KPG - Kiwi Property Group Limited

[Waltzing]

"have a small token holding so Waltzingironman doesn't feel lonely ."

thank you i try to support local businesses where possible.

numbers at centre place dont seem to be dropping to no one. i try to visit twice a week at least.

Remember even MR B has some although as soon as his holding hits cost + brokerage MR B will exit quick and perhaps is remiss on not buying more ARG and yet more HLG.

"Nice and constructive there"

shorting the stock no doubt. Didnt want to say anything.

[Beagle]

Put my toe in the water in a very small way last year at $1.09...bought a few more last month @ $1.22. Average taking off the 2.95 cent divvy this week, they owe me net $1.15.33 incl brokerage on an ex divvy basis and just a very modest 2% portfolio position at this point.

Not sure what to do with these to be honest. The current plan is to attend the annual meeting and ask as many awkward questions as I can, size up senior management and the board and make an assessment of what I think of them and go from there.

[Waltzing]

1.15 for MR B is a fair defensive price but on the metric that MR B applies retail assets as opposed to a high performance share like HLG the div ratio might not be good enough.

As far other companies for retail assets this company surely has the best although PCT has a nice shiny new building.

It also hasnt attracted enough of a bid to move the needle.

Orders have been light since its heyday. Dont see it going much past 1.30 for a long time.

over the last 20 years its only spiked twice.

a much underrated stock which the insto's just dont want until its div hits over 5% net.

[RTM]

Put my toe in the water in a very small way last year at $1.09...bought a few more last month @ $1.22. Average taking off the 2.95 cent divvy this week, they owe me net $1.15.33 incl brokerage on an ex divvy basis and just a very modest 2% portfolio position at this point.

Not sure what to do with these to be honest. The current plan is to attend the annual meeting and ask as many awkward questions as I can, size up senior management and the board and make an assessment of what I think of them and go from there.

Have had some bonds that have been maturing recently. So have parked some into KPG for the time being. Can’t see them going a lot lower, dividend better than the Bond most of it came from so can live with some capital lost, especially if unrealised in the shorter term. Longer term outlook seems positive, perhaps > 5years. So happy to just hold and hopefully enjoy an ok dividend yield in the mean time.

Thanks all for the interesting/helpful discussion which has supported my decision, mostly. Wish it had taken place before I decided to buy !

[Beagle]

That's my laser focus at the annual meeting. What's their plan to get back to 6.95 cps in annual dividends that they were paying in 2019 before Covid ?
They were paying 7 cps in annual dividends 10 years ago and its an absolute disgrace they're talking about only 5.3 cps this year.
All very well to sell up the dogs in the provinces but management oversaw the decline of those assets, and have clearly made mistakes. Do they take ownership of those mistakes and take learnings from them ?
People invest in REIT's for income, why did the board can the dividend during Covid when cash earnings were okay and use the excuse that capital values had fallen as a reason to stop the dividend ?
They never pay a bumper dividend when capital values go up nicely so why is a capital value decline a reason to stop the dividend ?
What assurance can they give us that there are the necessary development disciplines are in place that the development of Drury will be eps accretive and not dilutive ?
Why bother developing anything when the share price is at such a discount to NTA. Why not have a share buy-back instead ?
Why should we trust management they have "got this" in terms of a major new development at Drury when they've made such a mess of managing their regional assets ?
The more I think about it the more I think turning $1.34 of assets five years ago, (which is my standard historical yardstick I use for analysis of all companies looking at the big picture, so its not a "convenient timeframe by any means) into just $1.36 now (down 9 cps in inflation adjusted terms) is an absolute disgrace.

If I don;t get satisfactory answers at the annual meeting...

Someone has to wind this lazy board up.

[X-men]

Simon property up 6% overnight...so hope the sentiment is coming here?

[Beagle]

Questions for the annual meeting.
1. What's their plan to get back to 6.95 cps in annual dividends that they were paying in 2019 before Covid ?
2. The company was paying 7 cps in annual dividends 10 years ago, how is it possible after all this time the board are only talking about 5.3 cps this year ?
3. All very well to sell up the dogs in the provinces but management oversaw the decline of those assets, and have clearly made mistakes. Do you take ownership of those mistakes and take learnings from them ?
4. People invest in REIT's for income, why did the board can the dividend during Covid when cash earnings were okay and use the excuse that capital values had fallen as a reason to stop the dividend ? They never pay a bumper dividend when capital values go up nicely so why is a capital value decline a reason to stop the dividend ?
5. What assurance can you give us that there are the necessary development disciplines are in place that the development of Drury will be eps accretive and not dilutive ?
6. Why bother developing anything when the share price is at such a discount to NTA ?. Why not have a share buy-back instead ?
7. Why should we trust management they have "got this" in terms of a major new development at Drury when you've made such a mess of managing your regional assets ?
8 NTA was $1.34 five years ago and is now just $1.36 (down 10 cps in general inflation adjusted terms and a whopping 62 cps if one uses the housing inflation index).
When other property companies have grown NTA by 50% what are you doing wrong and how are you going to fix it ?
9. Lots of focus on carbon negative this, diversity that, Aotearoa this and all sorts of other cultural and diversity politically correct stuff. I'm struggling to see any laser focus on ensuring the future plans grow eps ? Is there any focus on growing earnings per share ? Is this your top priority ?

They're never going to allow one shareholder to ask that many questions...that's simply not the way annual meetings are run.

Who wants to put their hand up to play "tag team" and grill the board ?

If I don't get satisfactory answers at the annual meeting...

[winner69]

Remuneration report always interesting reading

Beagle …..KPG can’t be doing too badly. The execs generally seem to get big bonuses (OK should call them at risk STIs and LTI) for achieving targets (inc TSR)

I not that only 3 directors have shares —- and not many at that.

[winner69]

Can’t help but notice regular NZX capital change notices ……relating to issue of performance rights

[Beagle]

Yes consistent growth abounds with this one in one area only, employee remuneration.