KPG - Kiwi Property Group Limited

[Baa_Baa]

What % of holders participate in the DRP's? This would make a bit of a difference (although DRP didn't operate for the last divvy).

I would definitely take the DRP if it was offered, this recent Divi has gone straight back into KPG ... plus a bit.

[Walter]

Posted todays leaderboard for posterity and to show anything is possible

Only beaten by that dog Rakon today but doing better than CRP is some effort
Interesting that you think Rakon is a dog. It's a multi-bagger for me.

[silverblizzard888]

Interesting that you think Rakon is a dog. It's a multi-bagger for me.

Rakon has a period where it was a rotten company for many years, but last couple of years they've really turned it around. The bad rep for the company is more from shareholders who remember the bad times.

[SPC]

Wishful thinking. No nothing has changed, apart from perhaps the slow disappearance of Robinson presence as eventually they drift in to retirement?. That's a good thing.
Pity the folks who paid more than $2 bucks not too long ago. Bet they're no longer feeling so good about that bright future ahead.
With this co. past performance means everything because they've had 16+ years as a public company to return any value to shareholders. And haven't delivered a cent.

[LaserEyeKiwi]

Wishful thinking. No nothing has changed, apart from perhaps the slow disappearance of Robinson presence as eventually they drift in to retirement?. That's a good thing.
Pity the folks who paid more than $2 bucks not too long ago. Bet they're no longer feeling so good about that bright future ahead.
With this co. past performance means everything because they've had 16+ years as a public company to return any value to shareholders. And haven't delivered a cent.

Edit: SPC referring to Rakon above (not KPG)

[SPC]

Calm down LEK and read the preceding posts lol. RAK not KPG. Have another coffee.

[LaserEyeKiwi]

Calm down LEK and read the preceding posts lol. RAK not KPG. Have another coffee.

So you were referring to Rakon? Apologies - wasn’t clear. Have edited post above,

[winner69]

Please accept my apologies for bringing up Rakon on the KPG thread and the angst it has caused

Bother were near the top of the leader board the other day ... that was good

[SPC]

Me too folks. After holding RAK since listing 16+ years I cant help it.
Let's stick to KPG, which I hold in abundance.

[Rawz]

KPG or RAK first to $2?

[winner69]

KPG or RAK first to $2?

Don't you mean first to $1

[LaserEyeKiwi]

Don't you mean first to $1

LOL. Setting our expectations low.

[ralph]

LOL. Setting our expectations low.
More likely Aspiration's :eek2:

[LaserEyeKiwi]

KPG valuation update:

Kiwi Property today released the outcome of its draft valuations for the six months ended 30 September 2022, posting an expected 5.8% decrease in the fair value of its property portfolio. The Company’s mixed-use, office, retail and other properties are set to be worth $3.4 billion at the close of the period, down $212.5 million from 31 March 2022.

Kiwi Property Chief Executive Officer, Clive Mackenzie said: “The current high inflation, high interest rate environment has led to capitalisation rate softening across the property sector globally, with the New Zealand market particularly impacted over the past few months.

“Kiwi Property’s investment portfolio continues to perform well, with increases in occupancy, as well as passing and market rents, driving robust rental income growth. This favourable operating performance has not been enough to offset the volatile macro climate and subsequent capitalisation rate softening, however.

“While the reduction in the fair value of our property portfolio is disappointing, it is not unexpected given the headwinds facing the global economy. By actively managing our assets and tightly managing costs, we will help accelerate the resurgence of our asset values as the financial climate improves.”

The draft valuations are expected to result in the following movements over the six-month period ending 30 September 2022:
• Mixed-use portfolio: -4.7% or $93.3 million, driven by capitalisation rate expansion of 29 basis points.
• Office portfolio: -5.8% or $60.2 million, led by capitalisation rate expansion of 37 basis points.
• Other properties: -12.4% or $35.0 million, with increasing seismic strengthening costs a central factor.
• Properties held for sale: -11.1% or $24.0 million, reflecting the contract price for Northlands.
• Overall investment portfolio: 5.56% weighted average capitalisation rate, an expansion of 32 basis points.
• Net tangible asset backing per share: $1.32, a reduction of 13 cents.

Kiwi Property’s operating earnings are not impacted by the draft valuation movement and the Company’s FY23 cash dividend guidance of no less than 5.70 cents per share remains unchanged. This figure represents a New Zealand tax-paid yield of 6.23% or gross equivalent yield of 9.30% (based on a closing share price of 91.5 cents recorded on 7 October 2022 and assuming a 33% tax rate for the gross equivalent yield).

The draft valuations have been determined by independent valuers and are subject to finalisation and external review by Kiwi Property’s auditor, PwC. They will be confirmed in the Company’s interim FY23 financial statements, scheduled for release on 28 November 2022.

Ends

Note: The fair value movements referred to above relate to independent property valuation movements and exclude any fair value movement arising from accounting for lease liabilities under NZIFRS16.

[LaserEyeKiwi]

Good to see a relatively minor 5.8% revaluation down on core property portfolio (against forecasts by some of a massive drop), with the primary “mixed use” portfolio only down 4.7%.

Now the shares are “only” trading a a 31% discount to the new book value. :t_up:

However the “other properties” (dominated by The Plaza in Palmerston North) looks to be a bit of a drag as it appears seismic work needed has grown considerably (the unknown seismic issues being the previous reason for removing it from the “properties held for sale“ category, looks like they at least might have finished the seismic evaluation now, potentially making a sale easier if they go the Northlands route of selling at a discount before the work is done).

[Habits]

"posting an expected 5.8% decrease in the fair value of its property portfolio.......
• Net tangible asset backing per share: $1.32, a reduction of 13 cents."

A 5.8 percent decrease in portfolio value has translated to nearly 9 percent drop in NTA. Did anyone else notice that. I would say it is the effect of leverage which increases risk and multiplies price movements.

Regarding shareprice it is probably not just NTA which affects that. investors will weigh up the return versus alternatives, so as interest rates increase there is a double or triple whammy on the shares

In time this should right itself and rents will increase ... am loathe to say it is because of inflation, so I will say because of demand and more properties being completed and more leaseable space.

[winner69]

So Net tangible asset backing per share: $1.32, a reduction of 13 cents.

Might see a 9% fall in the shae price if multiples are maintained at current levels

But then the mrket was expecting this eh and it ws already priced in eh .... or better still an even greater fall in NTA ws priced in and we could see share price rise in next few weeks

[mike2020]

Ok, so if rates continue to rise and values continue to fall, say for another 2 quarters, that is already priced in?

[LaserEyeKiwi]

"posting an expected 5.8% decrease in the fair value of its property portfolio.......
• Net tangible asset backing per share: $1.32, a reduction of 13 cents."

A 5.8 percent decrease in portfolio value has translated to nearly 9 percent drop in NTA. Did anyone else notice that. I would say it is the effect of leverage which increases risk and multiplies price movements.

Regarding shareprice it is probably not just NTA which affects that. investors will weigh up the return versus alternatives, so as interest rates increase there is a double or triple whammy on the shares

In time this should right itself and rents will increase ... am loathe to say it is because of inflation, so I will say because of demand and more properties being completed and more leaseable space.

no leverage had nothing to do with it.

its “property portfolio” decreased in value by 5.8%, that includes only its “core” holdings and excludes “property held for sale” - which suffered a much larger reduction. It also doesn’t cover the cash holdings which are lower due to the dividend payment schedule change (KPG paid 5 quarters worth of dividends in the 12 months ending Sep 30th). That one extra quarter of dividends was a $22.3 million payment.

so the discrepancy between the headline revaluation figure (5.8%) and the percentage drop in NTA (9%) is accounted for by those factors.

still a real thing of course, but essentially all of “properties for sale” is now under unconditional sale (northlands & IKEA) and the lower cash balance due to dividend schedule change will be reversed over next 12 months (KPG will pay out 4 quarterly dividends over next 12 months)

[Habits]

The NTA information released should have cleared up a huge uncertainty overhanging the market. But still the shareprice continues to bubble along today without real movement. Just up half a cent.

The very generous 9 percent equivalent gross yield (at 33 percent tax rate) is what the company is priced at by the market. Good risk/reward returns and even better now.

[Habits]

Kpg shareprice is following the trend of road speed limits and is heading down. Sitting around 89/ 90

[ralph]

Kpg shareprice is following the trend of road speed limits and is heading down. Sitting around 89/ 90
Pretty much the same as its tangible assets then

[LaserEyeKiwi]

Kpg shareprice is following the trend of road speed limits and is heading down. Sitting around 89/ 90

For context - the entire sector is off by roughly the same amount year to date, all between 19-26% down. Only one of them is paying a 9%+ gross dividend suited for PIE investors though.

14241

[ralph]

Kpg shareprice is following the trend of road speed limits and is heading down. Sitting around 89/ 90

Big dump at 87.50 now ,where will it all end ,who foreseen this not I

[777]

The whole market is down combined with reducing property values.

[LaserEyeKiwi]

Now officially broken up through the magical 10%+ gross dividend yield figure.

[winner69]

Now officially broken up through the magical 10%+ gross dividend yield figure.

On an annual basis? …ie none of this 2 plus and that first quarter divie trick

[mike2020]

That appears to be serious volume for KPG. Is the world ending tomorrow?

[LaserEyeKiwi]

On an annual basis? …ie none of this 2 plus and that first quarter divie trick

Stated “minimum” annual dividend guidance of 5.7c net going forward - gets to 10% yield would be assuming that 5.7c is after 33% tax with the gross at 8.5c.

[Rawz]

You'll never see it this cheap again.

Even Beagle is climbing into it at these levels (Beagle a notorious knocker of KPG)

[mike2020]

You don't think tomorrows inflation data could make a further dent?

[Rawz]

Simply Wall St says fair value is $1.36 based on using a discounted cash flow model.

[winner69]

That appears to be serious volume for KPG. Is the world ending tomorrow?

some say markets are forward looking so the world could be ending, maybe not tomorrow but maybe next month

[Jaa]

Stated “minimum” annual dividend guidance of 5.7c net going forward - gets to 10% yield would be assuming that 5.7c is after 33% tax with the gross at 8.5c.

Dividend trend is awful though, in serious decline?

Final 22 - 2.85c
Final 21 - 2.95c
Final 20 - No dividend
Final 19 - 3.475c

Interim 22 - 1.425c
Interim 21- 2.750c
Interim 20 - 2.200c
Interim 19 - 3.525c

[Habits]

You know the chestnut when someone has a birthday they say 21 again. I'm sure hoping kpg does not think like that :t_down:

[Rawz]

Dividend trend is awful though, in serious decline?

Final 22 - 2.85c
Final 21 - 2.95c
Final 20 - No dividend

Interim 22 - 1.425c
Interim 21- 2.750c
Interim 20 - 2.200c
Interim 19 - 3.525c

that interim 22 is the new quarterly. 1.425*4=5.7cps
or 0.01696*4=0.678cps gross
0.678/0.84sp=8.1% gross dividend yield. wait what?

[alokdhir]

that interim 22 is the new quarterly. 1.425*4=5.7cps
or 0.01696*4=0.678cps gross
0.678/0.84sp=8.1% gross dividend yield. wait what?

5.7 cents guided dividend ...Its a listed PIE so all 5.7cents is tax paid ...so net 5.7/ 83.5 = 6.826% Net yearly for 33% tax payers it comes as 6.826/ .67 = 10.18% gross

[Jaa]

that interim 22 is the new quarterly. 1.425*4=5.7cps
or 0.01696*4=0.678cps gross
0.678/0.84sp=8.1% gross dividend yield. wait what?

Just a promise until paid though isn't it?

I went back and found FY19 dividends in which KPG paid ~6.95c a share. So still a serious downward trend, ignoring the COVID disruption in FY 20/21.

[mike2020]

I did some bad math. Long day.

[bull....]

was in sylvia park friday was not very busy my opinion

[LaserEyeKiwi]

was in sylvia park friday was not very busy my opinion

Monday daytime (after 2 weeks of school holidays) being “not very busy”???

OMG sell everything!

ha ha but seriously don’t put any stock in a weekday visit.

[winner69]

Great recovery to closevat 83.5

Thought when it hit 82 it might go to 80 …or even 70 something

[LaserEyeKiwi]

Moving some things around, hopefully stays at these levels or lower for a couple of days more…

[Rawz]

What’s with the SP?!? It’s not like KPG is at risk of default.. right..?

[Baa_Baa]

Moving some things around, hopefully stays at these levels or lower for a couple of days more…

Ditto. Happy to double or even triple my holding here, just being patient averaging in cost-fees efficient parcels. No rush, the market is having a hissy fit and anything property is a whipping boy. You'll laugh your head off one day when you see how cheap you bought this. Value investing on steroids, with a large dose of patience thrown in.

