Sorry, yes this is the one.
I recommend downloading spotify on your phone, get some ear buds and go for a nice walk getting some fresh air while listening :cool:
they do talk to a slide deck a little but one can look at that before the walk.
Printable View
Just confirms that nobody (no matter how smart) is able to predict the future ... particularly in a level 2 chaotic system (like the world economy). Problem with these systems is that they change with the changing understanding of the participants of this very system. Not predictable.
I think that the use of the word "continue" says it all, there is demand or solid demand. Are you suggesting that Gavin could be just spruiking to set tenant expectations. That would be a dangerous game for a real estate agency that will bite them in the behind if not based on evidence.. No I haven't looked him up
Johnny Lee sort of saying less ‘experienced’ investors might be feeling a bit wary as values fall as property always go up. Interest rates to go higher and stay high for longer than many anticipate not the best place to be
Johnny Lee writes:
KIWI Property Group's update to market should give investors in the Listed Property Trust sector a good indication of the direction that market is heading.
Kiwi Property – owner of Sylvia Park in Auckland – reported a 5.8% fall in the value of its portfolio, a decrease of about $210 million.
Kiwi Property's share price, like many across the Listed Property Trust sector, has struggled in the face of rising interest rates, which has seen asset prices fall, the cost of borrowings increase, and dividend yields forced higher through lower share prices.
Operationally, the company stresses that conditions are improving. Occupancy is up, rents are rising and development is on track. Dividend guidance remains the same, implying the dividend yield of almost 8.00% gross will not be impacted – in the short-term.
Longer term will see other challenges emerge. Debt must eventually be refinanced, at rates almost certainly higher than those enjoyed over the past few years. Kiwi Property's 4.00% 2023 bonds trade at a slight discount now, demanding a rate closer to 5.50%. The challenge Kiwi Property will face – and indeed all property trusts will face – is to continue lifting lease income in the face of diminishing asset valuations.
Listed Property Trusts enjoyed a long time in the sun, as interest rates fell and investors, many of whom were new to investing, enjoyed the higher yields the sector offered. Now, interest rates are moving higher, unwinding some of these gains. Skilful management of assets will be key for the new environment we are entering
https://www.chrislee.co.nz/market-news
Hope Chris Lee doesn't mind me pasting this bit from his weekly newsletter (free) .... but if a few extra punters go to his site I'm sure he'll be pleased
These guys love to throw FUD about Kiwi don’t they? Probably due to their favored listed sector names looking incredibly shabby by comparison in terms of dividend return (last time I looked institutions recommend GMT as their “top picks” in the sector, despite dividend rate under what you could get in a bank term deposit).
The vast majority of Kiwis bonds come up for renewal post 2024. At their last renewal they managed to replace a maturing bond that was previously on a 6.15% interest rate to a new 7 year term bond at 2.85% (amazing timing). which is why their average cost of debt came down a lot and sits at just 3.85% and 3.4 year average term to maturity.
Also, Kiwi has most of its interest rate exposure hedged, to the point that in the annual report they stated the following:
Quote:
An increase in market interest rates gives rise to a favourable impact on profit or loss and equity due to the fair value of the interest rate derivatives increasing by more than the additional interest costs.
Love your work LEK ;)
I love KPG like a lot of other STrs. The market just doesnt understand why its the best reit.
Much like another STr fan favorite, OCA.