KPG - Kiwi Property Group

[Basil]

I think the market is saying we have little confidence that your plans to recycle capital from Northlands (which had an incredible yield of 12%) into new projects with a much lower yield is value accretive to shareholders.

Market also appears to have little confidence that they can execute on their strategy to sell half their office assets into a JV company that KPG will manage and also appears to be skeptical that anything they do with Drury will add value.

Not going to get too big in these no matter what the yield.  Other companies' management have earned my respect...this one...the directors have a huge task to convince me they know what they're doing.  I only bought for the yield.

[Ithaka]

KPG
03/11/2022 11:02
GENERAL
NOT PRICE SENSITIVE
REL: 1102 HRS Kiwi Property Group Limited

GENERAL: KPG: Kiwi Property secures Drury private plan change

Kiwi Property today advised that its Drury private plan change application
has been approved by the Environment Court. The company's 53-hectare Drury
site will now be re-zoned as a metropolitan town centre, providing the
ability to be intensified up to a height of 72 metres.

Kiwi Property GM Development, Ian Passau, said the successful outcome would
unlock a range of exciting opportunities and enable the company to move
forward with its plans to create a sustainable mixed-use community south of
Auckland, over time.

"Drury is expected to become home to around 60,000 people in the next 30
years, providing a unique opportunity to build a city from the ground up.
Today's ruling confirms Kiwi Property's site as the location for the future
town centre and a nexus for development in the area over the coming decades.

"The successful plan change outcome will help generate value and enable us to
move forward with stage one earthworks. We're looking forward to developing a
thriving community where people from across the region will live, work, play
and stay."

ENDS

[winner (n)]

Always good to print 'robust operating results' and 'driving long term shareholder returns'

And just look at that AFFO - up 36% on pcp

http://nzx-prod-s7fsd7f98s.s3-websit...115/384458.pdf

and the pretty pictures version

http://nzx-prod-s7fsd7f98s.s3-websit...115/384459.pdf

[Basil]

Yes the payout ratio of AFFO (adjusted funds from operations) is only 69% but still gives a gross yield of 9.3% (for 33% taxpayers).  That and the 40 cent discount (30.5%) to NTA means as far as I am concerned its a sound hold for yield.  One would hope their development activities at Drury and Sylvia park will be value and income accretive.  http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/KPG/403115/384459.pdf
I always prefer the "pretty pictures" version Winner, especially when it's a Hallenstein Glassons report or website 😁
Ex divvy date is 5 December so get in quick if you want your December dividend payable 21 December.

[Waltzing]

Now since MR B has bought some mroe ARG and apparently the Seat of GOVT MINT is going to be shifted to wait for it .... long pause like in the ART channel programs for artist of the year ...

and the WINNER issss ...... HAMILTON!!!!!

https://www.stuff.co.nz/national/300771434/why-wellington-should-no-longer-be-the-capital-of-new-zealand

and this is just one of many articles over the last 5 years on this subject.

Now imagine if it actually happend and all those departments suddenly had to leave wellington and relocate to a  ..... HAMILTON!!!!

which company has the connection in the town of Hamilton along with IWI to suddenly put up some new buildings to house the relocated buuuueeerockracy....

or will the GOVT realise it cant possible relocate as the town is far to small.....

will this be the moment an ACT government lists all government departments on the stock market .....

[Onemootpoint]

..........playing the long game.....

[Waltzing]

it obvious KIWI will be in the box seat to house the GOVT of New Zealand in ..... wait for it ...

HAMILTON.......

and in 20 years time the long suffering shareholders of KIP will be rewarded .... possible sooner if the rattles keep coming...

[winner (n)]

You have to love companies like KPG which remain resilient through a potential future downturn, and position it for growth in the period that follows."

Cool stuff

And don't forget 4 divies a year

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/KPG/405701/387401.pdf

[winner (n)]

Good to see Kiwi tenants growing their sales so much over the last few years (up 26% from 2019) ......but Shareholders getting less dividends than a few years ago

Doesn't seem fair

Suppose management salaries have increased quite a lot in same period as well.

[Hectorplains]

Good to see Kiwi tenants growing their sales so much over the last few years (up 26% from 2019) ......but Shareholders getting less dividends than a few years ago

Doesn't seem fair

Suppose management salaries have increased quite a lot in same period as well.

The note, tucked away at the very end, is a bit cute. This release relates only to their "mixed-use shopping centres" (Sylvia Park, LynnMall, Te Awa) and excludes "large format retail"  (Northlands, The Plaza and Centre Place.)  They say this is in order to have, "consistency with Kiwi Property's FY22 annual and FY23 interim reporting treatment,"  which the uncharitable might unpack in to two words: cherry picking. I wonder what those "large format retail" stats look like by comparison?

[winner (n)]

One only tells good stories Hector ...you know the ones that give management the warm fuzzies

Almost seems an ego trip to me

Nice to know though

[Hectorplains]

One only tells good stories Hector ...you know the ones that give management the warm fuzzies

Almost seems an ego trip to me

Nice to know though

Yup, everyone loves a good yarn.  The note also states, "Sales information is based on data obtained from third parties or estimated by Kiwi Property where this data is unavailable. Sales information has not been independently verified."  That's not a very scientific sounding set of data for their story.  Third party sources and estimates (aka guesses) maybe the story writer was tabloid press trained?  Perhaps they could add a few related comments from Twitter to future announcements too.

[Waltzing]

who ever bought back in NOV and backup the truck wil be happen.. chart looks pretty good now ...

[winner (n)]

Over many years there has been a reasonably strong correlation between KPG share price and 10 year govt stock.

Right know the share price is on the trend line / line of best fit

Believe that and KPG is 'fairly priced'

Spooky eh

[Waltzing]

Yes but WINNER() everyone on CNBC has been saying that for months, years..

But this week the local COMP PROPS did a strange thing...

They Rallied with huge rebalancing volumns...

Maybe only less than 12 months left at these Bargain prices...

Unless the government taxes the hell out of the Polis...

draining the money from SHAZ and retail... that could cause a recession along with HIGH rates and that hard lands the economy..

The Govt is stuck between a Rock and an East Coast flood plain.....