
From DB site KIP 156.48/ING 137.53.

Dr_Who
25-08-2008, 02:13 PM
ING is $1.39 KP is $1.72 per share.

Whats their cps div?
Do KIP still own Sylvia Park?

QOH
25-08-2008, 03:31 PM
Do you know when the next div is due for ING?

arco
25-08-2008, 03:55 PM
Do you know when the next div is due for ING?

You should find what you need here.............

http://www.reuters.com/finance/stocks/chart?symbol=ING.NZ

and here.....http://www.ingproperty.co.nz/

rgds - arco


NB. I sold my ING @ 1.20.....haven't bought back yet, but keeping an eye on it.

777
25-08-2008, 03:55 PM
QOH all this information is on the individual company's websites. Fungus can't be expected to do everyones work for them.

QOH
25-08-2008, 04:19 PM
QOH all this information is on the individual company's websites. Fungus can't be expected to do everyones work for them.
from DB website. Actually I did try, saw one was paid in June, just wondered if another was due, seeing meeting was held today.

Thanks ARCO for the links.

Dr_Who
26-08-2008, 07:08 AM
Thanks for the info guys.

Do you think the NZ economy and housing market has bottomed and why?

The Great Gold Guru
26-08-2008, 07:11 AM
Thanks to all those that votes for me in the ING election. A bit of a lost cause with the MFL block of shares controlling 34% .... Anyway a good learning experience and I certainly got lots of positive comment after the meeting. One old dear even asked me if I could manage her finances as I seemed a very smart young man !! I'm 43 ....

I will be back next year !!

76c !! OH DEAR ... and MFL thought the status quo was OK.

arco
26-08-2008, 11:30 AM
ING Property Trust said its units are "inappropriately discounted" after slumping almost 28% this year, and rising rents will help make up for any decline in property values.
Units of New Zealand's fourth biggest listed property investor by value of assets fell 1.3% to a record low 76 cents today, giving the trust a market value of NZ$392 million.
ING is a unit of ANZ Bank, which provides the trust with a $600 million facility through to September 2010. ING has 81 properties and 338 tenants on leases that average 4.7 years.
"The heavily discounted price will reverse in due course as the benefits of the diversification strategy are better recognized," chairman Michael Smith told investors at their annual meeting today.
In March, ING suspended withdrawals from two funds, citing the global credit crunch.
www.businesswire.co.nz (http://www.businesswire.co.nz/)

The Great Gold Guru
26-08-2008, 12:11 PM
Yesterday at the ING meeting it was hinted at that $60m of property was in the process of being sold. I have complained to the NZX that the company has yet to announce anything to the market. This is market sensitive news I would have thought.

Very poor corporate governance ... a rap over the knuckles coming if NZX have any teeth.

777
26-08-2008, 12:42 PM
Yesterday at the ING meeting it was hinted at that $60m of property was in the process of being sold. I have complained to the NZX that the company has yet to announce anything to the market. This is market sensitive news I would have thought.

Very poor corporate governance ... a rap over the knuckles coming if NZX have any teeth.

They don't.

777
26-08-2008, 12:46 PM
Actually if you think about it their business is property so is it a market sensitive transaction.

beacon
27-08-2008, 07:12 AM
that reuters site can have misleading info arco, as some of the financial info on it can be over a year old. Tread with care, and go straight to the horse's mouth ...

scamper
27-08-2008, 10:29 AM
was about to start a thread for kip -- the old one doesn't seem to have crossed over, and i don't have an interest in the other five of the thread title...
however, when i was glooming at the kip chart pondering on the 24% loss in the last year, i compared it with the others, and ...
found that over one, two, and three years, pfi and apt have not reached kip heights, but not plunged to its depths either. ing is faring worse.

kip has developed a resistance at 110 cps over the last five weeks, bouncing up from it three times. i don't really understand the long slide, but the chart is looking less hopeless: bollies converging, up througn the 30-day MA... well, maybe.

