We are looking at different comparisons - totally different operating environment and asset classes.
Sing Hldgs is a boutique Singapore based developer in which gestation and turnaround is shorter. However there is a lack of recurrent income at Sing Hldgs.
Stamford on the other hand operates in a long gestation environment. A typical development will easy take 5 yrs from planning stage to completion - by which time half a usual 10 year cycle is gone. However, recurrent income at St****** is much higher than Sing Hldgs due to its established portfolio of Hotels and newly completed office building that is leased out long term to oil giant Chevron. Development profits at Stamford is a typical bullet - once in 4 to 5 years at the fastest. As Stamford is opportunistic on developments, unlike mass housing developer down under, there is a lack of recurrence in terms of development profits.
I do not have a good feel on Sing Hldgs.
However, I think a current discount on St****** is around 50% and that is conservative given the lack of new hotel supplies in Australia and the WALL of Money that is scouting globally for quality assets.
There is hardly much assets within Sing Hldgs that is subjected to active sale apart from ongoing developments.
On the other hand, St****** has been trying unsuccessfully to sell its portfolio of hotels so much so that it has turned many investors off - myself included at some stages.
Nevertheless, the current global economics favour all hard asset owners. With global central bankers engaging actively in currency depreciation via monetary stimulus measures, the value of money is getting smaller by the day. Hence, the asset owners with the most hard assets stand to benefit the most. Willingness to sell cannot be faulted at St****** just that the owner is squeezing for the ultimate money for the quality assets that many suitors are chasing - hence "Greed is Good" at St****** under present global economic scenario.
As for macro economic - Singapore has firmly in place anti-speculation measures (7 rounds) to ensure the asset bubble does not blow out of proportion. Interest rates has been low to non-existent for a long time. Over in Australia, monetary policies remain effective and RBA has cut interest rates to levels last seen at 1959 - 2.75% risk free to be exact. As Australian property market has enjoyed a unprecedented 20 year uptrend only to pause for a breather during 2011/12, the ultra loose monetary policy is certainly going to result in a reflation of assets in Australia, hence selling properties in the right state, city and right location is likely to be easier in Australia than in Singapore, IMO.
I think dividend yield on St****** is around 5%, and I think Sing Hldgs should be lower.
No prize for guessing - my pick St****** for its steep discount to RNAV and its more sustainable dividend yield.
Vested
Sing Hldgs (Odd Lot)
St****** (Sizable)
(08-05-2013, 08:34 PM)pianist Wrote: Between singhldgs and St******, which is a better bet?
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