KPG - Kiwi Property Group Limited

[LaserEyeKiwi]

Seems PCT are suckers as well .... acquired a new development in Wellington it seems

61 Molesworth St ... was pretty badly damaged and then demolished after Kaikoura quake but new build will be seismic resilient so no worries

Hope PCT and PAG not take it heart being called suckers

Precinct building brand new very high seismic rating buildings in Wellington is slightly less risky than buying an old pre-existing building like KPG’s 44 The terrace was. I still wouldn’t choose to do either, but thats just me.

Precinct portfolio heavily exposed to Wellington.

[SPC]

Heavily exposed to a bloated civil service I expect. Mostly public servants shifting in to green star buildings?.
That could change in the future when Labour's run ends.
ARG / KPG/ GMT are more appealing to me.

[winner69]

KPG putting its plans for a CBD office fund on the back burner probably a good move

Wait and see how things evolve re future demand for office space

[Aaron]

Article on the front page of the business herald this morning singing the praises for KPG and its yield. We need beagle here to counteract some of the positives.

I am not sure of the debt of KPG but imagine some fairly cheap bonds will need to be replaced sometime in the future. 2023, 2024, 2025 and 2028. Haven't spent any time on this but imagine the 2.85% Green Bond will be replaced with much more expensive debt (currently trading on the secondary market at 5.9% (more than double)). Not sure how much of the company debt the bonds represent.

I hold some KPG but have not done the research. Maybe Winner69 can stop panicking about the share price now that there is a fluff piece in the herald. Will be interesting to see how the share price goes this week with a bit of advertising. I am pretty sure I am not the only one out there investing on whims rather than solid research.

You get the feeling from the article that the author does not really expect interest rates to be up for long.

A bit like reading an Ashley Church article, total faith in inflation targeting and central bank monetary policy, much like TeslaGod.

[Rawz]

I think beagle owns KPG. Main reason he bought was for the yield lol

[Aaron]

I think beagle owns KPG. Main reason he bought was for the yield lol

He must be viewing it like a bond then, as his main gripe from what I remember is that KPG had not managed to raise earnings or dividends over an extended period of time. I could have that wrong as my memory is not that good.

I also find it hard going back to find previous posts, although this would be handy sometimes. I am probably not using the website search capabilities correctly.

[Rawz]

This is what Beagle says from that other place:

17 OCT
I think the market is saying we have little confidence that your plans to recycle capital from Northlands (which had an incredible yield of 12%) into new projects with a much lower yield is value accretive to shareholders.

Market also appears to have little confidence that they can execute on their strategy to sell half their office assets into a JV company that KPG will manage and also appears to be skeptical that anything they do with Drury will add value.

Not going to get too big in these no matter what the yield. Other companies' management have earned my respect...this one...the directors have a huge task to convince me they know what they're doing. I only bought for the yield.

28 Nov
Yes the payout ratio of AFFO (adjusted funds from operations) is only 69% but still gives a gross yield of 9.3% (for 33% taxpayers). That and the 40 cent discount (30.5%) to NTA means as far as I am concerned its a sound hold for yield. One would hope their development activities at Drury and Sylvia park will be value and income accretive

[Rawz]

KPG a dividend trap?

[percy]

https://www.nzx.com/announcements/403115
After reading the above announcement I added some KPG to the wife's portfolio.
Recycling funds into future more profitable ventures looks interesting.
Sylvia Park cashflow is sound.Medical and office development should also add to cash flow.
I have seen units built on top of shopping centres in Aussie.Works well.
Lot of future opportunities with huge Drury development.I would expect they will sell part of it to fund their own capital requirements.

[winner69]

https://www.nzx.com/announcements/403115
After reading the above announcement I added some KPG to the wife's portfolio.
Recycling funds into future more profitable ventures looks interesting.
Sylvia Park cashflow is sound.
I have seen units built on top of shopping centres in Aussie.Works well.
Lot of future opportunities with huge Drury development.

I was impressed what developers are doing at Elephant and Castle in London when given a tour of the area a few years ago