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28-09-2016, 08:00 AM
(27-09-2016, 10:51 AM)BlueKelah Wrote:(27-09-2016, 09:25 AM)gzbkel Wrote: >Westgate should be cash flow positive by end of this year since the funding for it was from the PLS profits.
If that's the case, why the $16.1M interest exp for 2015? Is that some kind of bridging loan?
>So in longer term if PLS retail / Westgate and AXA can generate >22m net income then the 3c dividend is pretty much sustainable without LKH having to do much other work until the property market start to boom again...
Historical payout has been around 30-40%. 3c dividend is around 22m, so they need net income of about 55m if they want to maintain the payout ratio.
Not sure if that is possible under current conditions...
LOL that is something i am not too sure as well....
For the 16.1 million, It is possibly for the loan that the JV first obtain to buy the Westgate Tower.
If you look at the AR16 page 79 : Non-current liabilities : Financial liabilities (excluding trade and other payables and provisions) WC(282,690m) WT(260,536m) Total(543,226m)
There seems to be outstanding loan of 543.226m on Westgate. 16.1m interest means the interest rate is about 2.96%.
Cost of Westgate was about $1900 PSF which is only doing $6 psf a month ($72 psf a year) thats 3.79% yield only for the office space. I am assuming the yield of the retail space will be better to balance it out. But looking at longer term, Jurong is gonna be a booming hub if the high speed rail link to malaysia ever comes about, so this investment for LKH is more of a longer term bet on capital gains.
dividend wise depends on the boss loh but historically they do ok payout compared to some other property counters.
iirc they only bought westgate office tower not the retail mall.
My views are your Gilbert & Sullivan's:
"The flowers that bloom in the spring, have nothing to do with the case".
"The flowers that bloom in the spring, have nothing to do with the case".