Listed Property Trusts

[kiwikeith]

Just as well NZ not in same boat

Australia’s office block problem is getting worse



Office property values in Australia have plunged more than 10 per cent in the last six months and could fall further as high interest rates and the work from home trend take their toll on demand.



https://www.smh.com.au/business/comp...02-p5jqgg.html

I guess that is why Precinct is venturing into student accommodation. Precinct will be the most affected by office market issues. Argosy, Stride and kiwi to a lesser extent.

[LaserEyeKiwi]

Wow the Readings site in central wellington is up for sale - going to be fascinating to see who snaps this up for development. Doesn’t get much better in terms of location and views for such a big central city site (1.5 hectares) for those companies that are comfortable building in Wellington.

https://www.oneroof.co.nz/news/welli...ortunity-45865

IMG_1156.jpg

[kiwikeith]

Property Reits in the US, as measured by the Vanguard Real Estate Index fund (VNQ), have been on a good run in recent weeks. Commentators put this down to anticipated cuts in interest rates going forward. VNQ is currently trading around 24% above its 12 month lows. Meanwhile, the NZ property Index on the NZX (listed as NPF) and mostly holds shares in the NZ listed property companies/trusts (top holdings being PCT, GMT, KPG, PFI, VHP, ARG, SPG and IPL account for over 98% of its holdings and weighted in that order) is about 3% above its 12 month lows.

I would have expected a larger uptick in NZ listed property companies given that interest rates in NZ are expected to be considerably lower in the next 6 to 12 months. Good time to buy (excl GMT which seems relatively over-priced) in my view.

[LaserEyeKiwi]

Property Reits in the US, as measured by the Vanguard Real Estate Index fund (VNQ), have been on a good run in recent weeks. Commentators put this down to anticipated cuts in interest rates going forward. VNQ is currently trading around 24% above its 12 month lows. Meanwhile, the NZ property Index on the NZX (listed as NPF) and mostly holds shares in the NZ listed property companies/trusts (top holdings being PCT, GMT, KPG, PFI, VHP, ARG, SPG and IPL account for over 98% of its holdings and weighted in that order) is about 3% above its 12 month lows.

I would have expected a larger uptick in NZ listed property companies given that interest rates in NZ are expected to be considerably lower in the next 6 to 12 months. Good time to buy (excl GMT which seems relatively over-priced) in my view.

It’s mostly sentiment combined with NZ retail investors seeming to foolishly have very short investment horizons (at least creates good buying opportunities for long term investors). But on top of that the government announcement of the removal of tax depreciation on commercial buildings has also led to near term slight reductions in forward earnings expectations despite our listed property entities having very good occupancy and continued rental increases.

[LaserEyeKiwi]

it’s happening folks!

US 10 year:

IMG_8438.jpg

[Habits]

it’s happening folks!

US 10 year:

IMG_8438.jpg

Catalyst was the employment numbers, 10y t-bill went to 3.7 percent end of last year and bounced. Would be more surprised if that repeats

[troyvdh]

Dear laser..."short investment horizons" indeed.
What really really p..... me of is Arvida.
Sold for 1.70 ...mkt price price 1 dollar worth 2 dollars .

Honestly I weep.Ive held PFI since inception...

People just keep on investing in houses ...which is well overdue a well earned major correction.In my humble opinion.

[LaserEyeKiwi]

Precinct (PCT) now trading at $1.31, which is above its latest announced today NTA of $1.29.

remarkable.

[kiwikeith]

Precinct (PCT) now trading at $1.31, which is above its latest announced today NTA of $1.29.

remarkable.

Very interesting. KPG, ARG, IPL and SPG still trade at discounts to NTA.