KPG - Kiwi Property Group Limited

https://www.nzherald.co.nz/business/...ectid=12286165


Looks good - I foresee mixed residential apartments and facilities like recreational centre/swimming facilities on Carbine Road side of the train station.

Any opinions on this? Was almost trading on a 20% discount to NTA this morning.

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Originally Posted by Gerald

Any opinions on this? Was almost trading on a 20% discount to NTA this morning.

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Yes, looks tempting - but so do a lot of others! The big unknown, of course, is what the downturn will do to retailers' capacity to keep their tenancies and to keep paying those rentals!

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Originally Posted by Gerald

Any opinions on this? Was almost trading on a 20% discount to NTA this morning.

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If you think there will not be an epidemic in NZ they look great. Basically that the bet you are taking, because if there is one those malls will be ghost towns

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Originally Posted by ratkin

If you think there will not be an epidemic in NZ they look great. Basically that the bet you are taking, because if there is one those malls will be ghost towns

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Agreed and then there's this, https://www.linkedin.com/pulse/world...tin-lindstrom/. (Thanks Winner69 for the very interesting information). Will we see some degree of permanent change in consumer behaviour towards malls ?

Have a BUY order placed on KPG now. Seems like a heavy discount to their NTA, and given their significant property portfolio, I'm pretty confident about their future.

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Originally Posted by kiwijay

Have a BUY order placed on KPG now. Seems like a heavy discount to their NTA, and given their significant property portfolio, I'm pretty confident about their future.

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Also the other LPTs like Argosy, Stride, Goodmans, Property for industry, Precinct - all worth picking through. Remember the intrinsic value of warehouses, office buildings etc is heavily underpinned by bricks and mortar - while shopping malls, big box retailers etc are heavily underpinned by their location and foot-traffic, and not so much by the structure. Their tenants ability to pay rent will be more affected by the economy - some rents may need to be renegotiated.

Just got an email for Reading Cinema's All cinema's across Australia and New Zealand closed until further notice. Posted in here because they have a cinema in my local mall owned by KPG. I think this is an ominous sign for times ahead for KPG. I am certain many of their tenants will not be in a position to pay rent for the foreseeable future.

Event theatre's also closing today https://www.nzherald.co.nz/entertain...ectid=12319045

https://www.nzx.com/announcements/351283

Interesting announcement this morning. Cancellation of half year dividend, pay cuts, other cost savings measures and deferral of capex are all signs that the effect on this relatively modestly geared company is very serious.

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Originally Posted by Beagle

https://www.nzx.com/announcements/351283

Interesting announcement this morning. Cancellation of half year dividend, pay cuts, other cost savings measures and deferral of capex are all signs that the effect on this relatively modestly geared company is very serious.

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Bracing for a lot of tenants to have to stop or defer paying rents.

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Originally Posted by Balance

Bracing for a lot of tenants to have to stop or defer paying rents.

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I read on msn an article that rent will just be demanded. No rent reprieve. I can’t find the article but I was surprised

https://www.newsroom.co.nz/business/2020/04/05/1115485/pay-up-mega-shopping-mall-landlord-warns-tenants

Found it

https://www.nzx.com/announcements/351878

Minus 8.5% reduction in valuation due to cover-a9 impact.

Just the start - there will be more as tenants hit the wall and already, many are banding together and refusing to pay rent.

https://www.rnz.co.nz/news/national/...aid-their-rent

Two thirds of retailers have not paid their rent this month, and almost half of commercial rents overall are still due, says a property software firm.

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Originally Posted by Balance

https://www.nzx.com/announcements/351878

Minus 8.5% reduction in valuation due to cover-a9 impact.

Just the start - there will be more as tenants hit the wall and already, many are banding together and refusing to pay rent.

https://www.rnz.co.nz/news/national/...aid-their-rent

Two thirds of retailers have not paid their rent this month, and almost half of commercial rents overall are still due, says a property software firm.

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It does make me think how many business owners live week to week. I just don’t understand that they did not have enough to pay this months rent. Ok next month is another story, but this month??? I do feel that where possible landlords should provide rent relief, but you can’t expect it as a business owner. I paid my monthly rent in advance as a tenant, not with kiwi Property. We are trying to get some reprieve for next month, but if it can’t be done we will need to pay that as well. Luckily we don’t spend all off the businesses income and plan for the what if scenario.

Crying poor....the business owners enjoying their profit from business...buying houses, driving new cars... buy toys etc....did government or landlords say anything? As business owners...they need to prepare the rainy days.

I think all property stocks represent a great buy value...for long term. Where interest is super low.... assests will go up higher.

U will never buy KPG under NTA value ever in the last 10 years...

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Originally Posted by Ggcc

It does make me think how many business owners live week to week. I just don’t understand that they did not have enough to pay this months rent.

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Then you don't understand the true purpose of an overdraft which is not simply a loan - as many think.

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Originally Posted by fungus pudding

Then you don't understand the true purpose of an overdraft which is not simply a loan - as many think.

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My accountant has spoken to me about this and I am aware.

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Originally Posted by King1212

Crying poor....the business owners enjoying their profit from business...buying houses, driving new cars... buy toys etc....did government or landlords say anything? As business owners...they need to prepare the rainy days.

I think all property stocks represent a great buy value...for long term. Where interest is super low.... assests will go up higher.

U will never buy KPG under NTA value ever in the last 10 years...

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Agree - approx. 20% discount on Fridays close, APL 30% discount

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Originally Posted by Ggcc

It does make me think how many business owners live week to week. I just don’t understand that they did not have enough to pay this months rent. Ok next month is another story, but this month??? I do feel that where possible landlords should provide rent relief, but you can’t expect it as a business owner. I paid my monthly rent in advance as a tenant, not with kiwi Property. We are trying to get some reprieve for next month, but if it can’t be done we will need to pay that as well. Luckily we don’t spend all off the businesses income and plan for the what if scenario.

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I can tell you that the letter sent by KPT rubbed all the retailers up the wrong way.

The tenants thought that KPT would, under the circumstances, offer to work with them in a co-ordinated approach with the government.

Instead, KPT basically told them that it's not KPT's problem!

Well, it has become a big problem now for KPT because the tenants have banded together and they are all refusing to pay rent. A top notch lawyer is advising them and KPT & other shopping mall operators are going to have a big fight on their hands.

And we know where the public and government's sympathy will be with.

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Originally Posted by Ggcc

My accountant has spoken to me about this and I am aware.

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So you must realise business economics are far from grabbing a bunch of dollars out of the till and paying the bills every month. It simply doesn't work that way - particularly with seasonal businesses.

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Originally Posted by Balance

I can tell you that the letter sent by KPT rubbed all the retailers up the wrong way.

The tenants thought that KPT would, under the circumstances, offer to work with them in a co-ordinated approach with the government.

Instead, KPT basically told them that it's not KPT's problem!

Well, it has become a big problem now for KPT because the tenants have banded together and they are all refusing to pay rent.

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Yes their letter was worded wrong. Heartless is some way. I will not invest in Kiwi Property from that letter to tenants alone.

My statement was that 2/3 of all tenants in nz not paying rent part. Rent reprieve is not a given.

If I was a shareholder I would not worried if the company negotiated a better outcome.