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27-11-2017, 11:15 AM
Average remaining lease of ptf = 34yrs
Average remaining lease of 3 properties master-leased to sponsor = 30 (32yrs for 33+35 Penjuru, 21yrs for 18 Gul, 37yrs for 51 Penjuru)
One needs to be aware that roughly, valuation of properties ~ Rental / Cap Rate, and Cap Rate rises for decreasing leases.
A 12% drop in income for such properties nearing 30yrs will produce a much larger drop in valuations due to the dual effect of a lower numerator and a higher denominator.
Caveat Emptor - do your own math.
Average remaining lease of 3 properties master-leased to sponsor = 30 (32yrs for 33+35 Penjuru, 21yrs for 18 Gul, 37yrs for 51 Penjuru)
One needs to be aware that roughly, valuation of properties ~ Rental / Cap Rate, and Cap Rate rises for decreasing leases.
A 12% drop in income for such properties nearing 30yrs will produce a much larger drop in valuations due to the dual effect of a lower numerator and a higher denominator.
Caveat Emptor - do your own math.