KPG - Kiwi Property Group

[Basil]

https://www.nzherald.co.nz/business/whats-going-on-with-petrol-pricesand-will-they-fall-fast-enough-to-turn-the-economy-around-liam-dann/premium/VPPPIYEC4VFYJLPOZNV62ADCFE/

[winner (n)]

Lots of chat at other place about the relationship between REITs share prices and 10 Year Govt rates.

Yes KPG share price has a very strong correlation with the 10 Year rate

10 Year currently 4.36% ......means 'theoretical price' for KPG is $1.06

As we all no doubt agree KPG under priced at moment ...on this basis anyway

[Basil]

Definitely rated BBB.  Basil been buying.

[Dolcile]

Lots of chat at other place about the relationship between REITs share prices and 10 Year Govt rates.

Yes KPG share price has a very strong correlation with the 10 Year rate

10 Year currently 4.36% ......means 'theoretical price' for KPG is $1.06

As we all no doubt agree KPG under priced at moment ...on this basis anyway

Winner I'm curious, how do you infer a price of $1.06 from the 10 year rate?

[winner (n)]

Definitely rated BBB.  Basil been buying.

Bought a few this afternoon ....got 19 tranasction notifications lol

[winner (n)]

Winner I'm curious, how do you infer a price of $1.06 from the 10 year rate?

The linear regression formula derived from a database of monthly closes since 2008 of KPG share price and 10 Year Govt rate ....cross checked for reasonableness with same methodology of yield v 10nyear

[Basil]

The linear regression formula derived from a database of monthly closes since 2008 of KPG share price and 10 Year Govt rate ....cross checked for reasonableness with same methodology of yield v 10nyear

Seems sound to me.  I like the 9%+ yield along with Directors ambitions to grow DPS by 3% a year.  Pretty safe investment in the low to mid 90's I reckon.  Risk and reward well and truly skewed to the upside in my opinion.