[percy]

Hello Bottom Pickers and Chartists.
I note the share price is below the following moving averages.10,day,20 day,30 day,50 day,60 day,90 day,180 day,200 day.
RSI a very modest 28.
MACD -0.03
W.ACc Dist -1
Looks to me as though the down trend is confirmed.
Has "never buy in a down trend" gone out the window.?
Property prices decreasing while funding costs rise are not going to change over night.
Take care.

[Baa_Baa]

Hello Bottom Pickers and Chartists.
I note the share price is below the following moving averages.10,day,20 day,30 day,50 day,60 day,90 day,180 day,200 day.
RSI a very modest 28.
MACD -0.03
W.ACc Dist -1
Looks to me as though the down trend is confirmed.
Has "never buy in a down trend" gone out the window.?
Property prices decreasing while funding costs rise are not going to change over night.
Take care.

Yes percy, good call, I shouldn't have said averaging "here" when I meant when the trend changes. Charts are helpful for that. Averaging up off a bottom trend change is more satisfying than buying yield and a few days later the yield is better :O with no signs of bottoming. But I'll be increasing the KPG % of portfolio significantly when I think the time is right to do so. I won't be ringing a bell like some others like to.

[JohnnyTheHorse]

I took a good parcel this afternoon in the swing trade account. Hourly, daily, weekly and monthly RSI oversold all at once. The price action suggested a temporary selldown by an ETF.

I'll sell half on the bounce, then place a stop somewhere below todays low (to be risk free on the trade).

[winner69]

Kiwi Property increases FY22 dividend guidance

19/4/2022, 3:36 pm MKTUPDTE

Kiwi Property today increased its FY22 dividend guidance, following a stronger than expected fourth quarter.

The company’s diversified asset portfolio proved more resilient to the financial impact of Omicron and the red COVID-19 traffic light setting, with adjusted funds from operations exceeding forecast through the latter stage of the financial year. As a result, Kiwi Property now expects to pay a dividend of 5.6 cents per share (cps) for FY22 [NOTE 1], up 5.7% from the 5.3 cps guidance previously announced. The proposed dividend represents a New Zealand tax-paid yield of 5.21% [NOTE 2].


Only 6 months ago …….very exciting times they were

Trouble is share price is down 20% from then

Hope they don’t come out with another positive guidance ……..share price might fall by another 20%

the shares are so cheap at the moment eh …bugger the lost capital …she’ll be right

[Waltzing]

Winner it was a dump on the chart ages ago... but now ... no still not a buy..

Current business policy from wellington hasnt turned yet toward growing an economy which is year late or rather a NEVER WAS...

the kiwi is .56 to the Dixie... talent is leaving and returning to the US.

[LaserEyeKiwi]

Alas - the one day deal ended quicker than a Briscoes sale before I was able to complete the funds shift. Hopefully, like at Briscoes, another one day sale is probably right around the corner.

[LaserEyeKiwi]

Sale back on! I’ll be feasting at the trough tomorrow morning hopefully.

[Old mate]

Sale back on! I’ll be feasting at the trough tomorrow morning hopefully.


Is that you pushing it up this morn LEK

[LaserEyeKiwi]

Is that you pushing it up this morn LEK

Alas, I am but a minnow whose chomp would have zero impact on share price movement in a listing with KPG level of volume. Plus I am holding via my Kiwisaver account so its up to my broker when the trade gets done.

[Habits]

I am liking the new office build going up at sylvia. Reports suggest that lease costs (per sqm) are increasing for premium office space, which I do believe this would be. Here's hoping that kpg are budgeting for high yield and a strong development margin.

[ithaka]

KPG
03/11/2022 11:02
GENERAL
NOT PRICE SENSITIVE
REL: 1102 HRS Kiwi Property Group Limited

GENERAL: KPG: Kiwi Property secures Drury private plan change

Kiwi Property today advised that its Drury private plan change application
has been approved by the Environment Court. The company's 53-hectare Drury
site will now be re-zoned as a metropolitan town centre, providing the
ability to be intensified up to a height of 72 metres.

Kiwi Property GM Development, Ian Passau, said the successful outcome would
unlock a range of exciting opportunities and enable the company to move
forward with its plans to create a sustainable mixed-use community south of
Auckland, over time.

"Drury is expected to become home to around 60,000 people in the next 30
years, providing a unique opportunity to build a city from the ground up.
Today's ruling confirms Kiwi Property's site as the location for the future
town centre and a nexus for development in the area over the coming decades.

"The successful plan change outcome will help generate value and enable us to
move forward with stage one earthworks. We're looking forward to developing a
thriving community where people from across the region will live, work, play
and stay."

ENDS

[Baa_Baa]

KPG
03/11/2022 11:02
GENERAL
NOT PRICE SENSITIVE
REL: 1102 HRS Kiwi Property Group Limited

GENERAL: KPG: Kiwi Property secures Drury private plan change

Kiwi Property today advised that its Drury private plan change application
has been approved by the Environment Court. The company's 53-hectare Drury
site will now be re-zoned as a metropolitan town centre, providing the
ability to be intensified up to a height of 72 metres.

Kiwi Property GM Development, Ian Passau, said the successful outcome would
unlock a range of exciting opportunities and enable the company to move
forward with its plans to create a sustainable mixed-use community south of
Auckland, over time.

"Drury is expected to become home to around 60,000 people in the next 30
years, providing a unique opportunity to build a city from the ground up.
Today's ruling confirms Kiwi Property's site as the location for the future
town centre and a nexus for development in the area over the coming decades.

"The successful plan change outcome will help generate value and enable us to
move forward with stage one earthworks. We're looking forward to developing a
thriving community where people from across the region will live, work, play
and stay."

ENDS

Excellent news. Let the earthworks begin!

[Rawz]

If KPG pull this off it will be the preferred reit and will trade at a premium to NTA/ trade on a lower dividend yield

So you could hold and collect the 10% divvy + nta creep + big sp re-rate :t_up:

[LaserEyeKiwi]

I dont think anyone thought this wouldn’t be granted, nevertheless still good to see it happen and earthworks can begin.

[winner69]

KPG share price still trending down ...... hope it turns before it reaches a new (recent) low

[Rawz]

The SP is at the same levels as 20 years ago. what is the point of this company?

Had a look at market screener and forecasts for the next 3 years are flat or down in most regards.

What sort of yield is the market going to demand before the SP slide comes to an end i wonder?

I find all reits expensive right now with interest rates where they are at

[winner69]

The SP is at the same levels as 20 years ago. what is the point of this company?

Had a look at market screener and forecasts for the next 3 years are flat or down in most regards.

What sort of yield is the market going to demand before the SP slide comes to an end i wonder?

I find all reits expensive right now with interest rates where they are at

Hey rawz - it seems you are a just like me in that 'we just don't get it' - the 'it' being property is a great game to be in.

I never owned any of these property stocks until recently because I had direct investment in a couple of commercial properties. But when sold of these i seemed to have got sucked into buying a few KPG - you know the old property is safe as and have great yields compared to money in bank blah blah.

Well yield might have been better than a term deposit when I bought some at 114 and when i bought some more at around 100 .....but the share price goes down faster than those amazing dividends I'm getting. Sucked in big time eh

I live in hope that one day the share price will get back to it's glory days (hope is not a good strategy) and then I will able tobreak free free ....hopefully with a bit of a profit

Not one of my best investments .... but 'I just don't get it'

[Aaron]

Hey rawz - it seems you are a just like me in that 'we just don't get it' - the 'it' being property is a great game to be in.

I never owned any of these property stocks until recently because I had direct investment in a couple of commercial properties. But when sold of these i seemed to have got sucked into buying a few KPG - you know the old property is safe as and have great yields compared to money in bank blah blah.

Well yield might have been better than a term deposit when I bought some at 114 and when i bought some more at around 100 .....but the share price goes down faster than those amazing dividends I'm getting. Sucked in big time eh

I live in hope that one day the share price will get back to it's glory days (hope is not a good strategy) and then I will able tobreak free free ....hopefully with a bit of a profit

Not one of my best investments .... but 'I just don't get it'

What sort of yields did you have in the direct property investments?

The listed property companies/trusts in the past had higher yields than buying a property directly. Not that I looked a lot as the rents were usually higher than my budget. With the listed companies you get better tenants and a variety of tenants as well as diversification of buildings.

Also if rates start dropping and money flows freely once again you can super lever your investment with the companies existing debt plus a home mortgage plus margin lending. Although from RAWZ post you might still be waiting 20 years later for that to succeed and based on KPGs recent share price performance you might have wiped out your equity perhaps several times over and would be waiting desperately for a pivot.

[ronaldson]

The listed property companies overtrade in my opinion. They are always selling something that once upon a time was something they desired to buy, and they overpay when buying. The return to shareholders would be superior if they trimmed overheads to a minimum and adopted a buy and hold strategy, relying simply upon rising rental streams and incremental capital gains, without development risk.

There are advantages in the ownership of multiple properties/quality tenants and easy entry/exit v the single building syndicate, but the latter holds long term and ultimately the capital gain received is superior to share price gains which don't ever quite seem to materialise and where any price changes heavily reflect interest rate cycles rather than the listed entities operational performance.

[fungus pudding]

The listed property companies overtrade in my opinion. They are always selling something that once upon a time was something they desired to buy, and they overpay when buying. The return to shareholders would be superior if they trimmed overheads to a minimum and adopted a buy and hold strategy, relying simply upon rising rental streams and incremental capital gains, without development risk.

There are advantages in the ownership of multiple properties/quality tenants and easy entry/exit v the single building syndicate, but the latter holds long term and ultimately the capital gain received is superior to share price gains which don't ever quite seem to materialise and where any price changes heavily reflect interest rate cycles rather than the listed entities operational performance.

Bang on! Couldn't agree more.

[LaserEyeKiwi]

Buy at the bottom of the property cycle, sell at the top (if you need to). Guess where we are now in the cycle.

myself, this is all in a kiwisaver fund, so KPG being tax advantaged for PIE investing I’m going in to enjoy that 10% yield compounding in my account for a few decades.

[Rawz]

Buy at the bottom of the property cycle, sell at the top (if you need to). Guess where we are now in the cycle.

myself, this is all in a kiwisaver fund, so KPG being tax advantaged for PIE investing I’m going in to enjoy that 10% yield compounding in my account for a few decades.

Problem is LEK, will your 10% yield get adjusted for inflation? Or will it get eaten away?

Looked at the dividend history on yahoo finance. there is no consistency and certainly no trend upwards.
https://nz.finance.yahoo.com/quote/KPG.NZ/history?period1=1223942400&period2=1668556800&interval=capitalGain%7Cdiv%7Csplit&filter=div&frequency=1d&includeAdjustedClose=true

The data goes back as far as Nov 2008, so 14 years ago.. half year dividend back then was $0.039554c
Most recent quarterly div just paid was $0.01425*2= $0.0285 for half year.

So not only has the SP gone no where in 20 years. But the dividends paid to the poor shareholders have gone backwards over the last 14 years.

What is going on with KPG? The entire management team and board should be sacked!

[winner69]

Rawz - forget the past - the future value is in the story

Problem is - we just don't get it

[Rawz]

Is KPG a dividend trap?

just learning

[RTM]

Is KPG a dividend trap?

just learning

Maybe. Depends what price you bought them for …I hope.
It’s nice to be paid to go to school!

[LaserEyeKiwi]

Well the question to ask is will their income from operations (used to pay dividends) be reducing? If you think that is a real risk, then sure go ahead and “don’t invest” if thats how you feel. If however you think that operating cashflow will grow, then the high yield at todays share price looks rather safe.

In my personal judgement a drop in income from operations is unlikely to happen over the long term, since rental income generally increases every year upon rent reviews, and new assets are added generating new income streams (countered somewhat by assets disposed of or added to “co-investment” platform).

yes, in the past they have been hit with multiple negative large costs which has reduced operating income (most of it seismic related issues over the last decade in Christchurch and lower north island assets), and more recently of course the temporary covid rent abatements. That has been the core reason why KPG has suffered over the last decade, there was no way a different management team could have avoided those costs, unless they sold down assets years earlier.

But they have de-risked their portfolio substantially in the aftermath of the seismic events, selling off most of the assets exposed to high seismic risk, with the Plaza in Palmerston north being the remaining asset to sell. The 2 wellington office towers remaining are also presumably being included in the office “co-investment” sell-down plan, but in any case they are a small piece of the portfolio now (8% now, and lessor still once/if the office portfolio has sell down of 50%) and the main Wellington office asset (The Aurora Centre) had extensive seismic work in 2016.

