NZL - NZ Rural Land Co IPO

[percy]

I enjoyed Richard Milsom's presentation this morning.
http://nzx-prod-s7fsd7f98s.s3-websit...572/403383.pdf

[Aaron]

Yes good points Muse.

I still want a dividend yield over their rental yield lol. But NZL say no, the SP is undervalued and thus they must buy back shares and in their minds push the SP higher. And div yield lower (assuming it returns next year).

Some other thoughts I had was the AFFO cagr they like to highlight since listing has had the benefit of loading up the balance sheet with debt. It’s now near 40% leveraged so could be considered close to comfort levels. Therefore their acquisitions will slow and affo growth will slow to cpi rate.

Last thought, why are they doing a European tour for potential investors?? This has a $100m market cap in NZ$ it’s a tiny microcap on the international stage…. Would have thought it would be a waste of time pitching outside of our neck of the woods. Unless… unless they are setting the stage for numerous cap raises for acquisitions. Good for the manager I guess but current investors may need to be ready to front up with more cash to maintain their holdings

They buy back shares to boost the share price then do a capital raise. I am no financial genius but doesn't this sound a bit fishy?

[nztx]

https://www.nzx.com/announcements/421717

Change of Auditor

With effect from today, New Zealand Rural Land Company Limited (NZX.NZL) has accepted the resignation of PwC as the Company’s statutory auditor and has appointed William Buck in its place.

The decision to change auditor was driven solely by a desire to reduce the cost of audit fees.

Aha, so toss Auditor overboard because NZL still want Royce Royce job done but at Cheaper Buck Lada Rates with smaller gorilla at wheel

sure there wasn't something else that make the Board buck a bit over ?

Perhaps PWC Beancounter started warning of focussing in on revaluation fancy footwerks and scratching around interest cover marks etched in the thick Taranaki muck

[beetills]

I am presuming that with the news from NZL of the sale of 25%,the proceeds should allow the company to grow with more purchases.
If they do i hope they stay away from dairy farms and get into dry stock or even cropping properties.

[Bill Smith]

Their difficulty is finding properties that can pay 5% land leases through phases of agriculture boom and bust. This sale is a result of such difficulty.

[percy]

Craigs have increased their target price from $1.12 to $1.21. Rating "Overweight".
Found this interesting in their latest research;
We view this transaction positively since NZL is
effectively raising funds to finance further acquisitions at +40% premium to
the current share price.

[kiwikeith]

Craigs have increased their target price from $1.12 to $1.21. Rating "Overweight".
Found this interesting in their latest research;
We view this transaction positively since NZL is
effectively raising funds to finance further acquisitions at +40% premium to
the current share price.

At $1.21 we will be 1 cent ahead of the initial issue price back in 2021.

[nztx]

At $1.21 we will be 1 cent ahead of the initial issue price back in 2021.

Still a way to go to reach the Oct 22 $1.65 level that ALF's performance fees got converted into NZL shares at however