can someone please post me the reuters and ozzies yahoo finance links. cheers.

arco
27-08-2008, 10:55 AM
http://finance.yahoo.com/q?s=kip.nz

http://www.reuters.com/finance/stocks/overview?symbol=KIP.NZ

Sweeper
28-08-2008, 09:15 AM
I have been watch these trusts for some time.
I think their down turn is MARKET SENTIMENT only. Their vacancy percentages are very low and have some way to fall before an effect
will be seen. Their percentage unit divvy is amoungst the highest on
SX board.
ING being highest when coupled with the imputation.
Some very bad reporting has gone ING's way.
Jonathan Underhill of www.businesswire.co.nz does not know what
he is talking about. He associates Managed Funds with The porperty
trusts and then tells us that ING is part of the ANZ Bank. A reporter
to be misstrusted in the future, I think.
Q. what is wrong with ING ??
<Sweeper>
:)

scamper
28-08-2008, 09:35 AM
hi sweeper -- i don't know that anything is wrong with ing, -- in my comparisons i just noted that its chart looked even worse than kip's which has had a dreadful 15 months, but not as bad as ing's last 18 months. ing's div looks good -- is it sustainable?
look here: http://www.directbroking.co.nz/directtrade/dynamic/superchart.aspx?sc=ING&amp;eg=NZ

some other comparisons
kip/ ing
eps 17.17/ 13.5
p/e 6.64/ 5.84
div 7.89/ 11.01 cheers, scamper

Sweeper
28-08-2008, 09:59 AM
Tks Fungpud & Scamper
Sediment it has to be. Property sector in general.
Note: those with the worst press suffer the most.
And not for good reason, most of the time.
cheers

Dr_Who
28-08-2008, 11:25 AM
Gonna put a few LPC in the watchlist. Looks interesting.

beacon
28-08-2008, 12:44 PM
Big overhang of potential property sales, bottleneck building up

Dr_Who
28-08-2008, 12:51 PM
Big overhang of potential property sales, bottleneck building up

Yip, have to agree. The sp reflects this and the market is factoring negative sentiments. I am only watching and not ready to buy yet.

Sweeper
28-08-2008, 01:23 PM
Big overhang of potential property sales, bottleneck building up

This does not mean the demise of unit trusts overall. Most listed trusts have
tenant contracts with a weighted average of 4 - 5 years. Inflation will hit 5%
this year (approx), NZ$ falling slowly, and a shortage of Industrial accommodation in many of the NZ cities.
If there is a sell off in commercial property market, who is going to buy.
The Banks are looking too get some money in quick, because many of their
notes fall due in October and the Carry Trade has shifted to S/Africa & Brazil.
leanding rates are not going to fall with the lowering of the OCR.
ANZ is very interesting, already floating a $600m preference share, their
share price has nearly halved. They wont go broke but they need to get some cash in quickly. Interestingly, I think they have a stake in ING. they do give ING a $200m line-of-credit. Now will ING need that in the foreseable future?

GTM 3442
28-08-2008, 06:41 PM
Sweeper old chap, just remember that dividends represent history, whilst trends in price represent the sum of hopes and fears about the future.

It may not be the wisest of moves to pay todays price in the expectation of yesterdays dividend.

The Great Gold Guru
02-09-2008, 03:05 PM
Looking at the huge bounce in a lot of the Australian LPT's I would say there is some excellent value available on the NZX. I have been buying again today as with the next OCR cut less than 10 days away the yields and discounts to NAV available on the NZX is compelling for long term buyers.

Bgt
10,000 APT at 106
10,000 KPF at 63
10,000 KIP at 111
10,000 ING at 75

Dr_Who
02-09-2008, 06:03 PM
Which Aussie LPTs had a bounce?

POSSUM THE CAT
02-09-2008, 06:21 PM
DR WHO WDC up 34 & GMG up 6 hope this helps

The Great Gold Guru
02-09-2008, 06:24 PM
GPT got down below $1.40 a few weeks ago ... now almost $2 .... 40% bounce on the NZ LPT's would be lovely !!!!!!!!

