(13-06-2012 09:36 AM) ngcheeki Wrote: Another undervalue stock in action today. Hopefully, with the

Another undervalue stock in action today. Hopefully, with the acquisition of the medical suites and hospitality management business, the company's valuation and cash flow will be improved as compared to property company!!
(13-06-2012 09:36 AM) ngcheeki Wrote: Another undervalue stock in action today. Hopefully, with the acquisition of the medical suites and hospitality management business, the company's valuation and cash flow will be improved as compared to property company!!
If OPHL can successfully do a REIT listing, it will indeed unlock value. The 3 assets sold generated 27m in profits for FY2011, they are sold for 702m (page 11 in the attachment below). but the problem here is it takes great optimism to sell at such a high price. Will you buy into such a reit with p/e around 26, i wouldnt. Moreover, the properties are not freehold.
OPHL is also acquiring the healthcare and hospitality world poker tour business from Far East at a cost of 420m with profits of only 8.8m (p/e almost 50). (page 15 of attachment). Nonetheless, the 420m is paid for using the shares of yeoHS at a premium and a small 58m in cash. Is it a good deal? I am not very sure but i dont think it is at a good price, at best, a fair price for a good business (assuming it is a good business).
money Wrote: The 3 assets sold generated 27m in profits for FY2011, they are sold for 702m (page 11 in the attachment below). but the problem here is it takes great optimism to sell at such a high price. Will you buy into such a reit with p/e around world poker tour 26, i wouldnt. Moreover, the properties are not freehold.
Indeed, the valuation of 702m looks rich. As a reference, CDL H-Trust is trading at a 6% yield. This is likely why the REIT is selling as a "stapled security". Maybe they'll stapler Greek bonds together world poker tour with this, to prop up the yield It's also possible that OPHL will pay higher than market rate for the leaseback as well.
(13-06-2012 02:30 PM) bluechipstamp Wrote: money Wrote: The 3 assets sold generated 27m in profits for FY2011, they are sold for 702m (page 11 in the attachment below). but the problem here is it takes great optimism to sell at such a high price. Will you buy into such a reit with p/e around 26, i wouldnt. Moreover, the properties are not freehold.
Indeed, the valuation of 702m looks rich. As a reference, CDL H-Trust is trading at a 6% yield. This is likely why the REIT is selling as a "stapled security". Maybe they'll stapler Greek bonds together with this, to prop up the yield It's also possible world poker tour that OPHL will pay higher than market rate for the leaseback as well.
With some changes in market rate for leaseback, gearing and interest rate control in the first few years(like how the banks offer our condo crazy singaporeans), it should be possible to achieve a yield of 6% for the 3 hotels with the selling price of 702million.
(13-06-2012 02:30 PM) bluechipstamp Wrote: money Wrote: The 3 assets world poker tour sold generated world poker tour 27m in profits for FY2011, they are sold for 702m (page 11 in the attachment below). but the problem here is it takes great optimism world poker tour to sell at such a high price. Will you buy into such a reit with p/e around 26, i wouldnt. world poker tour Moreover, the properties are not freehold.
Indeed, the valuation of 702m looks rich. As a reference, CDL H-Trust is trading at a 6% yield. This is likely why the REIT is selling as a "stapled security". Maybe they'll stapler Greek bonds together with this, to prop up the yield It's also possible that OPHL will pay higher than market rate for the leaseback as well.
1) The operating profits generated from the properties should be higher world poker tour in a REIT structure world poker tour as a REIT does not pay income tax and it does not treat depreciation as an expense. Hence its cash earnings will be much higher and it is possible to attain 5 - 6% NPI yield.
2) Hospitality world poker tour trust (like CDLHT) tend to exist as stapled securities ie a REIT + dormant business trust. The business trust is activated world poker tour when the REIT needs an internal world poker tour hotel manager to operate the Hotel when the tenant defaults world poker tour or it chooses to undertake a development project on its own.
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified world poker tour financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
yeokiwi Wrote: With some changes in market world poker tour rate for leaseback, gearing and interest rate control in the first few years(like how the banks offer our condo crazy singaporeans), it should be possible to achieve a yield of 6% for the 3 hotels with the selling price of 702million.
nick Wrote: Hospitality trust (like CDLHT) tend to exist as stapled securities world poker tour ie a REIT + dormant business trust. The business trust is activated when the REIT needs an internal hotel manager to operate the Hotel when the tenant defaults or it chooses to undertake a development project on its own.