Asset Plus (APL)

[dibble]

6.5% gross at current price and a substantial discount to NTA. Trades at a discount due to it's smaller size (less diversification) and development risk. With the way property prices are going I expect to see this discount shrink.

Beware divs are part funded from capital (and by inference, the recent capital raise, a strange way to run a growth business). They own lower grade assets, not all of which currently produce rent and a lot of hope is being pinned on a couple of developments and the Auckland Council as a tenant. So decent chance the NTA will reduce, tho I guess you still get your discount shrinkage.

Also just note Augusta, who hold the management contract, are probably making a pretty penny out of everything APL touches, I cant be bothered checking the accounts but that's typically how they roll.
That said there is hope with the change of focus.

[HKG2301]

$5,000 divi' received - Nice!

[bung5]

Beware divs are part funded from capital (and by inference, the recent capital raise, a strange way to run a growth business). They own lower grade assets, not all of which currently produce rent and a lot of hope is being pinned on a couple of developments and the Auckland Council as a tenant. So decent chance the NTA will reduce, tho I guess you still get your discount shrinkage.

The only reason that is the case is due to the 120mil development cost of the Auckland CC office over the next 18 months. Cashflow from operations well exceeds the dividends paid.
Once Auckland office completes dividends will likely increase significantly

[dibble]

Cashflow from operations well exceeds the dividends paid.
Once Auckland office completes dividends will likely increase significantly

Guess that depends where you go for your DYOR.
Your info is more fun so stick with it. If yours is more up to date and/or correct Im as happy as you as I have a few which I foolishly didnt flog at 60c.

[bung5]

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[bung5]

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[bung5]

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[bung5]

Guess that depends where you go for your DYOR.
Your info is more fun so stick with it. If yours is more up to date and/or correct Im as happy as you as I have a few which I foolishly didnt flog at 60c.

What part do you disagree with exactly? I'm saying cashflows from operations ( excluding the development cost of new buildings ) exceed dividend payout . This can be extracted from the latest financial report

[Nigel]

Most stocks in my portfolio got hammered in March 2020 and then recovered. However, APL is still way down on its pre-COVID levels. As mentioend above, it is at a massive discount to NTA, and it has approvals and tenants in place for its flagship Albany development. Yes, a bit riskier than ARG/GMT/PCT etc due to its smaller size, but well worth a look at these levels.

[HKG2301]

Most stocks in my portfolio got hammered in March 2020 and then recovered. However, APL is still way down on its pre-COVID levels. As mentioend above, it is at a massive discount to NTA, and it has approvals and tenants in place for its flagship Albany development. Yes, a bit riskier than ARG/GMT/PCT etc due to its smaller size, but well worth a look at these levels.

I agree, but reckon there's a fair overhang of shares yet to be sold by investors who bought into the retail entitlement offer at $0.30 in October and will want to take profits on at least some of them. I unloaded quite a few at $0.36 and $0.375 last month to cover, and expect many others will be doing the same.

As that offer-induced selling pressure dies back, I expect the SP will slowly but surely creep back to the $0.40 level later this year. Hopefully higher?

[Discl: I still retain a sizable holding.]