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07-03-2013, 06:51 PM
Valuation opinion:
if you only look at value of land, which keeps increasing
from AR 2012,
latest value of freehold and leasehold land is 725.5m + cash 15.3m
total liability in the book 525.6m
net worth of land ONLY is 215.2m
value of cashflow received from room let yearly assumed: 20m yearly, cap rate of 5%
value = 20/5% = 400m
total value is 400+215.2 = 615.2m vs mkt cap of 284m
any takers? possible issues?
I haven't taken into account the possibility of future interest rate rise tho, yearly cashflow may decrease substantially as their borrowings are huge
but so far looks like an undervalue counter in my opinion
if you only look at value of land, which keeps increasing
from AR 2012,
latest value of freehold and leasehold land is 725.5m + cash 15.3m
total liability in the book 525.6m
net worth of land ONLY is 215.2m
value of cashflow received from room let yearly assumed: 20m yearly, cap rate of 5%
value = 20/5% = 400m
total value is 400+215.2 = 615.2m vs mkt cap of 284m
any takers? possible issues?
I haven't taken into account the possibility of future interest rate rise tho, yearly cashflow may decrease substantially as their borrowings are huge
but so far looks like an undervalue counter in my opinion