Property Stocks

[Halebop]

Well I'm not a big fan of shopping but when I'm looking for something I actually want (Like a new PC say) I find the process very entertaining but then I do most of my scoping in the calm and serenity of my study at home.

Having said that the fact that shopping is considered a form of entertainment is probably more a reflection of the relative economic parity being enjoyed by woman than any fundamental shift in cultural values. Expect more of the same as universities are over represented by the fairer sex!

[Mr_p_yu]

Hello, dumb dine,

Happy 2005 everyone except dumb dine, cow dunk, and rmbbrave (*****, I suspect?). Ha, Blenheim, what a farmers village, I had to look on the map to find that dump.

You should stop ramping yourself (you might fall back to the ground one day, may be very soon...). Hey, if you don't like me, well, you will just have to take it up your back side, you piece of ugly sh*t.

Don't give up your farming day job, mate!(as they say)

[Major von Tempsky]

Invest off-shore?
But where?
The US and Australia are equally stuffed as NZ on their current a/c-balance of payments, their dollars will be goung down like NZ and the US even faster because of its budget deficit and relatively slow growth.
China and Hong Kong are both out on currency arguments because they are pegged to the US. Do you go into China on a pure growth story?
Euroland has very low growth - do you go into Euroland on a pure currency play? But the Kiwi has been fairly much level pegging the euro.The UK has been doing better than Euroland - maybe the UK?
Japan has low growth, zero interest rates, low dividends - Japan on a pure ciurrency play?
It's not that easy to pick a target.

[nelehdine]

That's great Mr F Yu, what an informative post ... keep it coming in 2005, your posts are rivetting ..... NOT !!!

What an absolute wan%$# !!!

[duncan macgregor]

One has to ask why an obvious low life is allowed to continue with obscene toilet wall postings on what is supposed to be an informative site for investors. Sharetrader get your act together or watch the site degenerate further. MACDUNK

[nelehdine]

Agree MacDunk the sooner we can ban this lowlife the better !! All because he didn't like a negative post on PRG !! Probably one of the worst performing stocks of the last 18mths. Never mind the fact that he loves PRG and it has cost him stacks of cash is all he deserves !!

[Sky Tower]

On 2005 picking the right sectors and particularly the correct stocks within that sector will be important. There will be alot of action in the property sector in 2005.

The stock that stands out for me is APT AMP Property Trust - they have acquired a stunning portfolio of CBD buildings in New Zealand, mainly in Auckland and Wellington.

They portfolio includes in Auckland the PWC Tower, IAG House, ANZ Centre, and Quay Tower (Air NZ's current head office - although they are leaving).

In Wellington their portfolio includes No 1 and No 3 The Terrace (Treasury), State Insurance Centre (aka BNZ Centre), Mobil on the Park, HP Tower, 125 The Terrace, and Pastoral House

The one thing I dont like about KIP is the management contract (fees) that exist within that company which according to a certain columist in the NZ Herald amounted to $7.7 million to the y/e 30th June 2004 yet the management company incurred expenses of $1.76 million - which does seem excessive

[nelehdine]

I like the AMP portfolio as well, although it is very one dimensional. Retail and Industrial have outperformed office by a comfortable margin for quite a long time ( 10yrs at least ), I doubt that will change in 2005. KIP has an awesome NZ portfolio with a great level of diversity in both geographical terms and property type. One one big hole in the portfolio is an large Auckland Shopping Precinct which the Sylvia Park development is designed to plug ( the next Botany Downs ?? ). Their 2004 Annual Report sets out their portfolio really well. The jewels in the crown are obviously the following.

1. Vero Centre , Auckland ( NZ's newest,tallest office tower )
2. Majestic Centre ( Wellington's tallest office block )
3. Northlands, Chch ( NZ's largest indoor shopping complex )
4. North City, Wgtn ( The capitals only decent shopping mall ... nb Westfield are currently upgrading Queensgate in L Hutt )

A great portfolio and the Net Asset Backing was $1.17 in the 2004 report so the shares are still trading at a discount.

Added spice of 19.90% stake in CNZ acquired at $1.15 which again is probably below NAB , especially as CNZ management rights could be worth up to $40m

Picked by Goldman Sachs as one of their 5 stocks for 2005 !!

Good solid buying at $1.11 IMHO.

[Sky Tower]

Agreed. But would you buy KIP (the offeror) over the CNZ (the offeree) ?? and whats with this management contract?

[nelehdine]

I'm buying KIP to hold for many years and yes while there might be a short term gain from CNZ , if a takeover ensues KIP is still the place to be for a long term investor.

CNZ is the one of the only listed property stocks that manages their own portfolio. They have indicated they may well outsource this to an external manager ( AMP,Colonial etc ). The manager would pay big bucks for this contract and CNZ have indicated they would return most of the money straight to shareholders ( very nice for KIP with its 20% ). Estimates as high as 13cps have been mentioned.