Listed Property Trusts

[Billy Boy]

DNZ Doing the presentation rounds.
Could be interesting. Investors & potential investors invited.
BB

[fungus pudding]

DNZ Doing the presentation rounds.
Could be interesting. Investors & potential investors invited.
BB

They're highly geared compared to listed trusts. Do have some good properties.

[underground]

unusually high turnover for ING today? at those levels would be expecting a substantial security holder disclosure of some sorts?

[Billy Boy]

Whilst venturing into The Great White South and talking to the "Fathers"
I took the time to go too the DNZ presentation.
A very good presentation all round. Both Speakers spoke very well.
But..... !!! ???
Leveraged at 47% Not a worry says CEO Paul Durry.
Was standing by when a guy said "what about land tax should it happen"
"Won't happen said the CEO" loudly. It bloody might thinks me.
No reasons as too why it wont happen from the CEO. Hmmmm
Was told latter the Pat thingy (the other guy) when asked the same
question, did the big side step.
F/pud, GGG. I hope you can go, in your area, and give us/me your thoughts.
cheers to all
BB

[Snapper]

Whilst venturing into The Great White South and talking to the "Fathers"
I took the time to go too the DNZ presentation.
A very good presentation all round. Both Speakers spoke very well.
But..... !!! ???
Leveraged at 47% Not a worry says CEO Paul Durry.
Was standing by when a guy said "what about land tax should it happen"
"Won't happen said the CEO" loudly. It bloody might thinks me.
No reasons as too why it wont happen from the CEO. Hmmmm
Was told latter the Pat thingy (the other guy) when asked the same
question, did the big side step.
F/pud, GGG. I hope you can go, in your area, and give us/me your thoughts.
cheers to all
BB

I bought some at 40c the other day

As you said, they're highly leveraged which is a bit of a worry but at the moment with interest rates so low its creating positive cashflow for them.

To improve their debt ratio they probably need to do a rights issue; they've just started a reinvestment plan as well.

They seem to be a well-managed company with a good property portfolio. On the negative side liquidity is rubbish but I expect to see a main board listing in the next couple of years which should improve things. It would be no surprise too to see their NTA take another hit at some stage.

They've also reduced their management fees to bring them in line with other listed property, expected saving around $400,000 pa.

Time will tell on this one but if someone offered you a $225,000 property for $100,000 it would be hard to say no, wouldn't it?


To improve their debt situation

[fungus pudding]

Whilst venturing into The Great White South and talking to the "Fathers"
I took the time to go too the DNZ presentation.
A very good presentation all round. Both Speakers spoke very well.
But..... !!! ???
Leveraged at 47% Not a worry says CEO Paul Durry.
Was standing by when a guy said "what about land tax should it happen"
"Won't happen said the CEO" loudly. It bloody might thinks me.
No reasons as too why it wont happen from the CEO. Hmmmm
Was told latter the Pat thingy (the other guy) when asked the same
question, did the big side step.
F/pud, GGG. I hope you can go, in your area, and give us/me your thoughts.
cheers to all
BB

I went today to Dunedin presentation. Like you I have concerns about debt. Obviously they will want to list one day, and there's no show with such high debt. Paul Duffy is certainly a good presenter, but I have reservations. One of their assetts is a loan to a developer (who happens to be Paul Duffy) which is outlined in their report prior to amalgamating the syndicates into the current company. One of their leases a few years back was described as a nine year lease, but had a clause saying the tenants could opt out after a certain time. (5 years IIRC) and I had a hell of a job getting Paul Duffy to admit it was a 5yr lease with an R.O.R, which it was - in disguise. Overall I think they're a promising outfit but have been a little more economical with the truth than the listed trusts would get away with. They came from rough beginnings, and seem to be shaking off their demons. I wouldn't lose sleep over land tax, which is not to say it won't be imposed, but unlikely. So who knows? They seem confident that the divvy can be maintained, but if they had to reduce debt - that aint gonna work! Duffy mumbled something about a capital raising issue and acknowelged it would dilute the NTA. But if they're cheap enough I'd buy more. I hold 300,000 at present. I did suggest they should list transactions more frequently than once a week - seems like they might go for twice a week. So in short - if you invest for income I'd buy at around current price. Returning equivalent of 20% before tax to a 39% tax payer aint all bad!

[Snapper]

I also queried Paul Duffy re the loan - I take it you're referring to the McKinney loan? He told me that McKinney is a related company used for tax purposes when DNZ has done development projects such as the Meridian design and build down in Wellington and the Tauriko development in Tauranga.

Fair question, though.

[fungus pudding]

I also queried Paul Duffy re the loan - I take it you're referring to the McKinney loan? He told me that McKinney is a related company used for tax purposes when DNZ has done development projects such as the Meridian design and build down in Wellington and the Tauriko development in Tauranga.

Fair question, though.

I'd have to dig out the old book of words - but from memory McKinney sounds right - I questioned one of the henchmen at the time this loan first surfaced in the amalgamation book, and I commented that if they ever wanted to list - this would be a no-no. His reply was - yes, there's a couple of things that would need to be tidied up, or words to that effect. I don't think it's a big deal.

[The Great Gold Guru]

Hi all,

I don't hold any units in DNZ ... looked at the Tauranga Retail offering when it was all separate but the management fees put me off. What is the occupancy ratio of the portfolio. I notice a couple of "For Lease" signs around with big DNZ logo's all over them here in Auckland. One on the Upper Harbour Highway and one in the Airport Oaks development on the way to AIA.

They own the flash new 5 star Meridian Energy building on the Wellington waterfront dont they ?

Regards.

AMP Office will be worth buying at some point soon ... 66-67c could be a possibility. Mgmt have stuffed up a bit recently but you gotta think with the quality of the portfolio it is worth a long term play. At 66c the cash yield is almost 10%

[fungus pudding]

Hi all,

I don't hold any units in DNZ ... looked at the Tauranga Retail offering when it was all separate but the management fees put me off. What is the occupancy ratio of the portfolio. I notice a couple of "For Lease" signs around with big DNZ logo's all over them here in Auckland. One on the Upper Harbour Highway and one in the Airport Oaks development on the way to AIA.

They own the flash new 5 star Meridian Energy building on the Wellington waterfront dont they ?

Regards.

AMP Office will be worth buying at some point soon ... 66-67c could be a possibility. Mgmt have stuffed up a bit recently but you gotta think with the quality of the portfolio it is worth a long term play. At 66c the cash yield is almost 10%

Yes they own the Meridian bldg. WALT is 4.85 years. Occupancy is 98.14%