Cant seem to find a thread on here so will start a thread here.

Was wondering what are some of the thoughts of the fund so will kick it off with my take.

One of the smallest (57m market cap) and poorest performers (down ~42% ytd) in the property investment currently listed on the NZX. One of the more unlucky funds which had to withdraw their capital raising in early March that were meant to fund development cost at Murone lane (future office space for Auckland council https://www.nzherald.co.nz/business/...ectid=12295344).

Current Portfolio (Aug20)
- Eastgate $47.40m : Chch mall and recently announced a new lease with RBD for a new buidling on site maybe Tacos or KFC? Currently makes up ~39% of their active rental income (sub 95% occupancy)

- Stoddard Road $38.50m : Small shopping center complex in Mt Albert with 100% occupancy ~28% of rental

-35 Graham Street $57.50m Slight problem child, largest valued property currently lease to Auckland council but is due to end in Dec21. They have yet to decide on what development option will be next tho it range from almost a complete rebuild to mild refurbishment, with the earlier requiring a significant capital injection.

Munroe Lane (bare land) $7.50m : Empty land in Albany that was meant to be leased to Council upon completion. Subjective to market condition they would most likely be looking to a capital raise of some sort. (Withdrew capital raising of 100m in Mar)

Kamo (bare land) $2.50m : NM

Their debt level is on the upper end with LVR just about ~34% and are trading at about ~63cps NTA and about 40% discount at current trading price. Being a small property fund they have always traded at a slight discount of about ~10% pre-covid.

Their financials are ok at best, being a small property fund does means they do not enjoy the same level of cost efficiency however have managed in the past to somewhat sustain an annual net dividend payment of 3.6cps however have indicated recently this will likely drop by half for this FY at the minimum, which is still a decent yield.

Their main downside risk would be just the lack of scale in their property portfolio ~7% doesnt generate any income and will need significant capital to do so and their largest income source that is due to have their lease end in the next year. So quite likely to see the dividend tap to be turned off in exchange for more capital being raised.

With all that being said, there are decent value proposition in this company and maybe some potentials to be a takeover target given it size and discount. Also Interesting to note that the properties are all managed by Augusta (recently taken over).

Hopefully this can kick off some discussion and keen to hear what opinions if any might be