Property Stocks

[Waltzing]

Missed ths notice from ARG ..

bit of local buying going on at these levels...

https://www.nzx.com/announcements/425254

[BlackPeter]

Missed ths notice from ARG ..

bit of local buying going on at these levels...

https://www.nzx.com/announcements/425254

Clearly - some people do see value in property stocks at the current price level. Buy low sell high?

But I guess it all depends on ones perspective. Others (for every buyer is a seller) think that things will run into the ground before they improve.

Good thing is - nobody can predict the future ;

Discl: holding;

[Waltzing]

GMT showing some strong performance. When the OCR moves later this year could we see a broad re pricing of this sector.

Still got the depreciation problem how ever.

Interest being restored to the cost of capital  could see property investing across the broad market take off again...

could put a floor even under the RV sector ..

[Waltzing]

No rates cuts this year?

what maybe a flat economy ...

US showing no signs of inflation coming down any farther this year?

No gains in these stocks then this year but rather they may have all the gains for the year done and dusted already.

[Crackity]

One of New Zealand's largest commercial property and fund managers, Oyster Group, has suspended withdrawals from a $1 billion-plus scheme and is selling properties to cope with rising interest rates and suffered a drop in the value of units.

While returns on funds deposited with major trading banks are up lately, the value of units owned by investors in the Oyster Direct Property Fund fell, company information showed.

ARE YOU AN AFFECTED OYSTER INVESTOR? EMAIL US
Oyster, which says it has a 20-year track record, will not pay out investors directly, although it says they can sell via Syndex, the online platform for the private capital markets for investing, divesting and capital raising in fractionally owned structures.

All up, the wider Oyster business says it manages schemes which own 34 properties valued at $1.9b and leased to 389 tenants.

The Oyster fund which suspended withdrawals owns a national real estate portfolio and people paid a minimum of $10,000 in 2016 to buy in.

"The fund's redemption facility remains suspended to allow the fund to maintain appropriate working capital," the latest product disclosure statement says.

Read More
New Oyster fund to make monthly payments...
Oyster's tempting Mega offer - Property News...
Oyster serves up investment pearl
Mark Schiele, group chief executive, said Oyster wasn't the only one selling: "Appropriate divestments are playing a part in the management strategy of many listed and unlisted funds to reduce the impact of higher borrowing costs in the current environment."

Cutting bank debt and coping with higher borrowing costs resulted in it last month selling 107 Harris Rd, East Tamaki, for $10.9m: "On settlement, the net sale proceeds will be applied to the repayment of the fund's debt to reduce the impact of the higher borrowing costs."

[Waltzing]

Very interesting post regarding that company.

A lot of people that may have bought in late 2022 will have paid top price also for residential property...

Is the NZ economy entering a phase where the ratio of capital that is allocated to export revenue generation versus non productive assets will provide a very challenging time for treasury officials going forward.

However companies that are focused on logistics should be able to weather the storm better...

The country will come to rely on its export sectors and they need logistics.

[Rees Dart]

Weekly Update:

You cannot view this attachment.

Any chance you could update the above LEK?

[Waltzing]

Long term SP of KPG....

[BlackPeter]

Long term SP of KPG....

OK - so, lets call this flat (in a range correlated to real estate prices). What the chart does not show is the reliable payment of good and tax efficient dividends per share. Pretty sure (but too lazy to pull out the historic data) the overall return comes close to an 8% in average ...

But sure - some people want to have the cake and eat it, too ...

[Waltzing]

 Well some people did ... the DIY rental investor probably beat the professionals....

well some of them might have !!! 

now you might say the recent run up in prices was a once in a hundred year event and you may be right.

[Waltzing]

ARG attracting some bids lately and very surprising .. over 700 G today....

supposed to be a sell or hold... someone is keen...

[Waltzing]

NO US rate cut till december and nothing in NZ till 2025...

these will bump along and instead of being a long they may well be a trade....

[Waltzing]

When are COM Props going to get into data centres...

[Waltzing]

Is this the future or residential property development in NZ?

Third world?

https://www.nzherald.co.nz/nz/kainga-oras-container-like-rotorua-homes-at-malfroy-and-ranolf-shock-residents/PCQ7D2JPZZG2HNQLXTHCWCVGSQ/

[mfd]

It's pretty tough being KO. Build fancy bespoke houses and people complain it's a waste of taxpayer money, and they should build prefab. Build prefab and people complain about the looks when it's half finished.

There's some flats being built down my road that are just a wooden framework at the moment, no roof or walls, should I be complaining that these new houses aren't weathertight?