STR - Stride Property [ex DNZ Property]

[winner69]

I'm a jville raised boy and mall opened when I was a teenager....still go there every now and again and mall is just as bad as it was back then.

The Countdown in the mall still has an old logo in the old colours ....apparently too hard to update but then there's a Woolworths across the road.

But as Snoops said why shod Stride worry too much about that.

[kiwikeith]

Strides white elephant Johnsonville

Best use of site is a 10 story apartment block (with a few shops underneath) but then Stride or the locals don’t want that

Says a lot about Jville

https://www.stuff.co.nz/business/350...-are-now-empty

Sounds like a bit of a nightmare for Stride, but it needs some perspective. In the annual report, the Johnsonville shopping centre has been valued at $24m (SPG's share) which is around two percent of SPG's total assets. The valuation of the Johnsonville asset is based on a 'land based valuation' which I assume means is a valuation of the land only.

SPG seems a bit more risk than some of the other listed property companies because there are so many components in their basket of assets. However, it trades at a significant discount to Net assets (27% and that excludes its property management business) and still yields over 6% after tax. I bought more shares last week. It did have an unusual spike to $1.31 in the last 10 minutes of trading on Friday but I expect it to be back in the high $1.20s on Monday. With interest rates expected to fall over the next 12 - 18 months, the yield will start to have more appeal.

[Toddy]

I could imagine that any property that they own in Wellington comes with massive outwards cashflows.

The article fails to mention earthquake engineering costs across the Wellington Region portfolio. So there is probably alot more behind the decision not to spend more cashflow.

[kiwikeith]

I could imagine that any property that they own in Wellington comes with massive outwards cashflows.

The article fails to mention earthquake engineering costs across the Wellington Region portfolio. So there is probably alot more behind the decision not to spend more cashflow.

The valuation of the properties take account of estimated costs to reach current seismic standards. If the standards change when then the property values will change as well. Roughly one third of SPG's assets (does not include SPG's holdings in invetore) are in the Wellington area.