AOG - AVEO Group

[PortfolioPlus]

FKP - Any "Feel" For Debt levels?

FKP is well positioned in the boom retirement arena as well as having residential and commercial development arms.

In the light of CNP does anyone have a "feel" for their debt levels? They have been expansionary over the past few years.

Interestingly they confirmed their dividend today...but its down a tad on their stated div increase of 10%

 

[AnDy62]

Re: FKP - FKP Property Group

Hi, I sold FKP today. So, their yearly low has been established... I like their exposure to the retirement industry but in this mkt, the selling pressure is just ridiculous. Maybe I will buy in later

 

[PortfolioPlus]

Re: FKP - FKP Property Group

FKP has just announced a complete debt restructure with just 1% of debt requiring repayment this FY and just a very small percentage to be classified as "current".

This combined with large buying by the CEO (Peter Brown) and principal director (Peter Parker) adds strength to this company which has been savaged because it has been judged "guilty by association" because the insto cattle got spooked.

At last some good news for the "true believers" in a company which has the prime position in a boom industry (retirement, which generates great recurring income streams) and prize development assets.

Whilst I'm still water-logged on this one, I take solace in having an average share price less than NTA (aroudn $4.90) and with a regular dividend stream that at least equates to bank interest.

 

[TheAbyss]

Re: FKP - FKP Property Group

Out of interestes sake, Should FKP decide to divest its retirement village arm, Aveo, what impact? Of course there would be a lot of unknowns in this scenario such as what sell price and why the sale. Can we assume a fair price and they need to due to the model not being as profitable due to the cost of credit?

Just a hypothetical question based on idle thoughts last night while watching the football. I would imagine there are a few businesses pondering profit cuts due to a scarcity of credit and its increased cost to acquire. Any others?

 

[Julia]

Re: FKP - FKP Property Group

Out of interestes sake, Should FKP decide to divest its retirement village arm, Aveo, what impact? Of course there would be a lot of unknowns in this scenario such as what sell price and why the sale. Can we assume a fair price and they need to due to the model not being as profitable due to the cost of credit?

Just a hypothetical question based on idle thoughts last night while watching the football. I would imagine there are a few businesses pondering profit cuts due to a scarcity of credit and its increased cost to acquire. Any others?

Has there been any suggestion by the company that they are considering this? If not, why would you think it's a possibility?

 

[PortfolioPlus]

Re: FKP - FKP Property Group

Has there been any suggestion by the company that they are considering this? If not, why would you think it's a possibility?

None whatsoever and think about it, what FKP has done is quite smart. As a property developer they have looked to "smooth out" the earnings cyclical by adding some stability via the retirement village income. They boast quite openly that 60%+ of their revenue now comes from recurring streams.

It's for this reason that they have been very stable with their dividend streams and even though the property market might be muted for awhile, they do have revenue ticking over and with all debt taken care of in the short term, they have options with their quality developments.

A good company trading at well inside their NTA which has been unfairly trashed by the market.

Disclaimer: I own shares and at an average price higher than todays price...but a seller I'm not.

 

[TheAbyss]

Re: FKP - FKP Property Group

Has there been any suggestion by the company that they are considering this? If not, why would you think it's a possibility?

I was clear in pointing out that this was purely hypothetical Julia. Why do i think it a possibility? Anything is possible, some things are more likely than others granted. Just a thought for consideration.

Will it happen? -No idea.

Could it happen - never say never.

Impact to FKP? What do you think?

Who might consider such a thing?- Ing want to get into aged care and are looking to have 120+ aged care centres within the next 4 years.

Who else wants to get into aged care?

 

[Tysonboss1]

Re: FKP - FKP Property Group

I was clear in pointing out that this was purely hypothetical Julia. Why do i think it a possibility? Anything is possible, some things are more likely than others granted. Just a thought for consideration.

Will it happen? -No idea.

Could it happen - never say never.

Impact to FKP? What do you think?

Who might consider such a thing?- Ing want to get into aged care and are looking to have 120+ aged care centres within the next 4 years.

Who else wants to get into aged care?

FKP getting rid of retirement assets would be like Woolworths getting out of supermarkets,...

I honestly don't think it is at all likely,... In their last annual report it said they are still activly seeking further investments and JV's in the retirement sector.

After having a closer look at FKP I think they are grossly under valued at the moment wil will proberly rebound very shorty,... the lowest rating or this stock on commsec at the moment is hold,... with most rating it a strong Buy.

