Listed Property Trusts

[Rawz]

I sense a bet coming on. Name your terms.

He said dividends are less than net rental income. $200k bet is your standard?

I’m just the witness lol

[winner69]

He said dividends are less than net rental income. $200k bet is your standard?

I’m just the witness lol

Hey rawz, what happens if both Rob and lek are correct?

[Rawz]

Hey rawz, what happens if both Rob and lek are correct?

It then moves to tie breaker REIT trivia questions

[SailorRob]

That’s just nonsense - KPG pays 9%, which is actually less than 100% of their net rental income.

Perhaps junior, you should stop making incorrect statements like they are facts and people might stop criticizing your posts.

So from their own annual report...

Total net profit GAAP over the last 5 years is 144.3 million

Total dividends paid out 413 million.

Laser eyes eh...

Net rental income means NET. After ALL expenses.

[SailorRob]

In 2023 they brought in 113 million in cash.

Then spent 162 million on maintaining and improving the dogs

And paid out 112 in dividends.

Whatever you are smoking, I'll have some mate.

[SailorRob]

Looks like the ultimate irony here in that 'Laser eyes' is taking their 'net rental income' as plastered over their annual report in amongst the glossy pictures as gospel without actually thinking it through.

So glad to have such people in the market alongside us.

May as well say that dividends are paid out of revenue!

I guess Laser bought Wework due to its amazing 'community adjusted EBITDA'?

[Neophyte]

In 2023 they brought in 113 million in cash.

Then spent 162 million on maintaining and improving the dogs

And paid out 112 in dividends.

Whatever you are smoking, I'll have some mate.

"Improving" would be classified as CapEx and be excluded from your 'net' would it not? Accountants seem to have rules for all sorts

[Snoopy]

So from their own annual report...

Total net profit GAAP over the last 5 years is 144.3 million

Total dividends paid out 413 million.

Laser eyes eh...

Net rental income means NET. After ALL expenses.

SailorRob, That sum of the last five years of GAAP after tax profits (KPG AR2023 p41):
($227.7m)+$224.3m+$196.5m+($186.7m)+$138.1m= $144.5m are not CASH profits, because they include property revaluations (and very importantly devaluations).

If you look on KPG AR2023 p40, there is an explanation of how 'profit before income tax' morphs to 'operating profit before tax'. Using that 'five year information', I have compiled the following table:

Kiwi Property Group	FY2023	FY2022	FY2021	FY2020	FY2019	Total
Operating Profit Before Tax	$129.6m	$116.5m	$107.1m	$129.7m	$124.5m	$607.4m
less Tax Paid	$(12.9m)	$(36.4m)	$(25.9m)	$(16.6m)	$(24.0m)	$115.8m
Operating Profit After Tax	$116.7m	$80.1m	$81.2m	$113.1m	$100.5m	$491.6m
Dividend	$89.5m	$87.9m	$80.8m	$55.3m	$99.5m	$413.0m

Plenty of CASH generated over the five years, more than enough to cover all of the dividends declared.

Now where was that $200,000 donation of yours going to again?

SNOOPY

[SailorRob]

"Improving" would be classified as CapEx and be excluded from your 'net' would it not? Accountants seem to have rules for all sorts

Good point, maintaining and improving are all part of it, they certainly do have a lot of rules and the important thing is to think independently of the rules - as if you owned the entire business yourself. The 'improving' is all part of the equation but more nuanced, ultimately you need cash returns on every cent of improvement spending and large cash returns too. So without the improving, how would rental income be affected over time vs competitors etc...

I've seen the Refinery blow hundreds of millions in 'Improving' capex that never was going to make a return.

If you look at the revenue over the years - all the hundreds of millions of 'improving' is actually doing nothing, so we have to factor in that it's in fact just part of maintenance capital really.

I'm not familiar enough with this business to say much more but my basic understanding will allow me to make a bet up to $500,000 NZD that this business cannot dish out a 9% dividend fully covered out of cash earnings after ALL expenses that are required to sustainably generate that cash are taken into consideration.

[Rawz]

So Rob owes LEK $200k then?