SP was hovering around 1.02 and 1.03 for two days in a row and suddenly finished at 1.08 on Friday. You got to wonder....
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SP was hovering around 1.02 and 1.03 for two days in a row and suddenly finished at 1.08 on Friday. You got to wonder....
NZX50 Index rebalancing on Friday at close of business.
I was surprised there wasn’t more of a lift in KPG today given that very good news PR release.
I see KPG has said they will resume dividends later in the year as mall visitor numbers are above pre-lockdown numbers (only 1%) already. Whoever said who would want to go back to shopping in malls anytime soon didn't count on human nature and not changing old habits. I'm not a mall shopper generally, but a lot of people seem to want to spend all weekend in them.......
....given the weather and lack of social contact for a couple of months, not surprising visitor numbers are up. but, is the spending also up? how many tenants are trading at pre-lockdown levels?
Disc: hold none
Humans are social creatures. We like to browse, see other people, meet up with friends to eat, hang out, play games and chatter. Skype, Zoom and online shopping cannot replace all of that *. Even teenagers like to meet up at the malls!
*yet. Who knows where technology will lead. How immersive will Zoom and the online shopping experience become in the years to come.
After yesterdays virtual AGM, I am quite confident that KPG will be paying a $90-$100 million Dividend following the current financial year, which would represent 90-100% of AFFO (which is there stated dividend payout amount).
That $90-$100 million dividend would be a 5.75%-6.5% dividend yield based on todays share price.
I also think we are likely to see a revaluation higher of the asset base, given that the last revaluation lower was at the worse possible time (March, right before entering lockdown). Current visitor numbers to KPG shopping centres are up 1% on a year ago, with some properties like Sylvia up “double digit” percentages. Wouldn’t surprise me to see the asset backing per share increase back towards $1.50 per share over the next 12 months.
I have been observing the mall in the last couple weeks. ..even last two weeks...the weather was so bad..but mall was packed.
I agree human is a social creature....like meeting up....