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Member
KPG - Kiwi Property Group Limited
Any comment on KPG's property portfolio revaluation of $175.9m or the 3.30cps final div? I'm probably a tad concerned that online trading may well impact their mall tenants in the not too distant future. So, is the revaluation fair?
Disclosure: Holding.
Last edited by Waiuta; 16-05-2016 at 01:46 PM.
Reason: Punctuation
A quote attributed to Margaret Thatcher goes along the lines of
"The problem with socialism is that eventually you run out of other people's money."
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Yes, online trading will eat into mall sales, but against that, there are a lot of strange people out there that consider it fun to spend hours at a shopping mall.
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Originally Posted by kura
Yes, online trading will eat into mall sales, but against that, there are a lot of strange people out there that consider it fun to spend hours at a shopping mall.
Spending nothing more than time...
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Originally Posted by janner
Spending nothing more than time...
Disc. Hold no retail..
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Originally Posted by janner
Spending nothing more than time...
Last time I went to a big mall was to collect something I ordered online pay-and-collect. The item had to be shipped from another location, as the shop closest to me did not stock it. For my trouble my car received a ding in the car park. So next time it will definitiely be an online courier delivery and no visit to the mall.
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Member
Re the current offer for 20m new units. I wonder if we will have to jump through as many hoops to subscribe to these and then at the price which is only a couple of cents discount at this stage. My recent experience with the GMT issue has me hesitating, but then I have not received the paper work yet.
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Originally Posted by Bjauck
Last time I went to a big mall was to collect something I ordered online pay-and-collect. The item had to be shipped from another location, as the shop closest to me did not stock it. For my trouble my car received a ding in the car park. So next time it will definitiely be an online courier delivery and no visit to the mall.
There's always been a price to pay for such dangerous living as going to a shop.
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Bought new socks recently
Do not quote me on this but I think that much of the property gain can be attributed to the current low interest rates and how that is factored into the valuation methodology.
Reversing the property revaluations out there is still a significant increase in 'operating profit', due to the lower interest rates & possibly the capital raising during the year?
I own some KPG and may read the report properly later and form a less uninformed view.
I recall reading recently that NZ is growing up and that the likes of H&M & another companies are invading (we already have them here in KL) so whilst they may drive a hard bargain with the likes of KPG and affect the (retail clients of KPG) competition I do not believe that physical retail therapy in NZ is quite dead yet.
Best Wishes
Paper Tiger
Last edited by Snow Leopard; 16-05-2016 at 03:46 PM.
om mani peme hum
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Mall owners are now facing a few challenges.
The Farmers are now putting pressure on mall owners.
The Farmers own store is a "major" and as such pays a modest rental,as do the likes of Pak'n Save/Countdown, and The Warehouse.
So Farmers now own Stevens,Bed bath and beyond,Pascoes, Whitcoulls,and another Jeweller [whose name I forget].
I believe they have already managed to have Whitcoulls rent substantially reduced in one ChCh mall,which is owned by Kiwi Property.
I would expect they will be doing the same for all their chains' stores.
I do not see Michael Hill, for example, being happy paying a higher rental than Pascoes.
Last edited by percy; 16-05-2016 at 04:21 PM.
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Originally Posted by percy
Mall owners are now facing a few challenges.
The Farmers are now putting pressure on mall owners.
The Farmers own store is a "major" and as such pays a modest rental,as do the likes of Pak'n Save/Countdown, and The Warehouse.
So Farmers now own Stevens,Bed bath and beyond,Pascoes, Whitcoulls,and another Jeweller [whose name I forget].
I believe they have already managed to have Whitcoulls rent substantially reduced in one ChCh mall,which is owned by Kiwi Property.
I would expect they will be doing the same for all their chains' stores.
I do not see Michael Hill, for example, being happy paying a higher rental than Pascoes.
Tenants have always fought for lower rents. Major tenants like Farmers do know that if valuation rentals are not paid then new development stops. So rent reviews are often contested, but while there may be a bit of a variation between two valuers, it usually won't be much of a problem because rent levels are general ratcheted. New development is forever forging new rent levels.
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