Listed Property Trusts

[winner69]

33 Bowen street - sold to private investors in 2019 after getting a big upgrade to 100% NBS EQ rating in 2015 - Ministry of education HQ. Today the building has been deemed to only meet 25% of safety standard using updated EQ seismic rules, Ministry of Education no longer lettting staff in building.

Brutal.

Companies really should be reducing exposure to wellington office towers due to these sort of seismic risk, especially if they have already received a good seismic rating under the new rules (as they could change again in future) .

Seems like one building a week becomes 'unsafe'.... wonder how many more

Worry is if the powers to be in other parts of the country start putting more effort into enforcing NBSs .... betcha many Auckland buildings are 'dodgy' under the new standards

[Waltzing]

Big investment needed in Springing them and then increasing Depreciation rates which are to low already.

Removing depreciation was a big mistake and now they need to create big tax incentives to re engineer before its to late.

Oh hang on that would create more TAX LOOP HOLES!

and get rid of tax reval's in P&L's

who was that accounting genius..

Our buildings are worth 200 Million more this year ... but they might fall down and kill everyone in them any time...

[LaserEyeKiwi]

RBNZ sees 3.9% in June 2023 as new peak for OCR, up from 3.5%.

Using the typical 150-200 basis point spread between OCR and typical 1-2 year mortgage rate from major banks, likely we will see 6.5-7% mortgage rates in 12 months time, as well as term deposit rates of 5%+

The other interesting news from today is it appears all the OCR raises will be front loaded, with 3.4% expected rate by December this year.

[LaserEyeKiwi]

Seems like one building a week becomes 'unsafe'.... wonder how many more

Worry is if the powers to be in other parts of the country start putting more effort into enforcing NBSs .... betcha many Auckland buildings are 'dodgy' under the new standards

Probably not a huge issue, as Auckland is in the “Low” risk seismic zone, so that greatly reduces design requirements when establishing a buildings EQ safety rating.

also the MBIE deadline for Auckland council to identify EQ prone buildings is 2032, and Auckland building owners will have 35 years to bring their buildings up to standard. So not until year 2067. (Hilarious I Know)

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[troyvdh]

How many property trusts are buying back there own shares.
I understand that pfi has returned 11 % compounding since inception.

[LaserEyeKiwi]

How many property trusts are buying back there own shares.

Should be a lot more if they truly feel they are undervalued.

[Waltzing]

"term deposit rates of 5%+"

perfect LEK ...

could be a bit of a smash up here in the next year or so but should recover in about Yn?

still PIE should get you a better return than 5 % TD

[LaserEyeKiwi]

Weekly Update:

More red. Stride & Kiwi reported, increasing NTAs (All have now reported, all recorded valuation uplifts). OCR (& peak expected OCR) lifted 0.5%.

property stocks outperformed the NZX by 0.5% this week.

I think still more pain ahead for the low yielding names with bank term deposits soaring well past their gross payout ratios.

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[LaserEyeKiwi]

From Interest:

But first, the consumer inflation measure the US Fed watches most closely, the PCE, dipped slightly in April, 'down' to 6.3% from March's +6.6%. Excluding food and fuel, it recorded its lowest level of the year, down to 4.9%. The same data showed that inflation-adjusted personal incomes were unchanged but consumption expenditures rose. That is the fourth straight rising month. The financial markets like that consumers are continuing their spending a good levels and Wall Street rose strongly to book a better-than-average weekly gain.

[Waltzing]

Looking for a 1.10 on ARG ..and should show some up side in about 3 to 5 years