KPG - Kiwi Property Group Limited

[LaserEyeKiwi]

No DRP suggests they are happy with leverage and dividend is sustainable, good news.

Yes good point. Cashflow should be very strong for the next 12 months, as BTR 1(Resido) starts generating cash in Q2, while capex spending is entering a rather low phase with BTR 1 finished and stage 1 Drury earthworks also mostly done.

[LaserEyeKiwi]

OH MY GOODNESS - I MISSED THIS LAST WEEK!

Only just saw this now, how did anyone else not post this??? : https://www.nzx.com/announcements/427035

Vero Centre sale update

28/2/2024, 3:46 pmGENERAL

Kiwi Property is in advanced negotiations for the conditional sale of the Vero Centre in Auckland for a small discount to book value. An additional announcement will be made outlining further details if, and when, an agreement is reached.

Kiwi Property has disclosed this information following market enquiries about the proposed transaction, in line with its continuous disclosure obligations.

The Vero Centre is the 2nd largest income generating asset in the KPG portfolio with a book value of $467 Million, and generates approximately $25m in net rental income.

If a sale is completed - assuming somewhere around $425m-$450m price - this will radically reshape KPGs balance sheet. Huge move.

[kiwikeith]

OH MY GOODNESS - I MISSED THIS LAST WEEK!

Only just saw this now, how did anyone else not post this??? : https://www.nzx.com/announcements/427035

The Vero Centre is the 2nd largest income generating asset in the KPG portfolio with a book value of $467 Million, and generates approximately $25m in net rental income.

If a sale is completed - assuming somewhere around $425m-$450m price - this will radically reshape KPGs balance sheet. Huge move.

Yes it seems that KPG is moving in the direction of less property investor and more property developer.

[bull....]

Yes it seems that KPG is moving in the direction of less property investor and more property developer.

no more to a town centre owner eg sylvia park model. so selling of property that doe not fit the model i guess

[winner69]

Hey Laser .."is this just a rave to potential investors ….or something new included?

[LaserEyeKiwi]

Hey Laser .."is this just a rave to potential investors ….or something new included?

Presume you are referring to the Resido-focused release? Can’t see too much new, but fleshing out the details about the current rental market somewhat - although perhaps including something’s that have previously only been detailed on conference calls, like the mention on the last page of the presentation about potentially selling a portion of Resido to a capital partner.

https://www.nzx.com/announcements/427841

[LaserEyeKiwi]

6 month property re-valuation: An increase!

Kiwi Property valuations hold firm despite headwinds

4/4/2024, 9:56 am GENERAL

Kiwi Property today announced its draft valuations for the six months ended 31 March 2024, recording a 0.1% or $3.6 million increase in the fair value of its property portfolio, which was expected to be worth $3.2 billion at the end of the period.

Kiwi Property Chief Executive Officer Clive Mackenzie said: “It’s encouraging to see the value of our diversified property portfolio holding firm, despite the slow economy and high interest rate environment.

“The sustained performance of assets such as Sylvia Park and The Base is a testament to their resilience and highlights the merit of our mixed-use strategy. While the market has seemingly priced-in further write-downs of our property portfolio, based on the latest valuations, those concerns may be overdone.”

The draft valuations are expected to result in the following movements through the period:
• Mixed-use portfolio: +0.8% or +$16.0 million, underpinned by stable capitalisation rates and robust trading.
• Office portfolio [Note 1]: -1.9% or -$16.2 million, due to continued headwinds in the office sector.
• Retail portfolio: -0.4% or -$0.6 million, with valuations flat in aggregate.
• Other properties: +3.1% or +$4.5 million, reflecting the continued progress of earthworks at Drury.
• Net tangible asset backing per share: $1.17. No change.

Kiwi Property’s draft asset valuations are subject to final independent audit, finalisation of year-end book values and will be confirmed in the company’s annual results for the year ended 31 March 2024, due to be released on 27 May 2024.

ENDS
Note:
1. Includes assets held for sale.
Contact us for further information:

Campbell Hodgetts
Head of Communications and Investor Relations
campbell.hodgetts@kp.co.nz