92% of KPG investment portfolio is in Auckland/Hamilton now.

(meanwhile, bizarrely, almost every other listed property company is increasing their exposure in the high seismic areas, seemingly ignoring the lesson KPG has learned the hard way already. Go figure.)

[Rawz]

Based on how shockingly busy Sylvia park was today.. would have to say- what cost of living crisis???

[Bjauck]

Based on how shockingly busy Sylvia park was today.. would have to say- what cost of living crisis??? If they were like me, they were taking advantage of The Black Friday Week sales still on at some retailers for Christmas shopping. I don’t think it is indicative one way or the other that people don’t have a cost of living crisis.

[winner69]

Always good to print 'robust operating results'

And just look at that AFFO - up 36% on pcp

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/KPG/403115/384458.pdf

and the pretty pictures version

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/KPG/403115/384459.pdf

[Rawz]

NTA down 10%

[LaserEyeKiwi]

NTA down 10%

This was already announced 6 weeks ago.

[LaserEyeKiwi]

Very happy to see they have (unexpectedly) sold 44 the terrace, getting rid of another one of their seismic risks in addition to northlands mall. Now just one recently restrengthened office tower in wellington, and the plaza mall in Palmerston north to unload. I dont know who the suckers are buying these things, but a big thank you to them.

Rental income up,
gearing (post the northlands and 44 terrace settlements) down to 32%,
Covid fund contingency released as not required,
occupancy at 99.7%,
Drury land value doubled so far since purchase,

solid result - will now listen to the earnings call starting at 10am

[winner69]

Hey Lek, this a bit mean ‘ I dont know who the suckers are buying these things, but a big thank you to them.’

Just as well there was a greater fool to take those off their hands eh

[LaserEyeKiwi]

Notes from call:

- 2 years of drury earthworks will be only $30m cost (not listed in results document)


Q&A:

Ari from Jarden:

- Westgate lifestyle value: $95m (now listed for sale and implied already in negotiations)
- 44 The Terrace cap rate: 6.38% $50m value
- 3 Tekehu way: 60% committed tenants so far, confident of achieving 100% upon opening.
(My stream got garbled here so missed about a minute of Q&A)
- Drury $30m earthworks development over 2 years, but can slow & stretch spend if needed due to economic conditions.
- Re: asset sales: “Constantly looking at portfolio”, but no more additional assets to be sold in immediate time frame past what has already been announced (Westgate Lifestyle, The Plaza Palmerston North, the “Office Co-investment Platform”, Drury Residential “Super Lots”)

Nick from Macquarie:

- 2023 Guidance: 5.7c divi, 90-100% AFFO is guidance but expect to payout a little under 90% at 5.7c dividend and retained remainder for re-investment in portfolio.
- Covid Abatement release not required and lower than expected maintenance capex in 1st half helped AFFO, a little left of covid abatement release possible in 2nd half, but would expect maintenance capex to be back to normal.
- Cost increases on development projects more than offset by rising rental income.
- banking & bond gearing covenants increased to 50% for bank debt, 45% bond debt. gearing post Northlands & 44 the Terrace settlement will be 32%.

Bianca form UBS:

- new development commitments: being cautious due to economic uncertainty
- any negative impact from cost of living pressures on centre retail sales?: Nope.
- Gross Occupancy Costs of 12% allows us a lot of buffer for both retailers and KPG to increase rents over time.

That’s all.

[LaserEyeKiwi]

Hey Lek, this a bit mean ‘ I dont know who the suckers are buying these things, but a big thank you to them.’

Just as well there was a greater fool to take those off their hands eh

They managed to sell 44 the terrace at almost the book value! ($48m vs $50m). 11.2% pa IRR over lifetime of ownership.

[SPC]

I do agree with W69. While Lek's post are a welcomed and invariably insightful I thought that comment was detracting from the usual rational line.

[LaserEyeKiwi]

Didn’t mean to ruffle feathers! Everyone has a different risk profile equation I suppose. Having once owned property in a small wellington tower, I personally am now very weary of owning buildings in these high seismic risk areas (and the associated seemingly never ending cycle of EQ events/assessments/strengthening/insurance premium hikes), and wish anyone buying in these areas the utmost best of luck!

[LaserEyeKiwi]

More Highlights:

Sylvia Park developments:

- Approximately$217m of capex remaining Sylvia Park BTR and 3 Te Kehu Way

14351

Drury Update:

14352

Curious line contributing to net income (not included in profit from operations):

”Litigation settlement income of $6.6m represents claims settled against third parties regarding engineering services provided in connection with an investment property.”

[LaserEyeKiwi]

Interest rate related items:

14353

14354

- $6.3m fair value gain on interest rate derivative contracts

AFFO:

14355

[winner69]

Didn’t mean to ruffle feathers! Everyone has a different risk profile equation I suppose. Having once owned property in a small wellington tower, I personally am now very weary of owning buildings in these high seismic risk areas (and the associated seemingly never ending cycle of EQ events/assessments/strengthening/insurance premium hikes, and wish anyone buying in these areas the utmost best of luck!

Agree Wgton property is risky

Hope Mt Eden never erupts ..... Auckland becomes a flood prone risk

[LaserEyeKiwi]

Buisnessdesk out with an article this morning discussing how good a yield KPG is currently trading at:

https://businessdesk.co.nz/article/property/discounted-kiwi-shares-offer-a-healthy-yield

[Baa_Baa]

Precinct Property & PAG, the other side of the 44 Bowen Street divestment, along with settlement date mid-2023. https://www.nzx.com/announcements/403221

[Rawz]

Precinct Property & PAG, the other side of the 44 Bowen Street divestment, along with settlement date mid-2023. https://www.nzx.com/announcements/403221

these the suckers LEK was talking about then? lol

[LaserEyeKiwi]

KPG goes ex-Div next monday (3rd Dec) so I expect a little bit of buying pressure this week.

[winner69]

these the suckers LEK was talking about then? lol

Seems PCT are suckers as well .... acquired a new development in Wellington it seems

61 Molesworth St ... was pretty badly damaged and then demolished after Kaikoura quake but new build will be seismic resilient so no worries

Hope PCT and PAG not take it heart being called suckers

[LaserEyeKiwi]

Seems PCT are suckers as well .... acquired a new development in Wellington it seems

61 Molesworth St ... was pretty badly damaged and then demolished after Kaikoura quake but new build will be seismic resilient so no worries

Hope PCT and PAG not take it heart being called suckers

Precinct building brand new very high seismic rating buildings in Wellington is slightly less risky than buying an old pre-existing building like KPG’s 44 The terrace was. I still wouldn’t choose to do either, but thats just me.

Precinct portfolio heavily exposed to Wellington.

[SPC]

Heavily exposed to a bloated civil service I expect. Mostly public servants shifting in to green star buildings?.
That could change in the future when Labour's run ends.
ARG / KPG/ GMT are more appealing to me.

[winner69]

KPG putting its plans for a CBD office fund on the back burner probably a good move

Wait and see how things evolve re future demand for office space

[Aaron]

Article on the front page of the business herald this morning singing the praises for KPG and its yield. We need beagle here to counteract some of the positives.

I am not sure of the debt of KPG but imagine some fairly cheap bonds will need to be replaced sometime in the future. 2023, 2024, 2025 and 2028. Haven't spent any time on this but imagine the 2.85% Green Bond will be replaced with much more expensive debt (currently trading on the secondary market at 5.9% (more than double)). Not sure how much of the company debt the bonds represent.

I hold some KPG but have not done the research. Maybe Winner69 can stop panicking about the share price now that there is a fluff piece in the herald. Will be interesting to see how the share price goes this week with a bit of advertising. I am pretty sure I am not the only one out there investing on whims rather than solid research.

You get the feeling from the article that the author does not really expect interest rates to be up for long.

A bit like reading an Ashley Church article, total faith in inflation targeting and central bank monetary policy, much like TeslaGod.

[Rawz]

I think beagle owns KPG. Main reason he bought was for the yield lol

[Aaron]

I think beagle owns KPG. Main reason he bought was for the yield lol

He must be viewing it like a bond then, as his main gripe from what I remember is that KPG had not managed to raise earnings or dividends over an extended period of time. I could have that wrong as my memory is not that good.

I also find it hard going back to find previous posts, although this would be handy sometimes. I am probably not using the website search capabilities correctly.

[Rawz]

This is what Beagle says from that other place:

17 OCT
I think the market is saying we have little confidence that your plans to recycle capital from Northlands (which had an incredible yield of 12%) into new projects with a much lower yield is value accretive to shareholders.

Market also appears to have little confidence that they can execute on their strategy to sell half their office assets into a JV company that KPG will manage and also appears to be skeptical that anything they do with Drury will add value.

Not going to get too big in these no matter what the yield. Other companies' management have earned my respect...this one...the directors have a huge task to convince me they know what they're doing. I only bought for the yield.

28 Nov
Yes the payout ratio of AFFO (adjusted funds from operations) is only 69% but still gives a gross yield of 9.3% (for 33% taxpayers). That and the 40 cent discount (30.5%) to NTA means as far as I am concerned its a sound hold for yield. One would hope their development activities at Drury and Sylvia park will be value and income accretive

[Rawz]

KPG a dividend trap?

[percy]

https://www.nzx.com/announcements/403115
After reading the above announcement I added some KPG to the wife's portfolio.
Recycling funds into future more profitable ventures looks interesting.
Sylvia Park cashflow is sound.Medical and office development should also add to cash flow.
I have seen units built on top of shopping centres in Aussie.Works well.
Lot of future opportunities with huge Drury development.I would expect they will sell part of it to fund their own capital requirements.

[winner69]

https://www.nzx.com/announcements/403115
After reading the above announcement I added some KPG to the wife's portfolio.
Recycling funds into future more profitable ventures looks interesting.
Sylvia Park cashflow is sound.
I have seen units built on top of shopping centres in Aussie.Works well.
Lot of future opportunities with huge Drury development.

I was impressed what developers are doing at Elephant and Castle in London when given a tour of the area a few years ago

[percy]

I was impressed what developers are doing at Elephant and Castle in London when given a tour of the area a few years ago

Just looked on Google Maps.
Incredible.

[fungus pudding]

Just looked on Google Maps.
Incredible.

https://www.google.com/maps/place/Elephant+%26+Castle/@51.4940094,-0.098461,3a,75y,90t/data=!3m8!1e2!3m6!1sAF1QipOo5_g17kdGBerywZAMo2CSmo W_UluGGQjTgqWd!2e10!3e12!6shttps:%2F%2Flh5.googleu sercontent.com%2Fp%2FAF1QipOo5_g17kdGBerywZAMo2CSm oW_UluGGQjTgqWd%3Dw114-h86-k-no!7i4080!8i3072!4m13!1m7!3m6!1s0x487604a23d99f27f :0x1a4907e34b872655!2sElephant+and+Castle,+London, +UK!3b1!8m2!3d51.4959129!4d-0.1004748!3m4!1s0x487604a1e23dfb5d:0x39490af8088ce 18c!8m2!3d51.4940094!4d-0.098461

SCroll through 431 photos on left to get an idea of it.

[winner69]

It was almost 40 years ago when with a 3 year old in tow we got on the wrong underground train (and wrong side of the Thames) so got off at Elephant and Castle.

Wound our way up the passages and steps to ground level ... and was really scared .... the shops all had big grills and the people hanging around were really scary so I told my 3 year old we getting out of here and went outside and caught the first bus that came along .... luckily heading in right direction. I learnt later I wouldn't have been the first person to feel scared out of their wits in Elephant and Castle

Still remember that and that's why I was impressed what it looks and feels like now .... almost respectable .... they say gentrification has done the trick

Maybe KPG are following suit

[Snoopy]

I was impressed what developers are doing at Elephant and Castle in London when given a tour of the area a few years ago


Did you know that England is the only country in the world with more castles than elephants? Although when Auckland Zoo's elephant 'Burma' finds a new home -and provided Larnach castle in Dunedin is still standing-, good old NZ will join them.

SNOOPY

[winner69]

Hi LEK ….haven’t heard from you for over a month. I hope you are OK.

Whatever ….Happy New Year to you.

[Habits]

American tourist surprised by New Zealand ‘attraction’ - the shopping mall
https://www.nzherald.co.nz/travel/american-tourist-surprised-by-new-zealand-attraction-the-shopping-mall/V2BYPVKUJNDP7FMF2ASCQ6H2TU/

Apparently the key to shopping heaven is kids playgrounds, a variety of shops and food courts.

