Property Stocks

[nelehdine]

KIP +3 to 115 ... what a great start to 2005 !!!

[nelehdine]

KIP now trading at 1.16 +4 ... 116/118
A takeover for the aggressor ???? Someone like General Property Trust in Australia could really add some value to the KIP portfolio, a 3 GPT for 10 KIP offer would be worth $1.25 ???

Disc: Hold KIP and GPT

[Shamrock]

KIP gave a definite buy signal today with the close at 115...

KIP has finally broken through its significant historical resistance of 113c (it had not closed above 113 in 7 years, and has tested 113 on numerous occasions)

Had been in a 101c-113c trading range for two years...now continuing an uptrend

On Balance Volume has been steadily rising

Others have alluded to the fundamental reasons to buy this stock, now there are good technical reasons too

[nelehdine]

Thanks for that Shamrock , no close above 113 in seven years, that's quite an eye opening statistic, I thought KIP was having a good week, I didn't realise it was quite so significant.
Cheers

[Dontpet]

I've been enjoying watching NAP and CDL do some climbing too! I hope all this rain is encouraging people to move from their campers into a hotel somewhere[}].

DISC: Yeah, I own some of both

[madmike]

quote:Originally posted by nelehdine

Thanks for that Shamrock , no close above 113 in seven years, that's quite an eye opening statistic, I thought KIP was having a good week, I didn't realise it was quite so significant.
Cheers

i hear that kip want ot increase debt/equity ratio from 35% to 40% but needs shareholder ok. me thinks the friday jump was due to this announcement. now what would they need the extra 5% for....buy out cnz...lets say 1.25c per share but i think the cnz board would say 1.30c given that they believe that the mgmt rights of say 15c to 17c haven't been built into the current share price (ie 1.10-1.12 share price before kip's raid plus15-17c equals $1.30)
what ya think nele!!!!???

[nelehdine]

I think KIP want to increase their risk/reward ratio by leveraging the portfolio. They have stated that they view debt as cheaper than equity which is great for existing holders ... no more discounted placements to institutions !! I don't know what they might be thinking regards CNZ , certainly gives them a lot more exposure to Wellington which is probably the tightest office market at the moment and the one with the most upwards rent pressure. At 115c they got a great deal, those who sold to them in the stand are probably wishing they had held on !! bit like those ( like me ) who sold to Tubby and the market during the WRI partial takeover !! . THis sector will certainly see some action this year, consolidation and size is crucial to extract the extra value. Trust like NAP just aren't big enough, they have some nice assets, someone like APT and KIP could mount a joint bid and split the spoils between them, makes sense to me. Anyway I think there is no harm keeping a healthy exposure to the sector this year, the downside risk is minimal due to rising asset ( and replacement ) values, interest rates are very near if not at their cyclical peak, and the corporate activity is definetly bubbling under the surface.

[Bling_Bling]

I have been sniffing around the listed property stocks.

What do you guys think of TTP and CDI?

[Sky Tower]

TTP: Not much. CDL: Like the shareholder discount []

[nelehdine]

BB ... have just read the annuals on TTP and CDL. TTP looks like a real gamble to me , a real hotchpotch of a company, no real strategy, sold their really good Sydney property in George Street because they thought it was the peak of the market .... what a load of rubbish, their banker probably game them no choice. Compared to the big NZ and Aussie trusts they are not in the same ballpark if you want a stake in a quality portfolio.

CDL seems to me to be a hotel company with a bit of residential section development thrown in , again a completely difficult kettle of fish to APT,KIP and PFI ... if you want quality commercial property exposure then these 2 aren't in the same league IMHO.