I agree 100%.
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I would be very surprised if they went ahead with the dividend. would border on recklessness. as far as rents or lease obligations they are entirely at the mercy of the landlords. they do not have to give rent relieve. I think hlg have 90 odd million in lease payments they are obligated to pay in total.
far fetched people might think lockdown
https://www.abc.net.au/news/2020-03-...virus/12079124
New South Wales moves to comprehensive shutdown of non-essential services amid coronavirus pandemic
Who owns the properties? Some they own & some they lease from majority shareholders I thought?
https://app.companiesoffice.govt.nz/...qaEZd48AAAA%3D
I have decided this will be my last post on this thread for some time, I'm going to leave it to the Trolls/Downrampers/Mischief makers and the Smug, excluding the odd few posts from holders and genuine people with an ounce of compassion it's simply a waste of time as far as I'm concerned as no matter what the report says I will continue to hold, so enjoy your feeding frenzy.
Occupancy costs are $29.8m as per note 2 to the 2019 financial statements, see page 32 http://nzx-prod-s7fsd7f98s.s3-websit...341/310636.pdf
No question a full lock down on both sides of the Tasman will put HLG under real pressure. They will need to right size their staff and admin costs very quickly and I would expect they will be seeking rent relief / deferrals from landlords. Malls will not attract people back when this is over if they're half empty so they have a vested interest to work with well respected companies like HLG who drive a lot of foot traffic to their mall. I am pretty sure, (not certain), they will get through this but it is highly likely there will be some serious financial pain involved.
For the record I am not smug. I was clearly signalling real caution was required a month ago when the share price was in the low to mid $5 range. Good luck to holders. Sadly I think this is going to get significantly worse before it gets better for both the company and its share price.
Most mall rents have 3 components. 1. A fixed monthly lease. 2. A percentage of gross sales. 3. A smaller percentage of gross sales that goes towards a marketing fund for the mall to promote itself in the media. In a shutdown situation neither 2 or 3 are payable and HLG will be working with Mall owners for rent relief / deferral for the fixed monthly lease. I am sure the Mall owners will have to take a pragmatic "we're all in this together approach" There is no point bankrupting almost everyone as they will end up with a ghost mall nobody wants to come back too. I don't think its as dire as you are suggesting but it certainly is a very serious situation which calls for a pragmatic approach by all stakeholders and some fast action on cost cutting.