The non-beautiful summer weather might be a bonus

[Sideshow Bob]

https://www.nzx.com/announcements/405701

Kiwi Property delivers record-breaking sales in 2022

24/1/2023, 8:52 amGENERALKiwi Property today advised that its mixed-use shopping centres recorded just under $1.7b in total sales in 2022 [Note 1], setting a record for the company. The sales performance is almost 26% higher than 2019, the last year of trading unaffected by COVID-19.

2022 sales were also up significantly compared to 2021, including an increase of 5% in December versus the same time last year, a notable contrast to the overall decline in retail card spending in New Zealand during the month.

Linda Trainer, GM Asset Management at Kiwi Property said “There were around 25 million customer visits to Sylvia Park, LynnMall and Te Awa at The Base in 2022, with customers spending more than $200 million at our centres in December alone. This strong result further supports our strategy of investing in, and intensifying, our mixed-used assets, which include some of New Zealand’s best shopping destinations.

“Despite the challenging economic climate, Kiwi Property’s flagship centres such as Sylvia Park, with its diverse mix of first-to-New Zealand stores and favourite local retailers, coupled with a growing number of office and medical tenants, will help the business remain resilient through a potential future downturn, and position it for growth in the period that follows.”

ENDS

[winner69]

You have to love companies like KPG which remain resilient through a potential future downturn, and position it for growth in the period that follows.”

Cool stuff

[RTM]

https://www.nzx.com/announcements/405701

Kiwi Property delivers record-breaking sales in 2022

24/1/2023, 8:52 amGENERALKiwi Property today advised that its mixed-use shopping centres recorded just under $1.7b in total sales in 2022 [Note 1], setting a record for the company. The sales performance is almost 26% higher than 2019, the last year of trading unaffected by COVID-19.

2022 sales were also up significantly compared to 2021, including an increase of 5% in December versus the same time last year, a notable contrast to the overall decline in retail card spending in New Zealand during the month.

Linda Trainer, GM Asset Management at Kiwi Property said “There were around 25 million customer visits to Sylvia Park, LynnMall and Te Awa at The Base in 2022, with customers spending more than $200 million at our centres in December alone. This strong result further supports our strategy of investing in, and intensifying, our mixed-used assets, which include some of New Zealand’s best shopping destinations.

“Despite the challenging economic climate, Kiwi Property’s flagship centres such as Sylvia Park, with its diverse mix of first-to-New Zealand stores and favourite local retailers, coupled with a growing number of office and medical tenants, will help the business remain resilient through a potential future downturn, and position it for growth in the period that follows.”

ENDS
This note is interesting:
“1:Sales information is based on data obtained from third parties or estimated by Kiwi Property where this data is unavailable. Sales information has not been independently verified. Mixed-use shopping centres comprise Sylvia Park, LynnMall, Te Awa (The Base) excluding large format retail. Northlands, The Plaza and Centre Place are excluded for consistency with Kiwi Property’s FY22 annual and FY23 interim reporting treatment.”

I wonder what % is estimated ?

[Poet]

Hmmm, up 8% today. Other REITs flat or down. Something up, corporate wise?

[Baa_Baa]

Hmmm, up 8% today. Other REITs flat or down. Something up, corporate wise?

The update was really encouraging. Technical breakout today with a small pull back into the close. Next target around $1.02-03. This has been underpriced for ages now. Even that TA target is 21% discount to NTA.

Cheap as, for the long run.

[na2m1]

Had a look around the area of Sylvia Park and it has grown tremendously. The development for 3 te kehu way I would say is almost completed. I can see 2 levels are already built in their BTR apartment. I did ask a question myself, would I live in the BTR? I would say yes. Close to pretty much all the major grocery stores, movie cinema and office buildings. Just my 2 cents.

Disclaimer: a young adult trying to build a career.

[Rawz]

I’m expecting these BTRs to have high occupancy and achieve above market rents.

Lots of renters will love the fact that the landlord is a professional with long term in mind. Nothing worse than being settled in with your family and then getting a notice that the owner is selling and you need to pack your stuff and move at great expense. Happened to me once back when we were renting, very annoying.

Being next to a mall that has literally everything means no car needed. The appeal is very strong

[Habits]

Kiwi Property portfolio valuation update

KPG
06/03/2023 08:30
GENERAL
NOT PRICE SENSITIVE
REL: 0830 HRS Kiwi Property Group Limited

GENERAL: KPG: Kiwi Property portfolio valuation update

Kiwi Property today announced its draft valuations for the six months ended
31 March 2023, including a preliminary 4.1% or $134.7 million reduction in
the fair value of its property portfolio. The Company's mixed-use, office,
retail and other properties are expected to be worth $3.2 billion at the
close of the period.

Kiwi Property Chief Executive Officer, Clive Mackenzie said: "Our investment
portfolio continued to track well through the second half of the financial
year, posting sales growth and rental uplift, while maintaining almost 100%
occupancy.

"Despite this strong operational performance, the trend of rising interest
and capitalisation rates being felt in New Zealand, and around the world, has
caused valuations to decrease. By continuing to diversify our mixed-use asset
base at locations like Sylvia Park, LynnMall and The Base, we will help
mitigate the impact of these movements going forward."

Kiwi Property's draft asset valuations are subject to final independent
audit, finalisation of year-end book values and will be confirmed in the
Company's annual results for the year ended 31 March 2023, due to be released
on 22 May 2023.

[LaserEyeKiwi]

Hi LEK ….haven’t heard from you for over a month. I hope you are OK.

Whatever ….Happy New Year to you.

I am still alive, thanks!

Much reduced my online activity over the summer - which much improved my mood to no surprise.

[LaserEyeKiwi]

Kiwi Property portfolio valuation update

KPG
06/03/2023 08:30
GENERAL
NOT PRICE SENSITIVE
REL: 0830 HRS Kiwi Property Group Limited

GENERAL: KPG: Kiwi Property portfolio valuation update

Kiwi Property today announced its draft valuations for the six months ended
31 March 2023, including a preliminary 4.1% or $134.7 million reduction in
the fair value of its property portfolio. The Company's mixed-use, office,
retail and other properties are expected to be worth $3.2 billion at the
close of the period.

Kiwi Property Chief Executive Officer, Clive Mackenzie said: "Our investment
portfolio continued to track well through the second half of the financial
year, posting sales growth and rental uplift, while maintaining almost 100%
occupancy.

"Despite this strong operational performance, the trend of rising interest
and capitalisation rates being felt in New Zealand, and around the world, has
caused valuations to decrease. By continuing to diversify our mixed-use asset
base at locations like Sylvia Park, LynnMall and The Base, we will help
mitigate the impact of these movements going forward."

Kiwi Property's draft asset valuations are subject to final independent
audit, finalisation of year-end book values and will be confirmed in the
Company's annual results for the year ended 31 March 2023, due to be released
on 22 May 2023.

Most important part of this update: "Our investment
portfolio continued to track well through the second half of the financial
year, posting sales growth and rental uplift, while maintaining almost 100%
occupancy.“

Great to hear, and is what matters from an actual operational perspective.

Portfolio valuation will rise & fall along with the interest rate environment, but operational cashflow is what pays the bills (and dividends).

I still of course continue to see the giant disconnect between NTA and share price as an opportunity, patiently waiting for the next dividend for reinvestment which should be announced shortly and paid before month end.

[Rawz]

I like how the value of the portfolio isnt price sensitive

[Habits]

Most important part of this update: "Our investment
portfolio continued to track well through the second half of the financial
year, posting sales growth and rental uplift, while maintaining almost 100%
occupancy.“

Great to hear, and is what matters from an actual operational perspective.

Portfolio valuation will rise & fall along with the interest rate environment, but operational cashflow is what pays the bills (and dividends).

I still of course continue to see the giant disconnect between NTA and share price as an opportunity, patiently waiting for the next dividend for reinvestment which should be announced shortly and paid before month end.

Cashflow can only be increased when rents are reviewed, usually less often with commercial prop. Although should be annually in this inflation environment.

Would be good to see the breakdown of different assets to see their performance and value change.

[Habits]

I am still alive, thanks!

Much reduced my online activity over the summer - which much improved my mood to no surprise.

Welcome back LEK. Your posts are terrific and helpful, don't forget about us on sharetrader

[na2m1]

I am still alive, thanks!

Much reduced my online activity over the summer - which much improved my mood to no surprise.

Welcome back LEK. Sharetrader is a wee bit quiet without you

[Ricky-bobby]

Totally agree LEK great to have u back! Very valuable insight

[winner69]

WTF ….share price down to 86 cents

Must be close to an all time LOW or lowest this century

What’s up?

[Grimy]

Maybe the new bond issue has worried some (don't really know why it would)?

[777]

Ex dividend today

[winner69]

Ex dividend today


Thanks

But 86 cents is pretty low share price eh

[troyvdh]

Its the economy s..... retail spending may suffer....However PFI is also at lows.I believe once everyone is convinced that inflation has peeked...And the realisation that to build these entities buildings costs a lot more (same goes for retirement homes) these companies should be revaluated.
Im predicting that Balance will mention its all about the land value.

[Aaron]

WTF ….share price down to 86 cents

Must be close to an all time LOW or lowest this century

What’s up?

Can't just be interest rates rising. Maybe they are in the wrong sectors retail and residential? How big is the drury development as a portion of their asset base. Potentially risky in the current environment? South Auckland land might not be as attractive in a less exuberant economy. Going ex div can't help.

Maybe Beagle's assessment of the company is still scaring off investors. Maybe he is right and it is just some chickens coming home to roost for the company. Buy some shares and push the price back up then we don't have to worry anymore.

[bull....]

in the US there is a lot of chatter about commercial real estate problems that might eventuate

[Aaron]

I suppose interest rates doubling might mean $40mill less a year for dividends which might also mean a cut in dividends.

[LaserEyeKiwi]

I suppose interest rates doubling might mean $40mill less a year for dividends which might also mean a cut in dividends.

Not sure where you are getting “interest rates doubling” & “$40mill less a year for dividends’ from. Math doesn’t check out at all.

KPG had an average interest cost of 4.41% as of last earnings, with most debt not due to roll over for several more years.

Todays bond offering (equal to roughly ~10% of their debt) was oversubscribed and is only paying a 6.24% interest rate.

Their average interest cost at their next earnings date will likely remain under 5%, nowhere anywhere near in any danger of lowering the dividends.

[Poet]

Not sure where you are getting “interest rates doubling” & “$40mill less a year for dividends’ from. Math doesn’t check out at all.

KPG had an average interest cost of 4.41% as of last earnings, with most debt not due to roll over for several more years.

Todays bond offering (equal to roughly ~10% of their debt) was oversubscribed and is only paying a 6.24% interest rate.

Their average interest cost at their next earnings date will likely remain under 5%, nowhere anywhere near in any danger of lowering the dividends.

Quite true, they also have interest rate hedging instruments (that were in the money by $10m as at HY report in November)

[Aaron]

Not sure where you are getting “interest rates doubling” & “$40mill less a year for dividends’ from. Math doesn’t check out at all.

Out of my ar*e obviously. My method was perhaps too simplistic I took $36,859mill from the cashflow statement in the 2022 annual report and divided it by $1,135,944mill in interest bearing liabilities in the 2022 Statement of Financial Position to get 3.2% but see now that my numbers are being checked I missed $3,800 capitalised interest which would take it to 3.6% so maybe not quite doubling at 6.24%. Timing for the increase in interest rates I never considered.

Basically I took $40,659 mill from 2022 and doubled it.

I stand corrected but wonder if you think these figures I put forward are totally wrong or OK for a ballpark estimate. Even if they don't consider when debt will roll over at a higher rate.

[Aaron]

Out of my ar*e obviously. My method was perhaps too simplistic I took $36,859mill from the cashflow statement in the 2022 annual report and divided it by $1,135,944mill in interest bearing liabilities in the 2022 Statement of Financial Position to get 3.2% but see now that my numbers are being checked I missed $3,800 capitalised interest which would take it to 3.6% so maybe not quite doubling at 6.24%. Timing for the increase in interest rates I never considered.

Basically I took $40,659 mill from 2022 and doubled it.

I stand corrected but wonder if you think these figures I put forward are totally wrong or OK for a ballpark estimate. Even if they don't consider when debt will roll over at a higher rate.

Hey LEK interested to know, although not accurate and no account of when things roll over but if you think my calculations are wildly out, what would you recommend I do next time so I don't make the same mistake.

Why does my maths not check out at all? Is my calculation too basic?

[Waltzing]

Time to have a look at the Results LEK but its a big read.. but historically the SP is a bargain

[Grimy]

Got the dividend today, but when I went to Link to download the distribution advice I couldn't get in. Firstly the site didn't load correctly. Tried again and the log-in page came up, but said I'd used an invalid FIN. Same one I've always used without problem. Anyone else have an issue getting in today? I have emailed them about it.