Dr_Who
03-09-2008, 09:26 AM
It is odd that all the Aussie LPC's have gone up and the NZ LPCs are still down going nowhere. Maybe the NZ economy is much worst than anticipated?

Also noticed ING NZ has been selling down their holding.

beacon
03-09-2008, 10:34 AM
Most listed trusts have tenant contracts with a weighted average of 4 - 5 years.

Some of them won't be worth the paper they are written on, if things sour. Have you not heard of jingle mail?

[/QUOTE] If there is a sell off in commercial property market, who is going to buy.[/QUOTE]

Therein lies the problem. Further, ING has a poor disclosure history. Nt much they say on their website either. And that is coming home to roost.

BTW Guru, do ING own MFL residential properties still, or is it vice versa? The ones that MFL has bought in NZ over the last few decades... Any insights appreciated.

Billy Boy
03-09-2008, 11:45 AM
Yo All (Esp Beacon )
Have been buying up a-tween whitebaiting. Hard work that whitebaiting,
had to come home for a rest. :D " hic " :D:D

I have done some cal's, Beacon old son You do yours !!!
:-
Person Age 20
Earning $50,000 A year
If you put $40 p/w into kiwi saver ($2080.00 p/yr) With perks !! OR
If you out $2080 p/year into unit trusts p/year (with reinvestment plans)

after 45 years ????

With Kiwi saver, about $550,000 cash in hand at 65.
See Sorted.(what ever).com

A unit trust $1,007,000, with EBT $90,000 p/yr still !!
For spread sheet I used
each unit cost $1.
Each unit paid 9 cents p/yr
I did not include tax coz most trust run pie's
I did not include inflation or S/price variations as I feel there are
to be variations and risks on both sides.

F/pud & G/Guru....
you's stop that buying up all my units when I'm away "hic" working :D
Cheers & Beers
BB
disclosure: I bloody fell in the drink !! :o:o:mad:

The Great Gold Guru
03-09-2008, 01:32 PM
ING Property Trust ....

Getting a little nervous about this one ... at 75c and still huge selling by institutions you gotta be a little worried. Added to that the horrendous deciscion to re-instate the DRIP at a 5% discount when the shares are trading at record lows and under-write it ... meaning if you don't subscribe and take the cash ING will issue the shares anyway at a 5% discount to another "weak holder" and the NAV will slowly ebb away ... well not that slowly , around 11% at current divs. This is inept management in the extreme ... buy a building in Albany for $16m then issue shares at a 40% discount to pay for it ... JUST CRAZY !!!! Why the sudden need to issue shares rather than pay a cash dividend ... are their bankers starting to get nervous? ... are there any market cap covenants on their finance agreements? The timing of a DRIP is just plain stupid IMHO.

Boy am I gutted I didn't get elected to the board of directors at the AGM ... I got 14m votes but with Philip Burdon ( who left as soon as the meeting was over so no chance to question him on his deciscion ) voting the MFL 134m shares for the incumbent it was a unfair fight !!. To think that the status quo was acceptable to the largest shareholder after the shares have dropped from $1.22 to $0.76c over the previous 2 years is just unfathomable to me.

I will be standing for the ING Medical properties board .... has been an Ok performer but still pretty dismal returns over recent times.

Disc: Hold 40,502 ING

POSSUM THE CAT
03-09-2008, 01:50 PM
The GGG hope to hell they have noot been out buying bank branches that may not be wanted after the first lease period exppires.Talk of combining ANZ and Natioal bank in one building. Meaning a lot of surplus bank branches that nobody will want.

The Great Gold Guru
03-09-2008, 02:10 PM
Can't see the Commerce Commission allowing ANZ to kill the National Bank brand ... they got promises when they allowed them to buy off LLoyds TSB a few years back. I'd say the National Bank is probably a stronger brand than the ANZ in a lot of rural markets especially.

