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21-12-2012, 12:23 PM
(This post was last modified: 21-12-2012, 12:24 PM by safetyfirst.)
perhaps to add on a little, the surplus whether it is recognised or not is unimportant, give you a similar real life example.
My parents bought my current hdb for around 70k about 20 years ago. Today it is around perhaps 400k. but so what if the price have gone up? if i sell it and i want to buy another similar property of the same size, it would probably cost around 400k.. In fact, if the market price my current hdb at 10k, it also wouldnt matter cos if i move house, the new house will probably cost around 10k
Some politicians claim that our house is an asset which i dont quite agree. I do agree that having a house saves on rental but the first house should not be viewed as an investment asset. Inflation makes our parents happy psychologically only. It is only for the 2nd or 3rd house, inflation is welcomed.
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22-12-2012, 02:35 PM
(This post was last modified: 22-12-2012, 02:36 PM by kayaroti.)
We have to see how the management unlock the value of the properties to realise the value.
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Amara investing in Myanmar hotel and real estate.
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I believe they are looking to Reit their hotels as well
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Quite decent set of result.
I jelly jelly estimated that amara recurring profits equates to 5% return.
The recurring profits cames from Amara SG / Amara Sanctury / 100AM
Additionally with their property development arm and properties to be sold, and two new hotels coming online. Looks more attractive compared to a recurring income hospitality reit.
The assets are ripe for Reiting. I wonder if they would do that.
Its attractive to reit now given hospitality reits trades at 20-40% above book.
(Vested)
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Hi Salty
May I ask what are the assessment criteria on whether the properties are ripe for REITing? Do macro economic conditions come in too?
tks.
(09-05-2013, 09:48 AM)Salty Wrote: Quite decent set of result.
I jelly jelly estimated that amara recurring profits equates to 5% return.
The recurring profits cames from Amara SG / Amara Sanctury / 100AM
Additionally with their property development arm and properties to be sold, and two new hotels coming online. Looks more attractive compared to a recurring income hospitality reit.
The assets are ripe for Reiting. I wonder if they would do that.
Its attractive to reit now given hospitality reits trades at 20-40% above book.
(Vested)
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Hi Stockerman
I am not an expert in this. It is just my aga aga guess, do take it as a pinch of salt.
1)When market is hot for REITs, they would trade it up to > Book value. Offering a discount on the traded book value would generate interest This also allow company to sell offload big asset at market value without discount.
2)When earnings are maximized. Seems that many new hotel space are coming online and room rates are expected to weaken. Coupled with interest rates at all time low and current "maximised" rental rates and high occupancy, profits are high and well.
Interest are also expected to increase in future.
3)When you need money to develop new projects? Amara Shanghai / Amara Bangkok / Amara myanmar? Just guessing on this part though.
4) When you see the trend on REITs listing. Business man knows their stuff more than us. Hence when they start to do in "trends" somewhat it would mean something.
With these, i think it is a good time to REIT it.
Just my rubbish though.
Hope some buddies can share their views as well.
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Amara Holdings - Spreading its wings in Asia; fair value
S$ 0.75
DBSV Research issues an Equity Explorer on Amara
Holdings with fair value of S$ 0.75 which offers 19%
potential upside to current price. Amara is an Asian
integrated lifestyle group with three key business areas:
hotel investment and management, property investment
and development, and specialty restaurants and food
services. Further to its regional ambitions, the group
intends to grow its hotel business in Myanmar through a
JV to develop and operate a hotel in Dagon Township,
Yangon, with capital of US$50m.
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Hi Kayaroti
With all the latest developments, is the RNAV still $1.064 ?
Tks
kayaroti Wrote:In the recent re-rating of Hotel and Property counters, Amara seems to be overlooked by most. It could be that its reported NAV is only $0.39.
However, if you take a closer look at its yet to recognised surpluses on its properties, it may be a different story altogether and may be worth considering for value investors.
Recently Amara has also ventured into its first EC project.
[URL="http://www.stproperty.sg/articles-property/singapore-property-news/amara-hldgs-develops-its-first-ec-project/a/94706"]http://www.stproperty.sg/articles-property/singapore-property-news/amara-hldgs-develops-its-first-ec-project/a/94706[/URL]
Ref [URL="http://www.amaraholdings.com/Annual_Report_2011/Amara_AR.pdf"]http://www.amaraholdings.com/Annual_Report_2011/Amara_AR.pdf[/URL]
Base on 2011 Financial report
Total surplus not recognised (pg 82) = $229,230,000 + $86,497,000 + $71,603,000 = $387M
NAV in report = $0.3931
Total number of shares issued is (pg 90) about 577M
RNAV = $0.3931 + $387M/577M = $0.3931 + $0.671 = $1.064
At 44 cents Amara is trading at about 60% discount to RNAV.
Vested and Caveat Emptor
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