ARG - Argosy Property.

[ronaldson]

The current discount is not unique to ARG, and is similar to other NZX listed property companies. Curious that no-one seems interested in a T/O offer or a merger. They all buy and sell individual properties from time to time, ostensibly to improve the quality of the portfolio/enhance supplementary development opportunities, so why not greater ambition?

One interesting fact is that capital gain to the share price over a very extended term ( ie more than a decade ) seems never to match the capital gain achieved by investors who simply buy and hold a single property over that duration. I understand the advantages of participating in a diversified portfolio, and the marketability of shares in a listed entity verses ownership or proportional ownership in a single building, but the long term outcome seems inevitably poorer. Are these companies overtrading, with all the attendant costs? After all, every property on-sold by these companies was once a property their Board considered needed to be acquired - so what happened? Does anyone ever adequately demonstrate if this activity is superior over time?

[ronaldson]

Another thought that I want to get " out there " but doesn't seem to have a convenient thread available, so I will use this one, relates to the updated individual parliamentarian's Register of Interests that the NZ Herald gave some publicity to recently.

What was absolutely striking was the paucity of elected members who held any ( yes, any ) NZX listed shares. Only about 3 of 120 did ( yes, I know, a Kiwisaver Account is now quite common and that usually signals an indirect investment in the market but most balances will not be very significant ) by contrast with those who held an interest in property, often multiple and often via Trusts, where only 3 of 120 didn't! The implied disconnect with business and the dominance of property in lieu is remarkable. This is widely known to be a NZ obsession, but when it is so evident in our elected representatives it is no wonder that there can be the perception of a lack of comprehension of how to achieve economic outcomes and efficiencies, and delivery of projects.

[Raven74]

Another thought that I want to get " out there " but doesn't seem to have a convenient thread available, so I will use this one, relates to the updated individual parliamentarian's Register of Interests that the NZ Herald gave some publicity to recently.

What was absolutely striking was the paucity of elected members who held any ( yes, any ) NZX listed shares. Only about 3 of 120 did ( yes, I know, a Kiwisaver Account is now quite common and that usually signals an indirect investment in the market but most balances will not be very significant ) by contrast with those who held an interest in property, often multiple and often via Trusts, where only 3 of 120 didn't! The implied disconnect with business and the dominance of property in lieu is remarkable. This is widely known to be a NZ obsession, but when it is so evident in our elected representatives it is no wonder that there can be the perception of a lack of comprehension of how to achieve economic outcomes and efficiencies, and delivery of projects.

That's a very interesting observation from the MP register.

[Waltzing]

", but when it is so evident in our elected representatives it is no wonder that there can be the perception of a lack of comprehension of how to achieve economic outcomes and efficiencies, and delivery of projects."

deeply disturbing !

Obviously Green and Labour MP's arnt allowed to own stocks and believe capital markets are EVIL places.

How a country expects to create wealth and infrastructure without a vibrant stock market shows how little chance the country has of achieving either.

An infrastructure bank would also solve many problems as long as it was careful on where it got its funds from.

[ronaldson]

ARG now well bid at $1.245 cum the quarterly dividend and the share price has reacted positively to the annual result just announced. I don't think this can dip under $1.20 going forward as some have speculated.

It is worth remembering that recent FY results have been adversely affected, initially by the earthquake remediation/loss of rents not being fully indemnified by insurance, and then the facade issue at 7 Waterloo Quadrant necessitating quite major maintenance expenditure, and covid related rental adjustments along with delays to project completion. Hopefully there is clearer air coming!

[LaserEyeKiwi]

ARG now well bid at $1.245 cum the quarterly dividend and the share price has reacted positively to the annual result just announced. I don't think this can dip under $1.20 going forward as some have speculated.

It is worth remembering that recent FY results have been adversely affected, initially by the earthquake remediation/loss of rents not being fully indemnified by insurance, and then the facade issue at 7 Waterloo Quadrant necessitating quite major maintenance expenditure, and covid related rental adjustments along with delays to project completion. Hopefully there is clearer air coming!

Their ever growing exposure to wellington office towers is not a good idea IMO. “Unexpected” seismic maintenance costs should actually be expected on a semi-regular basis going forward until they divest those.

[Beagle]

ARG now well bid at $1.245 cum the quarterly dividend and the share price has reacted positively to the annual result just announced. I don't think this can dip under $1.20 going forward as some have speculated.

It is worth remembering that recent FY results have been adversely affected, initially by the earthquake remediation/loss of rents not being fully indemnified by insurance, and then the facade issue at 7 Waterloo Quadrant necessitating quite major maintenance expenditure, and covid related rental adjustments along with delays to project completion. Hopefully there is clearer air coming!

I bought more on the open @ $1.245, (net of forthcoming dividend = ~ $1.23 = 8.07% gross effective forecast yield for 33% taxpayers in FY23). Those hoping for $1.00 - $1.10 are highly likely to be disappointed in my opinion. 50 cents per share discount to NTA at $1.24. I'm happy with that and happy to add more there. Sure there's a chance it might go a little under $1.20 in the future and I'm more than comfortable with that prospect as that would present another opportunity to add more on even more advantageous terms. Frankly I would relish that opportunity.
I note their target for the industrial property sector has moved up to 55-65% so that's where their build and acquisition focus is.

[Waltzing]

"I bought more on the open @ $1.245"

oh no no no no......

Driving up the price on panic FOMO...



What to DO... WHAT TO DO!!!

[Waltzing]

AGM at the sail boat club 21 JUNE.

Be very interest to hear what their future development plans are and where they are going to BUY and how they intend to fund it.

[Waltzing]

Soros predicting global depression; commercial property stocks may turn out to be a place to hide.