KPG - Kiwi Property Group Limited

[Habits]

We have done extremely well in HamMilkton after moving from Bay of Is. Big change but worth it. Back to KPG, which also owns half of the Base retail centre, 5 years ago the centre had astonishing patronage of over 7 million per year. I could not get any updated recent figures

[Waltzing]

"HamMilkton" tankers still out and about in the hills and surrounding districts.

Would be great to know numbers of centre place but the entrances dont have sensors. A new sensor was placed at one of the karapiro lakes parks recently. They are in use in the district.

[NZSilver]

https://i.stuff.co.nz/business/12747...kW33yKCPeu3Nkg

[winner69]

ANZ doom and gloom saying OCR going to 3% put a dampener on KPG ….share price tumbling 2.5% to 116

[Waltzing]

Yep the cyclical looks to be here doesnt it which actually means selling all retail except maybe celtic art and buying banks and oil and gas.

even ARG might get hit with future government contracts for some builds going to non listed entities.

Several builds in the WakaToo may not have gone to tender or been managed away from listed companies such as ARG but handed to political allies.

Would be interesting to see the tender processes for government hut occupations in WakaToo.

[Aaron]

ANZ doom and gloom saying OCR going to 3% put a dampener on KPG ….share price tumbling 2.5% to 116

What do you expect? interest rates are the inverse of asset prices, hasn't 30 years of falling interest rates given you enough time to amass some wealth.

[LaserEyeKiwi]

6%+ dividend yield and a 19% discount to NTA - If I wasn’t already at max exposure limit I would be thinking about buying more.

With the recent IKEA land sale, along with the looming finalization of at least one of the two regional mall sale negotiations, the gearing ratio is going to be well under 30%, with currently over $3.5 Billion in assets and $1.15 billion in debt (thats before the cash from the IKEA sale, and what will come from the mall sale).

Interest rate rises will have minimal impact on KPG in terms of operating profits with this sort of debt-to-asset profile (vs other property companies with high gearing ratios)

[Waltzing]

LEK it wasnt for the long term chart over a 20 year period it would be a BUY.

Hamilton central almost empty yesterday afternoon.

It might well be an opportunity when OCR's hit highs. Last time it hit a high was back in 2007. Interest rates were at an all time high since 2000.

With property prices where they are may be the RBNZ would like to have rates a LOT higher then they are.

With there new T1 coming at 16 for NZ banks one wonders what that is going to do to lending when they finally apply the new T1.

Sorry MR and MRS business we havnt got a loan for you right now we are putting more earnings back into T1.

It may only have a small impact on GDP and it wont effect borrowing for COMP PROPS but it may crimp home and small business loans even more than present.

The think about RBNZ versus RBA policy and you see which country is set up for growth.

[Waltzing]

Yellon saying inflation expectations expect to mitigate later in 2022 early 2023.

D Guppy expecting a 2 handle on the US ten year.

Might see a cyclical turn around in this sector in 2023.

[Waltzing]

sub 1.10 ? getting close, next summer a golden summer or will inflation snuff it out.