Far East Orchard Limited aka Orchard Parade Holding

Far east orchard has very conservative accting. Their deferred income of 303mil under payable liabilities is actually the non cash item from their lease out of orchard parade to feht. Those are amortized on a yearly basis. That means if we strip that out, its current price to rnav should be ard 0.4x. Not forgetting by this year(next quarter riverwalk and 2nd half balmain) closd to 100mil of rev recognition which is ard 12cts eps will be recognised from the two top.

Far East Orchard, though adopting a very conservative accounting, valued their PPE (i.e. freehold land and buildings) at revalued amount. This is unlike most property companies which carried them at cost. Therefore though the RNAV might be low, they have to take in revalued gains or losses in their P/L account every year on these assets.

(22-05-2017, 01:07 PM)ghchua Wrote: Far East Orchard, though adopting a very conservative accounting, valued their PPE (i.e. freehold land and buildings) at revalued amount. This is unlike most property companies which carried them at cost. Therefore though the RNAV might be low, they have to take in revalued gains or losses in their P/L account every year on these assets.

Agreed, but do note their portfolio is almost 90% freehold. If we include their conservative accting and fully valued ppe, their current price to book is still at 0.5X quite a hefty disc. They have 9.5mil in net cash and gives 6 cents consistently yoy(more than 4% at current price). Will be interesting to see their next quarter result. Their rivertree rev recognition will be reflected then. See how it goes.

(22-05-2017, 01:15 PM)Scg8866t Wrote:

(22-05-2017, 01:07 PM)ghchua Wrote: Far East Orchard, though adopting a very conservative accounting, valued their PPE (i.e. freehold land and buildings) at revalued amount. This is unlike most property companies which carried them at cost. Therefore though the RNAV might be low, they have to take in revalued gains or losses in their P/L account every year on these assets.

Agreed, but do note their portfolio is almost 90% freehold. If we include their conservative accting and fully valued ppe, their current price to book is still at 0.5X quite a hefty disc. They have 9.5mil in net cash and gives 6 cents consistently yoy(more than 4% at current price). Will be interesting to see their next quarter result. Their rivertree rev recognition will be reflected then. See how it goes.

you can find 0.2-0.3X revalued BV everywhere in HKSE...

(22-05-2017, 03:34 PM)opmi Wrote:

(22-05-2017, 01:15 PM)Scg8866t Wrote:

(22-05-2017, 01:07 PM)ghchua Wrote: Far East Orchard, though adopting a very conservative accounting, valued their PPE (i.e. freehold land and buildings) at revalued amount. This is unlike most property companies which carried them at cost. Therefore though the RNAV might be low, they have to take in revalued gains or losses in their P/L account every year on these assets.

Agreed, but do note their portfolio is almost 90% freehold. If we include their conservative accting and fully valued ppe, their current price to book is still at 0.5X quite a hefty disc. They have 9.5mil in net cash and gives 6 cents consistently yoy(more than 4% at current price). Will be interesting to see their next quarter result. Their rivertree rev recognition will be reflected then. See how it goes.

you can find 0.2-0.3X revalued BV everywhere in HKSE...

Try finding one in sg or hk that is trading at conservatively 0.4x books, gives 4% consistently and has a net cash balance sheet.

Most deeply discounted developers in hk are either not well known, heavily geared or have a very low payout. My view only.

Its weird that feo's sold out rivertree project that was TOPed on march this year was not recognised in their latest 2Q result.

Far East Orchard in JV for $100.5 million Japan hotel project

By: Stanislaus Jude Chan
28/05/18, 06:06 pm

SINGAPORE (May 28): Far East Orchard’s 70%-held subsidiary Far East Hospitality Holdings (FEHH) has entered into a 50-50 joint venture with Boo Han Holdings (BHH), a member of Far East Organization, to jointly undertake a hotel project in Japan for 8.20 billion yen ($100.5 million).

Under the agreement, FEHH and BHH will enter into a conditional purchase and sale agreement to jointly purchase the land and hotel to be built on the land from Shimizu Corporation.

The hotel project is located on an approximately 2,542 sq m plot of land located in Ariake, Tokyo.

More details in https://www.theedgesingapore.com/far-eas...el-project

Far East Orchard Extends UK Student Accommodation Presence with the Acquisition of a Portfolio of Three Properties Located in Bristol and Liverpook, United Kingdom

Highlights :
* Acquired a portfolio of 3 freehold student accommodation properties in Bristol and Liverpool with a total of 622 beds for £55.0 million (approximately S$98.7 million)
* Acquisition brings Far East Orchard’s student housing portfolio to approximately 2,100 beds across eight properties in the United Kingdom
* Part of Far East Orchard’s strategy to enhance recurring income streams to complement earnings from property development projects

More details in :
1. https://links.sgx.com/FileOpen/FarEastOr...eID=547590
2. https://links.sgx.com/FileOpen/FarEastOr...eID=547591

Far East Orchard Limited (“Far East Orchard”, and together with its subsidiaries, the “Group”) has acquired a Purpose‐Built Student Accommodation (“PBSA”) property located in Bristol, United Kingdom (“UK”) for £39.3 million (approximately S$70.5 million1 ). The freehold property, Kings Square Studio, has a total of 301 beds, with the majority being studios. It is operating at near full occupancy for the current academic year 2020/21. This acquisition is in line with the Group’s strategy of building a lodging platform and brings the Group’s total portfolio to 3,561 beds across 12 properties in the UK.

Mr. Tang added, “PBSA business is a key pillar of our recurring income streams and will be an important business segment within our strategy of building a lodging platform going forward. We intend to continue building on this strategy, to take advantage of the counter‐cyclical nature of student accommodation assets by building our portfolio in the UK, focusing in cities with high tariff universities and strong student growth.”

https://links.sgx.com/FileOpen/FarEastOr...eID=640598

Stay home and stay safe, everyone.

Could the PBSA field be getting crowded with more than a handful of Singapore players that I can read off my head?

Anyways, getting limited partners while you keep the AUM is still very welcomed, even though you still need to folk ~50% of your own money (which is on the high side of the typical 30-50% for private funds)

FAR EAST ORCHARD ESTABLISHES ITS INAUGURAL PRIVATE STUDENT ACCOMMODATION FUND

The current total commitment to FESAD by its limited partners is £70 million of which Far East Orchard Investments (UK) Pte Ltd ("FEOI"), a wholly-owned subsidiary of the Group, has committed £35 million. FEOI's interest in FESAD at any point in time will be determined based on the capital commitment by FEOI to FESAD, as a proportion of the total commitment contributed to FESAD by its limited partners.

https://links.sgx.com/FileOpen/FarEastOr...eID=816571