[mike2020]

I tried a third time and it worked.

[fungus pudding]

Got the dividend today, but when I went to Link to download the distribution advice I couldn't get in. Firstly the site didn't load correctly. Tried again and the log-in page came up, but said I'd used an invalid FIN. Same one I've always used without problem. Anyone else have an issue getting in today? I have emailed them about it.

My first attempt told me fin was wrong - I'm damn sure it wasn't - got in second attempt. Must be a bit of a bug there somehow.

[Grimy]

Thanks guys. Good to know it wasn't just me having a senior moment.......

[Habits]

I clicked on the candlestick chart and initial reaction was wow, really looking good for a breakout. There has been a two month tight consolidation around current levels. And we've seen this before, from June to Sept 2020 before a strong move.

Earnings dependent, result this week

[Baa_Baa]

I clicked on the candlestick chart and initial reaction was wow, really looking good for a breakout. There has been a two month tight consolidation around current levels. And we've seen this before, from June to Sept 2020 before a strong move.

Earnings dependent, result this week

Yes agree, I've bought three more parcels in past six months, avg $0.90 to raise KPG in my portfolio to 13%. KPG currently priced at 31% discount to NTA $1.31 and 9.7% gross dividend yield, paid quarterly and undemanding P/E 6.06, EPS 14.8c.

I'm anticipating a further reduction in property valuation, but otherwise business as usual good cashflows, high occupancy and ongoing builds. Particularly interested in progress on Drury. I have to occasionally remind myself, this company owns and manages $3.6 billion property assets (https://view.publitas.com/kiwi-property-89am9pxqykbk/kiwi-property-2022-property-compendium/page/1) and manages a further $400 million for clients.

Results to 31 March announce next Monday. Webcast at 10am (https://edge.media-server.com/mmc/p/save748r).

[Habits]

I've kept investing in KPG but then look back and ask myself why. Watching this video has re-inspired me: ‘A place to set roots’ Kiwi Property build-to-rent Sylvia Park
https://www.nzherald.co.nz/business/a-place-to-set-roots-kiwi-property-build-to-rent-sylvia-park/XWQS7U77EKJI7VQT7ZOOJDMPFE/

The new office tower is complete and the BTR apartments nearing completion. The BTR rents will be pitched at upper end i'd say, be interesting to know the % yield

[Sideshow Bob]

https://www.nzx.com/announcements/411747


• Net rental income: $203.7m (+13.9%)
• Operating profit before tax: $129.6m (+11.3%)
• Net loss after tax: -$227.7m (-201.5%)
• Adjusted funds from operations: $116.5m (+16.1%)
• Net tangible assets per share: $1.23 (-14.9%)
• Final dividend: 5.70 cps (+1.8%)

Kiwi Property released its annual results for the year ended 31 March 2023 (FY23) today, announcing record sales across its mixed-use property portfolio. The company recorded more than $1.7 billion in sales at Sylvia Park, LynnMall and The Base, up 28.5% on FY22 and 34.8% on FY19. Sylvia Park’s performance was particularly strong with sales of $889 million across the precinct, reinforcing its standing as New Zealand’s favourite shopping centre [Note 1].

Kiwi Property’s net rental income continued its recent growth, rising 13.9% to $203.7 million in FY23, partially assisted by the final release of COVID-19 rental abatement accruals. Operating profit before tax increased 11.3% to $129.6 million, while adjusted funds from operations rose 16.1% to $116.5 million.

Kiwi Property Chief Executive Officer, Clive Mackenzie, said: “Our evolution from a retail and office landlord to a creator of connected communities continues to gain momentum. While this transition will take time, we achieved a robust operating performance over the past year, while simultaneously reshaping our portfolio and moving the business closer to our goal of becoming a developer, owner and operator of mixed-use assets at metropolitan town centres.”

The company’s property portfolio was almost entirely leased on 31 March 2023, with occupancy sitting at 99.3%, reflecting the strong tenant demand for space in Kiwi Property’s mixed-use and office assets. Rental uplift was similarly robust, with leasing spreads on rent reviews and new leasing up 5.3% and 4.4% respectively, despite the challenging economic environment. Kiwi Property’s occupancy cost ratio (a key measure of specialty retail affordability) decreased to 12.9%, providing substantial scope to drive growth.

Further to the announcement made by Kiwi Property on 6 March 2023, the fair value of the company’s investment portfolio decreased by 4.2% or $139.3 million [Note 2] in the second half of FY23, driven by rising interest and capitalisation rates. The reduction in asset values contributed to a full year net loss after tax of $227.7 million.
The Sylvia Park Precinct [Note 3] and The Base proved the most resistant of the company’s assets to the downward macroeconomic pressure, with fair value decreases of just 1.0% and 2.0%, respectively, over the six months ended 31 March 2023. Capitalisation rate softening across office assets such as the Vero Centre and ASB North Wharf led to a 6.1% decline in the fair value of the company’s office portfolio during the same period.

“The relative resilience of our key mixed-use assets highlights the strength of these flagship properties and the merits of our mixed-use strategy overall,” said Mackenzie. “While the decline in the value of our investment portfolio is disappointing, it is not unexpected given the stage of the property cycle and current economic headwinds. By continuing to drive sales, grow rents and diversify our income streams, we will help mitigate further valuation decreases and encourage a faster recovery as the market improves.”

Proactive capital management

Kiwi Property continued to progress on its capital recycling programme in FY23, executing the sale of Northlands Shopping Centre and 44 The Terrace in the second half of the financial year. Post-balance date, the company also sold the Westgate Lifestyle Shopping Centre for $85.7 million, with settlement taking place on 1 May 2023. Kiwi Property’s gearing was 35.0% at the end of FY23, however this figure decreased to 33.3% on a pro-forma basis following the Westgate Lifestyle transaction.
In March, the company overcame a volatile period in the debt capital markets to complete a successful $125 million Green Bond issue. The heavily oversubscribed offer enjoyed particularly strong support from retail investors nationwide, highlighting the breadth and depth of support for Kiwi Property, its mixed-use strategy and strong sustainability credentials.

“The sale of our non-core properties and recycling of proceeds is a central pillar of our funding strategy,” said Mackenzie. “Not only do these asset sales provide a low cost of capital, they also help create a newer, higher quality and lower risk property portfolio. Strict capital management and ensuring a healthy balance sheet will be a priority in FY24 as we navigate the tough current operating environment and resulting decline in property values.”

A disciplined approach to development

Kiwi Property continued to execute on its development roadmap in FY23, completing the 3 Te Kehu Way office development in March 2023. The distinctive six-level building has been designed to cater to the requirements of both medical and office tenants and has attracted interest from a wide range of businesses keen to establish a presence at Sylvia Park’s growing commercial hub. The previously announced tenants of Tamaki Health, Horizon Radiology and Regus co-working will also be joined by Geneva Finance, government agency, Rau Paenga, and CLC Consulting.

Elsewhere at Sylvia Park, the sale of 3.2 hectares of land to IKEA is now unconditional, while in parallel, work is ongoing on the precinct’s 295 apartment build-to-rent (BTR) complex. The development’s superstructure is now up to nine floors high and on track for completion in early FY25. BTR continues to proliferate in markets such as Australia, where quality BTR apartments attract impressive rents. Kiwi Property expects similar trends to flow to the New Zealand market, positioning BTR to deliver attractive returns over time.

The company is making significant progress at Drury, where stage one earthworks are underway and the site’s 13 residential super-lots are now formed, and at grade. Kiwi Property has a range of options available to fund the development, including the introduction of capital partners, the sell-down of one or more of the site’s super-lots or even potentially the release of large format retail sites.

“We are focussed on ensuring a disciplined approach to property development, with a targeted pipeline of projects underway. Our 125-hectare mixed-use landholding allows us to dictate the timing of future activity in line with demand, funding and the cost of capital. Decisions of when, where and how to proceed will always be dictated by the site’s highest and best use and its ability to create value for our stakeholders,” added Mackenzie.

Changes to the Kiwi Property Board

Kiwi Property Chair, Mark Ford, will retire as a director of the company at its annual meeting of shareholders, scheduled for 28 June 2023, when he will be succeeded by current director, Simon Shakesheff. Mark Powell has also recently resigned as member of the Kiwi Property Board, effective 19 May 2023.

Mr Ford and Mr Powell will be replaced by Carlie Eve and Peter Alexander. The new directors will bring a wealth of property and investment experience to the company and will play a pivotal role in overseeing its ongoing transformation into a creator and curator of world-class mixed-use communities.
“It has been a pleasure serving on the Kiwi Property Board and I would like to thank our shareholders for their trust and support. I am extremely pleased that a director of Simon’s calibre will take over as Chair. His knowledge of the business, intellectual rigour, and commitment to driving performance will be invaluable as the company enters its next chapter. He will be ably supported by a highly capable Board that will be made even stronger by Carlie and Peter’s appointments,” added Ford.

Dividend and guidance

Kiwi Property will pay a cash dividend of 1.425 cents per share for the fourth quarter of FY23 on 21 June 2023, taking the full-year cash dividend payment to 5.70 cents per share. The company will also reinstate its Dividend Reinvestment Plan (DRP) for the fourth quarter of FY23. The terms were modified on 19 May 2023 and pricing for this dividend will now be based on the volume weighted average price for the five trading days to 12 June 2023. The reintroduction of the DRP will contribute to the organisation’s multi-faceted capital management programme and enable shareholders to grow their Kiwi Property holdings at a 2% discount, and without transaction costs.

The company today also confirmed its dividend guidance at 5.70 cents per share for the 2024 financial year [Note 4], which Kiwi Property expects to be within its target payout range of 90-100% of adjusted funds from operations, while still delivering shareholders an attractive gross dividend yield of 9.5% [Note 5].

FY24 Outlook

Ford said the company was focused on delivering for stakeholders today while taking steps to drive the company’s success and returns in the future.
“Given the well-documented interest rate and inflation related headwinds facing New Zealand, maintaining strict financial and operational discipline will be vital to Kiwi Property’s ongoing performance,” said Ford. “Managing our balance sheet will be an ongoing priority as we navigate the volatile economic environment and the downward pressure it is placing on commercial property values.

“We are clear on our way forward and confident of our ability to turn our strategy into reality. By doing so, we will drive the company’s operational results, promote growth in our share price and help create greater recognition within the market of Kiwi Property’s value,” Ford concluded.


Additional information

Kiwi Property has today also released an Annual Results Presentation, Annual Report, Property Compendium, Sustainability Report and Sustainable Debt Framework, which are available for download on the company’s website kp.co.nz/annual-result or from nzx.com
nzx.com

[kiwikeith]

Interesting that KPG has 42 employees who earn over $200k pa. KPG has $3.2bn of total assets. Argosy, by contrast, has 16 employees earning over $200k pa and Argosy has $2.3bn of total assets. Something for KPG to benchmark itself. For those from Manawatu, interesting to note that the fair value of the Plaza in Palmy has fallen from $150m to $107m (-29%) despite spending $4m on capital expenditure in the last 12 months. It always seems busy in there and God only knows when they are going to finish upgrading the carpark as people are fed up driving around looking for a spare space.

[Grimy]

It's pretty bad isn't it Keith. I made the mistake a couple of months back when visiting family to try and use Church street/Ashley street/Fergusson street on a wet afternoon. I feel I'm lucky to not still be stuck there......It has a roll-on effect right around the square (which has never been great) and even Rangitikei and Broadway.

[LaserEyeKiwi]

Interesting that KPG has 42 employees who earn over $200k pa. KPG has $3.2bn of total assets. Argosy, by contrast, has 16 employees earning over $200k pa and Argosy has $2.3bn of total assets. Something for KPG to benchmark itself. For those from Manawatu, interesting to note that the fair value of the Plaza in Palmy has fallen from $150m to $107m (-29%) despite spending $4m on capital expenditure in the last 12 months. It always seems busy in there and God only knows when they are going to finish upgrading the carpark as people are fed up driving around looking for a spare space.

The Plaza had the double whammy of falling values for retail complexes and the increase in earthquake strengthening costs required to bring its faults up to code. It is the last of its big assets they have been trying to sell off so I wouldn’t be surprised to see it sold for below that stated value.

[LaserEyeKiwi]

Was very happy to hear they had offloaded Westgate lifestyle complex for $85.7m earlier this month (not reflected in results which were to Mar 31st).

Combined with the re-introduction of the DRP, should have ample cash on hand this year to avoid increase in unnecessary debt.

Also interesting to hear they have significant interest in Drury assets, with a strong possibility development there can be self funded from selling portions off.

