KPG - Kiwi Property Group Limited

[Beagle]

From the annual return. Our purpose "To bring places to life" Lots of talk about ESG, carbon
By owning a group of assets
offering complementary economic
benefits, we increase income diversity
and encourage smoother returns. Not really what you want to read. I want to read about how they're going to grow earnings, not get smoother returns.
https://www.kiwiproperty.com/corporate/sustainability/
Pink headlines worry me.

A lot of "feel good" stuff and a real lack of focus on earnings per share. Long gone are the days where they had specific targets of achieving XYZ % total shareholders returns to beat the market and all that sort of shareholder focus talk has been replaced with truck loads of ESG, diversity, inclusiveness, carbon negative, sustainability and my personal favorite "our purpose is to bring places to life". Where's the focus on eps accretive development activities ? Do they even understand the term eps accretive ?
To me the focus with this company has changed over the years and they very conveniently overlook a focus on shareholder returns. Maybe this is why ACC have been selling down ?
I've said it before during Covid that I wasn't happy they canned the dividend just because valuations went south, (they still had good cash earnings why didn't they pay them out ?).

I feel as though I have tripped myself up into a classic value trap. (Stupid old mutt...suppose I shouldn't be too hard on myself...nobody gets every investment decision right.). Thankfully only 2% of my portfolio. Suppose I could hang around and stir things up at the annual meeting and hope for better ?

Can't go much lower than $1.16...surely ?

[X-men]

Fundies rebalance too last Friday

[Monarch]

I think the reason KPG has underperformed is retail property is out of favor, and has a cloudy outlook at best. I think this sentiment has weighed on the valuations effecting NTA, and the SP. I think going forward we will see concentration of retail, with lower quality venues dying out and superior locations such as Sylvia park continuing to grow. I've seen this first hand with my local mall steadily dying since Sylvia opened. These dying malls are likely offering low rents in a desperate attempt to survive, this might be causing KPG difficulty in growing rent income. I don't expect a quick return to the old dividends, given KPG will have a significant amount of money sitting in cash after the asset sales go through. Whatever they invest the proceeds in will take a few years to start generating cash.
So long as Sylvia continues to get busier, I'll hold, and not one second longer.

[Waltzing]

Mr B is quite right and it reminds me a bit of ARG a few years back but not as bad.

New data out shows that KIWI shoppers are now doing more local shopping; really?

It might well take a year or 2 for it come back to 1.30? Not if the market keeps moving up ? It usually moves up for a lot longer than is rational.

Not a growth stock as Drury looks increasingly like a very difficult development to get started and the market wont buy into the profits until it hits the PL.

But is retail dead ? Doesnt look like it and this company has the best of the best.

its priced as if it has the worst malls, not the best.


https://www.stuff.co.nz/business/pro...earch-suggests

"Can't go much lower than $1.16...surely ?"

yes it can , stock can always go lower, its the momentum.

perhaps some aucklanders havnt visited the base or havnt realised the growth that will happen in the new hamilton over the next 10 years.

It seems investors are traders after all?

In 03 the SP was 1.02 and its never been a trading stock except if you exited in 08.

Its a long term defensive stock but not as defensive as ARG since it a little more cyclical.

But interest rates at where? and heading up to what again?

Nope retail is not dead in these malls.

Dogs of malls? not in NZ they arnt.

"Bring places to life"

Well thats what the base did and they did to keep the younger generation interested. That means making malls more fun and sticky. Thats hard to do but new experiences such as virtual environments are bringing younger people back to these places. Its not easy to keep these malls fresh and that needs to be communicated to the public and shareholders..

This company is not selling office spaces to governments and warehouses to importers such as ARG and GMT.

Its got the hardest job of bringing the shopper out to buy and to enjoy other entertainment activities.

This is the tough nut to crack every time; retail and entertainment.

[LaserEyeKiwi]

I’m not sure why you guys are so pessimistic - Drury is running ahead of initial schedule after being fast tracked by government following covid 19 stimulus.

Dividends are already back, in case anyone forgot, we get the half year dividends paid into our accounts at the end of this week.

KPG is right in the middle of a successful deleveraging of an over reliance on retail (selling its Christchurch & Palmerston North Malls) de-risking earthquake exposure (again from getting out of large assets in Christchurch & Palmy) and increasing the more reliable office revenue (new office towers at Sylvia park) and exploring adding a new segment of very stable revenue in the form of build-to-rent residential towers at Sylvia park also.

The Drury opportunity is massive, once developed the finished product will add significantly more value than the asset value & capital spend required to complete it. The discount to NTA is only going to grow more significant, and with little in the way of immediate cash requirements the thoughts about what they might do with the sale proceeds from Northlands & The Plaza has me salivating.

[winner69]

Doing my homework

They say Sylvia Park is home to 10 of New Zealand’s 11 favourite retailers

Whose missing?

[winner69]

About 1.7% of total retail sales in NZ for year ended March 2020 go through KPG sites

About the same % for March 2020 year - so not losing share of spend

Just a bit of interesting stuff ....but prob doesn't mean that much

[fungus pudding]

Doing my homework

They say Sylvia Park is home to 10 of New Zealand’s 11 favourite retailers

Whose missing?

The apostrophe is.

[fungus pudding]

Doing my homework

They say Sylvia Park is home to 10 of New Zealand’s 11 favourite retailers

Whose missing?

The apostrophe is.

[winner69]

The apostrophe.

They haven't come to NZ yet