ARG - Argosy Property.

[Waltzing]

Certainly profit taking in this space will temp some and we did the same for GMT which is still tradable.

But ARG provides a balanced mix across a lot of sectors in the market place and even PCT surprised.

people eventually feel they need to connect face to face and after a year or two at home they will want to go to the office its a social thing as well. Offices will change in design to providing a more social experience as property managers green there offerings including a more sophisticated environment.

The box cubicle solution will fade as i think ARG understand a new type of offering is required and they are moving to that new model of the premium experience.

We havnt put more then 12% into this sector in allocations.

people dont live in tents and there are also lots of changes coming for power companies and i dont see those dividends growing from dams any time soon.

There is unlimited power out there and i think electricity faces just as many challenges in the future although very exciting from new tool to capture and store energy something ARG is very aware of.

You obviously did not sell enough for us to buy more at a discount at say 1.16.

Negative interest rates will explode yield prices is a way that will make the GFC look like a small handle in the charts.

Its already exploded tech in the US and it will come here.

[peat]

From the Annual report 9( a couple of months ago)

The Board has recently approved small adjustments tothe Investment Policy target bands. By portfolio value,the Industrial target has increased by 5% to 45-55%from 40-50%. The Large Format Retail target hasreduced by 5% to 10-20% from 15-25%. The Officetarget of 30-40% is unchanged

They seem very confident about the next year....

[oldtech]

Argosy's property investment strategy is currently listed as:

45-55% Industrial

30-40% Office

10-20% Large Format Retail


It will be interesting to see if this allocation changes in the coming months.

In fact, it will be interesting to see just how the whole "office space" thinking changes in the coming months. I'm in two minds about it - on the one hand, there's certainly numerous articles extolling the virtues; but as Waltzingironman alludes to, there is also the undeniable fact that people do miss the human contact. And yes, there's Zoom and Skype and Microsoft Teams, but they're used for meetings, mostly. What people miss is the casual interactions over a cup of coffee, going out for lunch together, etc. I think this is actually quite a powerful factor.

We shall see whether in the next few years, 2020 is looked back at as a game-changer in the way we worked, or a missed opportunity as we all return to the same old way of doing things, because old habits die hard.

Disc: Small holding, and watching carefully

PS Thanks peat, I hadn't realised the allocations had changed recently.

[NZSilver]

Risk wise it would be nice to have a purchase price below NTA. As mentioned above yield will drive price now. Office space will be fine long term.

[Waltzing]

"45-55% Industrial

30-40% Office

10-20% Large Format Retail"

well done to posters thank you which is why we moved back into this well balanced portfolio back in may at about 1.16 but we have been invested in this portfolio on an off for well before the GFC.

"people do miss the human contact" yes people want to see the whites of your eyes to see if your honest in there eyes and committed to them as people. Its a judgement call that face to face is the only way too see this.

In the end its are you along side us as long term customers and can we rely on you as reputable service providers and yes sometimes you have to go play golf or similar. Cant play myself but i am happy to caddy!!! Nothing like seeing a good technique in any style of activity , ballet to golf, fly fishing to surfing..painting to tile making, fixing a building structure..creating efficient energy use in buildings . skill and commitment to excellence is appreciated and best seen face to face.

[Beagle]

Yes well balanced and well managed, no question and they seem to have managed the Covid risk situation with their tenants quite well so far but no consideration of ARG would be complete without thinking about the level of tenant defaults if we yo-yo up and down lockdown level's over and over again. No joy on selling the big retail block at Albany yet either.

I am neutral on ARG at this mid 130's level, risks and rewards seem fairly balanced, (would add a few more back at under NTA).

[Waltzing]

from MR B:

"Yes well balanced and well managed"

Part of a well managed balanced portfolio of stocks and we dont see NZ making the same mistake twice in regard to border controls.

Im thinking less than 25% change of another lock down and onwards and upwards from here.

I expect that site too take several years to sell or more. I could be wrong. I dont expect that to sell until we clear 2022.

No news specials at 1 PM for virus updates tell us that this thing the GV feels is now under control and no one is available to chat to the nation at the fire side , ah lunch break or on your desk at home work site beside the pool as spring breaks and a rosie future looms... well a new future anyway.. look on the bright side.... 2023... bridge the gap...

[Waltzing]

"https://www.interest.co.nz/personal-finance/107126/economic-climate-has-brought-interest-rates-very-low-levels-and-environment"

come and get some money at 4.5%

[Waltzing]

1.42! Go you under rated little stock....

[Beagle]

Only one ? to have continued paying their full normal dividend throughout Covid gives them a real reputation boost in my opinion. Interest rates headed to zero is also a factor and another reason to see this being well supported going forward. We might even get your $1.60 one day
Disc: Modest sized position.