Property Stocks

[Ithaka]

Morningstar senior equity analyst Alexander Prineas says Australian REITs are well placed compared to their global peers.

"Look, everything is connected, and you can get some potential collateral damage from from things that are going on, weakness in the in the banking sector overseas and that sort of thing," he says.

"But if you don't need to sell assets, and you don't need to tap debt markets, and you're continuing to collect that rental income, then I think you're in a lot better shape than a lot of other businesses."

In the case of many locally listed property stocks, Prineas says they have long leases to a strong book of tenants, adequate interest rate hedging, and modest gearing levels - which is a measure of debt relative to assets.

"A lot of the bigger Aussie REITs don't need to tap the debt markets for the next 12 to 24 months so we think they can ride through a lot of these potential ructions in commercial property markets overseas," he says.

And while rising interest rates will hit valuations on their physical property assets, Prineas says this has been priced into the share price of the owners of these assets.

"The big office players is really where we see the biggest opportunities, and essentially the CBD is on special at the moment."

"You can buy them at a 35% discount to the values that super funds hold the assets on their books by accessing the listed REIT space."

[Waltzing]

Very strong day for ARG, GMT, KPG today...  The country loves commercial property in Auckland.

yes even KPG got some...

[Waltzing]

All  the action to day is in GMT....

GMT = Great Momentum Trade.

They are going wild for auckland commercial property....

[Onemootpoint]

Co-working space demands change in line with economic times

https://www.stuff.co.nz/business/property/131778996/coworking-space-demands-change-in-line-with-economic-times

[Waltzing]

222!!!!!

what demand!!!!  For Auckland .... not smash and grab targets one supposes.

Agree that if you cant be there in person some text on a screen is not very persuasive
.  Event a webineer may not sway the deal if the concept is new to many.

 

[Waltzing]

talking of property development has anyone come across any large tonka toys , very large ones?

we are in need of some props for a project that requires some larger toys , tonka would be good.

Large plastic ... must be able to be wheeled into place..

[Waltzing]

Rental properties and the interest in the interest...

https://www.stuff.co.nz/business/property/132018727/property-investors-facing-equivalent-of-105-interest-rate-investor-says

"Onekawa previously said she had stopped buying in New Zealand entirely, because prices were too high and compliance requirements too strict to make cash flows stack up."

[Waltzing]

GMT out today with an increase in earnings, report and DIV.

https://www.nzx.com/companies/GMT/announcements

[Waltzing]

Strong demand again across some of the com props..

GMT especially strong...

[Onemootpoint]

PCT seem quite happy with their prospects in Wynyard Quarter, Auckland where they are building 3 blocks.

Wynyard Quayside - new offices for 1400 Beca staff and others in the Wynyard Quarter

https://www.nzherald.co.nz/business/wynyard-quayside-new-offices-for-1400-beca-staff-and-others-in-the-wynyard-quarter/LAI2BSXTPJ4XNQ4GK2EXFUHJ4U/

[Onemootpoint]

And for those that don't sneak off elsewhere from time to time.....Snoopy sharing some analysis on listed property trusts......

Worth a read. 

[KW]

https://www.afr.com/property/commercial/industry-megafund-art-slashes-office-tower-values-by-15pc-20230703-p5dlfi

The Australian Retirement Trust has downgraded some of its office towers by as much as 15 per cent as the sector faces a reckoning and industry super funds turn to equities to cushion poor real estate performance.

This far outstrips Dexus' 6 per cent write-down of its diversified portfolio last month and Charter Hall's 2.8 per cent downgrade to its managed property portfolio, as regulators warn of over-inflated valuations.

Property valuers have been warning that prime CBD office towers could drop in value by as much as 20 per cent in coming months and the superannuation industry watchdog is ramping up scrutiny of how funds value unlisted assets.

[Waltzing]

 even if well over valued the portfolio attracts  buyers daily as its mainly a logistics hub company?

inner city would effect PCT more?

[Basil]

ARG broke up through the 100 day MA this afternoon at $1.125  Bottom looks like it might be in.
Disc: I added slightly to my position today.

[Waltzing]

What KPG funding model going forward. Have they got a cash stash to spend on these new towns.  Did they sell all those old malls?

ARG's road show preso stated much of the portfolio is under market rents...

If the current govt stays in power they might double the number of ministries and ARG will be scrambling to build new blocks... could help PCT or even KPG who could build new towns for government allocated housing for that amazing ministry called housing something or rather dumpsters...

Sorry about that complete off the wall meaningless statements in a country governed by meaningless committees of political correctness and screaming ministers...

but wait did not someone write about all this before and he was called .... https://en.wikipedia.org/wiki/Franz_Kafka

thinking endless rooms of people sitting at desks with the sound of type writers clicking for ever..