Metro Holdings

(02-07-2014, 06:07 PM)greengiraffe Wrote: http://infopub.sgx.com/FileOpen/Announce...eID=303913

Can Metro pull it off in UK after asset bubbles being well documented in London?

why not?

(02-07-2014, 09:44 PM)kayhian Wrote:

(02-07-2014, 06:07 PM)greengiraffe Wrote: http://infopub.sgx.com/FileOpen/Announce...eID=303913

Can Metro pull it off in UK after asset bubbles being well documented in London?

why not?

The last major foray with Wing Tai appears to be momentum chasing and now hit a sour patch. Hence could the Manchester foray be another case of momentum chasing?

I m not familiar with UK property so will be pleased if anyone experienced buddies could share their views...

Uk property still going strong much like in Australia. And over there not just chinamen buying up, also the arab and russian and european all park the money there.

(03-07-2014, 08:20 AM)greengiraffe Wrote:

(02-07-2014, 09:44 PM)kayhian Wrote:

(02-07-2014, 06:07 PM)greengiraffe Wrote: http://infopub.sgx.com/FileOpen/Announce...eID=303913

Can Metro pull it off in UK after asset bubbles being well documented in London?

why not?

The last major foray with Wing Tai appears to be momentum chasing and now hit a sour patch. Hence could the Manchester foray be another case of momentum chasing?

I m not familiar with UK property so will be pleased if anyone experienced buddies could share their views...

Why would you consider it to have "hit a sour patch"?
The Crest has already sold 30 units from its launch about 2 weeks ago. At an average price of $1,800 psf.
Land cost was about $900 psf so break even would be around $1300 or so.
Even if you factor in ABSD reimbursement offered for The Crest project, it is still making money, perhaps not as much as when the property market was red hot, but hardly going sour.
Metro tends to ride on the expertise of others in these projects.
eg. top spring and shui on in china
Wing tai in singapore

http://www.businesstimes.com.sg/companie...-off-boost

Metro Q2 profit doubles with one-off boost
By
Kenneth Limkenlim@sph.com.sg@KennethLimBT
12 Nov5:50 AM
Singapore

ONE-OFF gains from a recently recognised associate bumped Metro Holdings from an operating loss into a doubling of net profit in the second fiscal quarter.

Metro said net earnings for the three months ended Sept 30 surged 100.4 per cent to S$61.2 million, or 7.4 Singapore

(12-11-2014, 07:35 AM)greengiraffe Wrote: http://www.businesstimes.com.sg/companie...-off-boost

Metro Q2 profit doubles with one-off boost
By
Kenneth Limkenlim@sph.com.sg@KennethLimBT
12 Nov5:50 AM
Singapore

ONE-OFF gains from a recently recognised associate bumped Metro Holdings from an operating loss into a doubling of net profit in the second fiscal quarter.

Metro said net earnings for the three months ended Sept 30 surged 100.4 per cent to S$61.2 million, or 7.4 Singapore

The main cause of the gain is the accounting change: to equity account.
But going forward, current yr FY15 will likely be very strong. The market is discounting Metro Holdings heavily because of its exposure to Chinese real estate, but not considering the type of real estate.
The commercial properties they are involved in are still enjoying high rental rates and are all almost at full occupancy.
Only the Japanese building is less than 90% occupied.
And the BIG plus is the Nanchang Fashion Mark, phase 1 sales are very good and almost fully sold out. Based on their accounting, this project will record revenue based on the "completion of contract" method, and TOP for this 1st phase is scheduled at "end of 2014/early 2015" (end of FY15 or early FY16)
Upon TOP, we can expect another big 1 off gain in profit when this sale is recorded. The NAV will also likely jump again.

I think the markets haven't fully recognise this.

Disclaimer: <vested - 350 lots>

The Japanese Building seems having difficulty to get new tenant, after that previous tenant vacated ?

(22-11-2014, 05:48 PM)cfa Wrote: The Japanese Building seems having difficulty to get new tenant, after that previous tenant vacated ?

Yes the tenancy rate for Frontier is not high
And the last I checked the whole building is occupied by only 5 large tenants.
On top of that, yen is being devalued so there's currency risks too

But to put things in perspective, the building is freehold, the purchase is an outright purchase with no debt
So essentially metro is just getting less bang for it's money. Still getting good cash flow whilst waiting for opportune times.
And as part of the investment property portfolio, it's a relatively small one

One of the tenants vacated 3 years ago and during AGM , Gerald Ong promised shareholders they would bring in new tenant to take up the whole floor , but till today that floor still vacant.

Certainly Metro's property portfolio is undervalued is without a doubt. Question is, much like many other undervalued property counters trading at discounts to NAV, is when the management will do something to realize the value. In the meantime, excluding the accounting gains, the fact that Metro is actually making operating losses will continue to be a drag and concern.

I'm actually quite puzzled why they took up the space at Centrepoint...the retail landscape is so competitive as it is...amongst Tangs, Isetan, Taka, Robinsons and Metro...I actually like Metro the least..but that's just my personal opinion.