[Habits]

From the announcement "BTR continues to proliferate in markets such as Australia, where quality BTR apartments attract impressive rents." Promising chance of a decent return on investment

I'm heartened with the progress in Drury. Is it moving ahead of of schedule

[kiwikeith]

The Plaza had the double whammy of falling values for retail complexes and the increase in earthquake strengthening costs required to bring its faults up to code. It is the last of its big assets they have been trying to sell off so I wouldn’t be surprised to see it sold for below that stated value.

Probably not a bad buy if the Plaza comes back to the market in a syndication. The valuer used a captilalisation rate of 8.5% so the rental yield should be pretty good. And the place seems to be almost a monopoly in Palmy - the rest of the square, rangitikei street and broadway are like ghost towns most of the time.

[bull....]

Swedish furniture giant Ikea is about to begin construction on its first New Zealand store at Auckland's Sylvia Park, and expects it to open its doors at the end of 2025.

https://www.stuff.co.nz/business/132209339/ikea-breaks-ground-on-first-new-zealand-store

[LaserEyeKiwi]

Swedish furniture giant Ikea is about to begin construction on its first New Zealand store at Auckland's Sylvia Park, and expects it to open its doors at the end of 2025.

https://www.stuff.co.nz/business/132209339/ikea-breaks-ground-on-first-new-zealand-store




Will be fascinating to see what impact it has on other retailers at Sylvia Park. Wont impact many negatively of the 267 shops (mostly fashion based), except for the furniture retailers in the sylvia park lifestyle precint one would imagine (freedom, target etc), although those particular retailers may do better than they would otherwise have if IKEA was opening elsewhere in Auckland, from the overall large boost in extra customers coming to the sylvia park precinct specifically for IKEA, and any comparative shopping habits.

Needless to say IKEA will be good for all the service, food & commercial tenants at sylvia park (and by extension KPG itself). Also with the build to rent stage 1 residential complex to be completed in about 18 months, one would think IKEA would be an additional draw for perspective tenants.

[Sideshow Bob]

https://www.nzx.com/announcements/412772

KPG agrees terms for conditional Aurora Centre sale

8/6/2023, 5:16 pmGENERALKiwi Property today announced it had agreed the terms for a conditional sale of the Aurora Centre in Wellington to an institutional investor for $142.8m (net). The transaction price represents a 13.5% discount to the asset’s March 2023 valuation and will deliver a property level return from inception of 10.5%.

Further details, including the purchaser and settlement date will be provided once key conditions have been met.

Kiwi Property Chief Executive Officer, Clive Mackenzie, said “Asset recycling is an important pillar of our capital management strategy. The sale of Aurora Centre will enable us to further strengthen our balance sheet and unlock funds for reinvestment in our mixed-use properties.”

“We’re focussed on building flagship assets at metropolitan town centres in Auckland and the golden triangle, and this transaction will give even more strategic clarity to our current and future investors.”
ENDS

[Baa_Baa]

Someone said on another site, that this is a good trade, being below the 600 DMA (I didn't check that). Whatever, I said ..

"It's also a good long term buy/hold, income investment stock, trading well under NTA with compelling gross dividends, paid quarterly with DRP as well.

As the economy bottoms, property bottoms and comes back into favour, which it will, we might look back on the attractive long term discount these property plays are presenting, right now. A compelling shift in their investment strategy and long term build profile is encouraging as well, I like them a lot.

Definitely worth having a balanced % of portfolio. Not trading these, happy to hold for as long as they're making bank.

[Rawz]

https://www.nzx.com/announcements/412772

KPG agrees terms for conditional Aurora Centre sale

8/6/2023, 5:16 pmGENERALKiwi Property today announced it had agreed the terms for a conditional sale of the Aurora Centre in Wellington to an institutional investor for $142.8m (net). The transaction price represents a 13.5% discount to the asset’s March 2023 valuation and will deliver a property level return from inception of 10.5%.

Further details, including the purchaser and settlement date will be provided once key conditions have been met.

Kiwi Property Chief Executive Officer, Clive Mackenzie, said “Asset recycling is an important pillar of our capital management strategy. The sale of Aurora Centre will enable us to further strengthen our balance sheet and unlock funds for reinvestment in our mixed-use properties.”

“We’re focussed on building flagship assets at metropolitan town centres in Auckland and the golden triangle, and this transaction will give even more strategic clarity to our current and future investors.”
ENDS

I think in the long term KPG are on a winning strategy. Sylvia Park is looking like a city in itself. Drove past it the other day and could believe how quick those BTR apartments have gone up. Its amazing how the whole area has developed.

Just need to rinse and repeat in Drury

[LaserEyeKiwi]

Great GOOGAMOONGA!

They actually managed to divest fully from Wellington!

Seismic risk reduction almost complete! (Just got to offload THe Plaza in Palmy now)

[kiwikeith]

The plaza in palmy is a great asset. It is so often wet and windy in Palmy (for about 5 months of the year) and the Plaza has a monopoly on shopping places where you can stay warm and dry. However, once Kiwi finish the earthquake works, I expect it will go back on the for sale list.

[LaserEyeKiwi]

It wasn’t long ago that KPG was considering starting a “co-investment” platform to let others invest in its office portfolio containing 4 assets (The four standalone office properties - 2 in Wellington & 2 in Auckland) - now they have instead divested both of the wellington towers, will be interesting to see if the two Auckland towers are far behind in the sale queue.

It surely seems to be all in on mixed-use town centers (large format & speciality retail, office, BTR Residential in one location) from now on: Sylvia Park, LynnMall, Drury & its 50% shareholding in The Base being the primary focus.

[Onemootpoint]

Kiwi Property turns Sylvia Park into '20 minute city'

https://www.stuff.co.nz/business/property/132285034/kiwi-property-turns-sylvia-park-into-20-minute-city

[Sideshow Bob]

Alot of deck building going on.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/KPG/413349/396820.pdf

[Baa_Baa]

Six top brass sell down 261,714 shares for a $234,233 cash out. I wonder why they're all selling, are there outstanding options or rights that need to be paid for?

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/KPG/413349/396820.pdf

[kiwikeith]

Six top brass sell down 261,714 shares for a $234,233 cash out. I wonder why they're all selling, are there outstanding options or rights that need to be paid for?

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/KPG/413349/396820.pdf

Whatever the reason, it is hardly a vote of confidence in their cunning strategy.

[Baa_Baa]

Whatever the reason, it is hardly a vote of confidence in their cunning strategy.

Not necessarily, this happened only 18 days ago (https://www.kiwiproperty.com/corporate/investor-centre/#), there's a bunch of performance rights held by these big swingers. I'll need to check the annual report again, but don't have time right now.

[winner69]

Jeez in NBR today ‘Ratings agency S&P has revised its outlook on listed retail and commercial property group Kiwi Property to negative, saying it expected the Sylvia Park shopping centre owner’s credit metrics to deteriorate over the next year.’

Not all bad as they affirmed its BBB long-term issuer credit rating.

[Baa_Baa]

Jeez in NBR today ‘Ratings agency S&P has revised its outlook on listed retail and commercial property group Kiwi Property to negative, saying it expected the Sylvia Park shopping centre owner’s credit metrics to deteriorate over the next year.’

Not all bad as they affirmed its BBB long-term issuer credit rating.

There is a great deal more to investing in KPG than just Sylvia Park, it's like saying the earnings on one of many assets might be impacted by the downturn in retail, as opposed to the rest of the portfolio that is less, or not reliant on retail. (I'd be a lot more concerned owing retail than being their landlord ;) Maybe that's why S&P point out an (obvious) short term vulnerability to earnings, in one of their many assets, but didn't change the credit rating.

Think it through, these sound bite headlines are telling you something an investor should already know and if you were concerned you would have already done something about it.

Interesting that the timing of the NBR article is the day before the annual results presentation, something smells fishy there, maybe some NBR journo hating on KPG trying to stir up some clicks on their article? This is why I don't subscribe to NBR.

[LaserEyeKiwi]

Jeez in NBR today ‘Ratings agency S&P has revised its outlook on listed retail and commercial property group Kiwi Property to negative, saying it expected the Sylvia Park shopping centre owner’s credit metrics to deteriorate over the next year.’

Not all bad as they affirmed its BBB long-term issuer credit rating.

dubious, especially considering the recently announced asset sales.

nevertheless a good opportunity to re-invest the recent dividend if one hadn’t done so already.

[Baa_Baa]

dubious, especially considering the recently announced asset sales.

nevertheless a good opportunity to re-invest the recent dividend if one hadn’t done so already.

Yeah, absolutely agree, I switched to the DRP and am happy to maintain my % holding and accumulate more shares. I like that it's quarterly as well. A percent or two here or there imo is of no matter to me. You can only slice a decision to invest so thin, no timing decision will ever be perfect buying or getting shares.

No one should be invested in this, KPG, anymore, if they don't buy in to the shift in strategy and what the company is doing to make the shift happen, and how long it will take, all the while being profitable and sharing that as dividends. This is not the KPG of the past decade.

Doomers will say, how long, look at the history blah blah? I say, as long as it takes, and, to have only enough to be justified as a balanced portfolio. Sleep well at night with your investment.

[LaserEyeKiwi]

Jeez in NBR today ‘Ratings agency S&P has revised its outlook on listed retail and commercial property group Kiwi Property to negative, saying it expected the Sylvia Park shopping centre owner’s credit metrics to deteriorate over the next year.’

Not all bad as they affirmed its BBB long-term issuer credit rating.

FYI - management discussed this during the AGM this morning, appear quite confident given discussions with S&P that an actual downgrade will not take place, and the “negative outlook” is based on the probability that a single metric falling below a target number that S&P uses, and that S&P themselves appear to suggest will be resolved within a short time frame.

[LaserEyeKiwi]

Some good Q&A at the AGM.

Appreciated that the outgoing chair, now that they have finally offloaded all their Christchurch & Wellington assets, pointed out how big a fiscal drag owning these assets was over the last decade due to the seismic strengthening required ($250m cost).

All along I have been saying that owning commercial assets in high seismic risk areas is going to lead to inevitable ongoing future seismic costs, and I truly do not know why other large NZ property entities are jumping into the Wellington market with such gusto. It is insane.

[LaserEyeKiwi]

I’m not a big follower of technical analysis etc, but worth noting that today KPG finally broke out upwards from a 5 month period under 95c.

14689

[bull....]

I’m not a big follower of technical analysis etc, but worth noting that today KPG finally broke out upwards from a 5 month period under 95c.

14689

agree with you , upside momentum

fundamentally premium malls such as sylvia park dont lose much value in a recession compared to less premium malls

[Habits]

Over 8 percent gains from one month low. Now for the afterburner

[Waltzing]

Ita almost had a tripple bottom in last 12 months... still does anyone know if the new towns will make money? im sure someone is doing the numbers but that is a big big number crunch... remember the crunching on poor old OCA...

Oh Come Accumulate ...

https://www.youtube.com/watch?v=FqtttbbYfSM

[LaserEyeKiwi]

Ita almost had a tripple bottom in last 12 months... still does anyone know if the new towns will make money? im sure someone is doing the numbers but that is a big big number crunch... remember the crunching on poor old OCA...

Oh Come Accumulate ...

https://www.youtube.com/watch?v=FqtttbbYfSM

Drury is years away from generating rental income - for the short/medium term foreseeable future the only cash generation coming down the pike from Drury will be from the sale of the already formed “Superlots”. Capex spend on Drury has been slowed a lot now that stage 1 earthworks are nearing completion. Likely wont see rapid amount of work until market conditions improve (eg interest rates start dropping).

meanwhile the existing assets are already throwing off enough cash for the current 9% gross divi yield. 3 te kehu way (new offfice tower at sylvia park) just finished & BTR 1 at Sylvia park coming online in H1 ‘24.

Will be interesting to see if/when the 3 remaining non-mixed use assets - Vero tower & ASB North Wharf (auckland office towers) The Plaza mall (Palmy) - will be sold.

[Habits]

The joy of Tuesday turned to tears yesterday, up one day and down the next. The silver lining would be the low volume sell off

[bull....]

The joy of Tuesday turned to tears yesterday, up one day and down the next. The silver lining would be the low volume sell off

im in for long term div's and the eventual re-rating higher of stock price to nta ( ie close the gap )

[Habits]

im in for long term div's and the eventual re-rating higher of stock price to nta ( ie close the gap )

Bull...

You'd be the last person I'd expect to say that you're in for divs longterm. Its good you're a happy holder

[bull....]

Bull...

