HLG - Hallenstein Glasson

[Beagle]

When Jacinda raises the alert level and they have to close all their stores for the coming winter, the current share price will seem rather expensive. It's not a matter of if but when. We will not escape a complete shutdown. Painful months ahead I'm sorry to say.

WE are no different from UK, Australia and the US. We will be in lock down very soon. This is different from SARS, because COVID 19 has the potential to overwhelm healthcare resources, stay at home wash your hands and maybe we can keep the infection rate low enough so the health system can look after us all.

I agree 100%.

[bull....]

As a shareholder I hope they do not declare a dividend. Anyone have any comment regarding landlords coming to the party regarding rent? I assume if they close the malls HLG would not have to pay rent.

I would be very surprised if they went ahead with the dividend. would border on recklessness. as far as rents or lease obligations they are entirely at the mercy of the landlords. they do not have to give rent relieve. I think hlg have 90 odd million in lease payments they are obligated to pay in total.

[bull....]

far fetched people might think lockdown

https://www.abc.net.au/news/2020-03-...virus/12079124

New South Wales moves to comprehensive shutdown of non-essential services amid coronavirus pandemic

[kiora]

I would be very surprised if they went ahead with the dividend. would border on recklessness. as far as rents or lease obligations they are entirely at the mercy of the landlords. they do not have to give rent relieve. I think hlg have 90 odd million in lease payments they are obligated to pay in total.

Who owns the properties? Some they own & some they lease from majority shareholders I thought?
https://app.companiesoffice.govt.nz/...qaEZd48AAAA%3D

[bull....]

Who owns the properties? Some they own & some they lease from majority shareholders I thought?
https://app.companiesoffice.govt.nz/...qaEZd48AAAA%3D

they own some property , but they rent a lot too. lease obligations total 90 odd million off the top head , exact $ number is in there annual report. I doubt they own any of there mall shops. kmd and all retailers in same boat.

[couta1]

I have decided this will be my last post on this thread for some time, I'm going to leave it to the Trolls/Downrampers/Mischief makers and the Smug, excluding the odd few posts from holders and genuine people with an ounce of compassion it's simply a waste of time as far as I'm concerned as no matter what the report says I will continue to hold, so enjoy your feeding frenzy.

[Beagle]

Occupancy costs are $29.8m as per note 2 to the 2019 financial statements, see page 32 http://nzx-prod-s7fsd7f98s.s3-websit...341/310636.pdf

No question a full lock down on both sides of the Tasman will put HLG under real pressure. They will need to right size their staff and admin costs very quickly and I would expect they will be seeking rent relief / deferrals from landlords. Malls will not attract people back when this is over if they're half empty so they have a vested interest to work with well respected companies like HLG who drive a lot of foot traffic to their mall. I am pretty sure, (not certain), they will get through this but it is highly likely there will be some serious financial pain involved.

For the record I am not smug. I was clearly signalling real caution was required a month ago when the share price was in the low to mid $5 range. Good luck to holders. Sadly I think this is going to get significantly worse before it gets better for both the company and its share price.

[bull....]

Occupancy costs are $29.8m as per note 2 to the 2019 financial statements, see page 32 http://nzx-prod-s7fsd7f98s.s3-websit...341/310636.pdf

No question a full lock down on both sides of the Tasman will put HLG under real pressure. They will need to right size their staff and admin costs very quickly and I would expect they will be seeking rent relief / deferral from landlords. Malls will not attract people back when this is over if they're half empty so they have a vested interest to work with well respected companies like HLG who drive a lot of foot traffic to their mall. I am pretty sure, (not certain), they will get through this but its going to seriously hurt them, there's no question about that.

29 million is this years cost , 90 million odd is there total they owe and your right how they going to pay if there stores closed down? or malls thats why reatiler stocks in AUS have been slaughtered some by 60 + %

[Beagle]

29 million is this years cost , 90 million odd is there total they owe and your right how they going to pay if there stores closed down? or malls thats why reatiler stocks in AUS have been slaughtered some by 60 + %

Most mall rents have 3 components. 1. A fixed monthly lease. 2. A percentage of gross sales. 3. A smaller percentage of gross sales that goes towards a marketing fund for the mall to promote itself in the media. In a shutdown situation neither 2 or 3 are payable and HLG will be working with Mall owners for rent relief / deferral for the fixed monthly lease. I am sure the Mall owners will have to take a pragmatic "we're all in this together approach" There is no point bankrupting almost everyone as they will end up with a ghost mall nobody wants to come back too. I don't think its as dire as you are suggesting but it certainly is a very serious situation which calls for a pragmatic approach by all stakeholders and some fast action on cost cutting.

[Pipi]

I have decided this will be my last post on this thread for some time, I'm going to leave it to the Trolls/Downrampers/Mischief makers and the Smug, excluding the odd few posts from holders and genuine people with an ounce of compassion it's simply a waste of time as far as I'm concerned as no matter what the report says I will continue to hold, so enjoy your feeding frenzy.

See you back here when its all over. Stay safe.