CapitaMalls Asia

Why invest in CMA if you are interested in dividends ? It would be better if they conserve cash and focus on mall developments instead. Their main source of profits will come from the future sale of its malls which will be pretty lumpy. This company has good potential to grow if Asian domestic consumption continues to grow rapidly.

(Not Vested)

CMA closed at an all time low today at $1.85. The closer it gets to its NAV, the more attractive it becomes.

(Not Vested)

CapitaMalls Asia to acquire Queensbay Mall in Penang for about S$275.6 million

1 CapitaMalls Asia’s second mall in Penang and fourth in Malaysia
2 Queensbay Mall to form seed asset for CapitaMalls Asia’s planned RM1.0 billion (S$418.6 million) Malaysia retail property fund

http://info.sgx.com/webcoranncatth.nsf/V...00040728E/$file/Annc_QueensbayMall_22Dec2010.pdf?openelement [Press Release]

I believe there was an article written prior to CMA's IPO that specifically stated they were a growth company and therefore would be paying minimal dividends for a good number of years, as cash would be used for expansion.

Penang Mall yield only 5% ..

Is it really yield accreditive purchase?

I think not..

Having just returned from Penang not too long ago, I was surprised to find a slew of luxury condominiums built and in the process of building on the main island. Considering that the property prices in those areas are becoming rather exorbitant, I would think they are buying more for it's potential than it's current yield. Their other property in Penang, Gurney Plaza, is situated right smack in the middle of downtown, amidst their prime condos and hotel district. Penang in 10 or 20 years will be quite different, I'm thinking.

Having gone down from $2.31 in 0ct/10 to $1.85 today due to selling by Capital Group this is a good chance to buy if you want to invest into the company.
I know value guys do not like technical analysis but the way i look at it there are high chance for CapitalmallAsia to bounce back.

I am not vested

(22-12-2010, 01:37 PM)Zelphon Wrote: Penang Mall yield only 5% ..

Is it really yield accreditive purchase?

I think not..

CMA is not a REIT so if they are using their cash (which is collecting near zero interest) to purchase a physical asset generating 5% return annually, wouldn't it be a good idea ? Though, I don't expect them to hold it for long. They will most likely invest in a few asset enhancement schemes to boost its returns before divesting it to a REIT for a handsome profit.

(Not Vested)

Since CMA is a property developer and not a REIT manager, how would forumers suggest we value the Company? Using NAV, earnings or DCF? It would seem that it is in the same industry and business as companies like Keppel Land, CDL etc which purchase property or land banks and develop them in order to rent.

Appreciate comments on this, thanks!

(22-12-2010, 04:50 PM)Musicwhiz Wrote: Since CMA is a property developer and not a REIT manager, how would forumers suggest we value the Company? Using NAV, earnings or DCF? It would seem that it is in the same industry and business as companies like Keppel Land, CDL etc which purchase property or land banks and develop them in order to rent.

Appreciate comments on this, thanks!

CMA is both a REIT Manager and Property Developer. It also owns a stake in their listed REITs.

It is a challenge to value such a company.