You'd be the last person I'd expect to say that you're in for divs longterm. Its good you're a happy holder

my portfolio size is at a stage now where i wish to build a core of income stream and the trading positions will be the satellites.

i have built a sizable holding in kpg + the recent ift bond issue at 6.9% + term deposits few others on the watchlist would ultimately like an income stream of close to 9 - 10% per annum

[Habits]

14701

Its started and going to cost $. How long for the cash to flow, The sailor might ask how will KPG pay its divvies

[LaserEyeKiwi]

14701

Its started and going to cost $. How long for the cash to flow, The sailor might ask how will KPG pay its divvies

KPG has committed to finishing up Stage 1 earthworks (leaving stage 2 and beyond earthworks for the future), very little capex committed beyond that in the near term and they have already mentioned potentially raising cash from their Drury holdings by selling one or more of the formed superlots to other developers. Having already had the land rezoned from rural to urban it is now able to reap the rewards once earthworks on stage 1 are complete (2024) and the titles are issued (2026)

So no its not a big cash drain in the near or medium term, and in fact could be a source of cash.

From AGM:

Chairman:

”Secondly, we are strictly managing the pace of development. Kiwi Property has a large mixed-use landholding of more than 125 hectares across Sylvia Park, LynnMall, The Base and Drury. The scale and zoning of these assets give us the flexibility to carefully manage the pace of our development programme, making strategic choices about what and when to build based on demand, market fundamentals and the cost of funding.”

CEO:

”Drury is one of Kiwi Property's most exciting current opportunities. With the private plan change now secured - which designated our site as the location of the future town centre - we're moving ahead to create an exciting new mixed-use asset over time. All 13 of the site's residential super lots are now formed and at grade, with titles expected to be issued early in the 2026 calendar year. This is excellent progress, especially considering some of the significant weather events over recent months.

Kiwi Property isn't the only party firmly committed to Drury. The central government is spending around $500m a year for the next five years to build infrastructure in the area, including the state highway 1 upgrade and the new Drury Central train station. These projects will enhance Drury's accessibility and help supercharge growth across the region.

After earth and civil works, the gross developed land value of our stage one site is expected to be $205m. The stage two site will be retained for future development and provides the opportunity to drive significant additional returns. We are focused on carefully managing the funding requirements of the Drury development and have a range of options available, including the introduction of capital partners or the sell-down of one or more of the site's super-lots or its LFR sites.”

[Habits]

Nice one LEK, I have a couple of questions

"landholding of more than 125 hectares across Sylvia Park, LynnMall, The Base and Drury." We know Drury has 53ha, which leaves 72ha at the othere 3 sites. I didn't realise SP LM and TB were so large, is this correct.

"After earth and civil works, the gross developed land value of our stage one site is expected to be $205m."
What was the proportional rural land cost plus development cost of stage one

[Waltzing]

Looking forward to seeing the results LEK of what might be seen as visionary investment by KPG..

[Habits]

The Base must have a large area of undeveloped land, that has HUGE future potential for medium and high density housing. The base has enough commercial property. Tainui won't be in a rush since they have their hands full at the inland port

[LaserEyeKiwi]

Habits: Last years investor day presentation had some good data for you to peruse:

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/KPG/398335/378420.pdf

At that time Sylvia Park was at 34 hectares, LynnMall 7 hectares, Drury 53 hectares (Drury land purchased for $54.9m). Thats 94 hectares combined, so presumably the rest is The Base.

At Mar 31st tis year, there was still $94m capex remaining budgeted for Drury stage 1 earthworks. Stage 1 is 18 hectares (of the 53 hectares total), and by itself stage 1 developed land is worth $205m.

$94m is still a fair bit of near term spend, can see why they are keen to fund that from other asset sales recently completed or about to be. But the KPG Drury plan is for development to occur over 20 years (!).

[winner69]

BusinessDesk article.

Forbar says listed real estate stocks outperforming the broad market and probably will continue to do so for a while.

But Kiwi not one of their top picks -

Forsyth Barr's top listed property bets are CBD office developer Precinct Properties, diversified investor Asset Plus and residential group Winton Land as the market moves into the next earnings cycle.

KPG not going to remain unloved is it …surely not.

https://businessdesk.co.nz/article/property/forbar-picks-its-listed-real-estate-winners

[Rawz]

BusinessDesk article.

Forbar says listed real estate stocks outperforming the broad market and probably will continue to do so for a while.

But Kiwi not one of their top picks -

Forsyth Barr's top listed property bets are CBD office developer Precinct Properties, diversified investor Asset Plus and residential group Winton Land as the market moves into the next earnings cycle.

KPG not going to remain unloved is it …surely not.

https://businessdesk.co.nz/article/property/forbar-picks-its-listed-real-estate-winners
Precinct and Winton the last two I would pick…

Precinct too much office for my liking with the whole working from home gig.

Winton too much residential development

[Habits]

Precinct and Winton the last two I would pick…

Precinct too much office for my liking with the whole working from home gig.

Winton too much residential development


Winton land WIN is up from 1.60 8 months ago, to 2.53

A 60 percent climb vs 13 perct up for KPG, which is also not bad over that timeframe. Will kpg be revived or will the same relative sluggish trend continue.

[LaserEyeKiwi]

Aurora Sale not completed!

============================
Aurora Centre sale update

1/9/2023, 10:20 am GENERALKiwi Property has today advised that the terms for the conditional sale of the Aurora Centre in Wellington have not been met and the transaction will not proceed at this time.

============================
Interesting. This will be a double edged sword for KPG.

Obviously they had a plan to de-risk out of seismic locations (Aurora Centre was one of only two assets south of Hamilton, the other being the plaza in Palmerston North), so this delays that plan. And also were looking to recycle funds for capital projects, so now either gearing increases slightly more than planned, or some capital projects are deferred.

Now on the positive side, this will increase cashflow & earnings for the current period to be higher than planned: Aurora Centre generated ~$9m in net operating income last year.

[Rawz]

Aurora Sale not completed!

============================
Aurora Centre sale update

1/9/2023, 10:20 am GENERALKiwi Property has today advised that the terms for the conditional sale of the Aurora Centre in Wellington have not been met and the transaction will not proceed at this time.

============================
Interesting. This will be a double edged sword for KPG.

Obviously they had a plan to de-risk out of seismic locations (Aurora Centre was one of only two assets south of Hamilton, the other being the plaza in Palmerston North), so this delays that plan. And also were looking to recycle funds for capital projects, so now either gearing increases slightly more than planned, or some capital projects are deferred.

Now on the positive side, this will increase cashflow & earnings for the current period to be higher than planned: Aurora Centre generated ~$9m in net operating income last year.

was there a non refundable deposit put down?

[Sideshow Bob]

was there a non refundable deposit put down?

I don't think this was disclosed, nor was the identity of the buyer.

[LaserEyeKiwi]

To be honest I was a little unimpressed at the sale price that was negotiated (a big discount to book value) considering it has a very long term government tenant for the building. I was happy they were getting out of Wellington though.

Best case scenario is they instead hang on to it for 2-3 years and sell it at a much better valuation once the interest rate cycle has reversed.

[Baa_Baa]

"Swedish home furnishing giant Ikea has completed the purchase of the land and site at Sylvia Park where its first New Zealand store is expected to open in late 2025.

Ikea New Zealand today announced the purchase from owner Kiwi Property Group of the 3.24 hectare site where construction began in June this year."

https://www.nzherald.co.nz/business/ikea-updates-on-first-nz-store-opening-completes-land-and-site-purchase/SGGGEHQA6BDIJHVDNWL45UT5FA/

[SPC]

I wonder if the Aurora sale was derailed by the upcoming permanent removal of depreciation? Less attractive to the buyer?.
Otherwise I'm beginning to think kpg are really ahead of the pack on future BTR strategy. From laggard to leader?...maybe..hope so.

[RTM]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/KPG/417652/402247.pdf

Good reminder of what kind of market we have here. Look at the off-market transactions.

[Sideshow Bob]

DRP at $0.842

[LaserEyeKiwi]

Interesting:

https://www.nzx.com/announcements/418796

Kiwi Property today released its draft valuations for the six months ending 30 September 2023, disclosing a preliminary 2.4% or $77.1 million decrease in the fair value of its diversified property portfolio. The Company’s mixed-use, office, retail and other properties are expected to be worth $3.1 billion at the close of the period.

Kiwi Property Chief Executive Officer, Clive Mackenzie said: “New Zealand’s high inflation, high interest rate environment has contributed to a widespread decline in property values over recent periods."

“While this is disappointing, we’ve continued to deliver an impressive operational performance, led by our mixed-use centres, such as Sylvia Park, LynnMall and The Base. Strong rental growth across these assets has offset softening capitalisation rates and helped mitigate the reduction in property values. It’s also pleasing to see retail property valuations beginning to strengthen, suggesting mounting confidence in the sector after a challenging couple of years.”

The draft valuations are expected to result in the following movements through the period.
• Mixed-use portfolio: -1.0% or -$20.1 million, with strong rental growth partially offsetting capitalisation rate expansion of 17.2 basis points.
• Office portfolio: -5.8% or -$50.8 million, reflecting headwinds in the office sector in New Zealand and offshore.
• Other properties: -1.7% or -$2.3 million, driven by capitalisation rate softening.
• Overall investment portfolio: -2.4%, led by capitalisation rate expansion of 27.8 basis points.
• Net tangible asset backing per share: $1.18, a reduction of 5 cents.

Kiwi Property’s draft valuations have been determined by independent valuers and are subject to finalisation and external review by Kiwi Property’s auditor, Deloitte. They will be confirmed in the Company’s interim FY24 financial statements, scheduled for release on 27 November 2023.
ENDS

[winner69]

NTA drops to $1.18

Jeez, it was $1.45 only 18 months ago and $1.43 in 2019

No wonder share price is where it is …maybe even saying more falls in valuations on way …..even though Clive raves about ‘valuations beginning to strengthen’ but then suppose he has to say that to avoid KPG getting to dog status.

[kiwikeith]

The issue with KPG is that it seems to be drifting away from property investor more towards property developer which is a completely different business. The residential build to rent business and Drury development should both benefit from massive immigration which appears to be back in vogue.

[Baa_Baa]

The issue with KPG is that it seems to be drifting away from property investor more towards property developer which is a completely different business.

That's true, though it is largely not at the expense of the high occupancy and revenue generating assets that the company continues to have. It is an adjunct to the historical norm, which I think is a good thing, to retain the earners, sell the losers and focus on development of the new regime. Personally I think KPG strategy is very well thought out, it will retain the dividend hungry investors with it's high dividend yields, and perk up some interest from investors who buy in to the longer term strategy.

It is long term though and gauging from this place, few have much horizon beyond the next dividend cheque or whether the SP is up or down. I think we're not talking to the atypical KPG investor who probably isn't much concerned with discussion groups and is more focused on their regular pay check. Which KPG do very well.


The residential build to rent business and Drury development should both benefit from massive immigration which appears to be back in vogue.

It should benefit I agree, though conflating the 'now' immigration situation, into the future, the long future when Drury will be a solid earner, is imo a long bow. I don't think current or short term immigration settings will have much, or any real effect on KPG, or Drury - which doesn't exist and won't for some time yet. Longer term, yes I've bought into BTR and think KPG are the most ambitious and forward looking REIT and am happy to have a balanced portfolio % allocated to it.

[LaserEyeKiwi]

As my mate LaserFistsKangaroo might say - Crikey!

After todays late day sell off, gross divi back up in ~10% land!

might have to start considering breaking my prohibition to adding more to my outsized position.

[Norwest]

After todays late day sell off, gross divi back up in ~10% land!

might have to start considering breaking my prohibition to adding more to my outsized position.

I grabbed a bunch at auction close 0.82 been watching for a while but I think its oversold now.

Where do you get 10% from? should be just over 8% gross yield...

[Baa_Baa]

I grabbed a bunch at auction close 0.82 been watching for a while but I think its oversold now.

Where do you get 10% from? should be just over 8% gross yield...

Depends on what tax rate you're on, whether tax on the gross yield is more or less than you're paying on your income. 39%'ers are getting better than 10% gross.

[Baa_Baa]

Depends on what tax rate you're on, whether tax on the gross yield is more or less than you're paying on your income. 39%'ers are getting better than 10% gross.

Probably not enough information, KPG are a listed PIE with a capped tax rate.

[Habits]

Up Friday from 82 cent low. Are we still range trading or something else

[Sideshow Bob]

Up Friday from 82 cent low. Are we still range trading or something else

Sub 80c now.....:scared:

[LaserEyeKiwi]

Excellent. Increased my holdings by 10% today. I love buying $1 coins for 60c, and getting paid a 10% gross yield to do it.

[Entrep]

Hitting all time low. What a dog.

[Baa_Baa]

Hitting all time low. What a dog.

