ARG - Argosy Property.

[Beagle]

https://www.nzx.com/announcements/361633 A little surprising they didn't take $25m in oversubscriptions too.
2.2% a very low rate though so maybe the demand was for $125m at that rate and if they'd taken oversubs the overall rate in the bookbuild would have been higher.

At their last annual meeting I suggested another bond issue because their weighted average cost of borrowing was just on 4%.
So on the $125m issue at 2.2% there's good cost savings of about $125m x 1.8% per annum = $2,250,000. Not to shabby at all in terms of a cost savings exercise and definitely earnings accretive. Nice to lock that in for 7 years too.

[Waltzing]

With talk of MMT coming around the world and NZ still back in the old inflation model low interest rates look here to stay as MR B has indicated. NZ government Bonds sold into markets at low rates also indicating low rates are here for an extended period of time.

Property has exploded beyond political control.

[NZSilver]

Little pull back, my order got hit at close for 1.39. Still should see 1.50-1.60 medium term purely based on search for yield. I keep getting an advertisement for a Jasper forecast 6% industrial fund that's getting started. This will be unlisted(illiquid), narrow tenant exposure, buildings require work, much less diversification, lower grade commercial building exposure so that 6% yield has much more risk attached. Pretty easy decision when you compare these advertised syndicates/funds to Argosy to just buy more ARG. Recent industrial land aquired gives potential redevelopment and growth going forward. I suspect ARG is currently trading right near NTA, but will be interesting to see when their new valuations come through.

[dibble]

Little pull back, my order got hit at close for 1.39. Still should see 1.50-1.60 medium term purely based on search for yield. I keep getting an advertisement for a Jasper forecast 6% industrial fund that's getting started. This will be unlisted(illiquid), narrow tenant exposure, buildings require work, much less diversification, lower grade commercial building exposure so that 6% yield has much more risk attached. Pretty easy decision when you compare these advertised syndicates/funds to Argosy to just buy more ARG. Recent industrial land aquired gives potential redevelopment and growth going forward. I suspect ARG is currently trading right near NTA, but will be interesting to see when their new valuations come through.

Yeah I get those. Gearing is 45%, slightly high at any environment let alone these troubled times. To get to 6% payout, likelihood is they are buying second rate properties the larger LPTs are flogging off while they can, at unexpectedly high prices. That isnt to say it will end in tears, might turn out very profitable but Jasper? Never heard of them. I imagine they will enjoy the ticket clipping. Personally I'd prefer to pay a small premium for quality/listed/transparent LPTs for the next few years.

[Waltzing]

ARG is simply unless the forum can inform us otherwise, a class act and very investable.

[Beagle]

ARG is simply unless the forum can inform us otherwise, a class act and very investable.

I like it mate. Pretty boring, (I came close to falling asleep at the annual shareholders meeting), but its good to have some boring high yield stuff in one's portfolio.

[Waltzing]

We are from a family of lawyers, bank staff and and an accountant. There is nothing boring about this wonderful investment. As it turned out we should have sunk over 40% allocation. We are under invested in this wonderful stock. Posting of the forum of Term deposit holders talking to banks and about not renewing there TD's. That is big news!!!! Bigger than any election as far as im concerned.

[peat]

yes it did find support at the 30 day moving average.
I think momentum is slowing a bit. but still hold.

[Beagle]

I meant boring in a kind way. They just keep on keeping on chucking out tax free PIE dividends every quarter no matter what at 4.45% (much higher yield based on my average price), which works out to 6.6% gross for those on a 33% tax rate. Compares very favorably with other REIT's in terms of yield and makes 0.9% per annum on term deposit look like a really stupid idea. You can sleep really well with some of these puppies in your portfolio is what I meant by the term of endearment, "boring".

[Waltzing]

We believe that MR B's numbers make the stock EXCITING in a time of uncertainty!