KPG - Kiwi Property Group Limited

[Rawz]

Well its not a building cost replacement NTA is it. It is the current market valuation NTA and thus my question to Directors. Why are you not liquidating and returning funds to shareholders. Or is the market valuation not accurate? And if so, why have the auditors not queried these valuations?

The market value (both of the properties and the KPG entity) are correct

[LaserEyeKiwi]

I see some of our fav commentators doing their frequent flybys.

I’ll patiently sit and collect my 9% divi return while waiting out the inevitable capital appreciation as we eventually see the property & interest rate cycle leave its trough.

In the mean team will be happy for any positive surprises that come along, most likely from Drury superlot sales and the Vero Centre sale perhaps actually happening.

[SailorRob]

I see all the nags doing their frequent flybys.

I’ll patiently sit and collect my 9% divi return while waiting out the inevitable capital appreciation as we eventually see the property & interest rate cycle leave its trough.

In the mean team will be happy for any positive surprises that come along, most likely from Drury superlot sales and the Vero Centre sale perhaps actually happening.

Laser,

I very strongly recommend learning to read a cash flow statement. Many online resources to help you. Then look over the last 10 years of them and piece together the numbers.

Where are the dividends coming from....

[LaserEyeKiwi]

Laser,

I very strongly recommend learning to read a cash flow statement. Many online resources to help you. Then look over the last 10 years of them and piece together the numbers.

Where are the dividends coming from....

I assure you I can read a cashflow statement, I would be in a lot of trouble if I couldn’t.

I’ve spend hundreds of hours studying the company over the last few years and am fully aware of its cashflow and capital shifts over the last 15 years, the reasons behind them, and the changes the company has made (and continues to make) to its portfolio to not repeat the unfortunate situations they found themselves in previously (mostly due to seismic events, with a pandemic cherry on top).

I can understand how someone doing a quick look over the last decade of KPG financials would form an unfavorable opinion on the company prospects, but once you dig in you can see the future looks significantly different for the company than the past, and based on the current share price it represents a good opportunity (in my opinion at least)

Not sure where you are going with the “where are the dividends coming from” line, as dividends paid are less than funds generated from operations. Recent debt taken on was to fund now completed capital projects that are or will soon generate diversified rental income (BTR 1 - 300 apartments, & 3 te kehu way - medical services focused office tower) or to progress work on assets that will generate high capital gains when sold (Drury earthworks on stage 1 superlots).

Like all listed property companies, the bottom line net income has been heavily skewed by large negative asset re-valuations (which have zero impact on actual company operational profits).

[Baa_Baa]

I see all the nags doing their frequent flybys.

I’ll patiently sit and collect my 9% divi return while waiting out the inevitable capital appreciation as we eventually see the property & interest rate cycle leave its trough.

In the mean team will be happy for any positive surprises that come along, most likely from Drury superlot sales and the Vero Centre sale perhaps actually happening.

Agree, happy to receive the quarterly dividends while Drury comes online and property divestments continue. Have been increasing this as % of my portfolio when around the low 80's or below.

[Rawz]

Hey LEK, did Sailor ever pay you that $200k bet he made? The one where he said dividends were not covered by cashflows but then Snoopy proved they were.

One of STr funny moments lol

[SailorRob]

I assure you I can read a cashflow statement, I would be in a lot of trouble if I couldn’t.

I’ve spend hundreds of hours studying the company over the last few years and am fully aware of its cashflow and capital shifts over the last 15 years, the reasons behind them, and the changes the company has made (and continues to make) to its portfolio to not repeat the unfortunate situations they found themselves in previously (mostly due to seismic events, with a pandemic cherry on top).

I can understand how someone doing a quick look over the last decade of KPG financials would form an unfavorable opinion on the company prospects, but once you dig in you can see the future looks significantly different for the company than the past, and based on the current share price it represents a good opportunity (in my opinion at least)

Not sure where you are going with the “where are the dividends coming from” line, as dividends paid are less than funds generated from operations. Recent debt taken on was to fund now completed capital projects that are or will soon generate diversified rental income (BTR 1 - 300 apartments, & 3 te kehu way - medical services focused office tower) or to progress work on assets that will generate high capital gains when sold (Drury earthworks on stage 1 superlots).

Like all listed property companies, the bottom line net income has been heavily skewed by large negative asset re-valuations (which have zero impact on actual company operational profits).

Ok good post, you're not an idiot.

You can make a case that purchasing at current prices COULD generate a real 10% return from actual cash earnings which is average, but those paying higher prices earlier.... No thanks.

So if you're happy with 10% and understand that to generate more cash they have to invest more money and the returns on reinvested capital will be sub optimal or just market rates then I have zero argument.

[SailorRob]

Hey LEK, did Sailor ever pay you that $200k bet he made? The one where he said dividends were not covered by cashflows but then Snoopy proved they were.

One of STr funny moments lol

Snoopy proved nothing. Wasn't about them being covered by cash flows, debt is a cash flow.

[SailorRob]

I assure you I can read a cashflow statement, I would be in a lot of trouble if I couldn’t.

I’ve spend hundreds of hours studying the company over the last few years and am fully aware of its cashflow and capital shifts over the last 15 years, the reasons behind them, and the changes the company has made (and continues to make) to its portfolio to not repeat the unfortunate situations they found themselves in previously (mostly due to seismic events, with a pandemic cherry on top).

I can understand how someone doing a quick look over the last decade of KPG financials would form an unfavorable opinion on the company prospects, but once you dig in you can see the future looks significantly different for the company than the past, and based on the current share price it represents a good opportunity (in my opinion at least)

Not sure where you are going with the “where are the dividends coming from” line, as dividends paid are less than funds generated from operations. Recent debt taken on was to fund now completed capital projects that are or will soon generate diversified rental income (BTR 1 - 300 apartments, & 3 te kehu way - medical services focused office tower) or to progress work on assets that will generate high capital gains when sold (Drury earthworks on stage 1 superlots).

Like all listed property companies, the bottom line net income has been heavily skewed by large negative asset re-valuations (which have zero impact on actual company operational profits).

Take my hat off to you doing hundreds of hours of work, but if instead you'd spent those hundreds of hours on a decent company with good economics and located outside a banana republic, your net worth would be far better off.

These companies are average at very best, if you can get cheap enough it compensates.

All you can do is earn a pittance on invested capital and to earn more you need to put more up.

[Leemsip]

Just love the way SR approaches everyone from a base position of scorn and superiority. Aside from this trait, he has some good points, particularly on this thread about the difficulty in finding something on the NZX with serious prospects of out performing.... 8-10% is goodish I guess....