$0.74 is the all time low (Covid crash), so not quite there, but still ... woof woof.

Good buying imo.

[LaserEyeKiwi]

Hitting all time low. What a dog.

Yes yes - better sell now! Everyone else too! Let’s get this sucker down closer to 70c please! I want an 11% yield on my next purchase.

[bull....]

bit of a jump yesterday , must be buyers thinking RBNZ done hiking esp after yest NZ inflation update

[Sideshow Bob]

https://www.nzx.com/announcements/422375

Net rental income: $89.1m (-16.2%. +2.5% like-for-like)
• Operating profit before tax: $52.4m (-26.7%. -1.0% like-for-like)
• Net loss after tax: -$36.5m (+75.8%. +76.6% like-for-like)
• Adjusted funds from operations: $48.6m (-25.4%. -0.2% like-for-like)
• Net tangible assets per share: $1.17 (-4.9%)
• Interim dividend: 2.85 cents per share (+0%)

[winner69]

https://www.nzx.com/announcements/422375

Net rental income: $89.1m (-16.2%. +2.5% like-for-like)
• Operating profit before tax: $52.4m (-26.7%. -1.0% like-for-like)
• Net loss after tax: -$36.5m (+75.8%. +76.6% like-for-like)
• Adjusted funds from operations: $48.6m (-25.4%. -0.2% like-for-like)
• Net tangible assets per share: $1.17 (-4.9%)
• Interim dividend: 2.85 cents per share (+0%)

Suppose you have to love them to think this is exciting news

Hard to enthuse over announcement even though it has big words and nice pictures in presentation

[LaserEyeKiwi]

It is a bit Ho-Hum sort of results, but the reiteration of dividend guidance is mostly what I care about. $$$ in the bank.

BTR 1 exterior work finished, those ~300 apartments will start generating revenue after interior fitout is complete in May. Combined with continued rental growth and completion of 3 tekehu way leasing will offset impact of the commercial building depreciation change next year.

[LaserEyeKiwi]

Good to see good control on expenses:

14868

[LaserEyeKiwi]

Some more detailed projection of BTR 1:

(Projected $11.7m in additional net operating income once fully leased)

14869

[LaserEyeKiwi]

analyst question: why suspend DRP for Q3?

answer: dont need the extra capital this quarter

[LaserEyeKiwi]

Q: What do you mean by balance sheet flexibiltiy?

A: capital recycling, eg aurora sale, land sales at drury.

[LaserEyeKiwi]

Confirming the BTR 1 net operating income is net of expenses.

nice.

[LaserEyeKiwi]

Drury expected to start contributing significantly to AFFO in FY25-26, from lot sales.

[LaserEyeKiwi]

Drury:
Stage 1 earthworks will be complete this summer.
Stage 1 “Services” work will be performed alongside sales.

[LaserEyeKiwi]

Projected AFFO impact from commercial building depreciation change: $4.5m-5m in next financial year.

[LaserEyeKiwi]

Last question confirming they expect median apartment rents to be in the range of $800 pw in BTR 1 Sylvia park.

[bull....]

It is a bit Ho-Hum sort of results, but the reiteration of dividend guidance is mostly what I care about. $$$ in the bank.

yep think most people only interested in this. anyway i thought it wasnt too bad. drury sales stage 1 will free up a lot of capital and by the time they go on the market probably be worth more than valued at currently.

[LaserEyeKiwi]

yep think most people only interested in this. anyway i thought it wasnt too bad. drury sales stage 1 will free up a lot of capital and by the time they go on the market probably be worth more than valued at currently.

Combined with the expectations of only ~$4.5m-$5m in AFFO impact from the incoming change to commercial building deductibility, it implies the dividend is safe from any sort of large reduction.

[bull....]

Combined with the expectations of only ~$4.5m-$5m in AFFO impact from the incoming change to commercial building deductibility, it implies the dividend is safe from any sort of large reduction.

depreciation not much in the scheme of things , the BTR has tax allowances as well which will help off-set this. the div is subject to no material downturn occurring in there footnotes but im feeling hopeful the change of govt will stabilize property markets and over the course of the next yr reduce cost of living which will help retail.

[LaserEyeKiwi]

depreciation not much in the scheme of things , the BTR has tax allowances as well which will help off-set this. the div is subject to no material downturn occurring in there footnotes but im feeling hopeful the change of govt will stabilize property markets and over the course of the next yr reduce cost of living which will help retail.

Reversing a few months, and a lot of the bearish arguments were regarding a potential collapse in dividend due to 2 things:

1). Rising interest costs
2). Commercial depreciation elimination being implemented.

Now we can I think conclusively say those two items are not going to lead to any sort of significant dividend reduction. They are negative items to be sure that isnt helping to grow the dividend, but they aren’t causing any large reduction in KPG’s dividend.

without an unexpected development, can expect KPG to keep paying 5.5c-5.9c (~7c gross) in the near term I think.

[RTM]

Last question confirming they expect median apartment rents to be in the range of $800 pw in BTR 1 Sylvia park.

“Work is underway on fit-outs of the scheme’s 295 studio, one, two and three-bedroom apartments”
So any more info on what $800 pw means ? I’m way out of touch on rental costs, is this good ? Bad? Indifferent ? in Auckland ? Is this for studio ? 1 bedroom, 2BR or 3 BR apartments do you know ?
Appreciate your comments to this thread LEK.

[LaserEyeKiwi]

“Work is underway on fit-outs of the scheme’s 295 studio, one, two and three-bedroom apartments”
So any more info on what $800 pw means ? I’m way out of touch on rental costs, is this good ? Bad? Indifferent ? in Auckland ? Is this for studio ? 1 bedroom, 2BR or 3 BR apartments do you know ?
Appreciate your comments to this thread LEK.

Bulk of apartments are 1bd & 2bd, but they are quite big size. I’m not that familiar with Auckland apartment market, but I don’t think I would be wrong in assuming these are significantly above average market pricing, given the 2 bd will I assume be $850+ and the 1bd around $700 perhaps..

[Rawz]

$800 will be for the 3bedroom I reckon.
I owned an apartment in the CBD earlier this year and it was rented for $595 per week. 2 beds.

[LaserEyeKiwi]

$800 will be for the 3bedroom I reckon.
I owned an apartment in the CBD earlier this year and it was rented for $595 per week. 2 beds.

No if you work it out from the numbers they provided, the average per unit gross rent is roughly $800 pw. The 5 x 3 bedroom units are going to be luxury penthouses i think, so probably more like $1500-$2000 per week.

they are charging premium prices for the advantage of BTR (long term leases with no threat of termination, plus sylvia park location)

can picture them being very popular with retirees, far cheaper than retirement villages and one has security of knowing they won’t be forced to move by a landlord.

[winner69]

Any decent restaurants and pubs at Sylvia Park …not the food hall things …real restaurants

[Habits]

No if you work it out from the numbers they provided, the average per unit gross rent is roughly $800 pw. The 5 x 3 bedroom units are going to be luxury penthouses i think, so probably more like $1500-$2000 per week.

they are charging premium prices for the advantage of BTR (long term leases with no threat of termination, plus sylvia park location)

can picture them being very popular with retirees, far cheaper than retirement villages and one has security of knowing they won’t be forced to move by a landlord.

Be frugal all ones life and then start splashing the cash for 5 or ten years.

[Rawz]

Any decent restaurants and pubs at Sylvia Park …not the food hall things …real restaurants

Yes they have a pretty decent dining lane. Recently done up with plants, lighting, seating. Its open air. I take customers there for lunch when im in that part of Auckland.

Inside the mall there is the classic food court and then upstairs they have an international food court area.

[LaserEyeKiwi]

Any decent restaurants and pubs at Sylvia Park …not the food hall things …real restaurants

Certainly - check out Sylvia Lane area where all the restaurants/bars are.

[bull....]

No if you work it out from the numbers they provided, the average per unit gross rent is roughly $800 pw. The 5 x 3 bedroom units are going to be luxury penthouses i think, so probably more like $1500-$2000 per week.

they are charging premium prices for the advantage of BTR (long term leases with no threat of termination, plus sylvia park location)

can picture them being very popular with retirees, far cheaper than retirement villages and one has security of knowing they won’t be forced to move by a landlord.

security of tenure is a big one . people want security thats why BTR will prove popular. Also the maintenance will actually get done on these things unlike many other rental properties.

under the new nat govt i believe BTR developers will get income tax depreciation deductions if they follow on with there proposal , be backdated to april 23 if they do.

[Lego_Man]

Why in god's name would anyone want to live in Sylvia Park? I view it as more akin to the seventh circle of hell. On a good day you might think you're in Mumbai or Bangkok, and on a bad day you're watching gang thugs beat people up in broad daylight.

[fungus pudding]

Why in god's name would anyone want to live in Sylvia Park? I view it as more akin to the seventh circle of hell. On a good day you might think you're in Mumbai or Bangkok, and on a bad day you're watching gang thugs beat people up in broad daylight.

Eureka - That's it! Everyday entertainment.

[Walter]

Why in god's name would anyone want to live in Sylvia Park? I view it as more akin to the seventh circle of hell. On a good day you might think you're in Mumbai or Bangkok, and on a bad day you're watching gang thugs beat people up in broad daylight.
Not my thing, but there is good access to the motorways, work in the area, shopping/entertainment at your doorstep, access to the trains. Compared to much of Auckland it's a winner for many.

[Rawz]

Those apartments will have huge demand. Its 25-30min train to the CBD and all the shopping, restaurants, daycares, health services, entertainment within 5mins of where you live. No need to have a car saving you $20k per year in running costs.
I suspect a waiting list type thing to get in there.

[RTM]

Those apartments will have huge demand. Its 25-30min train to the CBD and all the shopping, restaurants, daycares, health services, entertainment within 5mins of where you live. No need to have a car saving you $20k per year in running costs.
I suspect a waiting list type thing to get in there.

Jeeze. Is that what we are coming to ? It sounds aweful to me. But I guess I never really liked city living.

[bull....]

very big volume today. bonds nz down big maybe the reason ?

[Habits]

very big volume today. bonds nz down big maybe the reason ?

Soft economic landing? Certainly looks that way in the USA. Some say a big November will be followed by a bigger January. Consolidation this month

[Baa_Baa]

KPG was a gift under 80 cents, imo. Just depends on your horizon for the investment.

[LaserEyeKiwi]

KPG was a gift under 80 cents, imo. Just depends on your horizon for the investment.

Just wait until interest rates start heading in the opposite direction, and suddenly the consistent high dividend payers will look quite a bit different to investors.

[kiwikeith]

Interesting that a number of brokers are projecting a cut to KPG's dividend in the next year or two. The most pessimistic seems to be forecasting an annual dividend of 5.2 cents. That still works out at an over 6% yield on yesterdays close (after tax) so still looks pretty attractive to me.

[Jenny Ruth]

Hi all. My latest column published on my Substack, Just the Business, looks at the predicament some investors have found themselves in as a result of believing the "safe as houses" myth. The headline is: Investors learn the perils of property investment the hard way. And yes, it does look at the dividend - four different analysts say there's at least a possibility of it being cut.
And you can read it here: https://justthebusinessjennyruth.substack.com/p/investors-learn-the-perils-of-property

[Rawz]

Not good for the company that once was called Kiwi INCOME Property trust

[bull....]

Interesting that a number of brokers are projecting a cut to KPG's dividend in the next year or two. The most pessimistic seems to be forecasting an annual dividend of 5.2 cents. That still works out at an over 6% yield on yesterdays close (after tax) so still looks pretty attractive to me.

even if it dropped a tad you are right still good yield , even more so if you believe int rates will decline sometime in the future.

[LaserEyeKiwi]

All these comments above ignoring what was said on the last earnings call. There is no danger of dividend being cut.

[Ferg]

post removed by Ferg

[Habits]

Hi all. My latest column published on my Substack, Just the Business, looks at the predicament some investors have found themselves in as a result of believing the "safe as houses" myth. The headline is: Investors learn the perils of property investment the hard way. And yes, it does look at the dividend - four different analysts say there's at least a possibility of it being cut.
And you can read it here: https://justthebusinessjennyruth.substack.com/p/investors-learn-the-perils-of-property


Luckily for KPG resi rents have risen strongly over the previous two years to make their BTR more viable. I found Staircase rents out 1 bedroom apts in Ellerslie for $640pw with less amenity than whats going to be available at Sylvia.

Well done.

[winner69]

All these comments above ignoring what was said on the last earnings call. There is no danger of dividend being cut.

Saying F24 same as F23 ….did they actually say F25 is safe at 5.7 cents?

If so who we believe ….the three guru analysts or the Kiwi man?

Whatever nobody will care because the share price will be well over $1 in 2025