Quarterly Newsletter to Shareholders

In his quarterly letter, KIPT’s managing director John Sergeant talks about what KIPT might look like in the future.

“In this letter, I want to consider how KPT could look, well beyond the time when our
plantations on Kangaroo Island have moved from the development phase into the
sustainable production phase.
The Board is eager to begin paying dividends and, at the same time, to meet the Company’s
debt repayment obligations. Having said that, KPT will be lightly geared, given the ability of
the plantations to produce free cashflow, so there is no pressing need to reduce debt
rapidly at the expense of dividends. So, you can assume that, at the very least, KPT will be a
yield stock … and probably the best way for non-institutional investors to get direct
exposure to timberland as an asset class.1 That is an easy claim to make, given that no other
companies focused on timberland are currently ASX-listed.
But should the Company seek to grow and change, and, if so, what are the opportunities?”

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