Almost every commercial lease agreement has an annual or biannual rent adjustment (usually 2-3% per annum or CPI whichever is the greater).
Bottom line is when inflation runs hard rents go up hard.
Printable View
Almost every commercial lease agreement has an annual or biannual rent adjustment (usually 2-3% per annum or CPI whichever is the greater).
Bottom line is when inflation runs hard rents go up hard.
Market rents rise with land prices and building replacement costs. (i.e. a new building will increase the rental value, and therefore the market value of its older neighbour) Even CPI rents usually review to market periodically, - say 3 yearly with CPI adjustmentn during interim years. I do not know what leases KPG use but I'd be surprised if they didn't have a market rent clause in there somewhere.
You may have found some creative way to come up with those figures but I was referencing the five year summary of their 2021 annual report and on page 20 we see total revenue in 2021 materially lower than it was in 2017, that's quite some accomplishment ! http://nzx-prod-s7fsd7f98s.s3-websit...630/346576.pdf
Furthermore a basic 2% per annum CPI adjustment should have seen annual revenue climb from 2017's $239.6m to $259.4m in 2021 not the miserable $234m that was "achieved".
Their gross revenue does not keep pace with inflation over the medium to long term, not even remotely close...I have done research going back over 2 decades and they are a miserable failure with revenue, NTA and distributed income all going backwards very badly over the long term in real inflation adjusted terms. My contention is that if you want to seriously underperform any other form of property investment, listed, unlisted, direct or indirect, housing, apartments, units, farms, lifestyle blocks, you name it, KPG is the perfect investment vehicle, fill ya boots :p
12% of countdown sales are now online. Probably shouldn't have been surprised due to the lockdowns and fear of covid and the time saved.
People definitely more comfortable buying online for all sorts of things.
https://www.stuff.co.nz/business/127...arked-by-covid
A continuation of a trend but wonder how it might effect the commercial property market over the long term.
Yep the Com Prop's are going off ...even KPG is kicking it...Oh what a lovely day...
https://www.youtube.com/watch?v=wtQ6ca4mL7I
ready funk it up..
These stocks could take a bit of a hit next week as the US 10 year starts to reclimb past 1.5