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15-05-2007, 02:54 PM
#121
Member
Macquarie Goodman Property Trust ("MGP" or "Trust") is pleased to announce a record financial result together with the commencement of a new office development in Greenlane.
The Trust recorded an after tax profit of $51.8 million for the year ended 31 March 2007. The result represents a 47.7% increase on the previous year's profit of $35.1 million and is before revaluations which added a further $65.9 million to the value of the portfolio, bringing total net profit after tax to $117.8 million.
Weighted earnings before tax, on a normalised basis, are 10.22 cents per unit, up from 9.93 cents per unit the previous year.
Other highlights include:
- Strategic property acquisitions of $190.0 million and disposals of $82.0 million
- Increased development capability with development land now 7.6% of total assets
- Increase in total assets from $927.4 million to $1.2 billion
- Increase in NTA from $1.13 to $1.26 cents per unit
- 34.5% increase in unit price, from $1.19 cents per unit to $1.60 cents per unit
- Increase in market capitalisation from $623.0 million to $1.0 billion
- Recognition as one of New Zealand's leading stocks with entry into the NZX15 Index
Jim McLay, Chairman of MGP's manager Macquarie Goodman (NZ) Limited ("MGNZ") said, "Under the management of MGNZ, the last 12 months has seen the Trust grow its business and deliver an impressive operating performance, consistent with expectations. With a total return of 40.9% the Trust has delivered an outstanding investment performance."
Unitholders will receive a fourth quarter distribution of 2.55 cents per unit, comprising 2.50 cents per unit in cash and 0.05 cents per unit in imputation credits. As a result of the transition into the PIE regime Unitholders will also receive a one off imputation credit of 0.70 cents per unit. This additional imputation credit increases the gross distribution for the quarter to 3.25 cents per unit and the annual gross distribution to 10.90 cents per unit.
On a normalised basis the annual gross distribution is 10.20 cents per unit.
The record date for the distribution is 1 June 2007 with payment to be made on 15 June 2007. The distribution reinvestment plan ("DRP") continues to operate with a 2% discount with election into, or withdrawal from, the plan required by 5:00pm on the record date.
Portfolio Overview
With 26 assets and over 768,100 sqm of net lettable area, MGP is the largest industrial and business space provider in New Zealand.
In the past financial year:
- over 125,600 sqm of rentable area with net rental income in excess of $16.5 million per annum was leased or renewed;
- 82.6% of space leased was secured by new customers, including Pernod Ricard New Zealand at 4 Viaduct Harbour Avenue, Restaurant Brands at Central Park Corporate Centre and Supercheap Auto at Westney Industry Park;
- 21,185 sqm of development pre-commitments were secured at Savill Link and Westney Industry Park;
- Development completions totaled 83,638 sqm in new purpose-built office and industrial facilities;
- 85% of customers whose leases were expiring renewed their leases, including Simpl, Fonterra and NZL Transport; and
- 39 rent reviews totaling $1.7 million, with a weighted average annual increase of 2.8%, were completed.
The portfolio now has 190 customers with a weighted average lease expiry of 5.7 years and an occupancy rate of 98%.
Subsequent leasing success at Millennium Centre Phase 2 has reduced the vacancy in this asset to minimal levels just 14 months after it was acquired on a partially leased basis with a two year vendor underwrite.
Acquisitions & Disposals
Strategic acquisitions totaling $190.0 million have enhanced the portfolio increasing the asset and geographic diversity, improving the weighted average lease expiry profile and also extending the Trust's development capability.
Notable acquisitions included:
- Investment properties - The APN News and Media facility in Auckland, Gateside Industry Park in Penrose, 120 Pavilion Drive in Airport Oaks and
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15-05-2007, 07:02 PM
#122
Member
I have put the share, recent price, and latest NTA
MGP $1.60 $1.13 to $1.26 5/07
ING $1.20 $1.15 to $1.30 4/07
CHP $1.40 $1.30 to $1.28 (due to exchange rate)2/07
PFI $1.50 $1.20 to $1.32 3/07
KIP $1.65 $1.43 to $1.73 3/07
APT $1.30 $1.18 to $1.48 4/07 Diluted since
NAP $.80 $1.13 last year
SLPF $1.14 $1.39 9.06
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15-05-2007, 09:09 PM
#123
Lakeside, don't overlook the dilutionary effect of the convertibles in the case of NAPGA as well as APTGB.
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16-05-2007, 07:00 AM
#124
Member
Yes there will be plenty of reasons for variation, hopefully generate discussion. Even Americas cup will have an effect but probably commodity prices and fund investment more so. Commercial property is a great investment but not really one for the traders - more for the patient.
I can't see why MGP is so strongly supported. Might be institutional support, perhaps because so much industrial parks and bare land is good for growth or down turn resistant.
I wonder if any are holding back valuations till October when the gains are not taxable? CHP have reported no capital gains so looking good for future moves as well as exchange rate benefits.
