I'm struggling to reconcile this cautious outlook here
https://www.nzx.com/announcements/351283 in April, cancellation of the dividend and deferral of non essential capex and other measures with their current almost gung-ho build it and they will come approach
http://nzx-prod-s7fsd7f98s.s3-websit...590/330530.pdf
Sure it would be fair to say they had already committed to the Galleria expansion before Covid hit but its not a good look and on the face of it their expansion and the previous statement of caution is incongruent.
Okay to spend $277 million but can't afford to pay the final dividend ?
Stop the dividend when there's unrealized write down in assets but no extra in previous years when there was massive increases in unrealized gains ?
Major expansion at Sylvia park, so they think the risk from Covid has now passed ?
Future dividend(s) contingent on no major further write-downs or Covid effects... For me that's a deal breaker because it tells me they have no contrition for canceling the last dividend or sympathy for investors need for income.
To me the directors seem to have forgotten why people invest in REIT's...for reliable dividends. Very poor execution of their primary goal to be a reliable investment for shareholders in my opinion. No wonder its at a discount to NTA and very probably deserves to be. If there's another outbreak of Covid in N.Z. or should that read "when there's another outbreak of Covid" malls are the first place people stop going too.
I see plenty of risk here and well below average governance standards and execution of their purpose for existence.
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