KPG - Kiwi Property Group Limited

[whatsup]

Yes.p.a.
A good result.

Percy, your the one to go to.
I think if I remember correctly that when Kiwi was set up all those years ago that it was a mixture of the ex Unity Property guys ( Unity went bust in the 87 crash ) and a Canadian enterprise who early on bought into and largely funded what has turned into the Shortland St property.
Shortland Property Group then went onto develope the Mt Wellington property shopping centre which in its early years had a very rocky start as was discussed at the Shortland Property AGMs at great length and wisdom.
My how things can change, now the shopping centre is the jewel and the office investment has had its day !!
Can you enlighten us if possible.

[percy]

Percy, your the one to go to.
I think if I remember correctly that when Kiwi was set up all those years ago that it was a mixture of the ex Unity Property guys ( Unity went bust in the 87 crash ) and a Canadian enterprise who early on bought into and largely funded what has turned into the Shortland St property.
Shortland Property Group then went onto develope the Mt Wellington property shopping centre which in its early years had a very rocky start as was discussed at the Shortland Property AGMs at great length and wisdom.
My how things can change, now the shopping centre is the jewel and the office investment has had its day !!
Can you enlighten us if possible.

Sorry I only really got interested in them a couple of years ago when a friend was telling me he held them and liked their outlook.
Only bought a small holding for the wife.
I did work at Northlands Mall in Christchurch while KPG owned it.Was not impressed with them or a previous owner FBU.
But as you point out Sylvia Park is an outstanding success and Drury looks exciting.
I am sitting on a bit of cash at present and finding it hard not to spend it on KPG,HGH or SCL.

[whatsup]

Jan 2020 @ $1.55 to todays .84 , says it all !

[percy]

Jan 2020 @ $1.55 to todays .84 , says it all !

https://en.wikipedia.org/wiki/Kiwi_P...e%20properties.

[LaserEyeKiwi]

Been looking at what the conditional $458m sale means for KPGs debt profile. Yesterday they said cash would be used to pay down debt (which would take gearing down to a fantastically healthy 25%).

As at the last report, Sep 30th 2023, they had $1,105 million in debt. This was split as follows:

$605m in bank debt
$500m in bonds

The bonds have a lower average interest rate, so the $458m will likely all go towards the outstanding bank debt, which would bring it down to ~$150m range.

However there will likely have been somewhere north of $100m in capex between Sep 30th 2023 and the deal closing (most of that towards finishing BTR1) , so bank debt may still remain above $200m perhaps post transaction.

So presuming they put all the cash towards reducing debt, that should be somewhere above $725m post deal, with a gearing ratio around 27.5%