Office valuations have really shot up but could they shoot down / freeze in a high interest recession environment.
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17-05-2007, 08:33 AM
#125
Member
Good result for KIP.
Looks like no tax on dividend is the result of PIE. Will the budget have an effect/ change anything.
Will all the trusts benefit - I didn't see mention in the MGP result on PIE. CHP might not benefit because of Aussie assets?
Bit at the end says :
Portfolio Investment Entity Regime & Dividend Projection
As previously advised, the Government has introduced a new tax regime for
Portfolio Investment Entities (PIE), such as the Trust. The new PIE regime
dramatically alters the way in which the Trust's dividends will be taxed.
For New Zealand resident investors, no further tax will be payable on the
cash dividend paid. For off-shore investors, the amount of tax paid in New
Zealand will decrease, but depending on personal tax circumstances, further
tax will generally be payable in the country of residence. The new regime
takes effect from 1 October 2007 and applies to dividends paid after that
date. As the Trust's first dividend for the year ending 31 March 2008 is
paid after 1 October 2007, the new regime will effectively apply for the full
year.
Based on the outlook for the Trust, and as a consequence of the new PIE
regime, the Trust is projecting a cash dividend for the year ending 31 March
2008 of approximately 8.8 cents per unit. This projection is based on
current tax legislation and a continuation of reasonable economic conditions.
Unlike previous dividends, no further withholding taxes will be deducted
from this amount. The result is a significant uplift to the after tax
dividends received by most New Zealand resident investors. For example, in
the case of a tax-payer on a 33% marginal tax rate, the increase is
approximately 37% greater than last years' cash dividend.
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19-05-2007, 03:04 PM
#126
I have a reasonable holding in KIP, and looked through the presentation on their website, what concerned me was looking at the effective capitalisation rate on their properties, at approx 6% this seemed low by historical standards, and I'm wondering if we are approaching the top of the cycle for commercial property ?
I don't want to knock KIP in particular, as I simply don't know figures for other property companies
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19-05-2007, 10:11 PM
#127
Member
I'm not sure, but PFI certainly make a big thing of the capital return they get being ahead of anyone else. Esp in their 2005 annual report but a bit in the 2006.
http://unlisted.smallcaps.co.nz/SLPFv1.htm
Has these figures for SLPF but I don't know how the 2006 could be there as its not out. I'll paste them. Remarkable that they are now selling for 2006 prices with another 20-30% gain about to be announced I reckon, maybe news of next years share float. Turn over is only 10's of thousands not millions unlike some of the other property listeds.
Financials
Year 2002 2003 2004 2005 2006 Average GR Compounding GR
Gross growth rates
Revenue 41% 114% 130% 36% 80% 75%
NPAT -21% 292% 373% 72% 179% 124%
Total Assets 97% 298% 18% 38% 113% 89%
Net Assets 28% 1167% 32% 42% 317% 134%
Per Share figures and growth
Earnings
Net Assets
Dividends
Profitability
Return on Assets 4.17% 1.67% 1.64% 6.55% 8.16%
Equity Multiplier 8.50 13.10 4.12 3.70 3.61
Return on Equity (ROE) 35% 22% 7% 24% 29%
ROE (avg E) 24% 13% 28% 35%
Net Profit Margin 24% 13% 25% 51% 64%
Liquidity
Net working capital $(11,691,000) $20,700,000
Current ratio 0.87 1.28
Acid test ratio 0.87 1.28
Other
Times interest earned 1.25 1.24
Operating exp/income 77% 84% 76% 42% 45%
Summary Financials
Income 5320000 7568000 15667000 49275000 74114000
Expenses 3948000 6108000 11713000 31524000 43270000
Tax 133000 485000 135000 -311000 -242000
NPAT 1239000 975000 3819000 18062000 31086000
Assets 29690000 58540000 233136000 275654000 381004000
Liabilities 26196000 54071000 176534000 201138000 275469000
Net Assets 3494000 4469000 56602000 74516000 105535000
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23-05-2007, 10:45 AM
#128
Member
I think Napier is a good place to invest with demographics of aging babyboomers looking for the lifestyle.
NAP
23/05/2007
GENERAL
REL: 1046 HRS The National Property Trust
GENERAL: NAP: NPT upgrades Ocean Boulevard and secures Living & Giving
National retail brand Living & Giving has selected Napier and a site in the
upgraded Ocean Boulevard, for its latest store location and cited the city's
strength as a "retail hot spot" as the key reason.
Living & Giving, which is due to open on 25 June, is the first national large
format retail brand to take advantage of the current refurbishment being
undertaken by the mall's new owners, The National Property Trust (NPT). The
mall is currently being refurbished under the directorship of the Trust's
managers owned by St Laurence Limited, a property-based funds management and
finance group.
NPT expects to spend more than $400,000 on interior construction work to
convert the former small retail spaces into larger stores with a major new
fishtail entrance off Dickens Street. A substantial upgrade of the exterior
and signage will soon be underway.