Is there a provision in the ING constitution allowing shareholders to call a special meeting to revoke a decision made by management ? .... I recall 5% of shares needed to call such a meeting , anyone confirm ?

POSSUM THE CAT
03-09-2008, 02:43 PM
The GGG they got round it by running both brands for years out of one branch when they bought Post Bank it has been mooted in some of their annoucements the same as using the one IT system. Remember there may be a change of Govt. This might change things as well. There was some mention of Branding and using the brand that was strongest in the area of Branch and probaly two lots of paperwork as was used with Post Bank.

Disclosure Hold ANZ Bank Shares

Billy Boy
03-09-2008, 02:57 PM
Could be right possum
I have just recently sold a building which was leased by BNZ.
I found out a few moments ago that the BNZ are not renewing
the lease. I hear they have dropped out of a few leases lately.
ANZ selling their buildings ??? why ?? Maybe many banks are
looking at the ROBO model.
Thinking back... the last time I went into my bank (about three
months ago) was to get a new folder for my credit cards.
BB

Billy Boy
03-09-2008, 03:23 PM
GGG
I wonder if you ar'nt still smarting over missing out on the directorship.
The only selling lately by insto's has been MFL, and thats not hard to work
out why. Unless you know something we dont.
The Kiwi Saver honeymoon is over and a lot of people are looking elsewhere, especially with the bad proformance of most managed funds.
Maybe thats why ING's DRP has come back. Percentage discounts ??
I see what you are saying but very interesting to note that there was
no shareprice drop when APT went ex-div. Not yet anyway. Let see what the others do.
The great white gods of the deep south are telling me that the property market has bottomed (esp the commercial market). These are the same
gods that warned me off Hanover, way before they went under. And I got smaked for saying that about Hanover
BB
:)

POSSUM THE CAT
03-09-2008, 03:25 PM
Funguspudding I know of one that took five years for the bank to sell at $1.00. I am not sure but think the local council bought it in the end. No body else was interested even when offered with a long lease.

POSSUM THE CAT
03-09-2008, 03:31 PM
Billy Boy banks are looking at tiny Branches in Malls as much as anything else. is The National Bank in Henderson one of the ones for sale as they have large branch in Henderson and A very significant branch in the Mall about 50 Meters away. This sounds a very expensive duplication of facilities in this area

POSSUM THE CAT
03-09-2008, 03:55 PM
Funguspudding No the Main Branch in Invercargill in late Sixties Freehold Tittle

The Great Gold Guru
03-09-2008, 04:06 PM
I have e-mailed ING ... no reply as yet

Hi Jeremy,

Is there is a provision within the constitution of the trust where unit holders can call a special meeting of unitholders to vote to revoke a decision made by the manager of the trust?

I ask this as I would like to try and overturn the decision to re-introduce the Dividend Re-investment plan and especially the added move to underwrite the cash payment by allocating shares to First NZ Capital at the DRiP price to recoup the cash paid on shares that elected not to participate.

Questions

1. How can it possibly be in the interests of unit holders to issue shares at a 40% discount to NAV to yet another "weak holder" ... the trust seems to have enough of those.

2. Where is the logic in having a share buyback at prices up to $1.20 and then a few months later issuing shares at what is likely to be around 70c?

3. This hurts alot of unit holders who rely on ING for a regular dividend stream and will elect to take the cash ..they are being diluted for no apparent reason

4. Why the 5% discount? , this is the largest in the market and smacks of desperation !

5. Are there any market capitalisation covenants on the banking facilities of the company? Is this the reason to keep the market capitalisation of the company high by issuing shares and not paying out cash.

6. Has MFL indicated they will support the DRP?

7. How quickly can a special meeting be called?


On a seperate matter I would like to advise you that I will be standing for the board of ING Medical Properties. Is this a new position ( I see the board is currently only four ) to increase numbers of will one of the current directors be retiring and offering themselves for re-election?

Regards