KPG - Kiwi Property Group Limited

[LaserEyeKiwi]

Kiwi Property extends Sylvia Park landholding

1/10/2021, 8:54 am GENERALKiwi Property advises it has agreed to acquire 385 Mt Wellington Highway, next to Sylvia Park Lifestyle in Auckland, for $27.5 million. Settlement is scheduled to take place on 24 June 2022.
The 7,144 sqm property, which was originally developed as the Hertz building and is currently occupied by the City Impact Church, will be acquired with vacant possession. The high profile site has the potential to accommodate a range of uses, including showroom, office and large format retail.

Kiwi Property Chief Executive Officer, Clive Mackenzie, said: “This strategic acquisition opens up a range of exciting opportunities to the west of Sylvia Park, as we continue to evolve the asset into a world-class mixed-use centre.”
https://www.nzx.com/announcements/380196

[winner69]

Market doesn’t seem to have embraced all the recent news and share price a bit weak.

Property sector per se over priced at the moment relative to 10 year govt bonds so we could see further weakness. It seems the touted KPG discount to NTA is here to stay ….something that’s essentially seen by the market as meaningless …… but gives shareholders some comfort / hope

[LaserEyeKiwi]

Short term is all about Auckland lockdown (despite the minimal impact on KPG) - with government just announcing retail will reopen under “level 3 (step 2)”, which could be as soon as next week - I imagine stock price will react positively and investors will start focusing on the long term prospects.

[Rawz]

Short term is all about Auckland lockdown (despite the minimal impact on KPG) - with government just announcing retail will reopen under “level 3 (step 2)”, which could be as soon as next week - I imagine stock price will react positively and investors will start focusing on the long term prospects.

Market is supposed to be forward looking no? Would have thought step 2 already priced in.

I gave up on my KPG holdings a month or so back. Like W69 says it is apparent the discount is here to stay. I also realized I had more risk appetite and decided to gain property exposure through OCA and am thinking of adding SKC and AIA. I like the idea of investing in companies with large property holdings but also have a business generating cash (casino's, airport).

[fungus pudding]

Market is supposed to be forward looking no? Would have thought step 2 already priced in.

I gave up on my KPG holdings a month or so back. Like W69 says it is apparent the discount is here to stay. I also realized I had more risk appetite and decided to gain property exposure through OCA and am thinking of adding SKC and AIA. I like the idea of investing in companies with large property holdings but also have a business generating cash (casino's, airport).

or better still - tenants.

[LaserEyeKiwi]

Market is supposed to be forward looking no? Would have thought step 2 already priced in.

I gave up on my KPG holdings a month or so back. Like W69 says it is apparent the discount is here to stay. I also realized I had more risk appetite and decided to gain property exposure through OCA and am thinking of adding SKC and AIA. I like the idea of investing in companies with large property holdings but also have a business generating cash (casino's, airport).

but KPG is generating significant cashflow at present, whereas casinos and airports aren’t….?

[LaserEyeKiwi]

or better still - tenants.

Vast majority of KPG tenants are generating normal cashflow - the majority of tenants are government departments, corporate offices, supermarkets etc, and half of their speciality retail tenants are trading (because they are outside Auckland). This is why KPG are paying their upcoming dividend as planned because cashflow is still strong.

[fungus pudding]

Vast majority of KPG tenants are generating normal cashflow - the majority of tenants are government departments, corporate offices, supermarkets etc, and half of their speciality retail tenants are trading (because they are outside Auckland). This is why KPG are paying their upcoming dividend as planned because cashflow is still strong.

Forget about 'cash-flow'. Even 'normal cashflow' can mean a loss and often does. It is revenue, income or profit that matters.

[winner69]

Jeez 10 year govt bonds hit 2.36% yesterday. A year ago they were under

And some economists saying OCR could go to 2.0% next year

Could see the 10 year go over 3%

This could lead to a 25% fall in listed property stocks (from current overvalued levels)

Doubt whether KPG's big discount to NTA will soften a blow of that size

Interesting times ahead

[RTM]

Jeez 10 year govt bonds hit 2.36% yesterday. A year ago they were under

And some economists saying OCR could go to 2.0% next year

Could see the 10 year go over 3%

This could lead to a 25% fall in listed property stocks (from current overvalued levels)

Doubt whether KPG's big discount to NTA will soften a blow of that size

Interesting times ahead

Do you think this will just apply to KPG Winner ?