NPT Leasing Manager John Kitto says there was a shortage of large format
retail space in Napier's central business district and the refurbishment has
helped meet the need for 200 to 500 square metre stores. "We know that
Napier is a highly desirable retail opportunity and that the Hawke's Bay
community in general is receptive to high quality retailers such as Living &
Giving."
There are a limited number of stores remaining for lease and Mr Kitto
believes local and national retailers keen to improve their positions within
this high-foot traffic area of the CBD will quickly snap these up. The fact
that Briscoe Group, who owns the Living & Giving brand, had just recently
made a significant investment in its new
Napier store was evidence of the confidence national businesses have in the
Napier and Hawke's Bay economies, Mr Kitto says.
"We are committed to further improving what we see as a key retail asset in
Napier," Mr Kitto says.
Living & Giving Chief Operating Officer Pete Burilin says the move into
Napier was particularly exciting, as this store, the 10th in New Zealand,
would feature a new store layout and design look.
"As a national brand always looking for expansion options, this site provides
us with an excellent opportunity to launch a new look to better reflect the
Living & Giving values."
The store will stock a comprehensive range of quality stylish home and
lifestyle products sourced from around the world.
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23-05-2007, 07:48 PM
#129
Member
NTA $1.47 and you can buy them tommorrow for $1.15 and get 2% interest at the end of May.
Good result as no sale of Elrond in there but not much indication of where to with Dorchester holding 25%
Lead Story - St Laurence Property & Finance Announces $32.9M Net Surplus after Tax
Active property investor St Laurence Property & Finance (SLPF) today announced a net surplus after tax of $32.9 million for the year to 31 March 2007.
The result includes unrealised revaluation gains of $26.7 million, which is an average of 9.5% across the investment property portfolio. Over the year, SLPF’s investment property portfolio increased from $244.5 million to $306.0 million through a combination of acquisition and valuation growth.
Total assets increased from $381.0 million to $432.8 million in the 2007 financial year. Approximately $47.9 million of that increase was derived from SLPF’s recent successful takeover offer for parcels in the St John Balanced Property Fund, of which SLPF now holds a 58.6% stake.
SLPF’s net surplus after tax of $32.9 million compares to the $31.1 million net surplus after tax recorded for the year ended 31 March 2006. SLPF chairman Kevin Podmore says last year’s result included several one-off items which boosted revenue and profit. “St Laurence Property & Finance has performed exceptionally well with 2007 earnings more evenly spread across its property investment, property development and other investment activities.”
In addition to the gains on the company’s investment property portfolio, SLPF enjoyed a $7.4 million uplift in the value of its property development joint ventures. It also sold a number of investment properties throughout the year for a total consideration of $32.5 million.
The commercial property sector is very healthy and there is strong investment demand, both locally and internationally. Increased valuations have allowed SLPF to book significant unrealised gains on its investment properties as well as realise some gains through property sales, Mr. Podmore says.
Our core focus for the year ahead is to continue to develop and add value to our existing inventory of properties. We have several development projects underway in Auckland including a significant joint venture development adjacent to the former quarry in Mt Wellington. In Wellington we continue to progress projects such as the development of the Central Park site in Porirua and the redevelopment of the former Deloitte House in Thorndon, Wellington.
Holding a strong mix of office, industrial and other commercial property, SLPF’s investment property portfolio’s weighted average lease term increased from 3.47 years to 3.58 years at 31 March 2007. Tenancy demand for quality commercial and industrial property space continues to increase, Mr. Podmore says; We expect this to continue into 2008.
In April 2007, SLPF also successfully raised $21.9 million (net of issue costs) via a 1 for 5 rights issue, with 89% or 19.3 million of the 21.7 million new Mandatory Convertible Property Notes (MCNs) taken up by the existing shareholder and note holders. This is a positive result and further consolidates our view that our investors are confident in our strategy and direction, Mr. Podmore says.
Post rights issue, SLPF’s Net Tangible Asset backing for its MCNs sits at $1.47. We are pleased with the new underlying NTA backing and anticipate that the underlying discount to current market price will decrease as the date approaches when the MCNs convert to ordinary shares on a 1 for 1 basis in December 2008.
Mr. Podmore adds, The 2008 period is expected to be year of further value growth for SLPF, as we continue to develop and add value to our existing property investments. We look forward to keeping our shareholders updated as we continue to build a solid platform for future growth.
St Laurence Property & Finance Limited - Financial Highlights
2007 Consolidated 2006 Consolidated
$'000s $'000s
Operating Revenue 48,383 48,397
Operating surplus after tax 6,215 5,369
Unrealised change in value of investm
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23-05-2007, 09:29 PM
#130
Noted, Lakeside, and I can't understand why there isn't more buying interest in SLPF, at such a significant discount to NTA compared with other LPC's. I'm sure the price would improve if they were on NZX rather than Unlisted.
DISC: Hold SLPF MCN's.
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