Listed Property Trusts

[LaserEyeKiwi]

Weekly Update:
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[Waltzing]

ARG up on week where Cramer is just whistling Dixie on a 100 BP rate hike; is this the bottom?

A range of 115 to 125

[Rawz]

KPG with its high dividend yield and huge pipeline has to be the best bet?

[LaserEyeKiwi]

KPG with its high dividend yield and huge pipeline has to be the best bet?

Will be a bit clearer after they report Monday morning.

[Beagle]

ARG up on week where Cramer is just whistling Dixie on a 100 BP rate hike; is this the bottom?

A range of 115 to 125

If its not, we're close. 8% gross yield and ~ 30% discount to NTA are serious numbers.
I have more work to do on OCA.

[Waltzing]

And GMT has more in the pipeline according to their FULLYR 2022

A company that has more NTA potential. Not a Yield but a Growth stock?

PLUS

FY23 guidance+ GMT’s capital position remains sound and is forecast to produce strong underlying growth in cashflows− FY23 cash earnings expected to be around 6.9 cpu, up 4% on FY22− Distributions of 5.9 cpu, a 7% increase on FY22, providing for a payout ratio of 85 %

[LaserEyeKiwi]

And GMT has more in the pipeline according to their FULLYR 2022

A company that has more NTA potential. Not a Yield but a Growth stock?

PLUS

FY23 guidance+ GMT’s capital position remains sound and is forecast to produce strong underlying growth in cashflows− FY23 cash earnings expected to be around 6.9 cpu, up 4% on FY22− Distributions of 5.9 cpu, a 7% increase on FY22, providing for a payout ratio of 85 %

I applaud the growth - but its such a pitiful yield - it would take the better part of this decade of similar growth for GMT yield to catch up with a current 5 year term deposit rate (now 4%). GMT has HALF the yield of the best yielding listed property names in NZ, yet it is also trading below its NTA. Why is GMTs return on assets so small??

[Waltzing]

"Why is GMTs return on assets so small?"

Good questions..

Are you referring LEK to low yield?

The market seems to be pricing this stock at a higher P/E because of what ARG is also starting to call land use congestion.

The market seems to have priced its rise from the Low 1's to the Mid 2's on that very basis.

Maybe the market knew years ago that logistics was the back bone of an economy.

You need a banking system but you need that logistic warehouse space built to do the heavy lifting.

[LaserEyeKiwi]

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) .

[Waltzing]

Agreed LEK... unless they do a Tokyo and put them all on big Rollers and springs...