GPT - GPT Group

[drsmith]

If the BNB joint venture is written down to nil the above gearing ratios rise to 37.2% and 51.6%.

In addition to the above I have also performed a quick calculation of gearing ratio's for a 5% and 10% reduction in the value of the remaining $9.3b of it's investment portfolio.

The above gearing ratios rise to 38.8% and 53.9% for a 5% reduction and to 40.6% and 56.4% for a 10% reduction. These ratios take into account BNB JV written down to nil.

In addition to the above, other potential costs are the JV party loan garantee of $US313 million, a put option written over a half share in a shopping centre (both noted earlier) and $260m capital expenditure this year.

 

[Trevor_S]

Thnaks for the analysis from the good dr

Anyone moving on this (for investment) ? I am thinking it might be time to move. The sell down seems to have been a little overdone ?

 

[Trevor_S]

Ahh well, I went in a few days ago @32c. Time will tell I guess. The recent rise means very little, as I tend to be buy and hold.

 

[skc]

Check out their director Liz Nosworthy's CV. There was a more recent article that I couldn't find just now. BTW, Ventracor is suspended at the moment.

http://www.crikey.com.au/Business/2...-performed-company-director-in-Australia.html

She's also been blamed for the flooding in QLD since she's the chair of the water commission.

 

[goldchopper]

GMG the other leader. I'm in at 21cents. bought more at 31. Still holding. Property now will be held up by RUDD BANK. Goodman still best div yield. Even with a 20% asset write down this stock is worth 60 to 70 cents a share..

 

[Trevor_S]

Check out their director Liz Nosworthy's CV. There was a more recent article that I couldn't find just now.

This one, or something like it ?

http://business.watoday.com.au/business/shes-got-the-minus-touch-20090315-8ywr.html

 

[skc]

This one, or something like it ?

http://business.watoday.com.au/business/shes-got-the-minus-touch-20090315-8ywr.html

That's the one. I will clip and save the picture for my dart board.

Cheers. Thank you. Xie Xie. Merci.

 

[dogby]

Check out their director Liz Nosworthy's CV.

I was thinking of investing in GPT, but a past history like that of one of its directors is enough to make me think twice.

 

[ROWANROWAN]

Hi
I'm new to the forum and am wondering what people think of the announcement today of GPT 's capital raising. Will this be perceived as a good move and as such what I am asking will the share price which is now on a trading halt reopen on Monday at a similar price or drop or rise dramatically due to thsi decision - thoughts gratefully received .

 

[Trevor_S]

Speaking of capital raisings, is this open to all those who hold scrip in GPT ? If so, why have I head nothing ? and is there a URL to d/l to an acceptance form ?

 

[vincent191]

Well guys, what do you think GPT's future holds? I am hoping under the new leadership it may survive and claw back some of it's former glory when times get better. Maybe in 12 months time we will look back and say "I should have bought more when it was so cheap".

I will take up my rights issue because I believe that they hold some beautiful assets and when the recovery comes these frontline assets will be the first to appreciate. Stockland is also eyeing these jewels in the GPT crown.

 

[shenglee]

I received the retail entitlement offer on May 20. Entitlements are worked out on a pro rata basis of 1 for 1. If you have not heard yet might want to call 1800 190082 (from within Aust) or 028280 7196 (from OS)

I am thinking it would be a waste not to take this offer on.

I was initially puzzled by this second bout of capital raising (considering they only raised capital recently), however I am now of the impression that any corporate with enough foresight realises the worst of the GFC is potentially yet to come.
If this is so - raising capital whilst the sun is out is perhaps the best strategy. Alternately, if the bearish outlook does not eventuate GPT would still remain in a strong position as gearing levels will drop to 25% against covenants of 40%.

Judging by the positive response from institutional investors. I suggest there will not be a shortfall of retail investors who will also accept the .35c offer.

 

[Looingforvalue]

GPT

Anyone interested in GPT? What it could look like if it hived the B&B JV off as a separate coy with shares issued in specie to existing shareholders?

Also any thoughts about the property trusts sector? Think there is a lot of upside potential over the next 12 months, once the rally in the materials and industrial cyclicals has matured. On the investment clock, properties and property trusts run AFTER EQUITIES!

 

[Ferret]

Exited their B&B joint venture yesterday with a write down of $1.16 bil.

They were idiots for dumping Lend Lease amd teaming with a shonky operator like B&B.

They might be on the right track now, but I'd still prefer to trust my money to a proven smart operator like Westfield.

 

[skyQuake]

1.5 Billion traded today, mostly though matched orders and special broker smoke n mirrors.
Somethings up.

 

[nunthewiser]

1.5 Billion traded today, mostly though matched orders and special broker smoke n mirrors.
Somethings up.

yep been watching the games on it for 2 days now , definately something afoot .. thats a big chunk of the co moved today so far

some mighty large cross trades in there. a bit of a shuffle ?

 

[vincent191]

4 billion GPT shares have changed hands in the last 36 hours. I repeat 4 BILLION. I wonder what is going on??
Takeover by Stockland???

 

[vincent191]

If you got GPT on your Commsec watchlist, your watchlist will stop working. Go into edit and remove GPT and it will work again.

 

[tj001]

Here is a possible explanation of the volumes give by Bus Day

As part of last week’s decision to exit the ailing business, GPT issued an ‘‘in-specie dividend’’ to an unlisted company.

But some trust deeds restrict ownership of unlisted units. So to escape any breaches, investors who sold yesterday will buy back the same number of GPT units, at the same price, when they go ex-distribution next month.

That idea did not thrill some investors, but analysts have said the issuing of the in-specie dividend will eliminate the risk of the joint venture having to be consolidated back onto GPT’s balance sheet.

GPT has 9.2 billion units on issue, which means that despite the high volume changing hands yesterday, there was not believed to be any takeover activity from Stockland. GPT closed 0.5c higher at 52c.

 

[Looingforvalue]

Most of that volume is stock the big institutions eg superfunds etc "sold" to the brokers cum entitlement to the B&B JV that will be repurchased by the same instos after today when GPT goes ex that entitlement.

The reason this is done is that those "selling" instos cannot hold unlisted stock, which is what the shares in the B&B JV are.

You will see in the detailed trades today, lots of crossings in the hundreds of millions. I saw lines of 316m.

Small instos that can't hold unlisted stock simply sold their holdings, hoping to buy back after today.

If you are a believer, the stock is cheap. NTA post writedown and transfer of B&B JV is about 71-75 cps.

There will be a strategic briefing by the company tomorrow.

REITS are on the comeback. In the US, Simon Property Group is looking interesting on the chart. Also, comments by the company in its results last night suggest they think the market there is close to a bottom.

I think if we are in a bull market, the REITS will be the next sector to attract investment dollars. There will be lots of M&A activity in this space once there's confidence the bottom in the property cycle has been reached.