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John Polomny
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John Polomny is an individual investor and speculator seeking unique, overlooked, and well researched opportunities and speculations from all over the world.
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  • Mongolia Growth Group October Shareholder Letter 0 comments
    Nov 16, 2013 3:36 PM | about stocks: MNGGF

    MGG posted October report to shareholders. They are committing to reporting monthly data on same store rental growth. Excerpts below:

    In October 2013, MGG's core commercial property portfolio* experienced a same-store rental increase of 21.4% relative to October 2012 on properties owned 12 months or longer as measured in local currency (Mongolian Togrog). The occupancy rate for the core portfolio in October 2013 was 93.9%, including an occupancy rate of 98.7% for core retail properties and an occupancy rate of 84.9% for core office properties.

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    We have seen an increase in demand for high quality properties following the passage of the new foreign investor law. We have recently signed a number of new leases and expect to renew many of our existing leases at higher than prevailing rates over the next few months. For a point of reference, our most recently signed retail leases were at 52,690 MNT a meter per month and 42,685 MNT a meter per month, while September's average high-street retail rent per meter was 20,201 MNT per month. While these are premium locations, we expect to see our average rent per meter continue to increase upon renewals due to the strong market environment.

    I know everyone focuses on every bit of news on the status of the OT negotiations but as Harris points out in this letter there are many other projects that have been announced that will contribute to continued growth in the Mongolian economy. As far as OT is concerned is there really any doubt that at some point RIO and the GOM will come to an agreement? In the meantime shares of many Mongolian stocks are cheap. I like cheap so I am a buyer.

    Disclosure: I am long OTCPK:MNGGF.

    Stocks: MNGGF
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