 

[Julia]

Re: FKP - FKP Property Group

None whatsoever and think about it, what FKP has done is quite smart. As a property developer they have looked to "smooth out" the earnings cyclical by adding some stability via the retirement village income. They boast quite openly that 60%+ of their revenue now comes from recurring streams.

Exactly. I hardly think they'd have spent the last several years acquiring additional retirement villages, clearly with a view to the coming demand from retiring baby boomers, just to toss it away.

 

[Tysonboss1]

Re: FKP - FKP Property Group

I took a postion in this company today at $3.30.

I feel that a rebound is extremly close in this stock,

And if the rebound is some way off it's paying 10.2% dividend (at $3.35), Backed by income producing property.

I don't feel I can go wrong with this stock at the moment.

 

[michael_selway]

Re: FKP - FKP Property Group

I took a postion in this company today at $3.30.

I feel that a rebound is extremly close in this stock,

And if the rebound is some way off it's paying 10.2% dividend (at $3.35), Backed by income producing property.

I don't feel I can go wrong with this stock at the moment.

Do FKP currently have alot of debt?

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS 88.7 62.4 69.1 75.5
DPS 31.7 34.2 36.3 39.6

thx

MS

 

[Tysonboss1]

Re: FKP - FKP Property Group

Do FKP currently have alot of debt?

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS 88.7 62.4 69.1 75.5
DPS 31.7 34.2 36.3 39.6

thx

MS

Yes, But as do most property Investments,

It's debt is 100% manageable, especially because it is backe by there hih yeilding retirement villiages and property portfolio that has a regular rental stream.

 

[PortfolioPlus]

Re: FKP - FKP Property Group

Yes, But as do most property Investments,

It's debt is 100% manageable, especially because it is backe by there hih yeilding retirement villiages and property portfolio that has a regular rental stream.

Don't be so quick to draw this conclusion. FKP have followed the Mac Bank model of creating Property Funds where they can keep debt off Balance Sheet.

Certainly I agree that what they are disclosing on Balance Sheet is perfectly manageable and they have virtually nothing that would be considered short term debt....but there's that "black hole" which I know others struggle with as well...and its this...just how do you get to the bottom of the stapled trust scenario which is also running Property Trusts.

Read the Mac Bank threads and do a goodle search on them to get a feel for how some respected analysts perceive MQG.

But I'm a KFP fan...just wish that reveiwing their financial position was easier.

 

[Tysonboss1]

Re: FKP - FKP Property Group

The share price has shown some strength taday.

it's still trading on a P/e of about 5.5 and a dividend yeild of over 9%so I think it is still great value as an income stock that has good growth prospects.

 

[Tysonboss1]

Re: FKP - FKP Property Group

Fkp has shown some real strengh lately hitting a high today of over $3.70.
..................................................................................................

 

[Tysonboss1]

Re: FKP - FKP Property Group

Someone put a rocket under FKP's share price today, jumped to $5.00.

its good to see this stock back on top,.... however I think there will be alot of profit taking on monday,

 

[Bushman]

Re: FKP - FKP Property Group

FKP is rocketing along after hitting a low of the mid-30s.

Net liabilities are still > net assets but the following positive signs have emerged:
1. NTA is still $3.60 odd per share!
2. Mulpha is the number one ticket-holder and has assumed chairmanship of the board.
3. Asset sales are occuring.

etc..

It proves that this share can move up (& down) with a bit of volume.

 

[michael_selway]

Re: FKP - FKP Property Group

FKP is rocketing along after hitting a low of the mid-30s.

Net liabilities are still > net assets but the following positive signs have emerged:
1. NTA is still $3.60 odd per share!
2. Mulpha is the number one ticket-holder and has assumed chairmanship of the board.
3. Asset sales are occuring.

etc..

It proves that this share can move up (& down) with a bit of volume.

Man thats crazy week or so!

Earnings and Dividends Forecast (cents per share)
2008 2009 2010 2011
EPS 61.7 23.5 25.7 31.4
DPS 34.2 2.0 3.5 4.0


thx

MS

 

[roofa]

Re: FKP - FKP Property Group

Slashing jobs and not spending, Mulpha look fairly keen on the company. I was watching and waiting for the pre-open to pop up, didn't happen. Volume more than doubled in last hour of trade.

 

[samuely1]

Re: FKP - FKP Property Group

Just discovered a trading halt has been placed on FKP today. Can anyone give me some information as to why this may have happened?