ARG - Argosy Property.

[Cyclical]

I guess the market found it a little too boring, pulling back most of yesterday's gains.

[winner69]

You must be psychic mate. How on earth did you know I've been trying out Hansells Laksa soup with tofu in it https://foodwatch.com.au/reviews/ite...r%20and%20stir.
Its actually very good and tasty on a cold autumn day and definitly not boring
As you quite rightly suggest, boring stocks can be a very good thing, certainly better to hold that the exciting ones that are a drama a minute like ATM

Add cooked chicken and udon noodles and you have a complete yummy meal ....better than MFB stuff too.

Had to add the meat

[winner69]

Very solid result and nice dividend lift for FY22. NTA up very strongly. Net distributable income up 13% WOW !! (although was assisted with one-off gain on Albany of $4.5m but nonetheless a very strong gain). Net distributable income per share up 13.1%; WOW.
Most of all, we remain focused on growing sustainable distributions to shareholders in line with our company purpose."
Note to other CEO's...this is what shareholders really want to read and is a very refreshing change from the almost endless rantings of some other companies about diversity and inclusion, cultural sensitivity and all sorts of other politically correct nonsense.

Lot to like...I will look for opportunities to buy significantly more at or slightly below NTA which is now $1.53. I will strongly back companies that haven't forgotten their primary purpose for existence, that are managed very well and are on compelling metrics.
http://nzx-prod-s7fsd7f98s.s3-websit...406/346272.pdf

Jenny Ruth in her piece at Businessdesk with headline Argosy goes for growth, but what about earnings? doesn’t seem on same page as you


Last bit -

All of this is cold comfort to investors wondering how Argosy is going to perform over the next 10 years and whether chasing portfolio size is an appropriate goal to set.

[Beagle]

I'm comfortable with their management, governance and future strategy. You know me and my emphasis on track record and the five year summary of a company is one of my most favored parts of the annual report of any company as it gives such a useful snapshot of their track record. http://nzx-prod-s7fsd7f98s.s3-websit...406/346284.pdf
In my opinion page 8 speaks for itself with distributable income steadily rising from 6.55 cps in 2017 to 8.14 cps in 2021, albeit the latter figure augmented by the $4.5m Albany settlement but nevertheless a nice solid average annual increase of about 4% per annum.
NTA has steadily increased from $1.06 in 2017 to $1.53 in 2021. Good solid, dependable, albeit a bit boring, stuff and all the way along the journey decent quarterly tax paid PIE dividends.
I feel quite content with a decent chunk of these in my portfolio.

Risks are the rising 10 year Govt stock rate and the work from home trend, (although I can't help wondering how long employers are going to trust the employees will be just as productive working from home as whilst there is some initial novelty to this its very easy to let work efforts slip when working from home).

Forecast dividend is 6.55 cps per annum so on a $1.50 share price that's 4.37% net yield which for many investors on a 33% tax rate = 6.52% gross.
Its up to people to decide for themselves if the Argosy team can continue to perform well going forward in a possible higher interest rate environment, for me I think their track record is quite satisfactory and I am not concerned if Jenny Ruth sees it differently.

[peat]

my feeling from the article was that they just didn't want to put a number on it. would it be fair to say that to infer anything more than that (i.e. the actual number themselves) is speculation.

[Waltzing]

blow off top 168...

probably the top for a while.

They really should increase the Div next year.

[Beagle]

New all time high. The board are focused on steady dividend increases over the years and FY22 is up 1.6% of FY21. Last year they only paid out 89% of AFFO earnings so there is plenty of scope for many more years of dividend increases on top of the steady increases in the last 5 years....which is a vastly different situation from that prevailing at KPG.

My rating HHH (Happy Hound Holder).

[Waltzing]

Just dont have enough of them... got lots... should have got far too many..

bought them in half of all entities with trading accounts..

think we will have to buy it into every entity portfolio.

ARG is an investment; KPG has always been a trade.

[oldtech]

Just dont have enough of them... got lots... should have got far too many..

Ha ... same here!

Topped up most recently just over a week ago, must admit I wasn't expecting a 10% gain quite that quickly!

[Waltzing]

hopefully KPG will take notice and get its act together. ARG has been a stand out performer.

Annual Results Presentation (nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com)

heading to 2 dollars in 2 years?