Taxable Income for NZ Inland Revenue purposes may not necessarily be regarded as income as is generally understood or even as far as other tax authorities are concerned
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Taxable Income for NZ Inland Revenue purposes may not necessarily be regarded as income as is generally understood or even as far as other tax authorities are concerned
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Thank you Ferg et al on this forum for your comments.
I am not a holder of IFT, but ARG reports on 22 May so I will look to closely follow the impact of again removing depreciation on the structural elements of non-residential buildings as a deductable expense, and the consequence on the Deferred Tax provision as shown in ARG's most recent Financial Statements (said in the note to the IFT statements to be a "non cash" adjustment).
Will be interesting to see what happens with it as the other shareholder, Wellington City Council, is debating whether to exit its shareholding. Whether or not if infratil wishes to remain as owner, or dispose of it, it will be beneficial either way if they had 100% ownership.
On a related note, there is actually an interesting small threat to the monopolies currently enjoyed by New Zealand’s airports in the form of a new high speed transport alternative that may eat into some of the regional domestic market for NZ airports within a couple of years. If the business model of this new company linked to below actually holds up, it would mean Airports like Auckland & Wellington would increasingly be focused on long distance & high capacity routes, whereas regional routes that are linked by open water would have much better economics using these new aircraft that don’t have to pay any landing fees at an airport.
https://www.oceanflyer.co.nz/news-monte
NZ is a pretty good launch market for this product - most of our population live in coastal cities. Auckland to Tauranga would be a good route, as would Wellington to Picton, Nelson & Christchurch.
I wonder if port companies might end up with new revenue streams.
What we alread knew?
"Data centre investments: real or hype (and the 14 key insights all investors need to be aware of)"
https://www.livewiremarkets.com/wire...rm=READ%20MORE
"Demand has arrived.
Global leasing activity has surged, achieving record-breaking levels in each of the last four quarters. Remarkably, more megawatts have been leased in this twelve month period than in the preceding three and a half years."
"The size of the generative AI market is set to grow exponentially, with revenues forecast to grow almost 20-fold to US$1.3trillion by 2032. Generative AI requires a tremendous amount of power relative to non-AI use, particularly in the training phase. Growth in the global AI market is certain to create ample demand for additional data centre capacity."
"Supply is responding. Capacity under construction in the US has surged to just over 3,000MW at the end of 2023. However over 80% of current construction is already pre-leased, compared to ~50% in prior years. This significantly decreases the risk of oversupply.
With development profits of 40%+ and stabilised net operating income (NOI) yields of 9%+, developments are proving to be lucrative which may suggest supply will accelerate from here (posing future investment risk). However, difficulty sourcing power and procuring generators and transformers are adding multi-year delays to the development timeline. "
"The chart shows the annual 15-year forecast peak power load forecast of Dominion Energy, who is the energy provider for North Virginia and surrounds. Notably, there is a substantial increase in future peak loads forecasted since the 2022 report. Utility providers in the US such as Dominion, have been taken by surprise by the rapid growth of data centre power demands, which has led to years of underinvestment in power generation and transmission infrastructure. There are upwards of seven year wait times for additional power, for development projects in cities such as Los Angeles.
Demand > supply = falling vacancies and surging rents…though not every market is benefiting"
Off to the races tomorrow for IFT supporters.
Im nervous as the market picks up on the smallest of negatives at the moment.
Panic buying today?
https://stocknessmonster.com/charts/ift.nzx/
Wild as swing trade & profitable !
I took a screen shot of today's closing price incase their is a bit of a ski slope tomorrow. If there is, it will be short lived.
Heading into the annual result at $11.25 is an impressive return. The sp was around $9.50 this time last year.
I was going to post about another ATH and then I thought don’t you have done it enough, although I haven’t mentioned it enough that the share price will go higher than today’s end.
They did it again. How impressive.
Let's see how the market reacts.
I've let alot the the talk on this forum get to my head and doubt IFT.
But take Retire Australia for example. They just make the business work with super cashflows. No mention of valuations this and that, just outright sales, cash, waiting lists etc. A total understanding of the 'Real' business.