STR - Stride Property [ex DNZ Property]

[Snapper]

Same here. DNZ haven't even had the decency to send any guff or to Sth Island investors yet. Nothing. We have had to rely on the odd announcement in the Herald and what I have read here, althought today I did receive advice that my 312,000 are now 124000 shares. As far as I can work out NTA backing and distributions have been diluted by more than 40%. There are no shares allocated for existing investors. They are first come - first served. That's the bad news. The good news is there is a distinct possibility of a court injunction being saught to block this issue of new shares at the discounted price, on the basis that it is against the investors' interests. Moves are underfoot and I've got my fingers crossed. Never have I encountered such appalling behaviour in financial affairs as these gangsters have thrown at us. I have emailed Paul Duffy to express my thoughts, and certainly hope others do the same.

Haven't received my pack yet either. We only have till next Friday to get our application forms which indicates to me that they aren't too bothered if existing shareholders participate or not. At this stage it doesn't appear that there will be any available in the public pool unless the priority offer is undersubscribed.

[Invercoll]

Received my DNZ pack and definitely won't be taking up this offer.

Suspicious of any thing where you can only get out at a loss. Seems to be a real hangover from MM.

Generous offer of DNZ of 82c for existing shareholders to sell their shares now, after consolidation of 2 for 5 blows me away.

Before consolidation each share was 84c and now they are worth $2.1077.
Why would anyone want to sell out at 82c. Sheer theft as far as l can see.

Invercoll

[fungus pudding]

Received my DNZ pack and definitely won't be taking up this offer.

Suspicious of any thing where you can only get out at a loss. Seems to be a real hangover from MM.

Generous offer of DNZ of 82c for existing shareholders to sell their shares now, after consolidation of 2 for 5 blows me away.

Before consolidation each share was 84c and now they are worth $2.1077.
Why would anyone want to sell out at 82c. Sheer theft as far as l can see.

Invercoll

No. They would be $2.10 but for the issue of 158,000,000 new shares which reduces the NTA to $1.28; but the market will slaughter that price. The dividend of 6.8% is ridiculously low compared to GMT, KIP, ING and NAP which means the 'new' shares should hit the market at about 75 - 78 cents. There's certainly better buying than these things at 82 cents. For all that I wouldn't sell at 82 cents - but sure as hell wouldn't buy more. At a rough calculation I would have to invest another $85,000 to maintain the dividend I was getting. No thanks! This mob are bandits and I certainly don't want to increase my exposure to them.

[fungus pudding]

No. They would be $2.10 but for the issue of 158,000,000 new shares which reduces the NTA to $1.28; but the market will slaughter that price. The dividend of 6.8% is ridiculously low compared to GMT, KIP, ING and NAP which means the 'new' shares should hit the market at about 75 - 78 cents. There's certainly better buying than these things at 82 cents. For all that I wouldn't sell at 82 cents - but sure as hell wouldn't buy more. At a rough calculation I would have to invest another $85,000 to maintain the dividend I was getting. No thanks! This mob are bandits and I certainly don't want to increase my exposure to them.

Oops! Sorry - dividend is 6.8 cents - not 6.8%, (that's 8.3%.) Too low compared to other LPTs.

[Snapper]

Don't be too quick to reject taking up the offer just because you're pi$$ed off with what's happening now. Once listed, DNZ will have a reasonable debt level, internal management and a good yield (@ 82c). The average discount for the listed property market is around 15% so if they end up at the same discount that implies a share price of 1.09 or a 33% increase from 82 cents.

If you really think the price will drop then wouldn't you be better off selling into the buyback offer. Not being a smartass but I know how hard it is to divorce the anger you feel at being screwed over and focus on what is the right thing to do.

[fungus pudding]

Don't be too quick to reject taking up the offer just because you're pi$$ed off with what's happening now. Once listed, DNZ will have a reasonable debt level, internal management and a good yield (@ 82c). The average discount for the listed property market is around 15% so if they end up at the same discount that implies a share price of 1.09 or a 33% increase from 82 cents.

If you really think the price will drop then wouldn't you be better off selling into the buyback offer. Not being a smartass but I know how hard it is to divorce the anger you feel at being screwed over and focus on what is the right thing to do.

Not angry, but disgusted. Yes I probably should sell, but I have an aversion to selling any investments. I'm not a trader and just accumulate things. You are right that the discount to the claimed NTA is high, but the dividend is ridiculously low. It's hard to see why anyone would pay 1.09 for a return of approx 6% when at least double that is available rfom other prop. companies.

[macduffy]

Anyone with an interest here should have a good read of Brian Gaynor's article.

http://www.nzherald.co.nz/best-of-bu...0612081&pnum=0

[Snapper]

Yeah good article but I think that he should have got stuck into Simon Botherway and Tim Storey a bit more as they are relatively high profile and seem to be defending all these transactions.

Re the yield - according to the PWC report in the offer document only ING Properties and Kermadec have a higher forecast FY11 yield. All other things being equal DNZ's distributable profit should increase partly due to lower management costs and ratchet clauses in their leases.

[Dr_Who]

OINK OINK!

Disgraceful.

[fungus pudding]

Yeah good article but I think that he should have got stuck into Simon Botherway and Tim Storey a bit more as they are relatively high profile and seem to be defending all these transactions.

Re the yield - according to the PWC report in the offer document only ING Properties and Kermadec have a higher forecast FY11 yield. All other things being equal DNZ's distributable profit should increase partly due to lower management costs and ratchet clauses in their leases.

Yields on yesterday's prices
GMT = 11.75%
KIP = 7.84%
ING = 13.07%
APT = 10.64%
KPF 10%
NAP = 10.64%

DNZ @ 8.3 doesn't tempt me. Nearly all commercial leases have ratchet clauses, so it's hard to know why DNZ would increase at a higher rate than others.