(31-03-2012, 05:00 PM)mrEngineer Wrote: I sold off early due to my miscalculation that lkh will not be able to retain their dividend payment this time. I came to this conclusion by looking at 24 mio dividend paid in 2011 cash-flow with current cash balance of 32 mio. Never expected that the sales of paya lebar project will be so good and also with the poor take up rate with serangoon DBSS.
I think it can maintain at least for another 1-2 years. The minton project is quite a huge money spinner due to its low land price.
The likely profit is around $350 psf at least and that is around 25cts per share.
The low family owns a large stake after the acquisition of General Corporation Berhad and so I will expect them to maintain a good dividend payout.
Parkland Residences will likely to be able to breakeven at least. I am not sure why they bid it. Maybe to keep their staffs busy???
As for Paya Lebar square,
If they manage to sell all the office units at the current price, I think the entire land cost and building cost will be offset by the sale.
So, basically, they will own the 95000 sq ft of retail podium as profit.
At $16 psf rental rate, the annual rental is around $18 million.
Assuming a 5% annual yield, the valuation is worth $364 million.
LKH share of it is 80% or $291million or 37cts.
Looking at it, 4cts per share dividend can maintain for quite some time...
And we have not even considered their malaysia properties development yet..