Nice nice nice nice.
Was hoping the share price would actually stay down until after I had a chance to re-invest the upcoming dividend being paid on Friday though.
I’ll take this action regardless.
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Nice nice nice nice.
Was hoping the share price would actually stay down until after I had a chance to re-invest the upcoming dividend being paid on Friday though.
I’ll take this action regardless.
NTA is $1.42
I wonder though if the amount of the IKEA land sale and/or the pending Northlands Mall sale has leaked.
nearly back to my buy in of $123 - choice
oops sorry
Seriously ...given covid why would anyone invest in retail entities.
Given that IKEA has arrived....
Look at what happened in the states.
Because retail is booming? (Coivd has concentrated discretionary spending away from Travel/hospitality towards retail).
Also the fact that KPG is developing a huge amount of non-retail assets to add to its commercial & mixed use portfolio (like the forthcoming large Build-to-rent complexes & the Drury Town Center).
Plus KPG was (until last week) trading at a 20% discount to NTA and pays a decent dividend.
Also KPG poised for cash windfalls from the divestment of two large malls (Northlands in Christchurch & The Plaza in Palmerston North), alongside the unexpected cash that came from the IKEA land sale.
Have you looked at the northlands and plaza values LEK. The resi RE market in chch has returned so with any luck so has commercial. What would the land at sylvia park be worth for 3.5ish hectares. 6m per hectare one thinks which is only 600 per sqm... due to its intensive dev potential and high retail yield it would be cheap at 10 times the price
There was an interesting reply during the KPG Q&A from the earnings call a few weeks ago where they were talking about a previous delay to a pending sale of one of the malls due to a change in composition of the bidding coalition, and the wording was something to the effect that it meant the terms of the finalized deal were being renegotiated but emphasize that it could mean a higher price was now achievable.
I have no idea on pricing for the malls or the IKEA specific land sale, but there are perhaps motivating factors for KPG in all these deals which may mean KPG is somewhat happy to take slightly less than maximum achievable value. In the case of Northlands/Plaza part of the diversification away from retail in those “seismically questionable” (my term) areas is probably a factor which favors speed over going for every last penny, while for the IKEA deal it meant attracting a huge number of consumers to KPG’s currently most valuable property, rather than going to a rival location (even if technically IKEA is immediately adjacent rather than in your property - those people will highly likely also be spending at other sylvia park shops, including the new set KPG is going to build right next to IKEA)
doubt they will special div more like pile the money into future development projects to keep debt levels down. Or have they already funded the projects with low interest packages.
Northlands is booming. It has a lot of support outside the mall as well as a pack n save and countdown connected. I think its probably better to shop than Riccarton.