KPG - Kiwi Property Group Limited

[WAIKEN]

Hi Beagle
You are allowed to be wrong about stocks. To err is human, to forgive divine
You were wrong about EVO even when Chris Scott had poured in millions and his expertise when the price was in ICU.
I hold stocks for 5 to 10years so unlike you I don't tend to monitor them on a daily basis or post about them.
Hopefully we can have another pleasant exchange before KPG reaches its potential or is taken over in 5 years time.
Good luck with your self appointed position as watch dog of this share forum.

[dibble]

...and back to KPG, from a few posts back some figues on "build to rent":

"...The $221 million, 295 apartment complex ...target stabilised net yield of approximately 4.5% and 10 year property internal rate of return of over 8.0%."

My mathematomator suggests that costs around $1m per apartment if you include a bit for land. Which suggests a sales price of well over $1m, say 1.2m (for 20% margin) and thus rent of $54k pa AFTER various landlord costs (60k or 1200pw gross?). You could play with rent increase and valuation variables to get 8% IRR but for an apartment above a shopping mall in the middle of a rather dreadful industrial part of Auckland, that seems a big ask even in these crazy housing times.

[Beagle]

Hi Beagle
You are allowed to be wrong about stocks. To err is human, to forgive divine
You were wrong about EVO even when Chris Scott had poured in millions and his expertise when the price was in ICU.
I hold stocks for 5 to 10years so unlike you I don't tend to monitor them on a daily basis or post about them.
Hopefully we can have another pleasant exchange before KPG reaches its potential or is taken over in 5 years time.
Good luck with your self appointed position as watch dog of this share forum.

Nobody is right 100% of the time. I'm too hard on myself and expect that I'll be right at least 90% of the time. That's probably unrealistic in this Covid environment.
Regarding your second point I am not wrong. Firstly EVO have destroyed vast amounts of shareholder capital in the last 5 years. On an adjusted basis their share price was $8.40 on 30/11/2016. Secondly since Chris Scott was allocated a significant discounted entitlement at 8 cents on 17/5/2019 (a discount of about 25% to the market price at the time if my memory serves me correctly) ordinary shareholders have seen the share price decline from $1 to the current price of just under 90 cents. With the paucity of dividends in 2.5 years since that event how on earth can you call that a success ? I'd rather not say how much my portfolio is up since May 2019...but lets just say I am very content.
Regarding your last comment what I will say is there's probably 20-30 people on here who post a lot...without them people like you would have almost nothing to read.

Food for thought - If all you ever read in any particular thread was shareholders pumping each others tyres about how good the company was how would that be of any value to anyone ?

[NZSilver]

I was interested in this mornings result as it was going to help me determine if I sold my holding which I'm slightly underwater on (ave $1.23 purchase price last year). Post result I'm definitely holding and am tempted to buy a few more. They have had a but of a tough time but I believe sentiment towards retail is the big contributor to the lack luster share price performance (even thought he business is doing relatively well especially considering macro conditions). At these prices with these results it's a certain but slightly contrarian hold for me with NTA backing/debt levels and underlying earnings cf SP providing quite a low risk here. This will take time to play (several years) and is going to need increased divs, some of their growth plays to perform and overall a place for traditional retail (albiet smaller) to be proven long-term. Yield wise I would like it to be higher 5.5-6% and I think that would really help it's cause.

[Beagle]

https://www.rnz.co.nz/news/business/...rates-increase

[Waltzing]

yep , its all over CNBC Asia..RBNZ expected. more pain coming... next cycle ... on the other side...

[winner69]

I was interested in this mornings result as it was going to help me determine. ……

Yield wise I would like it to be higher 5.5-6% and I think that would really help it's cause.

Be that desired 5.5%/6.0% mark when share price gets to 90 cents

Be patient.

[Waltzing]

90 cents

now on what basis? not saying it cant happen.. 10 YR of 3.5 to 5.5?... what if inflation backs off in 2023 - 2024.

these property investment stocks are priced as if the market for property is overvalued and the risk to the down side where as rental revenue will adjust but lag inflation.

Mixed use really means building Mini towns.

[NZSilver]

Let's pick this conversation back up in 10 years and see how it's all looking then.

[Waltzing]

5 years...

off topic ... Vive La France.


A strident supporter of Dick Tonks used to sing out across the Whanganui river KKKUUUUEEEE every time he won a sculling race.