Occasionally I venture to that 'other discussion place' for NZ shares, even though I seem to be blocked from posting there. Some ridiculous baron has even boasted about blocking me. Not sure how this happened. I think it has something to do with him discovering my IP address then logging on using a VPN mimicking my IP number. In spite of his technical prowess, I had regarded the baron as a fool up to now - until I read something of his posted on the KPG thread 'over there' the other day. It seems he actually said something sensible on the effect of the looming removal of 'depreciation deduction' on the after tax earnings on NZ's property sector. I never expected that from a fossilized fighter pilot!
Anyway it got me thinking, and I decided to tabulate this effect across the 'property sector top eight'. Here are my results, as pulled from the most recent annual reports.
The table below represents what would have happened if the abolition of commercial building depreciation adjustment (cancellation) announced as National Party finance policy on 30th August 2023 had been in place over the last calendar year.
|
Depreciation Adjustment (A) |
Units on Issue (last balance date) (B) |
Projected eps reduction (A)/(B) or (C) |
dps (D) |
Potential Dividend Reduction (C)/(D) |
Unit Price 28-08-2023 (E) |
Unit Price 01-09-2023 (F) |
Share Price Drop ((F)-(E))/(E) |
Goodman Property Trust (GMT) |
$10.4m |
1,403.3m |
0.719cps |
5.9cps |
-12.2% |
$2.20 |
$2.16 |
-1.82% |
Vital Healthcare (VHP) |
$?m (2) |
661.01m |
?cps |
9.752cps |
Not Available |
$2.225 |
$2.24 |
+0.68% |
Property for Industry (PFI) |
$5.834m |
502.05m |
1.16cps |
8.4cps |
-13.8% |
$2.32 |
$2.29-$0.0195(1) |
-2.13% |
Precinct Properties (PCT) |
$14.0m |
1,585.9m |
0.883c |
6.7cps |
-13.2% |
$1.26 |
$1.21 |
-3.97% |
Argosy Properties (ARG) |
$9.597m |
846.72m |
1.13cps |
6.657cps |
-17.0% |
$1.20 |
$1.17 |
-2.50% |
Investore (IPL) |
$4.264m |
367.50m |
1.16cps |
7.9cps |
-14.7% |
$1.34 |
$1.26 |
-5.97% |
Stride (SPG) |
$6.872m |
661.01m |
1.04cps |
8cps |
-13.0% |
$1.46 |
$1.39-$0.02(1) |
-6.16% |
Kiwi Property Group (KPG) |
$13.539m |
1,571.2m |
0.862cps |
5.7cps |
-15.1% |
$0.91 |
$0.88 |
-3.30% |
Notes
1/ Adjustments to the 1st September 2023 share prices for PFI and SPG reflect these shares going ex-dividend over the comparative period between 28/08/2023 and 01/09/2023. PFI went ex a 1.95c dividend at the end of trading on 28th August, payable on 7th September. SPG went ex a 2.00c dividend at the end of trading on 30th August, payable on 18th September. This means that both of these shares lost the accessibility of the underlying shares' 'dividend rights' for their respective shareholders. This loss is reflected in the respective 1st September share price valuation(s) by subtracting the 'dividend(s) lost' from the share price(s) on that date.
2/ Depreciation issues with 'Vital Healthcare Properties' I have expanded upon here:
https://www.sharetrader.co.nz/showth...=1#post1020495
SNOOPY