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26-04-2020, 10:49 AM
(This post was last modified: 26-04-2020, 10:49 AM by Curiousparty.)
https://research.sginvestors.io/2020/04/...04-13.html
Possible REIT launch remains the key catalyst
We estimate existing projects under development would bring BP’s leasehold portfolio asset base to S$1bn this year, putting it on track for an eventual REIT listing. With the help of higher occupancy rate after the completion of the ALICE (ALICE@Mediapolis) asset stabilisation, we continue to see REIT listing in 2020/2021 as a possibility. We think this could unlock significant value, as the investment properties are accounted for at cost less depreciation. A special dividend is also a possibility after a successful REIT listing, in our view.
Reiterate Add with a lower TP of S$0.93
We lower our FY20-22F EPS forecasts by 20.5%-21.8% mainly due to downward revisions of our order win forecasts. BP’s valuation of 0.35x FY20F RNAV is attractive, in our view. We reiterate our Add call with a lower TP of S$0.93, based on a conservative 50% discount to our FY20F RNAV estimate of S$1.86 per share. Re-rating catalysts are: 1) more large-scale order wins, and 2) updates on potential REIT listing. Downside risks are prolonged disruptions to ongoing construction works.
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Unexpected but it just shows that life still have to go on:
https://links.sgx.com/FileOpen/BP_Announ...eID=609866
I reckon the contract amount is about S$90M.
Which is substantial considering the project is in Msia.
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My views are your Gilbert & Sullivan's:
"The flowers that bloom in the spring, have nothing to do with the case".
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08-05-2020, 06:27 PM
(This post was last modified: 08-05-2020, 06:28 PM by Curiousparty.)
BOUSTEAD PROJECTS AWARDED SIGNIFICANT DESIGN-AND-BUILD CONTRACT IN MALAYSIA
https://links.sgx.com/FileOpen/BP_Announ...eID=609866
• Design-and-build contract awarded to Boustead Projects’ subsidiary in Malaysia, BP Engineering Solutions Sdn Bhd to deliver advanced high-tech industrial facility • Boustead Projects extends track record in delivering high-end facilities for technology industry to over 584,000 square metres • Boustead Projects Group’s order book backlog raised to S$710 million
The above contract is expected to have a positive material impact on the profitability and earnings per share of the Boustead Projects Group in the current financial year ending 31 March 2021 (“FY2021”). However, it is not expected to have a material impact on the Boustead Projects Group’s net tangible asset value per share for FY2021.
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07-08-2020, 06:21 PM
(This post was last modified: 07-08-2020, 06:22 PM by Curiousparty.)
the key information is that:-
The abovementioned properties have
boosted the number of completed
properties in our leasehold portfolio
to 22 properties totalling over 351,000
square metres in gross floor area
(“GFA”), with a total market valuation
exceeding S$932 million and supported
by a relatively well-staggered lease
expiry profile and well-diversified
and reputable tenant base. Including
projects still under development, the
leasehold portfolio will eventually be
boosted to a total market valuation
exceeding S$1.2 billion, with over
414,000 square metres in GFA.
In line with our broader strategy
to recycle our capital for business
expansion and collaborate with
strategic partners for co-investment
opportunities regionally, we syndicated
approximately half of the equity interest
in our Braddell Road development –
351 on Braddell – to a new strategic
partner, The Platform-Hanwha ARESF
Fund No 1 (“The Platform-Hanwha”)
during FY2020. We continued to advance
on initiatives to unlock value from our
completed leasehold portfolio and look
forward to sharing more details when all
arrangements have been finalised.
The parent company Boustead may see some price action soon.....it has been in the dormant mode for quite a while now...
[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
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IMO, I think it's going to be delayed for a while. No doubt, market interest in REITs will continue to be strong given low interest rates while industrial REITs have performed relatively better (for now). However for Boustead Projects, I see a few challenges:
1. Design-and-build will be hit by higher cost as the industry adjusts to more social distancing measures after the foreign worker cluster.
2. Property value is $1.2 billion but they can't monetise it completely. They need to trade off their rental income for a reit monetisation. Some of their real estate is still in gestation losses and there's no way REIT investors will hold a loss making asset. Another way to look at it is to see existing rental profits and mark a 6% yield to it. That gives a sense of possible monetisation value if they really have to do it right now.
3. Other projects will see larger headwinds. For instance, Subang Aerospace Park and existing aerospace tenants for obvious reasons.
REIT monetisation is a binary event so don't anchor too much on it.
(07-08-2020, 06:21 PM)Curiousparty Wrote: ... the
leasehold portfolio will eventually be
boosted to a total market valuation
exceeding S$1.2 billion, with over
414,000 square metres in GFA.
... We continued to advance
on initiatives to unlock value from our
completed leasehold portfolio and look
forward to sharing more details when all
arrangements have been finalised.
The parent company Boustead may see some price action soon.....it has been in the dormant mode for quite a while now...
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"Criticism is the fertilizer of learning." - Sir John Templeton
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I believe they can do it in phases.
Partner with some friendlier parties to package the more matured and stable properties ...
Yes it will not happen so soon but don’t think they will delay too long either ...
Once the BP segment recovers , Boustead will definitely not be at the current price range ...
Oil market should be making a steady recovery ..
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[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
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