27-05-2013, 08:38 PM
Thanks Nick for the pointed and precise reply.
Risk of being too simplified, i would say that the foreign asset valuation (if base on cap rate) should be:
Asset valuation = NPI (after tax) / Cap Rate.
Cyclone raised a very valid concern on BTO.
If the terminal value of Pluit Village go to 0 (zero) by 2027.
Should we assign certain discount to its NPI ($21M) as well?
(Not vested in any REITs)
Interested in REIT business model and just for discussion.
Risk of being too simplified, i would say that the foreign asset valuation (if base on cap rate) should be:
Asset valuation = NPI (after tax) / Cap Rate.
Cyclone raised a very valid concern on BTO.
If the terminal value of Pluit Village go to 0 (zero) by 2027.
Should we assign certain discount to its NPI ($21M) as well?
(Not vested in any REITs)
Interested in REIT business model and just for discussion.